SandRidge Energy CEO Tom Ward (center) and Executives from Occidental Petroleum Break Ground on the $800 Million Century Plant in West Texas
You’re an industry veteran, yet from what I gather SandRidge is doing something new when it comes to producing natural gas.
We just broke ground on a new plant in West Texas, and we’re partnering with Occidental Petroleum on this venture. It’s called the Century Plant. It’s a win-win opportunity for SandRidge, for Oxy, and for America’s energy independence.
How’s that?
Roughly 55 percent of the gas that comes out of the ground is actually CO2.
Carbon dioxide.
That’s right. The remaining 45 percent is methane, which is what natural gas companies like SandRidge supply to its customers as fuel for houses.
So SandRidge is not in the CO2 business.
Exactly.
But Oxy is.
Correct. Oil producers such as Oxy use CO2 for enhanced oil recovery in older fields.
So after primary and secondary recoveries have been exhausted, Oxy pumps CO2 into an older well to increase production.
That’s why this new Century Plant stands out. The investment that’s being made by SandRidge and Oxy will not only produce the gas that I’ve just mentioned, but according to Oxy’s press releases I believe they say they’ll be producing 50,000 more barrels a day of oil that would not have been possible if not for the CO2 coming out of this plant. That’s 50,000 barrels a day that will not need to be imported. Plus, over the next two years 500 jobs are added to the local economy as this $800 million plant is built.
That’s what Boone has been talking about. He’s for everything American.
I think Boone has started a movement that is really gathering steam. And that’s what I see happening, even in our operational planning and development. Over time, there will be other CO2 pipelines and projects. The United States has billions of barrels of domestic oil that has been discovered, but that cannot be produced without tertiary recovery using CO2. This will help America become less reliant on imported oil. In addition, as the CO2 is permanently sequestered underground through the tertiary recovery process, it allows companies like SandRidge to access significant natural gas reserves that would otherwise be uneconomical to produce. These natural gas resources can also help alleviate our dependence on foreign oil. And that’s what we focus on.
INTERVIEW CONDUCTED, CONDENSED, AND EDITED BY ERIC O’KEEFE