Oil and gas companies lead in carbon capture efforts despite project hurdles

Oil and gas companies continue to prioritize carbon capture, utilization, and storage (CCUS) as a primary decarbonization pathway, despite significant hurdles in moving projects from planning to operation. According to a report by GlobalData, energy assets accounted for more than 70% of all operational and planned carbon capture facilities by June 2026.

While the current global operational base is relatively modest—consisting of over 140 projects with a cumulative capacity of approximately 62 million tonnes of CO2 per year—the sector remains a dominant player. Companies are focusing CCUS efforts on core assets such as liquefied natural gas (LNG), refining, hydrogen production, and upstream operations.

Significant challenges remain, as much of the projected future capacity is still in the early feasibility and Front-End Engineering Design (FEED) stages. The industry faces commercial, regulatory, and infrastructure obstacles, including the need for shared CO2 pipelines, shipping routes, and storage hubs to improve the economics of these investments.