Thursday, August 31, 2023

American Big Oil are all in for carbon capture and storage, and the big money industry it is becoming!

Happy Thursday and welcome back to another day of ESC News Blog.

Did anyone happen to see The Houston Chronicle’s Business Section on August 27, 2023, their article titled, “Carbon capture could be next trillion-dollar industry – Exxon Mobil, Occidental, Chevron and others investing heavily”?  In the article, it speaks about how American Big Oil like Exxon Mobil, Occidental (Oxy), Chevron have all thrown their hats and buckets of money into in carbon capture and storage (CCS) technology and development which is still at its early stage of development and an unproven technology.  As their priorities shift into carbon capture, due to the money which Congress placed on the table to reduce emissions with the Inflation Reduction Act and its tax credits of $180 per ton for direct carbon capture and $85 per ton captured directly from a smokestack.   One by one American Big Oil jumped on the bandwagon starting with Oxy, then Exxon Mobil, and the rest.  As more get into the CCS the price should come down.  Currently, International Energy Agency (IEA) places the cost of CCS for ammonia, natural gas processing plants or other similar plants just under $70 per ton which includes moving it to other locations through pipelines and getting it underground for permanent storage.  Unfortunately, other industries like power, steel, and cement plants aren’t as realistic, and the IEA estimates the cost is $400 to $600 per ton for direct carbon capture plant which is a big chunk of change.  It looks like carbon capture is a necessary evil, so we’re going to have to help get the costs down!  This way we all may benefit from it for our future and our grandchildren’s future.  If you would like to read more of The Houston Chronicle’s article, please click the link: Oil companies seek big profits in carbon management (houstonchronicle.com).

If you would like help in looking into how to transport your product efficiently and with less of a carbon footprint, contact us via the email in the blog and check out our ESC's website!

We hope you have a wonderful evening and a great week! 

**Disclaimer: You may be charged a fee to read The Houston Chronicle’s article. **