Biden's climate law may boost oil production through enhanced recovery

Oil companies could use tax credits from the Inflation Reduction Act to extract more crude from existing wells through enhanced oil recovery, which injects CO2 underground to dislodge oil.

Shelby Webb reports for E&E News.

In short:

The Inflation Reduction Act boosts tax credits for storing CO2, incentivizing its use for oil recovery.
Critics argue weak oversight allows companies to claim tax benefits without effectively storing CO2.
Environmentalists say enhanced oil recovery (EOR) undermines climate goals by encouraging fossil fuel production.

Key quote:

“There’s a lot of money from the [Inflation Reduction Act], and a lot of concerns that taxpayer money is going out the door to industry that hasn’t proven EOR to be an efficient climate solution.”

— Autumn Hanna, vice president of Taxpayers for Common Sense

Why this matters:

EOR could help oil companies extend well production while claiming climate-friendly tax credits. Without better oversight, it’s unclear whether this will actually reduce carbon emissions.

www.eenews.net

Biden's climate law may boost oil production through enhanced recovery

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