Oil and Gas Carbon Capture and Storage Market Forecast USD 15.71 Bn by 2034
The oil and gas carbon capture and storage market is forecasted to grow from USD 4.02 billion in 2024 to approximately USD 15.71 billion by 2034,With a CAGR of 14.60%.
- North America dominated the global market with the largest share of 36% in 2024.
- Asia Pacific is observed to expand at a rapid pace during the forecast period.
- By technology, the post-combustion segment accounted for the major market share of 50% in 2024.
- By technology, the pre-combustion segment is expected to grow at a significant of 18.1% during the forecast period.
Oil and Gas Carbon Capture and Storage Market Overview
The oil and gas carbon capture and storage market has become a vital component of the energy sector’s strategy to reduce its carbon footprint. CCS technologies are increasingly being adopted to manage and store emissions generated during extraction, refining, and distribution of oil and gas. As climate change remains a global concern, the role of CCS in achieving emission reduction targets is becoming more prominent, encouraging both private and public sector investment.
Drivers
The growing need to curb industrial carbon emissions and meet climate policy requirements is driving the demand for CCS in oil and gas. Many countries are incorporating CCS into their national climate strategies, providing a regulatory boost to the market. The combination of corporate ESG goals and rising carbon credit prices is also motivating energy companies to incorporate CCS into their operations as part of their long-term sustainability efforts.
Increasing Environmental Concerns
The growing environmental concerns are driving the growth of the oil and gas carbon capture and storage market. Global warming is a major environmental concern around the world, resulting in the frequent occurrence of extreme weather events around the world. Carbon capture and storage (CCS) holds great potential to reduce greenhouse gas emissions from the oil and gas industry and their impact on climate change.
The adoption of carbon storage methods can significantly prolong the lifetime of existing oil and gas reservoirs by enhancing recovery and lowering the level of CO2 emitted during production. This approach can provide economic benefits for oil and gas companies and minimize their operations’ environmental impact. Thus, increasing efforts to lower CO2 emissions assist in achieving a low-carbon economy.
Opportunities
New opportunities are emerging through cross-sector collaboration, where oil and gas firms partner with utilities and manufacturing industries to create shared CCS infrastructure. The deployment of modular and mobile carbon capture units can also help reach smaller facilities and remote oilfields. As data analytics and AI continue to improve, CCS systems can be optimized in real-time, reducing inefficiencies and enhancing return on investment.
Challenges
Several technical and economic challenges remain in the oil and gas carbon capture and storage market. These include the long payback periods of CCS investments, uncertainties in long-term storage monitoring, and the need for complex permitting processes. Social acceptance issues, especially in regions with limited public awareness about CCS, also need to be addressed through transparent communication and education campaigns.
Regional Insights
Regionally, North America dominates the market landscape with a strong pipeline of CCS projects and advanced research programs. Europe is also investing heavily, particularly in transboundary storage and transport infrastructure under initiatives like the North Sea Basin strategy. In the Asia-Pacific region, governments are launching pilot projects and forming international CCS alliances to build domestic expertise and infrastructure.
Recent Developments
Recent developments in the market include the scaling of carbon capture capacity at existing oil and gas facilities and the development of carbon hubs that serve multiple emitters. Governments are increasingly providing direct funding for feasibility studies and front-end engineering designs. Meanwhile, technology providers are focusing on second-generation CCS systems that reduce energy consumption and increase CO₂ capture rates, marking a new phase of innovation and adoption.
Oil and Gas Carbon Capture and Storage Market Companies
- Air Products
- Chevron
- Exxon Mobil
- Dakota Gasification Company
- Equinor
- Mitsubishi Heavy Industries
- NRG Energy
- General Electric
- Halliburton
- Linde
- Shell
- Siemens
- SLB
- Sulzer
- TotalEnergies
Segments Covered in the Report
By Technology
- Pre Combustion
- Post Combustion
- Oxy-Fuel Combustion
By Region
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East and Africa
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