OBBBA raises the 45Q tax credit for enhanced oil recovery (EOR) from US$60/t to US$85/t, aligning it with the credit for permanent storage. In this Intelligence note, we assess the implications for the CCUS industry by examining how much CO₂ is currently captured for EOR projects, the industries involved, the distinctions between Class II and Class VI wells, and why companies have historically favored Class II disposal wells. We also demonstrate that oil prices remain the primary driver of value in CO₂-EOR projects.

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