American oilfield services provider and pipeline operator Kinder Morgan has acquired nearly 12,000 acres of Texas oil and gas producing assets in its quest to take advantage of carbon capture incentives designed to boost output from producing fields, Reuters reported on Wednesday, citing unnamed sources familiar with the deal.
According to Reuters, the Kinder acquisition indicates the attractive nature of incentives laid out in the U.S. Inflation Reduction Act, which offers a tax credit for carbon sequestration of $60 per metric ton. That incentive has rendered aging oil and gas fields far more attractive to companies that have the technology to improve production.
Sources cited by Reuters said that Kinder Morgan already produces around 50,000 barrels of oil per day through the process of injecting carbon dioxide into wells to aid the path of oil to the surface. According to Reuters, that deal, which includes around 265 wells in a large, mature oilfield, is with Avad Energy Partners.
Time for the Canadian Federal Govt to set a price for Carbon Sequestration