Potential of enhanced oil recovery by carbon dioxide flooding in New Mexico. Technical report, 30 August 1985-30 November 1986 (Final)
The report examines the potential of carbon dioxide miscible flooding in New Mexico to increase oil reserves and production, state and local revenues, state economic activity, jobs and wages, gross domestic product, and federal revenues. Using models and data bases built for the National Petroleum Council's study of enhanced oil recovery, 97 New Mexico reservoirs were evaluated to determine the potential of carbon dioxide flooding at prices from $16/barrel to $40/barrel; minimum rates of return of 10% and 15%; three tax treatments: current taxes and two incentive cases (relief from income and production taxes for the life of a project or until project payback). The results show that, at prices beginning at $20/barrel, substantial new reserves and production can be gained if tax incentives to payback are available, yielding substantial benefits to the state up to about $30/barrel. Beyond that price, incentives could be counter-productive to the state. Incentives can be administered through the use of a simple, readily measured ratio to determine approximately when payback occurs to minimize the administrative burden. With carefully designed incentives and oil prices in the $24-28/barrel range, New Mexico's oil production and oil-based taxes could be sustained at near current levels well into the next century.
- Research Organization:
- Interstate Oil Compact Commission, Oklahoma City, OK (USA)
- OSTI ID:
- 6670904
- Report Number(s):
- PB-87-143079/XAB
- Country of Publication:
- United States
- Language:
- English
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