Oil & Gas Carbon Capture & Storage Market Size - By Technology (Pre Combustion, Post Combustion, Oxy-Fuel Combustion) & Global Forecast, 2023 - 2032

Oil & Gas Carbon Capture & Storage Market Size - By Technology (Pre Combustion, Post Combustion, Oxy-Fuel Combustion) & Global Forecast, 2023 - 2032

Global Oil & Gas Carbon Capture & Storage (CCS) market is poised to exhibit a decent growth rate from 2023 to 2032. The increasing global focus on reducing greenhouse gas emissions and combating climate change has propelled the demand for CCS technologies in the oil and gas industry. CCS allows capturing, transporting, and storing of carbon dioxide emissions, helping companies achieve their emission reduction goals.

Government regulations and incentives promoting CCS adoption provide further impetus to the market. The Infrastructure Investment and Jobs Act (IIJA), which was signed into law in November 2021, includes $12 billion in funding for carbon capture and storage projects. The IIJA also extends the Section 45Q tax credit for carbon capture and storage, which provides financial incentives for the development and deployment of CCS technologies. Besides, technological improvements and cost reductions in CCS technologies have improved their viability and attractiveness for oil and gas companies. This, alongside public and investor pressure for sustainable practices and decarbonization strategies, will drive the oil & gas CCS industry.

The overall oil & gas carbon capture and storage market is categorized based on technology and region.

With respect to technology, the market size from the post-combustion segment will expand commendably through 2032. Stringent environmental regulations and sustainability commitments are pushing companies to reduce their carbon footprint and mitigate greenhouse gas emissions. Post-combustion CCS offers a viable solution by capturing carbon dioxide from the exhaust gases of power plants and industrial facilities. Additionally, the increasing global focus on transitioning to a low-carbon economy necessitates the deployment of CCS technologies to achieve climate goals. Besides, advancements in post-combustion CCS technology, including improved efficiency, cost reduction, and scalability, are driving its adoption as a reliable method to curb carbon emissions from the oil and gas sector.

Europe oil and gas carbon capture and storage (CCS) market capture a notable market share by 2032. The region has ambitious climate targets and aims to achieve carbon neutrality, driving the adoption of CCS technologies to reduce greenhouse gas emissions. The presence of mature oil and gas industries in Europe makes CCS a viable option for decarbonizing these sectors. This apart, supportive government policies, incentives, and funding schemes encourage investment in CCS projects across the region. Additionally, collaborations between European countries and companies promote knowledge-sharing and technology development in the CCS sector.