The global oil and gas carbon capture and storage market size is evaluated at USD 4.61 billion in 2025, and is predicted to be worth around USD 15.71 billion by 2034, expanding at a CAGR of 14.60% from 2025 to 2034. The North America market size reached USD 1.45 billion in 2024 and is expanding at a CAGR of 14.73% during the forecast period.
Is Carbon Capture the Lifeline of Oil and Gas in a Net-Zero World?
The oil and gas industry finds itself at a pivotal crossroads, balancing energy demand with environmental responsibility. Amid this transition, Carbon Capture and Storage (CCS) is emerging as a game-changing technology. By capturing carbon dioxide (CO₂) emissions from exploration, refining, and distribution processes and storing them deep underground, CCS offers a viable solution to reduce greenhouse gas emissions without halting industrial growth. Geological formations such as depleted oil fields and saline aquifers provide natural storage capacity, allowing companies to maintain output while aligning with global climate goals.
What once appeared as a compliance cost is now becoming a strategic asset. As countries tighten emissions regulations and outline net-zero targets, CCS infrastructure investment is surging. Oil and gas companies are repositioning themselves, not just as fuel suppliers, but as architects of a low-carbon future. The shift signals a deeper commitment to sustainability while safeguarding the continuity of energy supply.
Can Artificial Intelligence Become the Brain Behind Carbon Capture?
Artificial Intelligence (AI) is redefining the CCS landscape by making it smarter, more efficient, and economically viable. From the initial stages of project planning to long-term operations, AI integrates data science and automation to optimize performance. In site selection, AI algorithms analyze geological data to identify storage locations with high CO₂ retention potential and minimal leakage risks, decisions that once took months can now be made in days with greater accuracy.
But AI’s role doesn’t stop at the ground. In the carbon capture process itself, real-time data is fed into AI systems that fine-tune chemical reactions, ensuring maximum CO₂ absorption with minimal energy use. AI also enhances transportation and storage safety by monitoring pipelines and underground storage sites through satellite feeds and sensor data, predicting leaks or structural anomalies before they occur. This predictive capability dramatically reduces risk and builds confidence among regulators and investors alike.
Why Is North America Outpacing the Rest in CCS Adoption?
North America dominated the global market with the biggest share of 36% in 2024. North America, especially the United States and Canada, has become a global CCS leader, but what makes it so uniquely positioned? First, the region’s mature oil and gas ecosystem offers an unparalleled advantage in infrastructure and geological readiness. Depleted oil reservoirs serve as natural candidates for CO₂ storage, minimizing the need for new exploration and lowering capital costs.
“The U.S. oil and gas carbon capture and storage market size was valued at USD 1.13 billion in 2024 and is projected to reach around USD 4.50 billion by 2034, at a CAGR of 14.81% from 2025 to 2034.”
Government support also plays a monumental role. Incentives like the U.S. 45Q tax credit reward companies for every metric ton of CO₂ captured and permanently stored. This fiscal push, combined with billions in federal and provincial funding, has accelerated both pilot programs and full-scale commercial projects. Furthermore, the private sector is fully engaged. Giants like ExxonMobil and Chevron are investing in CCS hubs that serve multiple emitters, creating economies of scale and collaborative innovation platforms.
In addition to financial and technical assets, North America’s research ecosystem, comprising national labs, universities, and tech startups, is developing next-gen capture materials and AI-powered monitoring solutions. These factors collectively create a fertile environment where CCS isn’t just feasible, it’s flourishing.
Is Asia Pacific the Next Big CCS Powerhouse?
With its rapid industrial growth and rising emissions, Asia Pacific faces immense climate pressure, but is it ready to lead in CCS? The answer is unfolding. Countries like China, Japan, South Korea, and Australia are weaving CCS into their national energy blueprints, particularly to decarbonize sectors where emissions are hardest to eliminate, such as petrochemicals, oil refining, and steel manufacturing.
One notable trend is the emergence of CCS hubs that consolidate infrastructure for multiple industrial emitters. These large-scale collaborations, often involving international oil majors and regional governments, are becoming centers of innovation and cost-efficiency. Japan and South Korea, for instance, are forging agreements with Southeast Asian nations to develop cross-border CCS chains, shipping captured CO₂ to offshore storage sites in Indonesia or Malaysia.
