Hoeven Advances “Crack the Code 2.0” With Energy Secretary Wright to Double Oil Recovery & Life of Coal Plants

WASHINGTON – At a hearing of the Senate Energy and Natural Resources Committee this week, Senator John Hoeven and Department of Energy (DOE) Secretary Chris Wright discussed the importance of advancing the Senator’s Crack the Code 2.0 initiative, which partners the state’s coal and oil industries to double both oil recovery in the Bakken and the life of North Dakota’s coal-fired power plants. Hoeven outlined the need for DOE funding, which is making its way through the federal review process and could be awarded as soon as the beginning of May, in helping to develop large-scale pilot projects to advance the commercial viability of enhanced oil recovery (EOR) in the Bakken.
Hoeven has been working with Wright to finalize $36 million in federal funding for phase one of the Crack the Code 2.0 initiative. When combined with $76 million in private investment and $45.1 million in state funding total Phase 1 funding for the project will be $157 million.
“We take the CO2 off the coal plants, extending the life of those coal plants. We put it down hole for EOR, and we double our production in North Dakota. We’ve produced about 6 billion barrels. We can easily produce another 6 billion and more. That would still only be less than 25% of the oil out of the rock. So we’ve got to Crack the Code 2.0 – that is the major initiative in our state right now. If it works in North Dakota, it’s going to work in places like Texas, New Mexico, Pennsylvania and Ohio. We need to do that,” said Hoeven.
“I agree very much with your comment. You put it as you do, with heart and passion in the context centered in North Dakota, but you’re right. It’s not only gigantic for North Dakota, it’s gigantic for the United States of America. The shale revolution transformed the energy situation of our country in both oil and natural gas and natural gas liquids. We need that next generation shale revolution to increase recovery, as you call it Bakken, 2.0 I love the name. I think it’s spot on,” said Secretary Wright.
Crack the Code 2.0 is further supported by a policy Hoeven worked to secure in the One Big Beautiful Bill (OB3), also known as the Working Families Tax Cut Act, to properly align the 45Q tax credit to incentivize the use of CO2 for EOR. Doing so supports coal producers’ continued operations by providing access to a new revenue stream through selling CO2 to oil producers, while providing a strong, long-term incentive for EOR, making it the clear, commercially-viable choice to improve oil recovery in the Bakken.
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