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Enterprise, Oxy Low Carbon Ventures Will Join Efforts on Houston Area CO2 Project
04/29/2022
Oxy Low Carbon Ventures and Enterprise Products Operating will partner in order to provide services to carbon emitters from Houston to Port Arthur, Texas, due to the development of CO2 transportation and sequestration.
A letter of intent for a potential CO2 transportation and sequestration solution was inked on April 25 by Oxy Low Carbon Ventures (OLCV) and Enterprise Products Operating LLC (Enterprise). This joint project could primarily be focused on providing services to emitters in the industrial corridors from the greater Houston to Beaumont/Port Arthur in Texas, a region that is filled with refineries and petrochemical plants.
Due to the press release, the initiative would combine Enterprise’s leadership position in the midstream energy sector with OLCV’s extensive experience in subsurface characterization and CO2 sequestration.
“We look forward to collaborating with Enterprise to develop a sequestration solution to help industrial emitters reach their net-zero goals,” said Richard Jackson, Occidental president of U.S. onshore resources and carbon management and operations. “We believe that our low-carbon strategy enhances Oxy’s business value and creates a path to net-zero for ourselves while providing organizations everywhere with the tools they need to achieve net-zero or net-negative emissions.”
No financial terms were disclosed in the announcement. Nevertheless, Occidental's latest annual report noted that OLCV plans to invest approximately $300 million into the development and commercialization of new technologies and low-carbon business models in 2022.
It’s an international energy company with assets primarily in the United States, the Middle East and North Africa. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy’s business while reducing emissions. Therefore, OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally.
Enterprise would develop the CO2 aggregation and transportation network utilizing a combination of new and existing pipelines along with its expansive Gulf Coast footprint. OLCV, through its 1PointFive business unit, is developing sequestration hubs on the Gulf Coast and across the U.S., some of them are thought to be anchored by direct air capture facilities. The hubs will provide access to high-quality pore space for industrial plants trying to find a way to capture their carbon emissions and efficient transportation infrastructure, bringing more options to emitters looking to explore viable carbon management strategies. The partnership’s assets include more than 50,000 miles of pipelines; over 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
Both companies have begun exploring the commercialization of the potential joint service for these carbon emitters. “For many years, Enterprise and Oxy have successfully collaborated in developing traditional oil and gas projects," A.J. “Jim” Teague, co-CEO of Enterprise’s general partner, commented. “We are excited to evolve that relationship with OLCV to provide reliable and cost-efficient CO2 transportation and sequestration services to advance a low-carbon economy for the energy capital of the world.”
Moreover, it is noticed that Oxy is one of only three oil and gas companies aspiring to set emissions reduction aims which are quite ambitious to reach Net Zero by 2050 and the alignment with TPI’s 1.5°C benchmark.
If you wish to learn more about CO2 and carbon storage projects in the O&G industry or just want to get a better hold on renewable and ESG data, contact our Houston sales office or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
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Merger of Equals: Whiting and Oasis $6B Deal
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The two Bakken shale producers announced in a joint statement on March 7 that they had reached an agreement to unite in a $6 billion "merger of equals." Combining these two companies will create a leading Williston Basin position with assets covering approximately 972,000 net acres, production of 167,800 boe/d, and an enhanced free cash flow generation that will generate capital returns to shareholders. A historic collapse in oil prices prompted both Whiting and Oasis oil companies to file for Chapter 11 bankruptcy protection in 2020. Thus, the merger can be viewed as a preventive measure to avoid going out of business.
All In: Devon Energy is Banking on a Rebound for Anadarko
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Devon Energy Corp. believes that the Anadarko Basin is a hidden treasure and aims to use its position in it to fuel a robust cash return model and establish itself as an industry leader in promoting ESG. This E&P company plans to drill 45 new wells in the Midcontinent by 2022, as well as to produce 600,000 boe/d across five operating basins, including the Eagle Ford Shale, Permian, Powder River, and Williston basins. And given that Devon's recent fourth-quarter results were better than Street estimates. It appears that they are doing something right, at least for the moment.
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In order to sell its part of the sprawling Eagle Ford Shale acreage, Chesapeake Energy Corp. on January 18 concluded an agreement to trade its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.
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On January 6, Phillips 66 announced that it plans to acquire more than 43% of DCP Midstream LP for $3.8 billion, expanding the business in the oil & gas business.
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On January 5 Northern Oil & Gas (NOG) concluded a deal to acquire working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin, according to a January 9 press release. Firstly estimated at $330 million in cash, the deal was signed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on October 19. NOG paid $29 million more for the additional interests, which now totalled 39.958%. Finally, the deal closed for $320 million in cash and $43 million in debt at signing in October with the finance of Minnetonka, Minn.-based NOG with cash on hand, operating free cash flow, and assistance from its revolving credit facility.