Carbon capture, utilization and storage (CCUS) has a monumental task ahead, but experts believe it is possible for the technology to be a major contributor to emissions reductions efforts—with help from regulators.
Speaking during Hart Energy’s recently held Energy Transition Capital Conference, top executives from Plano, Texas-based Denbury Inc. shared their knowledge on the topic and addressed challenges and opportunities. The oil-focused producer, which has operations in the Rocky Mountains and Gulf Coast, is known for its in CO2 EOR technical expertise and extensive network of CO2 pipelines.
Denbury CEO Chris Kendall took a look at the math, for starters, involving CCUS’ role in global ambitions to reach net-zero by 2050.
“Total carbon emissions in the world today [is] around 34 billion tons annually. So big number. The net zero scenario that was developed showed that just CCUS as a contributor to that reduction needs to account for nearly 8 billion tons,” Kendall explained, noting the other contributors are wind and solar.
However, the amount being captured today is only around 40 million tons per year, he said.
“We need to go from 40 million to 8 billion, and I think … the great geology that we have right here in the Gulf Coast, in particular, right underneath us will make the U.S. a center for capture going forward.”
Kendall was joined by Nik Wood, senior vice president of CCUS for Denbury, during a session moderated by White & Case partner Taylor Pullins. Hear how this longtime transporter and user of CO2 in EOR describes its new CCUS opportunity and plans.
Jump to a topic:
- Keys to success for building a CCUS business (3:40)
- How network of pipelines adds to efficiency (5:40)
- Network expansion opportunities (7:15)
- Paving the way to permanent sequestration (8:47)
- Carbon negative oil (10:40)
- Deal structures (14:50)
- Permanent sequestration (14:55)
- Needed regulatory changes (17:20)
- 45Q timing and landscape changes (20:50)
- Opportunity and challenges with scaling CCUS (22:35)
Recommended Reading
AI Advancing Underwater, Reducing Human Risk
2024-03-25 - Experts at CERAWeek by S&P Global detail the changes AI has made in the subsea robotics space while reducing the amount of human effort and safety hazards offshore.
Oil States’ ACTIVEHub for Digitized Assets
2024-03-14 - Oil States Energy Services’ new ACTIVEHub system and ACTIVELatch help operators remotely monitor and automate frac locations for a more efficient and safer wellsite.
Aramco Credits Adaptability, Collaboration for Driving Innovation
2024-05-15 - Aramco’s implementation of different approaches has led to the creation and commercialization of newer products, said Max Deffenbaugh, principal scientist for Aramco, at the 2024 Offshore Technology Conference in Houston.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.
AI in Oil: Revolution’s Coming, but Tech Adoption Remains Tentative
2024-04-05 - CERAWeek experts say AI will disrupt oil and gas jobs while new opportunities will emerge as the industry braces for an AI-driven workflow transformation.