Energy Transition Midstream

Will midstream limit CCUS development?

byBrad Johnston, P.Geo.

XOM’s recent acquisition of DEN for nearly $5 billion firmly places the buyer and its low carbon solutions business as a leader in carbon capture, utilization and storage (CCUS). Its dominant position is even more apparent in southern Louisiana where DEN was very active in securing midstream partnerships and storage sites around its Green and NEJD CO2 pipelines. XOM is now a midstream and/or storage partner in nine of the 22 announced CCUS project in southern Louisiana, as well as being the owner and operator of the only CO2 pipelines in the region. Its CCUS participation includes storing at least 48 mtpa of the 84 mtpa of total planned storage in the area. This does not include volumes related to recent storage announcements for its Libra and Virgo projects that currently do not have annual storage targets.

Current throughput for XOM’s Green pipeline is about 4 mtpa, only 25% of the 16 mtpa capacity. The remaining capacity, however, is far from enough to satisfy the demands of the rapidly expanding southern Louisiana CCUS market. If all announced capture and storage projects in the area go through, at least 50 mtpa of additional transportation capacity will be needed by 2030. Expansion of XOM’s existing CO2 infrastructure and the addition of new CO2 pipelines through new builds or repurposing existing pipelines and rights of way will need to happen in relatively short order to meet project timelines.

Highlights from Energy Transition Research

  1. Power Generation BeatBox 2Q23 – Calling for big beats from CEG and VST – This report series attempts to predict beats and misses on consensus revenue expectations for public power producers using a proprietary data-driven quantitative model.
  2. Going Green With Hydrogen – IRA economics and technology benchmarking – This report explores green hydrogen technology and incentives available in the U.S and models the resulting project-level economics.
  3. Renewables Performance Drivers – Design choices that matter – This report analyzes the impact of wind and solar project design decisions made by developers and quantifies the choices that result in the strongest asset performance.

Energy is changing. Connect weekly with the ideas that are leading the way.

About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more.

Brad Johnston, P.Geo.

Brad Johnston, P.Geo.

Brad joined Enverus in 2016 where he works as a geologist and research analyst. He is currently a member of the Energy Transition Research team, developing subsurface models and research for CCUS, DLE and geothermal. Brad has covered a wide range of US and international basins, focusing on integrating geological models with basin analysis for product and research. He is based in Calgary.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

energy-transition
Energy Transition
ByCarson Kearl

In a world where energy value can make up a small portion of the revenue stream from emerging business models, what else is at play? Enverus Intelligence Research® views effective energy transition business as taking advantage of two key additive...

field-representative
Intelligence Oilfield Services
ByErin Faulkner

Permitting information for oil and gas wells is one of the most readily available and least lagged pieces of data on industry activity, but it is often seen as a poor indicator of future drilling activity.

Enverus Press Release - Exploring falling rigs and rising production
Energy Analytics Minerals
ByEnverus

While horizontal drilling and hydraulic fracturing significantly enhance well productivity, they have had the opposite effect on the land department.

operators
Intelligence
ByJoseph Gyure, Editor, Enverus Intelligence

All seven regions covered by the Enverus Day Rate Survey saw rates rise sequentially for the second time in three months in January as confidence started to strengthen among U.S. land drilling contractors.

accurate-grid-forecastin
Energy Transition Intelligence
ByJoseph Gyure, Editor, Enverus Intelligence

Ørsted took a blade to its project pipeline, reducing its ambition to 35-38 GW of installed capacity by 2030 from the previous 50 GW.

ofs-blog
Intelligence
ByJoseph Gyure, Editor, Enverus Intelligence

SLB has reaffirmed its 2024 financial guidance, part of an effort by international oilfield services companies to reassure investors after the Saudi Ministry of Energy called off plans to increase its maximum sustainable capacity by 1 MMbo/d to 13 MMbo/d...

EV-parent-image-4
Analyst Takes Energy Transition
ByEnverus

Despite the relatively scant incentives for buying an EV in the U.S. compared to other countries, the U.S. Environmental Protection Agency (EPA) presented its plan in 2023 to tighten tailpipe emissions regulations.

Enverus Blog - Increase visibility and efficiency with OpenTicket Mobile digital field ticketing software
Trading and Risk
ByEnverus

Amid significant volatility in global energy markets, U.S. President Joe Biden’s decision to temporarily halt approvals for pending liquefied natural gas (LNG) projects seems to defy conventional trading wisdom. This audacious move has given rise to a variety of viewpoints...

Enverus Blog
Intelligence Trading and Risk
ByEnverus

In the ever-changing energy landscape, understanding market fluctuations, weather conditions and system resilience is paramount when factoring ideas for trading opportunities.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Get Energy Transition Research updates straight to your inbox by filling out the form below.

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert