Kinder Morgan received permits from the Arizona Oil & Gas Conservation Commission, for two new carbon dioxide wells in the St John's field in eastern Arizona.The 10-26-30 State (permit #1146) and 9-25-30 (permit #1147) wells are both in Apache County.
Kinder Morgan intends to produce CO2 for shipment by pipeline to New Mexico and West Texas for use in enhanced oil recovery operations. When the EOR process is complete, most of the CO2 should be sequestered in the oil producing geologic horizons.
Lee, Do you know at what pace this project is moving. Do you believe this project could have an influence on the local economy.
ReplyDeleteOur sense is that progress is steady. Kinder Morgan permitted three and drilled and tested two wells in AZ this year and at least one well on the New Mexico side. Their rep reported in the July meeting of the Arizona Oil & Gas Conservation Commission that the results were positive and that the company may permit more wells in the second half of the year.
ReplyDeleteGiven their plans to drill as many as 250 development wells, and produce 400 million cubic feet per day of CO2, that would be pumped by pipeline to New Mexico and Texas, it's hard to imagine that they would not have an impact on the local economy.
The potential for helium production would further enhance the value and scope of operations there.
Are they fracking in the well process?
ReplyDelete