Oil & Gas Carbon Capture and Storage Market
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The global oil & gas carbon capture and storage market was valued at USD 3.9 billion in 2024 and is estimated to grow at a CAGR of 14.5% from 2025 to 2034, due to increasing environmental regulations around the world and the quest for carbon neutrality. There is overwhelming acceptance of carbon capture and storage CCS by governments across the globe and industry as one of the technologies which can benefit to control CO2 emissions during the extensive use of industrial processes, including oil and gas, which are among the highest greenhouse gas emitters.
Emerging economies are putting immense effort and strain into implementing technologies that curb emissions, and as a result, there have been stringent emission regulations in place for oil and gas. These changes are controlling and shaping the market, fueled further by pollution policies including carbon pricing, emissions standards and gas emissions controls. These policies force the oil and gas sectors to pursue the targets that have been set. Furthermore, the growing international oil and gas demand, especially in developing countries, accentuates the need for innovation quicker, ensuring that production continues but the carbon footprint is minimized.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Oil & Gas Carbon Capture and Storage Market size in 2024: | USD 3.9 Billion |
| Forecast Period: | 2025 - 2034 |
| Forecast Period 2023 - 2032 CAGR: | 14.5 |
| 2023 Value Projection: | USD 15.1 Billion |
| Historical Data for: | 2021 - 2024 |
| No of Pages: | 110 |
| Tables, Charts & Figures: | 25 |
| Segments Covered: | Technology and region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Rising advancement across amine-based solvents, adsorption devices, and membrane separation techniques is regarded the prime efforts of capturing CO2 on a global level. Newer technologies for capturing carbon are increasing the capture efficiency and decreasing the cost per ton of CO2 captured, while the construction of pipelines and the creation of underground storage facilities makes the implementation and scope of CCS projects much more accessible.
Oil and gas companies are expected to show greater interest in investing in carbon capture and sequestration technology due to the appearance of highly efficient methods that are low-cost, as these firms are also under pressure to reduce operational costs. In the Oil & Gas CCS zone, Enhanced Oil Recovery (EOR) has stimulated appreciation on account of put away CO2 being injected into depleted oil stocks, while the rest is kept producing oil at higher volumes. This dual benefit brought about makes EOR a promising method in accomplishing CCS in matured oil fields.
The oil & gas carbon capture and storage industry will reach more than USD 15 billion by 2034. Upstream activities are expected to continue and grow throughout the region, which in turn will increase the need for power generation, thus driving profitability within these sectors. These industries are among the best performers in terms of carbon dioxide emissions as the world is witnessing an increased need for CCS in the oil and gas industry. Large-scale exploration and production of oil and gas have a huge carbon footprint and may benefit from the use of CCS technologies.
This encompasses EOR facilities, oil refinery systems and natural gas processing plants which in turn release massive amounts of CO2. With the aid of fuel combustion methods such as oxy fuel combustion, pre- and post- combustion, CO2 is extracted and refined from the oil burnt at these facilities. With the advancement of fuel combustion, development and use of EOR will also increase. Higher amounts of CO2 are needed to inject into old reservoirs where there is little oil left, and capturing large quantities will help to reduce the amount of CO2 released into the atmosphere.
The oil & gas carbon capture and storage market from post combustion technology is expected to grow at over 18% CAGR through 2034. The oil and gas industry is witnessing an increased adoption of the post-combustion carbon capture and storage (CCS) technology as there are strict standards targeted towards the conservation and carbon emission reduction. The technology aids to captures CO2 from the flue gases produced during the combustion of fossil fuels in power, refining, and petrochemical industries. In addition. as more and more oil and gas are needed throughout the world, technologies that facilitate emission reduction in a sustainable means are also required.
The U.S. oil & gas carbon capture and storage market is expected to reach USD 3 billion By 2034, due to increased emission standards and investment in technology aimed at conserving the environment. Demand for Carbon Dioxide Capture and Storage (CCS) is increasing for applications such as Enhanced Oil Recovery (EOR) and natural gas processing where companies can reduce emissions and increase production at the same time. Furthermore, with the collaboration between the government and private sector, large-scale CCS initiatives are being undertaken which will help position the US in the forefront of the global competition in CCS.
The increase in industrial activity, CO2 emissions, and the push for achieving carbon neutrality has resulted in rapid growth of the oil & gas CCS market in Asia Pacific. Oil and gas companies of the region are looking into the possibility of CCS for bulk carbon sequestration and EOR projects. Moreover, the market is supported by oil companies, technology providers, and government collaboration to promote the implementation of CCS projects, which will satisfy the carbon emission reduction targets of the region.
Main players in the CCS sector of the oil and gas region are increasingly pursuing the initiatives of oil and gas companies willing to grow their market share and improve their service offerings. Further, they are working with government agencies to win public contracts and take part in big government funded operations that are lucrative but less risky. For instance, in May 2024 ExxonMobil collaborated with the U.S Department of Energy (DOE) for implementation of its projects on CCS through the CarbonSAFE Initiative. The work involves building of carbon storage infrastructures at volumes that will decrease emissions from industrial activities. This partnership shows the integration of private sector knowledge with the financial help provided by the public sector to make CCS solutions efficiently scalable.
The following are the key participants in the carbon capture and storage in oil and gas industry:
Market, By Technology
The above information has been provided for the following regions and countries:
Key players in the industry include Air Products, Aker Solutions, Chevron, Dakota Gasification Company, Equinor, Exxon Mobil, Fluor, General Electric, Halliburton, Linde, Mitsubishi Heavy Industries, NRG Energy, Shell, Siemens, SLB, Sulzer, and TotalEnergies.
The U.S. oil & gas carbon capture and storage market is set to exceed USD 3 billion by 2034, supported by stringent emissions regulations and increasing investments in sustainable technologies like Enhanced Oil Recovery (EOR).
The global oil & gas CCS market is driven by the rapid expansion of upstream operations and the growing demand for power generation, both of which are significant contributors to CO2 emissions, necessitating the adoption of CCS technologies.
The global market for oil & gas carbon capture and storage was reached USD 3.9 billion in 2024 and is projected to grow at a 14.5% CAGR from 2025 to 2034, driven by stricter environmental regulations and carbon neutrality goals.
The post-combustion CCS technology market is expected to grow at a CAGR of over 18% through 2034, as it helps industries comply with stringent environmental regulations by capturing CO2 from flue gases in power generation, refining, and petrochemical sectors.