Title: Oxy’s “Stratos” an update!
Happy Thursday! Happy Halloween! We hope the day hasn’t been too spooky, so
far!
You know we love a follow-up! We wrote about the monumental ground-breaking
of Occidental Petroleum’s (Oxy) large scale carbon capture facility, “Stratos”
back in May 2023. We wrote about how Oxy
subsidiary, 1Pointfive,
was receiving federal money for three of their other CCS projects, “Bluebonnet”
and South Texas in Texas and “Magnolia” in Louisiana; please check out our Blog
in late September and early October 2024 for details. Well, “Stratos” is in the news again.
Did anyone read The Houston Chronicle’s Front Page
on Wednesday, October 30, 2024, their article called, “A gamble on climate tech – Oxy’s first-of-its-kind carbon capture
project in West Texas join global race”?
In the article, it speaks about “Stratos” Occidental Petroleum’s (Oxy) large
scale carbon capture facility in Ector County, Texas is mostly constructed and
is waiting for its permitting. Stratos
is using proven technology for small scale facilities nonetheless it has never
been challenged on something as large as this facility in West Texas. Stratos will be capturing 500,000 metric tons per
year carbon dioxide (CO2) directly from the air and storing it beneath the
earth in rock formations. Stratos will
be one of the first to receive permitting for a Class VI disposal wells from
the U.S. Environmental Protection Agency (EPA) which is a new category for long-term
storage. Oxy has had a long history of
using CO2 for enhanced oil recovery (EOR) which made their decision to use their
skills to become a leader in this new industry.
Oxy’s skills have helped with guidance for the EPA’s new regulations on
this budding industry.
The carbon management industry may
not have taken off, if it wasn’t for a few incentives and companies’ interest
as well as the chance for profits. The
new industry may have not taken off, if it wasn’t for the tax credits the
federal government dangled to make it lift-off.
The 45Q tax credits have made projects like these possible. Big companies like Microsoft, AT&T as
well as other tech and utility companies have helped the industry because they
want to reduce their carbon footprint and are willing to pay to get them to
their goals. Companies are buying carbon
credits for removing what they estimate is the amount of greenhouse gases they
emit, and they are paying a premium which currently means between $500 to $1,100
per metric ton. It’s amazing how much impact
policy and incentives can have!
Currently, a lot hinges on the success of Oxy’s “Stratos” in our quest to reduce greenhouse gases and make climate action more affordable for the near future. If you would like to read more of the article from The Houston Chronicle, please click the link: What Oxy’s climate tech gamble could mean for Houston.
Don’t forget to check out our ESC’s
website or contact us via the email in the Blog, if
you have a project you would like to see get off the ground to get your
hydrocarbon liquid moving or you want to see what’s beneath your feet to help
reduce your emissions!
We hope you have a great night
Halloween night! Don’t eat too much
candy!
**Disclaimer – You may be charged a fee to read The Houston Chronicle article. **