Digitalization is another driving force. AI tools are being adopted to assess site viability, monitor injection progress, and detect irregularities in real time. As the region deepens its R&D investments and launches pilot projects tailored to local geological conditions, the momentum continues to build. Moreover, with the growth of carbon trading markets in countries like China and Singapore, CCS is increasingly seen as a financially viable climate solution, not just an environmental one.
Can CCS Thrive Without Cross-Border Collaboration?
One of the emerging themes in global CCS development is cross-border cooperation. Particularly in Asia Pacific, where not every country has suitable geological formations for CO₂ storage, regional partnerships are proving essential. For instance, carbon-intensive countries can export captured CO₂ to nations with abundant offshore storage capacity, thus creating a shared infrastructure for emission management.
This shift has also prompted conversations around international CO₂ shipping routes, port readiness, and harmonized regulations. As countries begin to formalize bilateral agreements, CCS is evolving from a local mitigation tool to a transnational climate strategy. This model could redefine the geopolitical and economic contours of carbon management, making collaboration as critical as technology in the race to net-zero.
Is Carbon Capture Just a Temporary Fix or a Long-Term Solution?
Sceptics argue that CCS may merely prolong fossil fuel dependency, offering a temporary fix rather than a transformative shift. However, for many industry experts and climate strategists, CCS is neither a distraction nor a delay, it’s a necessary enabler. While renewable energy expands, industries with unavoidable emissions still need a bridge to decarbonize.
By integrating CCS into the broader clean energy portfolio, alongside hydrogen, renewables, and bioenergy the world can manage its transition more pragmatically. It’s not about choosing between solar panels and CCS pipelines; it’s about using every available tool to combat climate change effectively and at scale.
What’s Next for the Oil and Gas CCS Market?
The road ahead for CCS is promising but not without challenges. Scaling up requires not just capital and technology, but also regulatory clarity, workforce training, and public engagement. The integration of AI and digital technologies will continue to improve project economics and transparency, making CCS more investable.
As both developed and emerging economies double down on climate action, the oil and gas CCS market stands at a crucial intersection of policy, innovation, and sustainability. With the right frameworks in place, it could very well become one of the most important pillars of the global energy transition.
Oil and Gas Carbon Capture and Storage Market Companies
Air Products
Air Products is a global leader in industrial gases and has been actively expanding its presence in the carbon capture domain. The company is developing large-scale CCS projects integrated with blue hydrogen production, where CO₂ is captured and stored during hydrogen generation. Air Products is known for its involvement in landmark CCS ventures such as the Net-Zero Hydrogen Energy Complex in Alberta, Canada, which aims to capture over 3 million tons of CO₂ annually. The firm focuses on offering comprehensive gas separation and purification technologies, making it a vital technology provider in the CCS landscape.
Chevron
Chevron is investing heavily in CCS as part of its low-carbon strategy. The company has developed and operated one of the world’s largest CCS projects at the Gorgon LNG facility in Australia, aiming to store millions of tons of CO₂ in deep saline aquifers. Chevron is also involved in partnerships that support the expansion of CCS hubs in the U.S. Gulf Coast and is exploring international collaborations. The company’s CCS efforts align with its broader goals to reduce upstream emissions and scale carbon management technologies globally.
Exxon Mobil
Exxon Mobil is one of the most active oil majors in the CCS market, committing over $17 billion toward lower-emission initiatives, including CCS, through 2027. The company operates the world’s largest CO₂ pipeline network in the U.S. and plans to expand its CCS capabilities through major projects such as the Houston CCS hub, which could eventually capture and store up to 100 million metric tons of CO₂ per year. ExxonMobil’s emphasis is on large-scale, integrated CCS solutions for industrial clusters.
Dakota Gasification Company
Dakota Gasification Company operates one of the earliest and most established CCS operations in North America through its Great Plains Synfuels Plant in North Dakota. The facility captures over 3 million tons of CO₂ annually and transports it via pipeline for enhanced oil recovery (EOR) in Canada. Dakota Gasification’s experience highlights the commercial viability and long-term sustainability of integrated CCS and EOR operations, setting an early precedent for industrial carbon management.
