So a different type of modeling, but all the same work goes into it and all the same the same techniques and approach go into looking at how we handle the CO2 and how we get it sequestered, whether it’s in an EOR reservoir in the Permian or elsewhere or whether it’s in a saline reservoir. So that part of it is our expertise. We don’t really feel the need to own pipelines because pipeline returns are generally not the kind of returns that we can get with our dollars invested in either the upstream business or shale business or conventional. So what we want to do is make sure that our capital dollars are going to the things that we do best. We’ve partnered with midstream companies in the sequestration hubs that we’ve developed. And again — but we do have as you mentioned and referred to significant infrastructure.
We do have 2,500 miles of CO2 pipeline in the Permian. We’re operating there 13 CO2 processing plants. And so we have the basis to do a lot of work and a lot of sequestration in the Permian, where I think the Permian as a whole, I think the capacity is estimated to be large enough to sequester all of the emissions from the United States for 28 years, and we have a big footprint in the Permian. There are multiple zones we can not only implement CO2 for EOR, but for a straight sequestration. So we’re doing partnerships that give us the best return in collaborating because there’s going to be a lot of capital required for these projects over time, and we don’t want all of that capital coming from OXY. Obviously, we want other companies doing what they do best to.
Richard, do you want to comment on some of the sequestration hubs?
Richard Jackson : Sure. I mean — yes, just build a minute. I think even especially in our Permian EOR or Permian position, we continue to work many carbon capture opportunities. We continue to think because of that legacy position we have, especially in the subsurface that that’s going to present economic and real opportunity for us and emitters in terms of being able to capture and retire the CO2. In terms of the Gulf Coast, I know we talked about it before, but I want to reiterate, like Vicki said, be very focused on the sequestration of the subsurface piece of that. That’s really as we learned where we could best add value, it’s around that position, and we have our hubs that are going in the Gulf Coast. We’ve got several of our Class 6 wells that are permitted and moving well through the process may have up to 6 by the end of the year.
We’re drilling strat wells really in every hub continuing to be prepared as we think these capture projects are going to be put together and come online over the next few years. So we really think we’re positioned to be the low-cost kind of sequestration certainly providing security around the CO2 because of our history. So great partnerships with midstream companies we’ve announced before, and they’re an important piece, but we’re really focused on that, both in the Permian and in the Gulf Coast around really developing that subsurface for sequestration.
Operator: The next question comes from Paul Cheng with Scotiabank.
Paul Cheng : Vicki and the team, with the improvement that you’re seeing in DJ, what should we expect from the activity and the production trajectory for the next several years? I mean in the past that I think with the limitation on the inventory or there maybe concern about regulatory, that production for you has been on the decline. Should we assume that the decline will continue, but at a slower pace or that you think you may be able to do better than that? That’s the first question.
Vicki Hollub : Okay. I’ll turn that over to Richard. Richard’s been actually looking at that more closely.
Richard Jackson : Sure. Yes. Let me just kind of walk you through where we were this year. Obviously, we were significantly underinvested in the last couple of years coming out of the downturn, really focusing capital on the shortest cycle we really restored capital back to the Rockies this year back to more sustaining levels, but the teams continued to outperform. And so what really has happened this year is a shallower decline in the first half of the year. We had expected growth in the second half of the year, but the growth is actually a bit better. So if you look at kind of where we’re at first half to second half, I think we’re growing about 6,000 barrels a day. So the — in terms of rigs, we’re running capable — been running 2 capable for 3.
And we continue to work on these well improvements to see really how that asset and that production competes for capital in our portfolio going into next year. But I think really the — sort of the capital that you’re seeing deployed in the Rockies this year takes us from a decline into really a flat to moderate — low-end growth.
Paul Cheng : Rich, can we assume that that’s the minimum that you will be able to do for the next several years that led to maybe modest growth?
Richard Jackson : Look, the teams have continued — we challenge everybody, but I think the Rockies team has really done a great job on this. Getting upfront in terms of land development, permits, really getting the midstream position in place to be able to do more. But again, it needs to fit our capital allocation. So they do high returns even at lower gas prices. These are very competitive returns. I would call them a bit longer cycle than the, say, the Delaware in Texas, but they also have a bit lower decline. And so for us, they fit really well. We’ll have capability to do more, but it really needs to fit the sort of cash flow outcome that the company needs as we put capital together for next year. But we can do more as that fits.
