Sections of the pipeline crossing Galveston Bay are already under construction and the company plans to link it to the Hastings field, south of Houston, on schedule.
Denbury has already begun CO2 flooding at the Oyster Bayou field at a rate of 44 million cubic feet per day, though first oil is not planned there until later next year.
Currently, the company’s CO2 comes from a natural source in Mississippi, but Denbury’s operations boss Tracy Evans told the NAPE Expo conference in Houston that enhanced oil recovery could take more than 10% of the CO2 generated in the US and could take roughly all the CO2 forecast to be captured over the next 10 to 20 years.
“We
