Spiritus has recently signed three letters of intent (LOI) with oil and gas operators in the Gulf of Mexico, Midwest, and Rockies. These contracts are aimed at supplying over three million tons of carbon dioxide (CO2) per year for enhanced oil recovery (EOR) processes.
Contract Details
These contracts allow Spiritus to supply CO2 for EOR projects in the United States. This process is primarily used in old oil fields where production has declined due to reduced pressure. By injecting CO2 into these fields, it is possible to increase oil recovery; it can potentially recover up to 15 to 20 percent of the remaining oil.
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Spiritus anticipates that the CO2 supply for these projects will exceed three million tons per year. Experts believe that this supply could significantly impact increasing oil production and reducing greenhouse gas emissions, as CO2 is used as a recycled material in this process.
Environmental and Economic Impacts
Using CO2 for EOR not only helps increase oil production but can also play an important role in reducing carbon-related pollution. Specifically, this method can help reduce CO2 emissions into the atmosphere, as this gas is stored underground instead of being released.
Economically, these projects can lead to the creation of new jobs in the oil and gas industry and also help increase tax revenues for governments. Additionally, with increased oil production, global oil prices may be affected, and oil markets may shift in favor of producers.
With these contracts, Spiritus aims to expand its operational scope and improve the economic status of oil fields currently facing economic and environmental challenges. By supplying CO2, the company not only helps improve oil production processes but also pays attention to reducing negative environmental impacts.
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