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The Hunting Season Is Not Over Yet: Exxon Mobil makes a $400 million commitment to Wyoming's carbon capture10/25/21
By expanding the facility, Exxon Mobil Corporation anticipates capturing up to 1 million metric tons of carbon dioxide (CO2) more, on top of the 6-7 million metric tons of yearly harvest at the LaBarge facility, Wyoming.
In the Madison reservoir located near LaBarge, Wyoming, Exxon operates two acid gas injection (AGI) wells for the primary purpose of acid gas disposal with a secondary purpose of sequestering CO2 geologically. AGI wells have been operated by ExxonMobil since 2005, and, according to the company's multiple statements, will continue to be injected until the end of the field life of the LaBarge assets.
At the moment, it is one of Exxon's most important bases. Despite the high CO2 concentrations in the gas extracted there, ExxonMobil has been implementing several technologies and approaches from the very beginning to effectively manage the significant volumes of CO2 associated with its production. Carbon capture and storage (CCS) technologies and approaches used at LaBarge are examples of technologies and approaches being proposed for use in other industries.
More so, Exxon Mobil regularly affirms its stance on sustainability in the industry by bringing to life CCS projects like this one around the world. The LaBarge facility is a good example since it already captured more CO2 than any other facility on the planet.
Exxon supports policies that ensure a predictable price for carbon emissions, which can lead to more investments in CCS-type projects. With the right policies in place, this type of technology can be implemented immediately to help society reach its lower-emission goals.
Additionally, as the originator of the Low Carbon Solutions initiative, Exxon Mobil is researching and developing low-emission technology and evaluating several large-scale CCS projects in Europe, Asia, and the Gulf Coast. As well as biofuels and hydrogen, the company is looking at strategic investment opportunities to help bring these technologies to scale for the sectors of the global economy with the highest emissions.
As part of its $400 million investment proposal to expand the CCS capabilities of its Wyoming facility, Exxon Mobil has started the process for engineering, procurement, and construction contracts. Operational activities could begin as early as 2025 after a final investment decision is made in 2022.
At present, about 20% of all CO2 captured worldwide each year is captured at the LaBarge. Yet, in addition to the 6-7 million metric tons of CO2 currently captured at the facility, Exxon anticipates that it can push it even further past the glass ceiling. At the moment, the target is to add a million metric tons to the extraction capabilities of the facility, bringing its yearly total to 8 tons of captured CO2.
However, as one of the largest of the world's Big Oil companies, it is not the only project in Exxon's pipeline: aside from CCS capabilities, the LaBarge is one of the world's largest sources of helium, producing approximately 20% of global supply. Exxon Mobil has also been advocating for additional investments in society's most emitting sectors as part of its sustainability policies.
New standards for carbon capture have been set in North Dakota earlier this month as NDIC greenlights Red Trail Energy’s project. The company will now be able to commercially capture, compress, and inject 180,000 tons of carbon dioxide per year into the Broom Creek Formation on its property for permanent geologic CO2 storage. This ensures that carbon dioxide can be stored safely for generations to come.
Penn Virginia announced a rebranding to Ranger Oil on 6 Oct. following the close of the Lonestar acquisition. This Texas oil & gas giant reinvents itself anew, shifting its energy development in the lone star state towards safer and more efficient oil and gas operations. The company's consolidated assets now amount to over 140,000 net acres strategically positioned in the Eagle Ford play of south Texas, making it one of the biggest players. It is anticipated that the full rebranding will be complete by the year-end of 2021. For the full rundown of the situation visit our blog.
Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.
The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.
No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.