The potential of enhanced oil recovery by carbon dioxide flooding in New Mexico: Final technical report
This 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/B to $40/B, minimum rates of return of 10% and 15%, and 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/B, 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/B. 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 to 28/B range, New Mexico's oil production and oil-based taxes could be sustained at near current levels well into the next century. 45 figs., 9 tabs.
- Research Organization:
- Interstate Oil Compact Commission, Oklahoma City, OK (USA); New Mexico Univ., Albuquerque (USA). New Mexico Research and Development Inst.
- OSTI ID:
- 7175799
- Report Number(s):
- NMRDI-2-74-4806; ON: DE87900413
- Resource Relation:
- Other Information: Portions of this document are illegible in microfiche products
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
CARBON DIOXIDE INJECTION
COST BENEFIT ANALYSIS
NEW MEXICO
OIL WELLS
ECONOMICS
ENHANCED RECOVERY
FINANCIAL INCENTIVES
MISCIBLE-PHASE DISPLACEMENT
PETROLEUM
SEVERANCE TAX
TAX CREDITS
ENERGY SOURCES
FEDERAL REGION VI
FLUID INJECTION
FOSSIL FUELS
FUELS
NORTH AMERICA
RECOVERY
TAXES
USA
WELLS
020300* - Petroleum- Drilling & Production
020700 - Petroleum- Economics
Industrial
& Business Aspects