Priya PatelNew technology being developed by California Resources, a major oil producer in the state, has the potential to create oil with negative carbon emissions, making it some of the “greenest” oil worldwide.
The company aims to inject carbon dioxide into century-old oil fields in order to produce oil with negative carbon emissions while also capturing and storing CO2 that would otherwise be released into the atmosphere.
Carbon capture and sequestration (CCS) is becoming more prevalent globally, with dozens of projects already operating in various countries.
California has set a target to inject 65 million tons of CO2 by 2045, and the Department of Energy envisions sequestration of 250 million tons a year nationwide by 2035.
California Resources is already well on its way to obtaining the necessary permits for its CCS project in Elk Hills. The company has secured $500 million in funding from private equity giant Brookfield to develop the project, which aims to sequester 200 million tons of CO2.
In order to fund the build-out of the project without taking on more debt, California Resources is considering selling a large tract of beachfront property in Huntington Beach, which could be worth up to $700 million.
However, there are concerns around the safety and potential environmental risks of carbon sequestration. Developers must ensure the carbon dioxide does not leak once it has been injected underground and that the emissions are monitored for years to come.
If successful, the project has the potential to create a new generation of “green” oil that could help transition away from fossil fuels while still meeting global energy demand.
