Leah Douglas is the author of this article.
Summit Carbon Solutions, a company aiming to construct the largest carbon dioxide capture pipeline in the United States, has consistently made assurances that their project will not be utilized by drillers to enhance oil field production.
Summit has a unique message for potential clients, including North Dakota’s oil sector. As per state regulatory filings and recordings of public appearances by company executives, Summit encourages clients to simply write a check if they are interested in utilizing their project for enhanced oil recovery (EOR). This process involves pumping gas into oil fields to enhance production.
Summit is making a concerted effort to garner widespread backing for its ambitious $5.5 billion initiative. The project aims to capture a staggering 18 million metric tons of CO2 each year from 57 ethanol plants in the Midwest. Subsequently, the captured CO2 will be safely stored underground at a designated site in North Dakota.
The success of Summit’s goal to commence operations by 2026 and make significant advancements in carbon capture and storage is a crucial test for this technology. Carbon capture and storage is a vital tool in combatting climate change; however, it encounters challenges such as unproven scalability and public concerns.
The ethanol industry is advocating for Summit to sequester its carbon in order to reduce its carbon intensity and qualify for valuable tax credits offered by state and federal clean fuel programs.
The oil industry is eager to utilize the pipeline for Enhanced Oil Recovery (EOR), as drillers in North Dakota’s Bakken region believe that it is crucial for reviving the declining output of the once-thriving area. In fact, a coalition called Friends of Ag and Energy was established by North Dakota oil players in December, with the aim of advocating for carbon pipelines like Summit’s. They have even invested thousands of dollars in radio advertisements to further their cause.
According to Ron Ness, the president of the North Dakota Petroleum Council (NDPC), the Summit project holds great potential and offers a significant opportunity in the Bakken. Ness believes that the size of the prize in the Bakken is substantial and sees a tremendous long-term opportunity for growth.
Summit has consistently affirmed, both in sworn testimony to state pipeline regulators and on its website, that it has no plans to employ its project for Enhanced Oil Recovery (EOR).
According to the website, the Summit Carbon Solutions project explicitly states that it will not be utilized for enhanced oil recovery. The company also confirmed this to the Iowa Utilities Board (IUB) in August, stating that they have no intention to transport CO2 for use in EOR.
Environmental groups tend to oppose enhanced oil recovery (EOR) due to concerns about its potential to prolong the existence of the fossil fuels industry.
Summit officials have recently expressed their intentions to utilize the pipeline for transporting carbon to enhance oil production in the future.
Wade Boeshans, Summit’s executive vice president, stated at a December 20 event held by Friends of Ag and Energy in Bismarck, North Dakota, that currently, there is no demand from shippers to transport CO2 for EOR. However, if this situation changes in the future, they would be open to moving CO2 for that purpose.
In a filing submitted to the IUB on January 19, attorney Bret Dublinske from Summit emphasized that the company does not have ultimate control over the decision of future customers to utilize the pipeline for enhanced oil recovery (EOR).
During a radio interview on February 7, Bruce Rastetter, chairman of Summit’s parent company Summit Agricultural Group, expressed the company’s willingness to explore the possibility of using Enhanced Oil Recovery (EOR) methods.
Summit CEO Lee Blank maintains a consistent message regarding EOR.
“Our primary focus is on the ethanol industry and carbon sequestration,” he emphasized. “We will continue to prioritize these areas unless the market demands a change.”
According to Blank, the company has a contractual obligation to store all the carbon it captures at ethanol plants that have partnered with them.
Oil Industry Allies
Data from the Energy Information Administration reveals that North Dakota experienced a drilling boom in the late 2019, which propelled it to become one of the leading crude suppliers in the country. However, the state’s oil production has not been able to regain its peak levels since then.
According to John Harju, the vice president for strategic partnerships at the University of North Dakota’s Energy and Environmental Research Center, the state will require up to ten times more CO2 than it currently captures from stationary sources in order to extract billions of barrels of oil from the Bakken fields.
“I believe that importing CO2 through pipelines will ultimately become a necessity,” Harju expressed.
Summit has encountered challenges in obtaining state permits and land easements from certain landowners along its route in North Dakota. These obstacles arise from concerns related to safety, land rights, and the environment.
From early December to February, Friends of Ag and Energy ran an advertising campaign on six North Dakota radio stations. According to records from the Federal Communications Commission, the group paid a total of $16,366 for 487 ads across the six stations in December. Unfortunately, invoices for the other months were not available.
The chair of the group, Kathleen Neset, is an oil sector consultant from North Dakota and a member of the board of the North Dakota Petroleum Council. Despite being contacted for an interview, Neset did not respond.
According to the group’s public filings, its parent organization, Primus Incorporated, has influential figures in the state oil industry as its board members and donors.
Summit is currently prioritizing sequestration efforts, driven partially by the Inflation Reduction Act’s expansion of the 45Q tax credit program. This program offers $85 per ton of sequestered carbon, while only providing $50 per ton for enhanced oil recovery (EOR).
Executives and oil industry players have stated that changing this policy could potentially impact the company’s priorities regarding EOR.
Leah Douglas reported on the topic, with Richard Valdmanis and Anna Driver editing her work.
