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Researched by Industrial Info Resources (Sugar Land, Texas)--Occidental Petroleum Corporation (NYSE:OXY) (Los Angeles, California) and Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) are facing renewed pressure from investors to toughen their goals to reduce greenhouse gas emissions from their facilities, despite having already invested heavily in carbon capture and storage (CCS) technology.
A key proxy adviser told investors the two companies are not doing enough to clean up their products, and is likely to apply similar pressure to other oil and gas giants. Industrial Info is tracking more than $2.2 billion worth of CCS-related projects from Valero and Occidental, as part of more than $34 billion worth of active CCS projects across the U.S.
Institutional Shareholder Services (ISS) is urging investors in Occidental and Valero to back proposals that would align the companies' greenhouse-gas targets with those of the 2015 Paris Agreement, according to Bloomberg, which analyzed related investor reports. The proposal was initiated by Follow This, an activist investor group. ISS and Follow This are expected to issue the same recommendation for eight other oil companies, including Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and Chevron Corporation (NYSE:CVX) (San Ramon, California), according to Bloomberg.
These moves come as investment firms such as BlackRock Incorporated (NYSE:BLK) (New York, New York) push fossil-fuel companies to adopt more environmentally responsible policies. Even as profits from oil and gas giants soared following the end of COVID-related lockdowns, major financiers have favored those with detailed, transparent ESG goals. For more information, see April 12, 2022, article - Oil & Gas Companies Detail Benefits of Integrated ESG Strategy.
Since early 2021, Occidental has been designing and seeking permits for a CO2 sequestration hub near Brownsville, Texas, to be located next to NextDecade Corporation's (NASDAQ:NEXT) (Houston, Texas) proposed Rio Grande LNG Export Terminal. Occidental's facility would offtake about 5 million metric tons per year of CO2 from NextDecade's facility, via pipeline, and store it in an underground geologic formation in the Rio Grande Valley. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more from detailed project reports for the CO2 hub and Rio Grande LNG terminal.
Last year, NextDecade created subsidiary NEXT Carbon Solutions, partly to work with Occidental to develop what both companies call one of the largest CCS projects in North America. NextDecade's Rio Grande LNG terminal is expected to produce 5.4 million metric tons per year of LNG, using natural gas from the Permian Basin and Eagle Ford Shale.
Valero already is working with BlackRock and Navigator CO2 Ventures (Dallas, Texas) to develop the Heartland Greenway CCS System, an industrial-scale pipeline system that is designed to store up to 5 million metric tonnes of carbon dioxide per year. Valero says the initial phase of the project would cover more than 1,200 miles of new CO2 gathering and transportation pipelines across Illinois, Iowa, Minnesota, Nebraska and South Dakota.
Click on the image at right for a map of projects within the Heartland Greenway CCS System.
The companies involved say the Heartland project "seeks to provide biorefineries and other industrial participants a long-term, economic path to materially reduce their carbon footprint while maximizing the value of their end-product." Navigator says customers for the system include "many rural, value-added ag processors from the ethanol and fertilizer industries." If the initial phase proves successful, the system could be expanded to transport and sequester up to 8 million metric tonnes of CO2 per year, according to Valero. Major components of the proposed project include:
Subscribers to Industrial Info's GMI Project Database can click here for a full list of project reports for active CCS projects across the U.S.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
A key proxy adviser told investors the two companies are not doing enough to clean up their products, and is likely to apply similar pressure to other oil and gas giants. Industrial Info is tracking more than $2.2 billion worth of CCS-related projects from Valero and Occidental, as part of more than $34 billion worth of active CCS projects across the U.S.
Institutional Shareholder Services (ISS) is urging investors in Occidental and Valero to back proposals that would align the companies' greenhouse-gas targets with those of the 2015 Paris Agreement, according to Bloomberg, which analyzed related investor reports. The proposal was initiated by Follow This, an activist investor group. ISS and Follow This are expected to issue the same recommendation for eight other oil companies, including Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and Chevron Corporation (NYSE:CVX) (San Ramon, California), according to Bloomberg.
These moves come as investment firms such as BlackRock Incorporated (NYSE:BLK) (New York, New York) push fossil-fuel companies to adopt more environmentally responsible policies. Even as profits from oil and gas giants soared following the end of COVID-related lockdowns, major financiers have favored those with detailed, transparent ESG goals. For more information, see April 12, 2022, article - Oil & Gas Companies Detail Benefits of Integrated ESG Strategy.
Since early 2021, Occidental has been designing and seeking permits for a CO2 sequestration hub near Brownsville, Texas, to be located next to NextDecade Corporation's (NASDAQ:NEXT) (Houston, Texas) proposed Rio Grande LNG Export Terminal. Occidental's facility would offtake about 5 million metric tons per year of CO2 from NextDecade's facility, via pipeline, and store it in an underground geologic formation in the Rio Grande Valley. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more from detailed project reports for the CO2 hub and Rio Grande LNG terminal.
Last year, NextDecade created subsidiary NEXT Carbon Solutions, partly to work with Occidental to develop what both companies call one of the largest CCS projects in North America. NextDecade's Rio Grande LNG terminal is expected to produce 5.4 million metric tons per year of LNG, using natural gas from the Permian Basin and Eagle Ford Shale.
Valero already is working with BlackRock and Navigator CO2 Ventures (Dallas, Texas) to develop the Heartland Greenway CCS System, an industrial-scale pipeline system that is designed to store up to 5 million metric tonnes of carbon dioxide per year. Valero says the initial phase of the project would cover more than 1,200 miles of new CO2 gathering and transportation pipelines across Illinois, Iowa, Minnesota, Nebraska and South Dakota.
Click on the image at right for a map of projects within the Heartland Greenway CCS System.The companies involved say the Heartland project "seeks to provide biorefineries and other industrial participants a long-term, economic path to materially reduce their carbon footprint while maximizing the value of their end-product." Navigator says customers for the system include "many rural, value-added ag processors from the ethanol and fertilizer industries." If the initial phase proves successful, the system could be expanded to transport and sequester up to 8 million metric tonnes of CO2 per year, according to Valero. Major components of the proposed project include:
- a 100-mile gathering pipeline in Illinois; see project report
- a 335-mile gathering pipeline in Iowa; see project report
- a 173-mile lateral pipeline in Iowa; see project report
- a 75-mile lateral pipeline in Iowa; see project report
- a 57-mile lateral pipeline in Iowa; see project report
- a 55-mile gathering pipeline in South Dakota; see project report
- a sequestration site in Springfield, Illinois; see project report
Subscribers to Industrial Info's GMI Project Database can click here for a full list of project reports for active CCS projects across the U.S.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
