RE: A fund that I know has 4 million of these puppies @20p2 Jan 2023 19:23
Hi Duc, I said I would respond later….
Whilst widespread CCS has yet to capture the imagination of the larger oil Co, partly due to lack of ‘what’s in it for me syndrome’ the US IRS has laid the way forward with a very enlightened 45Q CCS guidance doc, that should help other countries focus on their own similar mandate.
Until there is wider acceptance that CCS is a very good ‘tool’ to play its part in global warming, the possibility of valuing such ventures is a tad tricky.
Having said all of the above, I have started to examine/search for old legacy oil fields, long since shut in, probably with half their oil sitting untouched, at the time of shut in, current means of production meant the oil that could be extracted economically, had been exhausted.
New drilling techniques, submersible pumps and now CCS will give those old fields a new lease of life.
This will be far cheaper than trying to find a new oil field !!
The perfect storm would be an old large legacy oil field, long ago shutdown, near a high polluting fertilizer plant or power plant, with huge CO2 output.
Sign a 20 year deal with the CO2 polluter, exclusive rights to the CO2, collect and pump it straight in to the old oil field (I know there is a lot more to it than my simple explanation)
You solve the CO2 by CCS, helping the plant become carbon neutral and take advantage of the 45Q payments, oh and re-start oil production, from a field that previously had zero value.
Old gas fields can also be used for CCS.
It was only 40 years ago that oil Co drilling for oil would find (at the time) worthless gas, cap it and abandon!!!
The above will already being planned, if I was a bit younger, I would be looking for the above and signing NDA’s, options and Contracts.
Is there value, huge, but not just yet…………
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