Chaparral hopes to add about 100 million cubic feet for its North Burbank project, plus an additional 50 million cubic feet for its other enhanced oil recovery operations in the Oklahoma and Texas panhandles.
“We’ll find it,” he said. “It’s just a matter of time.”
A green company
Fischer said he considers Chaparral to be a green company since its CO2 comes from man-made sources, which otherwise would vent the gas into the atmosphere. He said most of Chaparral’s CO2 comes from fertilizer plants, which emit almost pure carbon dioxide.
Ethanol plants release emissions that are about 95 percent CO2, but Fischer said the true prize could be coal-fired power plants. Their emissions, which are subject to increasing regulation by the U.S. Environmental Protection Agency, are about 12 percent carbon dioxide, but the total volume is much bigger, he said.
Fischer said CO2 from coal plants could be a valuable tool in boosting oil production if those emissions could be harnessed economically.
“It would be great for us if that opportunity existed because one of those plants is within 20 miles of Burbank,” Fischer said.
He said enhanced oil recovery will became an important part of the U.S. production mix in the the future, when the yield from the nation’s booming shale plays begins to tail off.
Going public in 2015
Fischer said Chaparral’s enhanced oil recovery operations should be a powerful draw when the company goes public, likely in the second half of next year. The company also has about 6,400 drilling locations in its Oklahoma holdings.
“We have no shortage of opportunity,” he said.