On the economics of CO₂ contracts in the enhanced oil recovery industry

While Carbon Dioxide based Enhanced Oil Recovery (CO2 -EOR) is often regarded as one of the most economically viable methods carbon capture, utilization and storage (CCUS), little known about existing CO2 supply contracts in -EOR industry. By studying a sample 103 sales U.S. 1980s 1990s, this paper aims to find out what drives key terms these contracts. In particular, special price adjustment clause included peg oil price. Our analyses suggest that probability pegging term used positively associated with contract length. Besides, initial prices, volatile historical net also impacts adoption price-pegging mechanism.