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Occidental thinks CCS market could be worth $5 trillion

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US-based oil company Occidental Petroleum has predicted that the market for carbon capture and storage (CCS) could be worth trillions of dollars in future.

CCS aims to take carbon dioxide out of the air, either directly from the atmosphere or at a localized source, and store it permanently, thus reducing the total amount of greenhouse gases in the atmosphere and slowing down the process of climate change.

In addition to helping the environment and perhaps avoiding some of the worst consequences of climate change, Occidental predicts that the global market for CCS could be worth $3–5 trillion in future, indicating that there are business opportunities for companies that can compete effectively in this market.

Occidental believes it is particularly well-positioned to enter this market thanks to its existing experiencing of injecting carbon dioxide into wells. Indeed, the company has been long injecting carbon dioxide into oil wells as part of its enhanced oil recovery (EOR) technique. This helps maintain the pressure within wells, which would normally decrease as a well is gradually depleted, and consequently the production rate.

Occidental is not alone in pursuing CCS of course. ExxonMobil, the maker of Mobil lubricant and grease products, claims to be the world leader with the capacity to capture 9 million tons each year.

Nevertheless, Occidental plans to deploy direct air capture (DAC) systems to capture carbon dioxide directly from the atmosphere and inject it into active oil wells, which would have the dual benefits of both increasing well efficiency and sequestering the carbon dioxide.

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