Ten years ago, the Jackson Clarion Ledger published my article detailing the mishandling of CO2 transportation lines built using eminent domain in the state of Mississippi. I predicted a dark fate if these concerns were not addressed.
My argument was simple. All other transportation lines, such as crude oil and natural gas, must post a tariff and declare as common carrier when utilizing eminent domain and CO2 transportation lines should be no different. The legislation proposed by myself and other oil and gas operators to address this inequity was not adopted and all my predictions have come to pass.
In the past 10 years, Mississippi’s 5.6 TCF of proven CO2 reserves have fallen to less than three TCF and of the 43 producing CO2 wells only 20 remain. At the time, Mississippi produced over one BCF per day of CO2. Now, the state produces less than half that amount. Most alarmingly, there has not been a single new oil field converted to CO2 flood during that time.
Mississippi’s CO2 reserves are unique and precious. The nearest naturally occurring CO2 reservoirs are as far away as Colorado and New Mexico. This resource allows operators to produce an additional 20% of the original oil in place. Without these reserves, an estimated 325 million additional barrels of oil can never be recovered.
The policy of shipping 40% of the state’s CO2 production to Texas and Louisiana tax free and locking out all new oil and gas operators is clearly a net loss for Mississippi. The lobbyists promoting this insane policy cannot honestly articulate the advantages. The people of this great state deserve to benefit from their own irreplaceable natural resources. Until we have change, things will only get worse.
Mark Worthy is a former executive of Denbury.
