Big Oil's banking on CO2 capture. Is that a problem?

Jul 14, 2023 View in browser   By Debra Kahn and Jordan Wolman THE WEEK THAT WAS Occidental Petroleum is making a big bet on direct air capture. | Occidental Petroleum Corp. OIL'S CASH CAPTURE — Oil companies are getting into the business of capturing carbon dioxide. Makes sense since they're producers of it, right? But their involvement is upsetting the delicate philosophical tightrope that the nascent field is trying to walk, Corbin Hiar reports for POLITICO's E&E News. At least seven oil and gas producers — including more than half of the world's oil majors — are working on direct air capture projects or have financially supported DAC companies, which can collect as much as $180 for each ton of carbon dioxide they sequester under federal incentives. That's creating tensions with some climate advocates in the carbon removal policy world. They argue that DAC should only be used to balance out past emissions — not future ones. That's because the idea is to reduce fossil fuel use, not enable more of it. "The role of carbon removal in addressing climate change is to remove legacy emissions," said Erin Burns, the executive director of the climate advocacy group Carbon180. "It's not to offset continued fossil fuel use." Other climate advocates are fine with oil companies boosting the technology. "What we really need to happen is for capital and engineering to flow into the sector so it can scale," said Sasha Mackler, the head of energy policy at the Bipartisan Policy Center. "The best, most sophisticated, most committed companies out there that can do that should do that." Reality check: The only oil company getting into DAC in a big way so far is Occidental Petroleum Corp., which is spending $1 billion to build Stratos, a megaplant that would remove as much as 1 million metric tons of CO2 per year. CEO Vicki Hollub has been frank about how she thinks it will "be the technology that helps to preserve our industry over time." Analysts are still watching to see how serious the others — Exxon Mobil Corp., Chevron Corp., TotalEnergies SE and Shell PLC, California Resources Corp. and Aera Energy LLC — are that have gotten into the field. "The only company that's really gone into it as a directly commercial endeavor at this point is Oxy," said Peter Findlay, an analyst with the research firm Wood Mackenzie. "The other folks are dabbling with their venture funds, for both knowledge and to propel those technologies."   UNLEASH THE FUTURE OF HEALTHCARE WITH POLITICO, A 7/20 INTERACTIVE EVENT: Imagine a future where rare genetic diseases are not only treatable, but potentially curable. Where our approach to chronic illness takes a monumental leap forward. That future is already taking shape in the form of next-generation health care treatments such as gene therapy. Join POLITICO on Thursday, July 20 and delve into the burgeoning field of gene therapies, which hold the power to redefine our health care landscape. Are you ready to explore this new frontier in health care? Don't miss this chance to be part of the conversation. REGISTER NOW.     WHAT'S WORKING BATTERY BOOST — The world is on track to make enough EV batteries by 2030 to meet targets aimed at reaching net-zero emissions by mid-century, according to the International Energy Agency. Battery manufacturing announcements have increased worldwide as economies adopt policies like the United States' Inflation Reduction Act and the European Union's Green Deal Industrial Plan. Electric car sales also reached a record high of more than 10 million in 2022, representing a nearly ten-fold increase over five years, according to IEA. Nearly 95 percent of global sales last year took place in the United States, China and Europe. Kelsey Tamborrino has details. LAWYERS GONNA LAWYER — We reported Thursday that climate-related litigation is booming. Another measure of that: An increasingly diverse roster of law firms is pursuing claims, Lesley Clark reports for POLITICO's E&E News. U.S.-based climate liability lawsuits seeking damages from oil companies have been mostly handled by the California-based law firm Sher Edling LLP, nonprofit environmental groups and attorneys general offices in mostly Democratic cities and states. But one of the latest suits was filed by California-based Worthington & Caron PC, which has specialized in asbestos cancer cases. A pair of personal injury firms, Texas-based Simon Greenstone Panatier PC and Oregon-based Thomas, Coon, Newton & Frost, have also joined the fray. The filings signal that climate liability litigation — once mostly the domain of environmental firms and government attorneys — is drawing attention and resources from new corners of the legal industry. “Climate litigation is increasingly seen as a commercially viable practice as legal pathways clear and the evidentiary base continues to grow,” said Benjamin Franta, a senior research fellow and founding head of the Climate Litigation Lab at the University of Oxford. AROUND THE WORLD BEAT COP — This year's signature U.N. climate summit is only four months away. But there are a lot of questions unanswered regarding who is talking to whom and what's on the table. COP28 President Sultan Al-Jaber, who has been under pressure to outline a clearer vision for the talks, sidestepped questions over the role of fossil fuels in an agenda he presented Thursday. Calls to phase out fossil fuel subsidies, which featured in the COP26 agreement, were absent, and there was no clarity on any sort of fossil fuel phase-down. On climate finance, Al-Jaber called on rich countries to “honor the commitments of the past to rebuild trust in the future” and provide additional financing, particularly to help developing nations cope with climate change. Al-Jaber called on countries to join efforts to triple the world’s renewable energy capacity to 11,000 gigawatts and double energy efficiency by 2030,Zia Weise reports. Movers and Shakers TRUJILLO'S QUIET EXIT — A top Biden administration official overseeing Western water policy is leaving, Hannah Northey and Jennifer Yachnin report for POLITICO's E&E News. Interior Department Assistant Secretary for Water and Science Tanya Trujillo resigned six weeks ago and will officially exit the agency July 17, an agency spokesperson said. She's served since mid-2021 and it's unclear where she's headed. YOU TELL US GAME ON — Happy Friday! Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn, and reporters Jordan Wolman and Allison Prang. Reach us at gmott@politico.com, dkahn@politico.com, jwolman@politico.com and aprang@politico.com. Want more? You can have it. Sign up for the Long Game. Four days a week and still free. That’s sustainability! WHAT WE'RE CLICKING — Can 139 billion gallons of super-duper white paint save the planet? Business Insider explores. — Maybe floating solar panels on the world’s oceans can be part of the solution. Bloomberg takes a look at that. — The Washington Post looks into why more corporations are hiding their climate pledges.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman Allison Prang @AllisonPrang   Follow us

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