Oil and gas companies remain key adopters of CCUS despite project delivery challenges, says GlobalData

Carbon capture, utilization, and storage (CCUS) has emerged as a vital decarbonization strategy for industries that are difficult to decarbonize, including oil and gas, power, cement, and steel. According to GlobalData, as of June 2026, over 70% of operational and upcoming CCUS facilities worldwide were connected to energy assets, with oil and gas companies remaining prominent players despite their reduction of broader low-carbon investments.

The strategic intelligence report by GlobalData, "Carbon Capture and Storage," highlights that a number of oil and gas entities persistently prioritize CCUS for their core assets, such as LNG, refining, hydrogen production, and upstream operations. Notable initiatives include Eni’s Ravenna cluster, ExxonMobil’s Gulf Coast CO₂ transport and storage network, and Northern Lights, a collaboration among Equinor, Shell, and TotalEnergies, aimed at enhancing offshore CO₂ transportation and storage in Norway.

Ravindra Puranik, an Oil and Gas Analyst at GlobalData, notes that as of June 2026, the operational CCUS capacity was limited, with more than 140 projects globally boasting a cumulative capacity of 62 million tonnes per annum (mtpa). The energy sector accounts for the majority of this capacity. However, a significant portion of future CCUS capacity is still in the feasibility and feasibility engineering design (FEED) stages of project development.

This illustrates that, while the CCUS sector has transitioned from pilot-scale interest, numerous projects have yet to surmount commercial, regulatory, and infrastructure obstacles necessary for construction and commissioning. The success of these projects hinges on the availability of shared CO₂ pipelines, shipping routes, and storage hubs, which are crucial in mitigating risks and enhancing the economic viability of capture investments.

Despite a robust pipeline of CCUS projects, the decade is more likely to see selective delivery rather than widespread expansion. Many announced projects remain vulnerable to financing risks, cost inflation, regulatory uncertainty, and delays in finalizing long-term CO₂ offtake or storage contracts. Without sufficient transportation infrastructure and storage capacity, captured CO₂ cannot be securely stored on a large scale, potentially slowing or limiting CCUS project development.

The availability of financial incentives, such as the US 45Q tax credit, the European Union’s Emissions Trading System (ETS), and Canada’s carbon pricing mechanism, can bolster project economics. However, high capital and operational costs, inadequate CO₂ transportation and storage infrastructure, permitting delays, long-term liability concerns, and public skepticism continue to pose significant challenges to the widespread implementation of CCUS.