Carbon Capture Land Grab – Lots Being Spent, Not Much Drilled

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