Mapping the Regulatory Landscape for CCUS in Texas

2021 marked the beginning of rapid increases in carbon capture, utilization and sequestration (CCUS) activity, with more than 100 new facilities being announced. CCUS saw a record high of $6.4 billion in global investment in 2022.

Progress has continued in 2023. 166 million tons per annum of potential storage capacity is expected to enter development within the year, and many stakeholders are predicting another record-setting year of investment growth. Significant M&A activity has also occurred this year. In August, Occidental Petroleum announced that it agreed to pay $1.1 billion dollars to purchase Carbon Engineering Ltd., with whom it had been working on numerous CCUS projects. In July 2023, Exxon announced that it had purchased Denbury Resources in an all-stock deal valued at $4.9 billion, citing Denbury’s CO2 infrastructure.