Tuesday, April 8, 2025

US EPA approves Texas' first CO2 injection well

April 7, 2025

The U.S. Environmental Protection Agency issued the first permit in Texas to oil company Occidental to allow drilling for carbon dioxide storage and injection on Monday.

Oxy Low Carbon Ventures, a subsidiary of the company, received a Class VI permit for drilling three CO2 wells at Ector County within the Permian basin. The project is part of Stratus Direct Air Capture joint venture between BlackRock and Oxy Low Carbon Ventures to inject 8.5 millions metric tons CO2.

Scott Mason, Regional Administrator at EPA, said: "EPA is committed in approving permits quickly and ensuring that they meet the requirements to protect drinking-water sources."

Carbon sequestration was a major part of the administration of former president Joe Biden, who sought to reduce global warming-causing emissions. Biden's 2022 Inflation Reduction Act included billions in subsidies for CCS.

Republicans are trying to reduce tax credits in order to make drastic cuts to spending as part of the budget reconciliation process. The Trump administration is considering a reduction in federal funding for two major DACs, including Occidental DAC's project in Texas.

The Trump EPA didn't mention reducing emission in its announcement. Instead, it said that the technology would "provide well-paying employment and could be implemented environmentally responsibly."

Texas has seen a surge in interest from companies looking to inject carbon dioxide into its oilfields. 43 projects have applied for federal permits.

The public is also becoming concerned that the pumping of CO2 into the earth could worsen earthquakes and blowouts in the Permian basin, as Texas struggles with wastewater disposal under the federal well permit program. This may undermine the public's support.

The Texas Railroad Commission (which oversees wastewater injection) is also seeking authority to oversee its own permit program for carbon sequestration from the EPA in order to speed up approvals.

(source: Reuters)

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