The Rising Influence of Rising Affluence

[OakesCS]

A lot of oil in the Permian is produced using CO2. Roughly 1 ton of CO2 is injected/bbl oil produced. Those producers get a tax credit of $10.92/ton CO2 injected. My memory is foggy on the CO2 pipeline costs from Colorado but I'm guessing it's a couple $/ton so many Permian producers are getting a roughly $8/bbl subsidy gratis of the US taxpayer. Since that's fairly high quality oil without transportation problems and close to refineries, those producers have a large advantage.