carbon dioxide
produced from industries is used to extract crude oil from the
earth’s crust. Hence, it saves the environment from getting
polluted. Earlier disposal of greenhouse gas such as carbon dioxide
was a huge area of concern, but with the advancements in technology
carbon dioxide is easily utilized to extract crude oil, thereby
protecting the environment from getting harmed. Carbon dioxide
injection technology is expected to increase for two reasons which
are: disposal of greenhouse gas and increase in oil recovery through
miscibility. Easily available large quantities of CO2 reduces down
the cost of crude oil extraction as raw material is available in
plenty and accessibility for carbon capture storage are also easier
for exploration and production (E&P) companies. Therefore, an
extensive CO2 supply pipeline network has been developed in this
region. This extensive network helps to meet the upward CO2 demand
from CO2 EOR sub-industry and in future it is expected that CO2
injection will be the dominant technology of all the three EOR
technologies. Other gases such as nitrogen and hydrogen are also used
for the extraction of crude oil but to a lesser extent than CO2.
Permian Basin has
strong support from local and state government that drives the
development of the CO2 supply network thus the CO2 EOR market. These
norms and regulations provide tax benefits and incentives for carbon
capture and storage plants. Easily available large quantities of CO2
in the U.S makes Permian basin a preferred choice for oil exploration
companies to extract crude oil from a field in Permian region. It is
estimated that in the future Permian basin will be one of the most
reliable sources of crude oil supply. Considering the global CO2 EOR
market, Permian Basin CO2 EOR market has dominated the global CO2 EOR
market in terms of oil production due to the high number of projects.
Hence, U.S is projected to be a net exporter of crude oil in the
coming years.
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