The real reason behind the behavior of oil and gas companies to capture carbon

Two years ago, Occidental Occidental bought Occidental Startup Carbust Engineering. The deal was welcomed as a victory for the two sides: The Climate Technology Company has registered a great way out, and the fossil fuel company has gained a foothold in a sector that could reach a value 150 billion dollars By 2050.

Now we have a better idea why Oxidental was eager to pick up precious technology: they want to use it to pump more oil.

Previously, the company said it will use technology Zero Climate effect. However, in calling Oxidental profits this week, CEO Vicky Holoub changed the melody, saying that the participation of participation₂ In wells to force more oil to increase oil production.

“Take a company₂ Among the atmosphere is a technique that needs to work for the United States, and President Trump knows the issue of work for this. ”The appetite was the first to a report On the comments.

Hollub compared to using CO₂ In enhancing oil recovery to cracking, the technology that sent us oil and gas production rises.

But capturing direct air, the technique that carbon engineering uses to draw carbon dioxide₂ Outside the atmosphere, it is still expensive at $ 600 to $ 1,000 per metric ton. Nevertheless, the inflation reduction law provides some important incentives for the use of CO₂ In the recovery of improvement oil, up to $ 130 per metric ton in 2026 if the gas remains permanently underground. This is not enough to make the practice attractive on its own, but besides carbon credit sales, Oxidental expects it can make a profit before The end of the contract.

The Trump administration is working to dismantle climate -related government incentives, especially the law of inflation. But with the support of companies such as oxidantal and Exxonmobil Tax credits can live.

Carbon capture has a long and intertwined history with fossil fuel companies. They first started pumping the oil into darkening wells in the 1970s, although Co₂ He came from underground deposits. In the early eighties of the last century, the pipelines began to extend from Texas, but the drop in oil prices prevented this technology from widely used.

About a decade ago, NRG Energy has benefited from the rise in oil prices to build the country’s first carbon capture facility linked to the coal power plant. It is called Petra Nova, the small installation is designed to capture about a third of carbon dioxide in a boiler and used as Co₂ To enhance production in an oil field southwest of Houston.

I succeeded, although it is not expected. Production increased from about 300 barrels per day to 6000 barrelsA big stumbling block, but half of what it was Expected. NRG Petra Nova was closed in 2020 while oil prices were early from the epidemic and sold it to JX Nippon after three years.

Oil prices have been recovered since then, but enhancing oil recovery using Co₂ It is still partially unattractive because there is not enough gas available easily – at least, it is not enough to raise production with an amount of 50 billion to 70 billion barrels. Holob predicts that technology will open.

Direct air capture can easily provide enough₂. Humans were pumping the value of gas in the air by burning fossil fuels over the past and a half. It is possible that the carbon captured from the air to make the oil will be used CarbonThis means the process of carbon storage more than burning it, although the concept needs to be studied.

It is difficult to know if the federal incentives for direct air capture will survive in the next four years. But among all tax credits in the law to reduce inflation, they may have the best opportunity thanks to the desire of oil companies to continue working as usual.