June 29, 2022

Oil and gas majors start selling CCUS know-how to boost production

May 14, 2022 23:19 (UTC+04:00)

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By Tendency

Existing carbon capture, utilization and storage (CCUS) capacity is concentrated in natural gas processing plants due to the use of captured CO2 in enhanced oil recovery (EOR) activities in the segment upstream of oil and gas, Tendency reports referencing GlobalData.

The company predicts that by 2030, all of the largest CCUS sectors shown are expected to grow, but none faster than the electricity sector, which will become the largest user of CCUS capacity. Several oil and gas majors are already collaborating on CCUS projects in the power sector, demonstrating that these companies are beginning to diversify their sources of revenue.

“Many oil and gas companies developed CCUS know-how through EOR projects simply to increase production, long before they considered reducing emissions. Today, this knowledge has new value, as oil and gas companies have begun to sell their CCUS knowledge in the form of technical advisory services or by developing their own emission reduction projects. Additionally, there is evidence that CCUS projects could generate large amounts of revenue through the growing carbon offset market,” says Miles Weinstein, energy transition analyst at GlobalData.

Some of the most active companies GlobalData has identified in the CCUS sector are ExxonMobil, INEOS, TotalEnergies, Occidental Petroleum, Equinor, Shell and Chevron.

“While CCUS capacity is growing, existing capacity represents only 0.15% of total energy-related carbon emissions. According to the planned and announced new capacity, this would increase to only 0.8% by 2030. CCUS remains an expensive technology to build or retrofit on existing installations, and widespread commercialization will require continued cost reductions. Fortunately, recent R&D efforts have succeeded in improving low-cost capture technologies,” Weinstein added.

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