Carbon Capture: Future Opportunities and Challenges in Energy

Technological Advancements in Carbon Capture

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"We see that, we will combine our strengths in technology deployment at scale in every basin in the world, combining this with the subsurface sequestration technology leadership we have to offer customers an all in capability from sequestration design execution to carbon capture, combining our technology with the technology of our carbon capture.We are very positive on this and we believe that, as this business will scale, as we will be in a position to add on many new innovation technology on it, this will result into margin expansion and into ability to extract a lot of value from this acquisition." --- (SLB, earning call, 2024/Q2)

"This capital allows us to accelerate the commercial deployment of our carbon capture technology. This investment in ION expands Chevron's technology portfolio to include conventional amine-based capture technology while complementing an existing portfolio of CCUS technologies." --- (CVX, press release, 2024/04/04)

"Similarly, discussion of future carbon capture, transportation and storage, as well as biofuels, hydrogen, direct air capture, and other plans to reduce emissions of ExxonMobil, its affiliates or companies it is seeking to acquire, are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements." --- (XOM, press release, 2024/04/26)

"- Sustainability and energy mix transition : Continue to: • Leverage the participants in Halliburton Labs to gain insight into developing value chains in the energy mix transition; • Develop and deploy solutions to help lower the carbon intensity of our customers' businesses; • Develop technologies and solutions to lower our emissions; and • Participate in carbon capture, utilization, and storage, hydrogen, and geothermal projects globally." --- (HAL, sec filing, 2024/Q1)

"James West: Lorenzo, I wanted to touch back on carbon capture because it sounded like there was a bit of a shift in your tone there with respect to projects starting to move forward and to scale." --- (BKR, earning call, 2024/Q1)

Regulatory Environment and Government Policies

Government policies, such as production mandates and renewable fuel standards, significantly influence carbon capture efforts. Clear, consistent policies are crucial for achieving sustainability goals, as highlighted by ExxonMobil's net-zero ambitions. Chevron also notes the substantial impact of government initiatives on market dynamics.

"Government Mandates are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions imposed by governments." --- (XOM, sec filing, 2024/Q1)

"And so we're pleased with both of these. There are markets, maybe to your point about economics that are in some ways heavily influenced by government policy, be it the renewable fuel standard and the Low Carbon Fuel Standard, which affect renewable fuels or some of the things in the investment or the inflation reduction act that affect hydrogen." --- (CVX, earning call, 2024/Q1)

"With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050." --- (XOM, press release, 2024/06/25)

"Can you say more about the impact of all the different government and policy initiatives and pressures going on around the world." --- (XOM, event transcript, 2024/05/29)

"We believe government policy should focus on outcomes, the what and limit restrictions on the how, the only what is necessary." --- (XOM, event transcript, 2024/05/29)

Industry Adoption and Sector-Specific Challenges

Industry adoption of carbon capture technologies is progressing, with companies like Dow and ExxonMobil focusing on collaboration, safety, and cost reduction. However, challenges such as supply constraints, regulatory impacts, and the need for continuous innovation remain significant hurdles.

"Helping us identify opportunities for deeper collaboration with customers than ever before. Here's how we're pushing the accelerator on growth our scientists are focused on unlocking solutions that prioritize safety and performance technologies like silicones polyurethane foams and adhesives are helping solve crucial industry challenges like battery fire protection. In line with our decarbonize and grow strategy, we're also working with partners to push the bounds of what's possible in circularity and carbon reduction." --- (DOW, event transcript, 2024/05/16)

"The challenge has been the supply that's come on to meet that growth and so that is depressing overall industry margins." --- (XOM, earning call, 2024/Q1)

"Although we do not currently expect that Pillar Two will have a material impact on our results of operations, we are continuing to evaluate the impact of legislative adoption by individual countries." --- (CVX, sec filing, 2024/Q1)

"And we're working and driving across the organization to move the industry forward, creating growth opportunities where Paint offers both enhanced performance and enables a more sustainable world. On the bottom right, you can see that this market has evolved significantly, particularly in the United States." --- (DOW, event transcript, 2024/05/16)

"So, we've got a very high degree of confidence, and that frankly our challenge in reducing cost or driving improvements in the business, is not a lack of ideas or opportunities." --- (XOM, earning call, 2024/Q1)

Environmental Impact and Effectiveness

ExxonMobil aims to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian operations by 2030, leveraging advanced technologies and resources to reduce environmental impact. The company is committed to delivering energy with fewer emissions, highlighting the effectiveness of its carbon capture initiatives.

"Environmental Impact ExxonMobil has industry-leading plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030." --- (XOM, press release, 2024/05/03)

"By combining Pioneer's differentiated inventory and basin knowledge with our technologies, financial resources and industry leading execution excellence, we expect to generate double digit returns by recovering more resource, more efficiently and with a much lower environmental impact." --- (XOM, event transcript, 2024/05/29)

"You have our commitment that we'll keep working to deliver energy and products safely and with fewer emissions in the years ahead." --- (XOM, event transcript, 2024/05/29)