Equinor
Equinor, a Norwegian energy giant, is a pioneer in offshore CCS and has operated the Sleipner CO₂ storage project since 1996, one of the world’s first commercial CCS initiatives. The company is also a central player in the Northern Lights project—part of Norway’s Longship initiative—which aims to create a scalable CCS value chain in Europe. Equinor’s expertise in offshore exploration and infrastructure management positions it as a key leader in subsea carbon storage.
Mitsubishi Heavy Industries (MHI)
MHI provides advanced carbon capture technology, including its proprietary KM CDR Process, developed in collaboration with Kansai Electric Power. The technology is used in several commercial plants globally and is known for high efficiency and reliability. MHI is collaborating with energy and industrial partners across Asia, Europe, and North America to deploy scalable carbon capture solutions, making it a cornerstone of CCS technology development.
NRG Energy
NRG Energy is notable for its involvement in the Petra Nova CCS project in Texas, which was one of the largest post-combustion carbon capture facilities on a coal-fired power plant. Although temporarily suspended due to economic reasons, Petra Nova demonstrated the technical feasibility of CCS in the power sector. NRG continues to advocate for clean energy solutions and remains a stakeholder in advancing CCS as part of its broader decarbonization strategy.
General Electric (GE)
GE plays a significant role in supporting CCS through its advanced power generation and turbine technologies. The company works on integrating carbon capture systems into gas turbines and power plants, enabling cleaner energy production. GE is also involved in digital solutions that optimize CO₂ capture, compression, and transport, helping power producers and industrial users improve operational efficiency and environmental compliance.
Halliburton
Halliburton brings extensive expertise in subsurface engineering and reservoir management to CCS. The company offers services that include CO₂ injection modeling, well integrity assurance, and storage site characterization. With decades of experience in oilfield services, Halliburton is instrumental in ensuring the technical success and long-term containment of stored CO₂, especially in enhanced oil recovery (EOR) applications.
Linde
Linde is a global industrial gases and engineering company with a strong portfolio in CO₂ capture and liquefaction technologies. It provides modular, scalable solutions for post-combustion capture from industrial flue gases and supports CO₂ purification and compression systems. Linde is often a key technology partner in CCS projects linked to hydrogen production and chemical manufacturing, supporting decarbonization across various sectors.
Shell
Shell is advancing CCS as a critical pathway to net-zero emissions. The company operates the Quest CCS facility in Alberta, Canada, which captures CO₂ from hydrogen production and stores it deep underground. Shell is also a core partner in the Northern Lights project in Norway and is developing multiple CCS hubs in Europe and North America. Its integrated approach includes capture, transport, and permanent storage solutions across the energy and industrial spectrum.
Siemens
Siemens contributes to the CCS market through its capabilities in automation, process control, and digitalization. The company develops solutions that optimize CO₂ capture plant operations, enhance energy efficiency, and support real-time monitoring. Siemens is also involved in research collaborations to integrate CCS with hydrogen and low-carbon power systems, reinforcing its commitment to industrial decarbonization.
SLB (Schlumberger)
SLB is a leader in subsurface engineering and offers end-to-end solutions for carbon storage, including site selection, injection well design, and reservoir monitoring. The company is involved in multiple international CCS ventures and invests in digital platforms that model CO₂ behavior in geological formations. SLB’s strong global footprint and technical know-how make it a pivotal player in scaling safe and efficient CCS systems.
Sulzer
Sulzer specializes in pumping and separation technologies and supports CCS systems by providing critical components for solvent handling, gas-liquid separation, and heat exchange. Its equipment is widely used in chemical and CO₂ capture processes, helping reduce energy consumption and improve reliability. Sulzer’s engineering solutions are essential for maintaining operational integrity in capture plants.
TotalEnergies
TotalEnergies is deeply committed to carbon neutrality and views CCS as a cornerstone of its low-carbon strategy. The company is engaged in several projects across Europe, such as the Northern Lights initiative, and is exploring offshore storage solutions in partnership with industry and government stakeholders. TotalEnergies is also investing in carbon storage infrastructure that can serve multiple emitters, helping build shared CCS networks across regions.
Source: https://www.precedenceresearch.com/oil-and-gas-carbon-capture-and-storage-market
