Large oil companies have been investing to make carbon capture and storage a relevant business
US supermajor estimates there will be a $4 trillion market by 2050 for capturing carbon dioxide
and storing it underground, the company said in a presentation, reported Reuters.
That is about 60% of the $6.5 trillion market the US largest crude producer estimates for oil and gas by then.
Carbon capture is an important emissions reduction technology, according to the IEA
It involves the capture of CO2
from fuel combustion or industrial processes and transporting it via ship or pipeline
to be stored underground in geological formations.
The captured CO2
can also be used for enhanced oil or enhanced gas recovery.
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 point the technology as key to mitigate the effects of global warming, noted Reuters.
ExxonMobil is under public pressure to reduce its total emissions as its energy transition
strategy does not include renewable sources of energy such as solar and wind.
The company recently hired Dan Ammann, who had led the Cruise self-driving unit of General Motors, to lead its Low Carbon business starting on 1 May.
US oil producer Occidental Petroleum, which is developing the world's largest project to extract CO2
from the air, earlier estimated CCS could become a $3 trillion to $5 trillion global industry annually.
The technology could generate as much in earnings and cash flow for Occidental than oil & gas does today, the company’s CEO Vicki Hollub said at a conference in March.