Oil and gas companies are ramping up efforts to increase their carbon capture capacity in a bid to decarbonize operations and reduce emissions. Many of these major players in the industry are turning to carbon capture and storage (CCS) technology as a way to cut down on their carbon footprint while maintaining high levels of fossil fuel production.
Despite the optimism from oil and gas majors, energy experts and environmentalists are concerned that the industry is becoming too reliant on CCS technology instead of making meaningful shifts towards a green transition. CCS technology has been around for years, but its success in capturing carbon dioxide at the necessary rate to decarbonize large-scale operations remains uncertain.
The International Energy Agency (IEA) has labeled CCS technology as “critical” for achieving net-zero emissions globally. However, there are doubts about whether current technology can effectively capture the massive quantity of carbon emissions that oil majors are promising to reduce.
While oil and gas companies are investing billions in CCS projects, only a small percentage of announced projects have reached the final investment stage. Concerns remain about the economic feasibility of rolling out CCS on a large scale, with doubts lingering about whether CCS tech can live up to expectations.
With the industry facing pressure to reduce emissions and decarbonize, the rush to fund CCS technology is seen as a risky distraction. Without a proven track record of success, there are fears that relying on CCS tech to meet climate targets could have serious consequences if the technology falls short. The failure of CCS technologies in oil and gas operations could hinder the global green transition and lead to higher-than-anticipated carbon emissions.
