Years of talk about Carbon Capture, Utilization and Storage (CCUS) are finally translating into billions of dollars of business action. Integrated oil and gas companies (IOCs) have announced at least six major carbon capture initiatives in recent months and have committed to as much as 60 percent of capital expenditures in the coming years on low carbon or alternative energy sources.
Despite international agreements like the Kyoto Protocol and Paris Accords, decades passed with lackluster action by governments. Coupled with advancing technology and increased statutory incentives for climate action, the last five to 10 years saw the private sector step in to fill the void. Businesses and regulators have been eyeing carbon capture as a key catalyst to address global emissions, particularly from 'hard to abate' sectors. For oil and gas (O&G) companies, carbon capture is particularly attractive given its potential to diversify revenue streams during the energy transition, capitalize on tax benefits and incentives and build community goodwill, all while leveraging existing subsurface and engineering capabilities native to the industry.
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