The Permian Basin of southwest Texas and southeast New Mexico is one of the largest and most active oil basins in the United States, with the entire basin accounting for approximately 16 percent of the total United States oil production. Our strong position in the Permian Basin, where we account for approximately 15 percent of all oil produced, makes Oxy the No. 1 oil producer in Texas. We are the leading operator in the basin, with a deep inventory of more than 2,000 drilling locations on nearly 3 million net acres.

Approximately two-thirds of Oxy’s Permian Basin oil production is from fields that actively employ carbon dioxide (CO₂) flooding, an enhanced oil recovery (EOR) technique in which CO₂ is injected into oil reservoirs, causing the trapped oil to flow more easily and efficiently. Oxy is an industry leader in applying this technology, which can increase ultimate oil recovery by 15 to 25 percent in the fields where it is employed.

In the Permian, we operate more active CO₂ floods than any other CO₂ flood operator, and our CO₂-related production is nearly equivalent to that of all other Permian operators combined. Each year, we inject more than 550 billion cubic feet of CO₂ into oil reservoirs in the Permian, making Oxy the largest injector of CO₂ for EOR in the United States and a world leader in this technology.

In addition to boosting oil production, CO₂ EOR can have environmental benefits. The CO₂ circulates within a “closed loop”; over time, virtually all of the injected CO₂ ultimately becomes permanently and safely trapped in the underground oil reservoir. CO₂ EOR therefore is a means of permanent geologic storage of carbon dioxide. This could significantly reduce future greenhouse gas emissions to the atmosphere.

To ensure an adequate supply of CO₂ for our EOR operations in the Permian, Oxy relies upon several sources. These include carbon dioxide produced from the Oxy-operated Bravo Dome field in northeastern New Mexico, and additional supplies from methane fields in the southwestern Permian.

The Century Plant in Pecos County, Texas, further expands Oxy’s EOR infrastructure in the Permian Basin. The plant processes natural gas with high-CO₂ content, resulting in methane gas for the market as well as a major new source of CO₂ for Oxy’s Permian operations.