Cedar Creek Anticline CO2 Pipeline creates new net-carbon negative oil production and carbon storage opportunities for Montana
By Denbury Inc. MPA MEMBER DENBURY INC. has completed the 16-inch, 105-mile Cedar Creek Anticline (CCA) carbon dioxide (CO2) pipeline extension from Bell Creek Field in Powder River County to Fallon County near Baker, Montana in late 2021 and has also added a 12-inch, 17-mile lateral CO2 line to Bowman county, North Dakota. The first CO2 injection was commenced in early 2022 in Cedar Hills South Unit (ND) “CHSU” and East Lookout Butte Unit (MT) “ELOB”. The CCA project catapults Denbury as the owner and operator of the largest CO2 pipeline network in the United States. The multimillion-dollar project transports CO2 to 8 The Treasure State Journal® 2022
the CCA, whose estimated cumulative recoverable reserves from enhanced oil recovery (EOR) exceed 400 million barrels. Because these reserves will be exclusively produced by using captured industrially sourced CO2, the project will produce Scope 1, 2, and 3 carbon negative emissions oil – also known as “Blue Oil”. Denbury, the largest crude oil producer in Montana, has been planning the CCA pipeline and EOR field development for several years. The project will be conducted in “Phases”, with Phases 1 in development and Phase 2 being planned. Phase 1 targets an estimated 30 million barrels of recoverable oil in the Red River
formation in ELOB and CHSU. Phase 2 targets approximately 100 million barrels of recoverable oil in the Cabin Creek area from the Stony Mountain and Red River formations. Future phases in the remainder of the CCA will require years to develop and target multiple formations. The CCA is considered one of the larger U.S. oil-bearing structures with an estimated five billion barrels of original oil in place (OOIP) spanning nearly 100 miles in length, yet only a few miles in width. Future state and local revenue from expanded tax base – severance, ad valorem - will likely total millions of dollars over many years.
