Happy Monday! Welcome back to another week of ESC News Blog!
We touched
briefly on the topic of ExxonMobil leasing offshore in our wrap up from the Commerce
Club Luncheon last Thursday! We blogged in
early July on how the Texas General Land Office (GLO) opened up around one-million
acres in state-owned waters for requests for proposals for carbon capture back
in June with proposals due in October, please check out our Blog for further
details. We expect in the coming weeks
to hear of more carbon capture leases coming out of the GLO. We will keep you up on anything we hear!
Did anyone
happen to read The Houston Chronicle’s Business Section on October 11, 2024,
their article titled, “Exxon to inject CO2 beneath the Gulf – Companies scramble
for solutions to store climate-warming gas”?
In the article, ExxonMobil (XOM) announced they have leased over 271,000
acres offshore in the Gulf of Mexico (GOM) in Texas’ state-owned waters for
their carbon capture project. Texas
state-owned waters go roughly 10.3 miles offshore from the Texas coast. Currently, XOM is the largest carbon dioxide
(CO2) offshore lease in the
country. XOM similar to Chevron and
others have thrown their hats into the carbon capture business as a way to
mitigate greenhouse gases for themselves as well as other companies, and they will be able to use their skills from drilling for oil and gas to inject the emissions
deep into the earth. CCS technology is
expected to make those who invest in it now huge profits in the near future,
and the federal government will help them with up to $85 a ton of tax credits. To help XOM with this new endeavor they will
be able to use their 2023 acquisition of Denbury, and with Denbury’s vast knowledge
of carbon capture storage and utilization, 935 miles of CO2 pipelines, and storage facilities in states bordering of the GOM; they will have a big start on the industry. XOM has already signed contracts with several
companies to store their CO2 emissions, and XOM is expected to start as
early as 2025. We wish them much success
in this new endeavor! If you would like
to read more of The Houston Chronicle’s article, please click the link: Exxon to store climate-warming CO2 offshore along Texas Gulf Coast(houstonchronicle.com).
If you would
like help in looking into how to update your liquids terminal, so it runs more efficiently,
safely, and with less of a carbon footprint, contact us via email in the Blog
and check out our ESC's website!
We hope you enjoy your evening and a great week!
**Disclaimer: You may be charged a fee to read The
Houston Chronicle’s article. **