Exxon Sees Carbon Capture Market at $4 Trillion by 2050
HOUSTON (Reuters) — Exxon Mobil Corp. estimates there will be a $4 trillion market by 2050 for capturing carbon dioxide and storing it underground, the company said in a presentation on Tuesday.
That is about 60% of the $6.5 trillion market the U.S. largest crude producer estimates for oil and gas by then.
Carbon capture is an important emissions reduction technology, according to the International Energy Agency (IEA). It involves the capture of CO2 from fuel combustion or industrial processes, transporting it via ship or pipeline, to be stored underground in geological formations or used as a resource to create products.
Large oil companies have been investing to make carbon capture and storage (CCS) a relevant business as international bodies such as Intergovernmental Panel on Climate Change (IPCC) point the technology as key to mitigate the effects of global warming.
Exxon is under public pressure to reduce its total emissions as its energy transition strategy does not include renewable sources of energy like solar and wind. It has recently hired Dan Ammann, who led the Cruise self-driving unit of General Motors Co. until December, to lead its Low Carbon business starting on May 1.
U.S. oil producer Occidental Petroleum, developing the world's largest project to extract CO2 from the air, has previously estimated CCS could become a $3-5 trillion global industry. The technology could generate as much in earnings and cash flow for Occidental than oil and gas today, CEO Vicki Hollub said at a conference in March.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments