{"id":18765,"date":"2021-04-29T08:08:18","date_gmt":"2021-04-29T12:08:18","guid":{"rendered":"https:\/\/saperemarketing.com\/clearpath\/?p=18765"},"modified":"2024-08-15T15:22:12","modified_gmt":"2024-08-15T15:22:12","slug":"fossil-industry-is-finding-its-climate-footing","status":"publish","type":"post","link":"https:\/\/saperemarketing.com\/clearpath\/our-take\/fossil-industry-is-finding-its-climate-footing\/","title":{"rendered":"Fossil Industry is Finding Its Climate Footing"},"content":{"rendered":"\n<p>2020 was a record year for carbon capture policy \u2013 and markets.<\/p>\n\n\n\n<aside class=\"float-right\" style=\"text-align: center;padding-left: 20px\"><img decoding=\"async\" class=\"clearpath-lightbox-img alignnone wp-image-5112 size-full lazyload\" data-src=\"https:\/\/saperemarketing.com\/clearpath\/wp-content\/uploads\/sites\/67\/2021\/04\/industry-business-strategy.jpg\" alt=\"\" width=\"350\" height=\"432\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 350px; --smush-placeholder-aspect-ratio: 350\/432;\"><\/aside>\n\n\n\n<p>After several years of dormancy \u2013 America\u2019s largest utilities, industrial manufacturers, agriculture companies, financial institutions and even tech leaders are increasingly making carbon capture a fundamental pillar of their long-term business strategy. Energy companies have invested in and developed this technology for decades, and so far this year, we\u2019ve seen a big wave of private sector investments. Even Elon Musk joined in, helping make carbon capture mainstream by announcing an impressive <a href=\"https:\/\/www.xprize.org\/prizes\/elonmusk\">$100 million prize<\/a> to drive innovation. The market tripled down on Elon\u2019s bet, with carbon capture startups alone racking up over <a href=\"https:\/\/pitchbook.com\/news\/articles\/carbon-capture-is-all-the-rage-can-these-startups-make-it-profitable\">$330 million in new investments<\/a> last year.<\/p>\n\n\n\n<p>The latest industry signals indicate that carbon capture will be an essential part of their business strategy moving forward. Look no further than the American Petroleum Institute, which lists carbon capture as the first leg of its <a href=\"https:\/\/www.api.org\/climate\">climate strategy<\/a>.<\/p>\n\n\n\n<p>The oil and gas industry is increasingly translating these commitments to its balance sheet and investment strategies. Occidental Petroleum\u2019s CEO, Vicki Hollub, says Oxy plans to be \u201cthe Tesla of carbon capture technology.\u201d She often talks about how her business will be a \u201ccarbon management company.\u201d To date, the company is exploring commercial carbon capture projects that can pull carbon dioxide from cement facilities, new power plants, and even directly from the air.<\/p>\n\n\n\n<p>At ExxonMobil\u2019s recent investor day, the company predicted a <a href=\"https:\/\/www.axios.com\/exxon-carbon-emissions-capture-market-a942dbae-ae1c-4a06-9aca-fa3bac81cb70.html\">$2 trillion dollar market<\/a> in carbon capture and storage by 2040. Currently, <a href=\"https:\/\/corporate.exxonmobil.com\/News\/Newsroom\/News-releases\/2021\/0201_ExxonMobil-Low-Carbon-Solutions-to-commercialize-emission-reduction-technology\">Exxon plans to invest $3 billion in carbon capture<\/a> over the next five years and is advancing plans for more than 20 new carbon capture opportunities. Exxon also recently proposed the concept of creating a <a href=\"https:\/\/energyfactor.exxonmobil.com\/insights\/partners\/houston-ccs-hub\/\">Carbon Capture and Storage Innovation Zone<\/a> in the Houston area, which would require a collective investment of $100 billion and could capture and store about 50 million metrics tons annually by 2030 and 100 million metrics tons by 2040 \u2013 this is equivalent to taking nearly 22 million cars off the road.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.businesswire.com\/news\/home\/20210316005599\/en\/Valero-and-BlackRock-Partner-with-Navigator-to-Announce-Large-Scale-Carbon-Capture-and-Storage-Project#.YFEvMuCgIJU.linkedin\">Valero and Blackrock also announced<\/a> they are partnering with Navigator Energy Services to develop up to 1,200 miles of pipelines in the Midwest with the capability of storing up to 5 million tons. And <a href=\"https:\/\/www.spglobal.com\/platts\/en\/market-insights\/latest-news\/coal\/011421-chevron-invests-in-carbon-capture-technology-startup-to-further-cut-ghg-emissions\">Chevron recently announced<\/a> an investment in a company that recycles industrial emissions into building materials.