oxy moves forward on permian 'direct air capture' plant
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BUSINESS // ENERGY
Oxy moves forward onPermian 'direct air capture'plant
Jordan BlumMay 21, 2019 Updated: May 22, 2019 6:46 a.m.
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An aerial shot of Carbon Engineering's pilot direct aircapture plant north of Vancouver.Photo: Carbon Engineering
BUSINESS // ENERGY
Oxy moves forward onPermian 'direct air capture'plant
Jordan BlumMay 21, 2019 Updated: May 22, 2019 6:46 a.m.
Comments
An aerial shot of Carbon Engineering's pilot direct aircapture plant north of Vancouver.Photo: Carbon Engineering
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Oxy moves forward on Permian 'direct air captu…Saved to Dropbox • May 27, 2019 at 7C30 AM
Houston's Occidental Petroleum saidTuesday it is designing the first "direct aircapture" plant in West Texas' boomingPermian Basin to suck carbon dioxide out ofthe sky and inject it into the ground to aid inoil production.
Oxy and Chevron earlier this year becamethe first major oil companies to put theirmoney into so-called negative emissionstechnologies with the goal of developing"direct air capture" factories. They bothinvested in Carbon Engineering, a Canadiancompany that has developed a direct aircapture pilot plant outside of Vancouver.
Houston's Occidental Petroleum saidTuesday it is designing the first "direct aircapture" plant in West Texas' boomingPermian Basin to suck carbon dioxide out ofthe sky and inject it into the ground to aid inoil production.
Oxy and Chevron earlier this year becamethe first major oil companies to put theirmoney into so-called negative emissionstechnologies with the goal of developing"direct air capture" factories. They bothinvested in Carbon Engineering, a Canadiancompany that has developed a direct aircapture pilot plant outside of Vancouver.
Now Oxy is moving first with CarbonEngineering to begin the engineering anddesign work of what they're calling theworld's largest direct air capture andsequestration facility to be locatedsomewhere in West Texas.
"Using atmospheric CO2 for oil recoverygreatly reduces the net addition of CO2 tothe atmosphere from oil production and fueluse, and opens a pathway to producing fullycarbon-neutral or even net-negative fuels,"said Richard Jackson, who oversees thecompany's venture capital arm, Oxy LowCarbon Ventures.
Earlier this month, Oxy outbid Chevron bypaying $38 billion to buy The Woodlands-based Anadarko Petroleum, including itsprized acreage in the Permian.
RELATED: Giant sucking sound - Technologyremoves greenhouse gases from atmosphere
Now Oxy is moving first with CarbonEngineering to begin the engineering anddesign work of what they're calling theworld's largest direct air capture andsequestration facility to be locatedsomewhere in West Texas.
"Using atmospheric CO2 for oil recoverygreatly reduces the net addition of CO2 tothe atmosphere from oil production and fueluse, and opens a pathway to producing fullycarbon-neutral or even net-negative fuels,"said Richard Jackson, who oversees thecompany's venture capital arm, Oxy LowCarbon Ventures.
Earlier this month, Oxy outbid Chevron bypaying $38 billion to buy The Woodlands-based Anadarko Petroleum, including itsprized acreage in the Permian.
RELATED: Giant sucking sound - Technologyremoves greenhouse gases from atmosphere
While direct air capture - so long as the plantis powered with more renewable energy -can theoretically help combat climatechange, Oxy uses the carbon dioxide as avaluable resource.
A top producer in the Permian, Oxy also isthe industry leader in vast quantities ofcarbon dioxide for a production processcalled enhanced oil recovery. As the industryleader in the process, Oxy injects carbondioxide into aging reservoirs to force moreoil from wells. The company uses 50 milliontons of carbon dioxide annually for enhancedrecovery. Its ultimate goal: put more carbondioxide into the ground than it takes out inthe form of fossil fuels.
While direct air capture - so long as the plantis powered with more renewable energy -can theoretically help combat climatechange, Oxy uses the carbon dioxide as avaluable resource.
A top producer in the Permian, Oxy also isthe industry leader in vast quantities ofcarbon dioxide for a production processcalled enhanced oil recovery. As the industryleader in the process, Oxy injects carbondioxide into aging reservoirs to force moreoil from wells. The company uses 50 milliontons of carbon dioxide annually for enhancedrecovery. Its ultimate goal: put more carbondioxide into the ground than it takes out inthe form of fossil fuels.
While direct air capture - so long as the plantis powered with more renewable energy -can theoretically help combat climatechange, Oxy uses the carbon dioxide as avaluable resource.
A top producer in the Permian, Oxy also isthe industry leader in vast quantities ofcarbon dioxide for a production processcalled enhanced oil recovery. As the industryleader in the process, Oxy injects carbondioxide into aging reservoirs to force moreoil from wells. The company uses 50 milliontons of carbon dioxide annually for enhancedrecovery. Its ultimate goal: put more carbondioxide into the ground than it takes out inthe form of fossil fuels.
This proposed plant would capture 500,000metric tons of carbon dioxide per year.
Oxy isn't yet estimating project costs, butCarbon Engineering previously estimated thecost of a major plant at about $300 million to
Related
This proposed plant would capture 500,000metric tons of carbon dioxide per year.
Oxy isn't yet estimating project costs, butCarbon Engineering previously estimated thecost of a major plant at about $300 million to
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$500 million.
The first plant would begin construction in2021 and open no later than 2023, thecompanies said.
The goal would be to eventually buildmultiple plants each capable to capturing 1million metric tons per year.
Jordan Blum
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Past Articles from this Author:
New Mexico's Permian leads another rigcount dip
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$500 million.
The first plant would begin construction in2021 and open no later than 2023, thecompanies said.
The goal would be to eventually buildmultiple plants each capable to capturing 1million metric tons per year.
Jordan Blum
Follow Jordan on:
Past Articles from this Author:
New Mexico's Permian leads another rigcount dip
Houston's EP Energy delisted from NYSE
Frac sand expected to remain cheap assupplies outpace demand
TOP OF THE NEWS
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