Top U.S. Oil States Vie for Carbon Capture

Top U.S. Oil States Vie for Carbon Capture

Companies are offering carbon capture and storage (CCS) hubs to sequester greenhouse gas emissions from refineries’ chemical and natural gas plants. This activity could benefit slow global warming.

Most states’ rules governing the carbon injection wells demand federal approval. The first access should take around six years to win a green light.

Oil states, including Texas and Louisiana, want to take over permit reviews and enforcement authority, also known as a priority, from the U.S. Environmental Protection Agency (EPA) for carbon dioxide (CO2) and other greenhouse gas storages sites.

The third-biggest oil-producing state, North Dakota, won oversight in 201. It published its first permit last year after an eight-month review. An official stated that New Mexico, the second-largest oil producer behind Texas, has started initial discussions with the EPA. They will regulate carbon sequestration wells.

States must establish that their regulations are as strict as the EPA’s. Nevertheless, environmentalists worry that putting state regulators in charge will show to lax monitoring once regulatory agencies in oil-friendly states take control.

EPA last year established a probe of Texas’ air quality regulator for not properly monitoring a big air polluter. Environmental groups also have succeeded in multi-million dollar settlements in federal courts for pollution unpenalized by Texas.

Faster Permits

States angling for oversight is home to massive energy firms proposing underground CO2 storage projects. In Texas, Exxon Mobil Corp (NYSE: XOM) is evaluating an enormous carbon reservoir off the coast along with more than a dozen other energy companies.

Exxon spokesman Todd Spitler said that the technology would demand government support and stable policies. They will cover a streamlined permitting process for CCS facilities.

Sempra Energy (NYSE: SRE) has an application pending before the EPA for a Louisiana facility connected to a liquefied natural gas plant. A spokesperson stated that the company has shared its plans with the state’s regulator and supports Louisiana’s demand for priority.