ExxonMobil Expects Carbon Capture Market to Reach $4 Trillion by 2050

The market for capturing carbon dioxide and storing it underground is expected to reach $4 trillion by 2050, Exxon Mobil Corp said in a report on Tuesday.

The oil and gas market will reach $6.5 trillion by then, or about 60 percent, according to estimates by the largest U.S. crude producer.

According to the International Energy Agency (IEA), carbon capture is an important emission reduction technology. It involves capturing carbon dioxide from fuel combustion or industrial processes, transporting it by ship or pipeline, and storing it in underground geological formations or as a resource to produce products.

Big oil companies have been investing in making carbon capture and storage (CCS) a relevant business as international bodies such as the Intergovernmental Panel on Climate Change (IPCC) see carbon capture and storage technology as key to mitigating the effects of global warming.

Exxon has faced public pressure to reduce its overall emissions because its energy transition strategy excludes renewable energy sources such as solar and wind. The company recently hired Dan Ammann to lead its low-carbon business from May 1, who previously led General Motors' Cruise self-driving unit until December.

U.S. oil producer Occidental Petroleum is developing the world's largest project to extract carbon dioxide from the air, after previously estimating that the carbon capture market could become a $3-5 trillion global industry. CEO Vicki Hollub said at a conference in March that the technology could generate earnings and cash flow for Occidental that are comparable to those currently in the oil and gas industry.