PetroSource Energy Company, LP
PetroSource Energy Company, L.P. (PSEC), a wholly-owned subsidiary of SandRidge Energy, Inc., is a Midland based, integrated CO2 company. Through its anthropogenic source of CO2 for supply, owned and operated CO2 pipelines for transportation and equity ownership of CO2-Enhanced Oil Recovery (EOR) Projects, PetroSource is directly involved in all aspects of the CO2 business in the Permian Basin.
PSEC is currently engaged in the capture and storage of CO2 emissions from 4 gas processing plants in the southern Permian Basin of Texas. The storage utilized is in reservoirs suited for CO2-EOR. CO2 injection can significantly increase the recovery from mature fields providing oil production growth. PSEC sees the potential for future value growth through capture and storage activities and CO2-EOR in areas outside the Permian Basin. Given current interest and the growing number of social, political and business pressures, there is an increasing number of like minded business partners that are looking for avenues to converge the interests of EOR and CO2 storage.
PSEC plans to increase its captured CO2 volumes and focus on value growth through 3 venues:
- Development of equity CO2-EOR projects
- Marketing of high quality Emission Reduction Credits (ERC)
- Partnerships with new industrial CO2 sources – from plant gate to underground storage
We believe this model can be replicated in many areas of the country given the right incentives, value propositions and partners.