C-MACC Weekly “CRETER” (Climate etc.)
Carbon Capture Land Grab – Lots Being Spent, Not Much Drilled
- The frequency of announced acreage lock-ups, especially on the U.S. Gulf Coast, makes us question whether there will eventually be a surplus of CCS wells.
- Today the land grab is not being matched by Class 6 permit applications, suggesting that lots of seismic work is needed and all partnerships are not set.
- Given the higher value of 45Q, first mover advantage may be valuable for anyone with an easier route to capture – i.e., those with purer CO2 (like LNG).
- The IRA has created some further global incentive inconsistencies with the U.S. in the lead for the first time in some instances – there are competitive implications.
- Otherwise, we revisit recycling challenges, slow solar roll-outs, the challenges of expensive metals, more dependence on China, and a brave Peter Huntsman.
See PDF below for all charts, tables and diagrams