Decarbon Daily - Oil Views, $2B Valuation, Carbon Tax

The Federal Reserve Bank of Dallas conducts regular surveys of the Energy industry to understand the current spending expectations, sentiment around pricing, and general observations from 200+ oil and gas. The firms are headquartered in the Eleventh District, Texas, southern New Mexico and northern Louisiana, and operate regionally, nationally or internationally. The second quarter survey was released on June 23rd and included a special section questions on carbon policies and carbon taxes.

Below are selected quotes and comments from individuals running oil & gas companies in the Eleventh District. Read more about the survey.

An Oil Industry View of Decarbonization

Once the consumer is confronted with the cost of carbon emission in daily life, there will be real progress in making the energy transition to lower-carbon fuels. Simply trying to choke off supply by regulation and fiat will not provide a sustainable solution.

Oil has more energy than wind and solar. I am not against wind and solar but do realize that the public is not willing to give up the consumption they use in oil. Can they live without their cellphones, clothes and cars which rely heavily on oil and gas? No, the public cannot give that up easily. Natural gas is a clean fuel, and if you get rid of oil, then you need gas to fuel the electric grid.

What about Carbon Capture?

The sentiment is mixed about the ability of carbon capture to become a viable solution. Both quotes are skeptical but advances in synthetic biology, direct air capture, and energy policy may drive progress much faster than previous attempts.

I’m extremely curious about the western world’s reaction if carbon capture and sequestration (CCS) become viable at scale. I believe there is a (negative) visceral reaction to the oil and gas industry at large in the western world. If CCS works at scale, does the negative sentiment around the traditional energy sector abate? I’m skeptical.

I have worked in the upstream segment of the E&P industry for 35 years and have worked on several CO2 tertiary floods during that period. Most of us in the technical side of the business recognize carbon capture exists somewhere between difficult-to-implement and a complete charade.

Inside this Issue

💰 Lotus Cars Finishes Funding Round at $2 Billion Valuation
🤑 Gatik Raises $85 Million in Series B Funding Led by Koch Disruptive Technologies
♻️ Granite Publishes Annual Sustainability Report Unveiling New ESG Priorities
🔬 Twelve Partners with LanzaTech to Transform CO2 into Polypropylene
📉 ADM Announces Industry’s First Net Carbon Neutral Milling Operations
📑 OPIS Expands Carbon Market Report