Brice Wallace
A pair of oil and gas production companies are expected to create hundreds of jobs and invest $480 million in projects near Vernal over the next decade.
Greenfield Energy LLC and Heavy Sweet Oil LLC made the announcements after being approved for a pair of state economic incentives.
Greenfield Energy, a wholly owned subsidiary of London-based TomCo Energy, will invest $150 million and create 378 jobs — 214 jobs are tied to its state incentive — as it extracts oil from tar sands deposits in Uintah County and nearby counties in Utah.{mprestriction ids="1,3"} Heavy Sweet Oil LLC will invest $330 million and create 213 jobs as it produces oil and gas extracted in the Uintah Basin and sells biodiesel. It has an agreement with TomCo Energy, which is assisting with permitting and government relations.
In August 2021, TomCo announced an agreement with its joint venture partner Valkor LLC to acquire Valkor’s half of Greenfield.
Government documents indicate that Greenfield will be the sole producer of oil and gas from tar sand deposits in the Uinta Basin. It will inject carbon dioxide into the tar sand deposit to recover product that will then be sequestered within the geologic formation. In addition to oil and gas, the project also will have asphalt and sand among its products, which will be delivered throughout the western U.S.
“Each oil and gas deposit is unique, and the oil sands in Uintah County and surrounding areas are exceptional deposits with tremendous potential,” John Potter, CEO of TomCo Energy, said in a prepared statement. “The support we’ve received in advancing this project has been outstanding, and we look forward to creating a stabilizing economic boost for the Uinta Basin that will last for decades.”
Heavy Sweet Oil intends to sell a range of petroleum products having a substantially reduced carbon footprint and near-zero sulfur, including a blended biodiesel product to the shipping industry, asphalt cement for roads and infrastructure, and specialty chemicals to industry. Heavy Sweet Oil is expected to have some of its infrastructure on TomCo’s site in the Uinta Basin.
“Heavy Sweet Oil is extremely excited to develop our project in the state of Utah, especially in rural Utah,” Steven Byle, the company’s chairman, said in a prepared statement. “It is there that we believe we can make the largest positive impacts with our investment and operations.
“We have developed a world-class team to develop this major asset. In fact, we have relocated our entire operations and management team to Utah to advance this project for decades to come. Together with the other producers in the basin, we believe that Utah will be established in the years to come as a major player in the U.S. energy economy. We further intend to show our appreciation to the state and local communities by giving back over time through building recreational, wildlife and community infrastructure as we move forward together.”
The new Greenfield jobs will pay an average of $98,723. The Heavy Sweet Oil jobs are projected to pay $100,668.
The Governor’s Office of Economic Opportunity (Go Utah), at its July meeting, approved a pair of incentives for the projects. Greenfield was approved for a tax credit incentive of up to $76.3 million over 10 years, based on projected new state tax revenue of $152.7 million during that time. Total new wages are estimated at $102 million over 10 years. Heavy Sweet Oil was approved for a tax credit of $45.9 million over 10 years, based on project new state tax revenue of $91.9 million during that period. Total new wages are estimated at $171.8 million.
“We are excited to see Greenfield Energy and Heavy Sweet Oil growing in the Uinta Basin,” Dan Hemmert, Go Utah’s executive director, said in a prepared statement. “Energy independence has never been more important to the nation, and we are proud to support this joint venture which will provide significant investment into rural Utah. We’re also pleased to see both companies’ innovative processes, aggressive carbon sequestration, and efforts to be carbon neutral — from well to tailpipe.”
“While our involvement in this expansion project was limited, we welcome Greenfield Energy and Heavy Sweet Oil to Utah’s energy industry,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “These two companies are innovating the extraction process and moving the industry to more sustainable methods.”
Go Utah does not provide upfront cash incentives. Each year that a company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes that the company paid to the state.{/mprestriction}
