Fanning said that tapping the deposit was “like waking up and finding money in your attic.” The old oil fields offer an opportunity for enhanced oil recovery. Fanning said Kemper’s carbon dioxide will add 2 million barrels a year to U.S. oil output. A speck compared with total U.S. oil consumption, it’s still a useful revenue stream for Southern. Fanning said that the CO2 price will be linked to oil prices. Without divulging exact terms, Fanning and industry analysts estimate that if CO2 is priced at $40 a ton and oil prices stay around $90 a barrel, the economics make sense. Kemper’s carbon dioxide will be sold to Denbury Resources , an oil firm operating the Heidelburg field, which was discovered in 1944. Moniz said that by selling carbon dioxide and other byproducts, Kemper could earn an extra $80 million a year. With the EPA advancing to the next stage of rulemaking, coal companies, Republican lawmakers and others are making a huge push to change its course.
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