2021 ] CARBON CAPTURE , UTILIZATION , AND SEQUESTRATION 55
burning fossil fuels . 52 Given that the residential and commercial sectors have lower CO 2 emissions than the industrial sector , a widespread curtailment or reduction of the CO 2 emissions from industrial sources ( through CCUS , EOR , and other methods ) would have a meaningful impact on the amount of CO 2 emissions released into the atmosphere . One article prepared by the IEA recently provided the following example :
Today , between 300kg CO 2 and 600kg CO 2 is injected in EOR processes per barrel of oil produced in the United States ( although this does vary between fields and across the life of projects ). Given that a barrel of oil releases around 400kg CO 2 when combusted , and around 100kg CO 2 on average during the production , processing and transport of the oil , [ anthropogenic CO 2 injection in EOR ] opens up the possibility for the full lifecycle emissions intensity of oil to be neutral or even ‘ carbonnegative .’ 53
A majority of the CO 2 used for EOR operations has been sourced from naturally-occurring deposits up to this point . 54 But , recent federal legislation has now incentivized the use of anthropogenic CO 2 . 55 The factors discussed above suggest that the use of CCUS technology is not only beneficial for purposes of recovery but may one day be called for by state regulators in order to mitigate waste and environmental impact . 56
In fact , many oil companies have already embraced that CCUS is necessary for oil companies to survive in the face of climate and environmental concerns . Since 2019 , Repsol , Lundin Petroleum , British Petroleum , Oxy , and Shell have pledged to become carbon neutral . Vicki Hollub , CEO of Oxy , has remarked that the use of this technology has been well-established for conventional oil wells , but recent amendments to Section 45Q now make CCUS projects economic in the context of horizontal shale wells . 57 Hollub cited CCUS technology as something that “ has to happen ” in order for the mandates under the Paris Climate Agreement to be achieved . 58 Hollub ’ s remarks indicate that CCUS is not only an investment strategy , but a lifeline . “ We want to be the company
52 . Seesupra note 7 and accompanying text . 53 . Christophe McGlade , Can CO2-EOR really provide carbon-negative oil ?, INT ’ L ENERGY
AGENCY ( Apr . 11 , 2019 ), https :// www . iea . org / commentaries / can-co2-eor-really-provide-carbonnegative-oil . 54 . Id . 55 . Generally , the term anthropogenic CO 2 refers to man-made CO 2 . However , some states , such as Texas , have defined this term by statute . See generally , TEX . WATER CODE § 27.002 . The Texas Water Code defines “ anthropogenic carbon dioxide ” as CO 2 that otherwise would have been released into the atmosphere but instead has been captured from a fluid stream or an emissions source ( such as a power plant or industrial site ). Id . 56 . See generally , Righetti et al ., supra note 50 . 57 . Crooks , supra note 39 . 58 . Id . While the United States withdrew from the Paris Climate Agreement in 2017 , stakeholders with international asset portfolios still must consider the agreement ’ s impact on their operations in countries that are party to the agreement . However , Section 45Q credits will only be applicable for qualified carbon oxide captured within the United States .