3 Energy Stocks to Gain Exposure to the Carbon Capture Boom

Industry Overview - The carbon capture and sequestration (CCS) market is projected to grow significantly, with an estimated value of approximately $4.5 billion by 2025 and expected to reach around $14.5 billion by 2032, indicating a compound annual growth rate (CAGR) of over 18% [1][2]. Company Insights - California Resources (CRC) is pursuing the first CCS project in California at Elk Hills, which has received authorization from the Environmental Protection Agency to construct Class VI wells, a significant milestone for CCS in the U.S. [4][5][6]. - Occidental Petroleum (OXY) is developing a direct air capture (DAC) plant through its STRATOS project, which is set to start capturing CO₂ in 2025. The company has a significant stake from Warren Buffett's Berkshire Hathaway, valued at approximately $13 billion [8][9]. - ExxonMobil (XOM) is already operational in the CCS space, capturing and storing carbon for third parties. The company anticipates the CCS market could grow to $4 trillion by 2050, highlighting the potential for significant revenue opportunities [11][12]. Investment Opportunities - Investors have opportunities to gain exposure to the expanding CCS market through investments in CRC, OXY, and XOM, as these companies are making substantial moves to enhance their CCS capabilities [3][13]. - While these companies are not pure plays in CCS, their investments in this area could significantly supplement their overall growth, adding upside potential in the long term [13][14].