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“The advancement of CCS technologies is essential if new coal power plantsare to operate in the low carbon future we must achieve.”-Rep. Suzanne Bonamici (D-OR) 98Currently, CO2-EOR operations rely mostly on CO2extracted directly from natural CO2 reservoirs, usuallyin close proximity to oil rigs. Natural CO2 supplies areexhaustible and really only available in the UnitedStates, although the rising demand for anthropogenicCO2 to increase oil extraction is global. 86 In thePermian Basin demand for CO2 by the oil industrybegan to exceed supply in 2004. 87Figure 4: CO2 Injection = Much More Oil 8835–65%25–45%Oil Becauseof CO2InjectionOil Extractedwithout CO2InjectionThe oil industry has viewed carbon capture with EOR(CC-EOR) as a key part of their expansion before anypublic relations work to greenwash it.No Green StampThe logical foundation of proponents of CC-EORis presented in a 2012 report commissioned by theNational Enhanced Oil Recovery Initiative (NEORI).The report states “[i]n a fortunate, if ironic, twist offate, a key to increasing America’s domestic energysecurity lies in capturing and productively utilizinga portion of our nation’s industrial CO2 emissions,thereby meeting a critical domestic energy challenge,while also helping to solve a global environmentalproblem.”NEORI describes itself as a diverse set of constituents.While three of NEORI’s 35 members andobservers are environmental NGOs, the overwhelmingmajority have a stake in carbon capture or EORwhether or not there is a climate benefit. 94 They aresurely quite happy to call it ‘green tech.’ NEORI hassucceeded in getting their recommendations intolegislative proposals, such as tax credits proposed bySenator Jay Rockefeller (D-WV). 95Carbon Capture Scam Chapter: 2The majority of CO2-EOR operations are in PermianBasin (Texas and New Mexico), where high-qualityCO2 sources reside near oil reservoirs “amenable”to EOR. 89 One analysis called EOR “the main driverbehind CCS,” which was before federal regulations onGHG emissions. 90 Oil companies, such as BP, viewCO2-EOR as the only way to maintain or increaseproduction. 91 Another analyst rightly noted, “...not onlydoes CCS need CO2-EOR to help provide economicviability for CCS, but CO2-EOR also needs CCS inorder to ensure adequate carbon dioxide supplies tofacilitate growth in production from EOR.” 92 In 2010there were already 129 CO2-EOR projects – only onewas labeled as a CCS project. 93Since 95% of oil is extracted to be burned, thuscreating more CO2 pollution, there is no simple logicthat using CO2 to increase oil supply benefits theclimate. 96 CC-EOR proponents making a case forthe climate therefore must rely on a set of elaboratepolitical economic assumptions.Even if they admit that there is some reduction in theclimate benefit, they must assume that a criticalmajority of the injected CO2 eventually staysunderground. Unfortunately, this assumption fails.One reaason is that extraction companies do notre-capture the CO2 during production. An analysis ofexisting CO2-EOR operations noted that “accountingfor CO2 losses is not typically done for EOR.” 97 That isnot surprising because for oil companies sequestrationof CO2 is not an objective – growth of theirindustry is.Page 16