Matthew Rigdon, Executive VP and COO

In the quest to achieve net zero carbon emissions within their respective goal deadlines, energy companies are evaluating a myriad of solutions to reduce carbon emission and how to offset and/or dispose of those emissions. The idea of carbon capture and storage is not new, but it is likely going to become a more significant means of emissions reduction than expected. 

A recent lease sale of some specific offshore blocks in the Gulf of Mexico were in areas that will not be intended for production but rather intended for the capture and storage of carbon emissions in the ground. Though this practice is still in development, the commitment as a necessary means to reduce carbon emissions is very real. Exxon Mobil, as an example, is developing a business model to sell such carbon emissions reduction services to other companies. Therefore, this is not just a means for energy companies to reduce emissions, but also create stand-alone businesses that generate additional revenue streams. 

These commitments point to the fact that carbon emissions will continue to occur for years to come at volumes that will require capture and storage. This indicates that oil and gas consumption will remain at the current levels with new sources of renewable energy trying to fill the gap of demand. If anything, the costly venture to capture and store carbon emissions points to a continued, robust offshore oil and gas industry in the US GOM.