Carbon capture and storage (CCS) is rapidly gaining traction as the industry seeks sustainable ways to meet emissions targets. From groundbreaking projects to emerging trends, carbon capture is set to play a pivotal role in the future of energy.
Net-Zero Targets
Momentum toward net-zero goals is driving growth in carbon sequestration projects and carbon capture utilization and storage initiatives across the industry.
Companies are now leveraging their drilling expertise to develop Class VI wells, dedicated solely to long-term CO2 storage, unlike Class II wells used for Enhanced Oil Recovery (EOR). With incentives from the Inflation Reduction Act (IRA) and advancements in storage technology, the industry is positioned to expand CCUS infrastructure, critical for meeting emissions targets.
The Gulf Coast, with its ideal geology, proximity to high-emission industries, and existing infrastructure, has become a prime location for these projects. Regions like North Dakota, Louisiana, and soon Texas have gained state-level permitting authority, promising faster approvals and streamlined project timelines for Class VI wells.
As federal and state support converge, CCUS projects are set to play a major role in emissions reduction across industries, positioning the U.S. energy sector for sustainable growth.
CO2 Capture Capacity of Commercial CCS Facility Pipeline Since 2010
57% year-on-year increase in CO2 capture capacity under construction.
(Source: Global Status of CCS 2024 data are current as of July 24, 2024)
Oil Giants Take Lead
The integration of carbon capture projects in oil & gas operations is transforming the industry, with leaders like Chevron, Occidental Petroleum, and BP pioneering efforts in regions such as the Permian Basin.
By capturing and storing CO2 in geological formations, these companies are reducing emissions without disrupting energy production. This expansion—growing by 30–50% annually—demonstrates a strong industry commitment to sustainable practices.
Carbon capture projects in oil & gas bring dual advantages: they help meet emission targets while supporting economic stability. With incentives like the Inflation Reduction Act, CCS in oil & gas is set to grow, reinforcing the industry’s environmental and operational goals.
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Projected CCUS Capacity for Regions in 2030 and Beyond
Texas accounts for 46% of the nation’s storage and 45% of its capture capacity.
(Source: Enverus Intelligence Research, Carbon Innovations Foundations)
Enhanced Recovery Effects
The use of CCUS technology for oil recovery has the potential to revitalize mature oilfields, turning near-depleted sites into productive assets.
By injecting CO2 into reservoirs, this approach enhances oil recovery, extending field productivity and delaying decommissioning. Notable projects, like Saskatchewan’s Weyburn Midale and Texas’s Wasson Field, have demonstrated how CO2 injections can significantly boost output.
The economic gains of using CCS in these fields are also substantial, creating ongoing revenue and preserving jobs. With support from government incentives and investment by companies like ExxonMobil, CCUS technology for oil recovery is increasingly seen as a way to balance economic interests with sustainability, prolonging the productive life of oilfields responsibly.
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As carbon capture and storage projects expand, navigating the regulatory landscape becomes more complex—and more essential. From permitting surges to evolving state-level authority, understanding these shifts is key to advancing carbon capture initiatives efficiently.
Well Permitting Surge
A surge in carbon capture permitting marks a significant shift in the oil and gas industry’s approach to carbon management.
The EPA has seen permit applications for CO2 injection wells more than double, particularly from regions like the Gulf Coast and West Texas. This growth highlights the industry’s commitment to CCS as a viable pathway for sustainable operations.
However, with nearly 170 carbon capture projects awaiting decisions, the permitting backlog presents challenges. In response, the EPA has expanded its team to handle the complex review process required for these projects, which reach deep underground.
The rise in carbon capture permitting underscores the need for efficient regulatory processes to support the industry’s push toward emissions reduction through CCS.
Class VI Primacy
The Class VI well permitting process, vital for CCUS projects, is evolving to address delays.
States gaining primacy in Class VI permitting are now able to manage approvals locally, expediting a process that previously took up to two years under federal oversight.
As of late 2024, Louisiana, North Dakota, and Wyoming already have primacy, with Texas’s application underway. This shift has led to over 20 permits issued, showing the benefits of faster, state-led approvals for carbon sequestration projects.
With more states managing their own permits, primacy in Class VI permitting is expected to accelerate CCUS development, helping the industry meet growing demand for efficient carbon storage solutions.
US DOE CCUS Funding Exceeds $2 Billion
Texas leads with $380 million in 2024.
(Source: Enverus Intelligence Research)
Carbon capture is emerging as a key strategy for achieving emissions goals and advancing a sustainable energy future.
Across the industry, we see groundbreaking projects, regulatory shifts, and technological advancements transforming how we manage CO2 emissions. Regions like the Gulf Coast and Permian Basin are at the forefront, leveraging their unique resources to pioneer large-scale CCUS efforts.
The industry’s investment in Class VI wells, enhanced recovery methods, and storage solutions highlights a clear path for CCUS growth. While challenges remain—such as high costs, regulatory complexity, and the need for durable materials—each obstacle brings an opportunity for innovation and collaboration.
The future of carbon capture and storage is promising. With continued support from federal and state initiatives, alongside cutting-edge technology and industry commitment, CCUS is set to play a pivotal role in reducing emissions and shaping a cleaner, more resilient energy landscape.
Cracking the Code of CCUS: The Panther Advantage™
The success of CCUS projects depends on precision and expertise, and that’s where Panther Fluids excels. With extensive experience in wellsite operations, Panther provides the essential tools and services needed to support drilling for CO2 sequestration.
Our total drilling fluids program includes advanced drilling mud systems, solids control, and haul-off services—all working together to streamline operations with a closed-loop design that can reduce costs by up to 25%. We also offer essential equipment rentals, such as pumps and tanks, along with deep knowledge of the permitting processes for CO2 wells.
By delivering a full range of wellsite solutions, Panther Fluids keeps drilling projects efficient and cost-effective from start to finish. Discover The Panther Advantage™ and see how our expertise can keep your wellsite running smoothly.
