Exxon Touts Carbon Capture as a Climate Fix, but Uses It to Maximize Profit and Keep Oil Flowing (excerpts): Inside Climate News

Is Carbon Capture a tax scam?

"The company sells the CO2 to other companies that use it to revive depleted oil fields and has relentlessly fought EPA oversight of the practice.

Sprawled across the arid expanse of southwestern Wyoming is one of the world's largest carbon capture plants, a hulking jumble of pipes, compressors and exhaust flues operated by ExxonMobil.

The oil giant has long promoted its investments in carbon capture technology—a method for reducing greenhouse gas emissions—as evidence that it is addressing climate change, but it rarely discusses what happens to the carbon captured at the Shute Creek Treating Facility.

The plant's main function is to process natural gas from a nearby deposit. But in order to purify and sell the gas, Exxon must first strip out carbon dioxide, which comprises about two-thirds of the mix of gases extracted from nearby wells.

The company found a revenue stream for this otherwise useless, climate-warming byproduct: It began capturing the CO2 and selling it to other companies, which injected it into depleted oil fields to help produce more oil.

In 2008, when concerns about climate change led Congress to pass a tax credit meant to encourage companies to capture and store carbon dioxide, Exxon was presented with another way to make money from the technology. The massive amounts of carbon dioxide captured at its Wyoming facility put the oil and gas giant in a position to claim more credits under the tax break than any other company.

In the ensuing years, Exxon may have claimed hundreds of millions of dollars in tax credits, according to estimates based on publicly available data from the Internal Revenue Service, the Securities and Exchange Commission, and a global think tank that tracks the technology."

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"For skeptics of carbon capture and storage, the lobbying battle highlights the risks of devoting  government resources to propping up the technology. 

"Using public money to subsidize carbon dioxide enhanced oil recovery doesn't seem like a climate solution from where I'm sitting," said Doukas, of Oil Change International. "By doing that, we're enriching the industry that's done the most to delay climate action. And Exxon is the perfect example."  "

Go to Nicholas Kusnetz's story in Inside Climate News

 

Related: America's year of fire and tempests means climate crisis just got very real (excerpt): Guardian

 

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