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.
Related: Biden faces challenges in curbing US oil production
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.
Related: Biden faces challenges in curbing US oil production