<\/p>\n\n\n\n<div class=\"center\" style=\"text-align: center\">\n<p style=\"font-size: 22px\"><span class=\"md-bold\" style=\"color: #9d1c20\">Valero and Blackrock Partner With Navigator Energy Services to Develop Up to 1,200 Miles of Pipelines<\/span><\/p><img decoding=\"async\" class=\"clearpath-lightbox-img alignnone wp-image-5112 size-full lazyload\" data-src=\"https:\/\/saperemarketing.com\/clearpath\/wp-content\/uploads\/sites\/67\/2021\/04\/pipeline-01.jpg\" alt=\"\" width=\"800\" height=\"414\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 800px; --smush-placeholder-aspect-ratio: 800\/414;\">\n<\/div>\n\n\n\n<p>These trends are both encouraging and necessary. The largest players in the oil and gas industry, with valuable institutional and technical knowledge of industrial systems and the subsurface, are mobilizing significant sums of capital. What\u2019s more is that the International Energy Agency (IEA) has iterated multiple times that carbon capture and removal technologies are essential to meeting global emissions reduction and temperature targets.<\/p>\n\n\n\n<p>Carbon capture complements long-standing industry efforts to reduce methane emissions, an important near-term action the oil and gas sector is taking on climate. Methane stays in the atmosphere for a much shorter time, but is much more potent than carbon dioxide. Multiple industry-led organizations have been formed to focus on reducing methane emissions, like the Oil and Gas Climate Initiative and the Environmental Partnership. These organizations advocate for effective policies, implement voluntary standards and best practices, and research and deploy new technology to better detect, quantify and report methane emissions.<\/p>\n\n\n\n<p>The 117th Congress and the Biden Administration have a clear path to continue the positive policy momentum. Led by Republican lawmakers Senator Shelley Moore Capito (R-WV), Representative David McKinley (R-WV), and Representative David Schweikert (R-AZ), efforts to extend and expand the critical federal carbon capture credit have now been introduced.<\/p>\n\n\n\n<p>Let\u2019s not forget that before taking office, the Biden campaign signaled his intention to \u201c<a href=\"https:\/\/joebiden.com\/climate-plan\/#:~:text=Biden%20shares%20the%20Carbon%20Capture,enhance%20tax%20incentives%20for%20CCUS.\">double down<\/a>\u201d on federal investments and enhance tax incentives for carbon capture.<\/p>\n\n\n\n<p>With clean energy and climate policy on the top of the to-do list for this Congress and Administration, policymakers should pick up where they left off in December \u2013 working together on real, bipartisan solutions that accelerate clean energy innovation. Carbon capture is just the beginning.<\/p>\n\n\n\n<p style=\"font-size:20px\"><strong>View more of&nbsp;<a href=\"\/our-take\">Our Take<\/a>&nbsp;and let us&nbsp;know what you think at <a href=\"mailto:jaylistens@saperemarketing.com\">jaylistens@saperemarketing.com<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With clean energy and climate policy on the top of the to-do list for this Congress and Administration, policymakers should pick up where they left off in December \u2013 working together on real, bipartisan solutions that accelerate clean energy innovation. Carbon capture is just the beginning.<\/p>\n","protected":false},"author":302,"featured_media":18807,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"ngg_post_thumbnail":0,"wds_primary_category":19,"footnotes":""},"categories":[19],"tags":[15,17],"class_list":["post-18765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-our-take","tag-carbon-capture","tag-innovation"],"acf":[],"_links":{"self":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/posts\/18765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/users\/302"}],"replies":[{"embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/comments?post=18765"}],"version-history":[{"count":0,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/posts\/18765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/media\/18807"}],"wp:attachment":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/media?parent=18765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/categories?post=18765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/tags?post=18765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}