Did you know atmospheric carbon dioxide levels are 50% higher than before the industrial revolution? Despite being a natural part of the planet's ecosystem, carbon dioxide can wreak excess havoc. Such extreme effects include:
Carbon capture is an effective solution to remediate the effects of global warming. What is carbon capture, and why is it important? This article gives a detailed overview of carbon capture and its relation to Warren Buffett and Occidental Petroleum.
Carbon capture is a counteractive approach to reducing the amount of carbon emissions in the atmosphere. According to John Kerry, the Special Presidential Envoy for Climate, there is still a great need to suck carbon dioxide out of the atmosphere, a process requiring innovative technologies.
Carbon capture comprises trapping carbon dioxide in the atmosphere due to industrialization and injecting it deep underground to prevent further harm. Additionally, carbon capture can attain 14% of the global greenhouse gas emission reduction required by 2050.
Scientists proposed the first carbon capture plant in 1938. However, it wasn't much later that the first large-scale project to inject carbon dioxide into the ground was done in 1972. It was launched in the Sharon Ridge oilfield in Texas. In 1996, Norway launched the world's first integrated carbon capture project, known as Sleipner Carbon Dioxide Storage Facility.
Currently, there are about 18 operational direct air capture plants worldwide. Large-scale carbon capture, usage, and storage facilities trap over 30 million tons of CO2 annually.
According to Allied Market Research, the global carbon capture market was valued at $1.9 billion in 2022. Simultaneously, it is estimated to reach $7 billion by 2030, growing at a 13.8% CAGR from 2021-2030.
The increasing adoption of carbon capture technology is fueled by growing concerns regarding the extreme effects of carbon emissions on the atmosphere. Additional contributing factors to the increased adoption of this carbon capture include:
Governments worldwide (the US, the UK, the Netherlands, China, etc.) are setting up large-scale carbon capture plants to reduce their carbon footprints.
The impacts of carbon dioxide affect the entire economy and different markets. As such, carbon capture helps to reduce the ecological effects of global warming, thus allowing a healthy and functional business environment for other industries. The more investment and thought given to carbon capture, the more businesses and industries get influenced to implement ecological solutions geared towards sustainability.
World-renowned investor Warren Buffett's interest in Occidental Petroleum is poised to increase the company's share value. Having come to the rescue of Occidental Petroleum in 2019 when the company was struggling financially, Buffett has recently received the go-ahead to acquire a 50% ownership stake in Occidental Petroleum (OXY).
Occidental Petroleum plans to raise margins and re-establish dividend payments with other ventures, such as carbon capture, instead of producing more oil and gas. The company plans to set up a $1 billion carbon capture plan in 2023. With over 100 years of experience in the industry, Occidental Petroleum is poised to be a global leader in carbon capture. Investors such as Warren Buffett are optimistic about the possibilities the company has to offer financially and ecologically.
Carbon capture is an effective way to reduce the presence and effect of carbon dioxide in the atmosphere. The reasons why eliminating carbon dioxide is important include:
Taking proactive steps to support carbon capture technologies is a step towards sustainability. With governments and serial investors like Warren Buffett showing faith in carbon capture, it is only reasonable that the public embraces the technology.
Occidental Petroleum is making major strides toward leading the carbon capture industry. As a trusted company by Warren Buffett, Occidental Petroleum (OXY) is a promising venture for environmentalists and investors.
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