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POINT OF VIEW: CO₂ geological sequestration opens opportunities for Permian basin

Oil & Gas Journal

Guntis Moritis
Production Editor

Houston, Dec. 1 -- Geological sequestration of carbon dioxide may invigorate petroleum activity in the Permian basin of West Texas and New Mexico, envisions L. Stephen Melzer, a long-time consultant and oil and natural gas investor in Midland, Tex.

The basin encompasses the Texas Railroad Commission's Districts 7C, 8, and 8A and New Mexico counties of Lea, Roosevelt, Eddy, and Chaves.

It remains one of most important US oil and gas regions, producing about 900,000 b/d of oil and 4 bcfd of gas. Output from the basin, however, has decreased from the highs of 2 million b/d of oil in 1973 and 9.8 bcfd of gas in 1974.

The basin also is the world capital for CO₂ injection for enhancing oil recovery. Its extensive pipeline and facility infrastructure moves and injects more than 1.1 bcf (63,000 tons) of new CO₂ each day into oil reservoirs to produce about 160,000 b/d of oil that would have remained unexploited. Production from CO₂ flooding has seen a steady growth to where it now represents 18% of the oil production from the Permian basin.