A new report from Energy Intelligence finds that major oil companies are scaling back their carbon capture and storage plans. The main reasons are weak demand for CO2 storage services and a strategic refocus back on core oil operations. This shift raises questions about the near-term viability of CCS as a climate solution. Several large CCS projects have been delayed or cancelled as companies reassess their priorities. The lack of a strong price signal for captured CO2 and uncertainty around government support are key factors. Without a robust market for storage, the economics of building out capture infrastructure remain challenging for many operators.
