Carbon dioxide produced after combustion contains impurities that can be substantially corrosive. One study examined the use of flue gases to improve oil recovery from light oil reservoirs. Certain exhaust gas compositions can provide improved oil recovery in core flood experiments when compared with nitrogen displacement. Flue gas has been used in a few cases to repressurize a depleted reservoir. Reservoir repressurization raises production rates from the field and facilitates increasing the total ultimate recovery from the field. There are some air injection projects in the world that inject air in the reservoir. Typically such projects experience severe corrosion problems. In this paper we examine the ability of certain inhibitors to prevent corrosion of mild steel caused by impure CO2 (e.g. flue gases). In the first part of this paper the compositions used to simulate exhaust wet flue gas are discussed. In the second part our experimental results using different corrosion inhibitors are presented. It is shown from this work that a new corrosion inhibitor is able to inhibit corrosion in environments that contain carbon dioxide and oxygen. This may have important implications in our ability to economically sequester carbon dioxide and use exhaust flue gas to repressurize a depleted reservoir.