What We Do

Denbury is an independent energy company with operations and assets focused on CCUS and CO2 EOR in the Gulf Coast and Rocky Mountain regions. For over two decades, Denbury has maintained a unique strategic focus on utilizing CO2 in our EOR operations and since 2012 has also been active in CCUS through the injection of captured industrial-sourced CO2. Denbury currently injects over three million tons of captured industrial-sourced CO2 annually, and our objective is to fully offset our Scope 1, 2, and 3 CO2 emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO2 used in our operations.


Part of what makes Denbury unique among domestic oil and gas companies is our historical focus on developing significant and otherwise stranded reserves of oil from depleted reservoirs through CO2 EOR.

In many U.S. oil fields, it is estimated that only about 30% to 40% of the original oil in place (“OOIP”) is recoverable through primary and secondary methods. Our experience has shown that CO2 EOR can recover another 10% to 20% of the OOIP. While the technology used in CO2 EOR may not be considered new, we apply several concepts learned over time to improve and increase CO2 utilization efficiency within the reservoirs. For example, we are focused on using CO2 more efficiently in our operations which allows us to decrease the amount of naturally-occurring CO2 injected in our operations, thereby increasing the proportion of industrial-sourced CO2 utilized in EOR. Implementing this strategy improves the economics of the process and makes CO2 EOR operations economically viable on a wider scale, even in a lower oil price environment.

We began our CO2 EOR operations in 1999 when we acquired Little Creek Field in Mississippi, followed by our acquisition of Jackson Dome CO2 reserves and the Northeast Jackson Dome (“NEJD”) Pipeline in 2001. Based upon our success at Little Creek and the ownership of significant CO2 reserves at Jackson Dome, we began to transition our capital spending and acquisition efforts to focus predominantly on CO2 EOR. Today, our asset base primarily consists of current CO2 EOR projects, future CO2 EOR projects and assets that produce, process and transport much of the CO2 that we use.

Our oil and natural gas properties are concentrated in the Gulf Coast and Rocky Mountain regions of the United States.



For many years, oil has been produced from the earth using a variety of different production techniques, typically occurring in three phases: primary, secondary and tertiary oil recovery. Primary oil recovery is limited to hydrocarbons that naturally rise to the surface, or those that use artificial lift devices, such as pump jacks. In secondary production, water is typically injected to re-pressure the target formation, providing energy and mobility to sweep the remaining recoverable liquids to the wellbore for recovery. Utilizing only primary and secondary recovery methods can leave up to 70% of the OOIP.

Tertiary production occurs after both primary and secondary recovery production is complete. This phase of production requires a catalyst that will interact with the stranded oil so that it will flow through the rock reservoir to the wellbore. Pressurized CO2 injection is a proven tertiary EOR technique and can recover, on average, an additional 10% to 20% of the OOIP.

In 2020, CO2 EOR accounted for approximately 2.8% of average U.S. daily production, or approximately 323,000 barrels of oil per day or over 115 million barrels per year. CO2 transportation pipelines currently cover over 5,000 miles.

EOR Can Deliver Almost as Much Oil as Primary and Secondary Recovery1

1 Based on original oil in place at Denbury’s Little Creek Field.

Financial Impacts of Tertiary Recovery

The economics of a tertiary field differ from conventional oil and gas plays. While it is difficult to accurately forecast future production, tertiary recovery operations provide significant long-term growth potential at reasonable return metrics, with relatively low risk, assuming crude oil prices are at levels that support the development of those projects. Denbury’s tertiary operations represent a significant portion of our overall operations. We have been developing tertiary oil properties for over 20 years, and the financial impact of such operations is reflected in our historical financial statements. For more information on how tertiary operations have impacted our financial statements, see Annual Report on Form 10-K: Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Overview of Tertiary Operations.


