Making enhanced oil recovery great again: OBBA 45Q tax credit shift cuts E&P costs by 40%
Enverus
JULY 29, 2025
“Our analysis of the budget reconciliation bill found that the hike in the tax credit from $60 to $85 per tonne reduces conventional EOR production breakevens by more than 40%, dropping from $28 to $16 per barrel. This is due to the incremental barrel of oil as well as avoiding lengthy Class VI permitting timelines,” said Jen.
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