Global oil giants plan to storage huge amounts of CO2 in Southeast Asia

(Photo: iStock)

Carbon dioxide storage is emerging as a potential multi-billion-dollar revenue stream for oil giants like Exxon Mobil and Shell, which are under pressure to rein in the unfettered burning of fossil fuels.  In Asia, which will emit most this century’s carbon emissions, Indonesia and Malaysia are among the few places where CO2 can be viably stored underground.

A new source of revenue

With ample funds, decades of experience in carbon injection to pump oil extraction, and a growing number of depleted wells available for refilling, oil firms are already vying for dominance in the market.

Darren Woods, CEO of Exxon Mobil, said at a summit in San Francisco last November that the firm has "secured exclusive rights to CO2 storage" in Indonesia and Malaysia. Shell has signed an agreement with Malaysia's state-owned Petronas to explore potential sites. Chevron is studying a project in Indonesia, while TotalEnergies is exploring storage potential in the region.