CCS: upstream’s commercial conundrum Report

Insight 29 June 2021

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Report summary

Although the concept has been around for decades, the unique events of the past 18 months have rapidly propelled CCS from the fringe onto the main stage. All the industry’s largest companies now have at least one slide in their strategy decks showing how they will meet a big wedge of their decarbonisation target via subsurface sequestration. However, we believe the regulatory, commercial, and technical hurdles still to be overcome are significantly underestimated. Discussions with both existing and aspirational CCS operators convey a clear message: hitting targets will be very challenging. We analyse the scale of the challenges ahead for upstream CCS through the prism of three key metrics: regulatory, commercial and subsurface.

Executive summary
CCS: back to the future
CCS in an upstream context
The future challenges for upstream CCS: regulatory, commercial and subsurface
- 1. Regulatory: law, liability and leaks
- 2. Commercial: a question of cost or a question of value?
- 3. Subsurface: When the details matter
Where next?

Tables and charts

This report includes the following images and tables:

Carbon capture capacity – our current trajectory (ETO) vs scenario required to limit global warming by 2 degrees (AET-2)
Key upstream CCS projects to watch
Regulatory case study