Sources and Capture
STEP 1: CO2 Sources and Capture

The first step in implementing a CO2 EOR project is to secure access to substantial volumes of CO2. Denbury sources CO2 both from naturally-occurring underground reservoirs and from industrial sources which capture, process and then compress the CO2 for delivery into a pipeline network. The CO2 captured from industrial sources (which is sometimes referred to as anthropogenic or man-made CO2) could otherwise be released into the atmosphere. For our Gulf Coast assets, Denbury sources naturally-occurring CO2 from Jackson Dome in Mississippi and industrial CO2 from two facilities: one in Port Arthur, Texas and one in Geismar, Louisiana. For our Rocky Mountain region, Denbury sources industrial CO2 from the Lost Cabin gas plant and the Shute Creek plant in Wyoming.

STEP 2: CO2 Transportation

Our CO2 EOR operations provide an environmentally responsible production method that utilizes CO2 for oil recovery, while also resulting in the associated underground storage of CO2.

The second step is transporting the CO2 from the source to the oil field. We operate or own over 1,000 miles of CO2 pipelines and are continually expanding this network to transport naturally-occurring CO2 and CO2 from industrial sources to our tertiary fields. Between 2019 and 2020 we utilized an average of approximately 145 million cubic feet of CO2 from industrial sources per day and we anticipate utilizing additional CO2 from industrial sources from currently planned or future construction of facilities in our Gulf Coast region.

STEP 3: CO2 Injection

The third step is to inject the CO2 into the oil-bearing reservoir through a wellbore. The injected CO2 moves through the reservoir, mixing with the remaining crude oil. The CO2 acts to separate the oil from the reservoir rock and increase the oil’s mobility within the reservoir. The mixture is driven through the formation into a producing wellbore, where it then comes to the surface, increasing the field’s oil production. As of December 31, 2020, our CO2 EOR operations have resulted in the cumulative gross production of over 215 million barrels of oil that may not have otherwise been recovered.

Benefits & Storage
STEP 4: CO2 EOR Benefits & Storage

CO2 EOR operations provide considerable economic and environmental benefits. The economic benefits of CO2 EOR include the creation of jobs through the investments required to implement and operate a CO2 EOR project, along with tax payments to local governments. Our CO2 EOR operations provide an environmentally responsible method of utilizing CO2 for the primary purpose of oil recovery that also results in the associated underground storage of CO2 while also making our nation more energy secure.

* In this section any references to “Denbury,” “our” or “we” refers to Denbury Onshore, LLC, or in case of references to CO2 pipeline infrastructure, an affiliate of Denbury Onshore, LLC.


Starting in 2012, we began purchasing and utilizing CO2 from industrial sources in our tertiary operations in the Gulf Coast region. These projects illustrate our unique ability to use captured CO2 that would otherwise be released into the atmosphere.

Denbury is currently party to several contracts to purchase CO2 from industrial sources (CO2 from these sources is also known as anthropogenic or man-made CO2) to use in our EOR operations. We have contracts to purchase CO2 from an industrial facility in Port Arthur, Texas, an ammonia plant in Geismar, Louisiana and the Lost Cabin Gas Plant in Wyoming. Between 2019 and 2020, these three sources supplied over 55 MMcf/d of CO2 for our EOR operations. Denbury also owns an interest in the CO2 produced at the LaBarge Field in Wyoming, which is captured from the Shute Creek Plant. Between 2019 and 2020, this source supplied approximately 90 MMcf/d of CO2 for our EOR operations. The CO2 captured from these industrial sources could otherwise be released into the atmosphere. Additionally, we are in ongoing discussions with other parties who have plans to construct plants or capture facilities near the Green Pipeline.

We continue to have ongoing discussions with owners of existing plants of various types that emit CO2 that we may be able to transport and store. In order to capture such volumes, we (or the plant owner) would need to install additional processing equipment. The capture of CO2 could be influenced by potential federal legislation, which could include incentives for capturing CO2 emissions. For example, Section 45Q of the Internal Revenue Code (Title 26 of U.S. Code) is expected to result in significant increased capture of industrial-sourced CO2. We believe that we can play a significant role in the capture, transportation and storage of CO2 because of the scale of our tertiary operations, our CO2 pipeline infrastructure, and our expertise.

*In this section any references to “Denbury,” “our” or “we” refers to Denbury Onshore, LLC, or in case of references to CO2 pipeline infrastructure, an affiliate of Denbury Onshore, LLC.

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