Tuesday, July 08, 2025

 

UK Fund Invests Millions in Carbon Capture Project

A government -backed fund is pledging more than £2 for a carbon capture project.

Energy secretary Ed Miliband has said that workers in “Britain’s manufacturing heartlands” will benefit from the investment in the Peak Cluster works.

Peak Cluster is working towards a pipeline that will take carbon emissions from cement and lime companies in the Peak District and store them below the Irish Sea.

The £28.6 million is coming from the National Wealth Fund (NWF) a body announced by the government last year with £27.8bn to invest in clean energy and growth industries, in the hope of catalysing other private investment.

Peak Cluster is also backed by £31m from the private sector, the Treasury said, and will be the NWF’s first investment in carbon capture, since Rachel Reeves said in March that it should be a priority.

The Chancellor said: “We’re modernising the cement and lime industry, delivering vital carbon capture infrastructure and creating jobs across Derbyshire, Staffordshire and the North West to put more money into working people’s pockets.”

Energy secretary Ed Miliband described the investment as a “landmark” that could help “deliver thousands of highly skilled jobs”.

“Workers in the North Sea and Britain’s manufacturing heartlands will drive forward the country’s industrial renewal, positioning them at the forefront of the UK’s clean energy transition,” he added.

By City AM 

 

Cyprus Confirms 350-Meter Gas Column in ExxonMobil’s Pegasus-1 Well

The government of Cyprus has confirmed a new natural gas discovery in the Pegasus-1 well located in Block 10, operated by ExxonMobil and its partner QatarEnergy. The well intersected approximately 350 meters of gas-bearing reservoir at a depth of 1.9 kilometers, according to government spokesperson Konstantinos Letymbiotis. Drilling was carried out by the Stena Forth drillship and concluded in late June.

While ExxonMobil has not issued a public statement, the Cypriot presidency said further technical evaluation will be required to assess the well's commercial viability. No resource estimates or development timeline have been provided. The result marks the second confirmed discovery in Block 10, following the 2019 Glaucus-1 find, which was estimated to contain 5 to 8 trillion cubic feet of recoverable gas.

The Pegasus-1 result stands in contrast to ExxonMobil’s recent campaign in neighboring Block 5. In May, the company drilled the Elektra-1 well using the Valaris DS-9 drillship, but the effort was declared non-commercial. The well encountered gas, but in quantities too small for development, with the outcome raising concerns about the broader resource potential in Cyprus’s southern offshore acreage. 

Cyprus is advancing plans to become a regional gas export hub, and Block 10 is central to those ambitions. Possible development scenarios include subsea tiebacks to Egypt’s liquefaction plants at Idku or Damietta, which could offer a near-term export route to Europe and Asia. However, given the complexity of deepwater development and the absence of declared volumes, a final investment decision remains a distant prospect.

Cyprus’s Block 10 has attracted industry interest since ExxonMobil’s 2019 Glaucus-1 discovery, one of the largest regional finds at 5-8 tcf. However, deepwater development remains stalled due to infrastructure gaps and cost hurdles. Pegasus-1’s success could revive momentum, but commercial viability will likely hinge on total volumes and export optionality.

By Charles Kennedy for Oilprice.com

Negative Prices, Rising Flaring Signal Pipeline Gridlock in Permian

  • Permian gas prices remain volatile and frequently negative in 2025.

  • Despite the launch of the Matterhorn Express pipeline, gas flaring has surged to nearly 500 million cubic feet per day.

  • New pipeline projects like Palo Duro and Blackcomb aim to relieve the bottleneck, but won’t be operational until 2026.

Previously, we reported that natural gas at the Waha hub was selling for near-zero or sub-zero prices for much of 2024 thanks in large part to excess natural gas production in the Permian Basin coupled with limited takeaway capacity due to a shortage of gas pipelines. Indeed, prices at the hub spent half the year in negative territory, sinking to all-time low -$7/mmbtu at the end of August.

This has become a recurrent challenge in recent years ever since the Permian Shale boom led to a surge in associated gas production. Consequently, Permian gas infrastructure became saturated, sometimes forcing producers to pay for someone to take their gas so that they can focus on something more valuable: crude oil. Unfortunately, the Permian continues to struggle with a deluge of gas in the current year, despite the startup of the pivotal Matterhorn Express in 2024.

And now the Permian Basin has to contend with a major environmental hazard: gas flaring.

June 2025 saw the third consecutive monthly uptick in natural gas flaring across the basin as production continues to outpace existing pipeline takeaway capacity. While the mid-2024 startup of the Matterhorn Express pipeline provided short-term relief, regional growth now signals renewed constraints.

Last year, Maria Paz Urdaneta, commodities analyst with East Daley Analytics, predicted that Matterhorn Express’ start-up would redirect Permian natural gas to South Texas and, for a brief window, shift market leverage from pipelines to shippers. The Matterhorn would also relieve pressure on Permian gas prices caused by the takeaway bottleneck. However, the analyst warned that the relief could be short-lived: Urdaneta predicted that Permian Basin producers are likely to increase production once Matterhorn enters service, triggering more takeaway constraints that could send natural gas prices back into negative territory by the second half of 2026. In reality, this scenario appears to be unfolding earlier than expected, with negative pricing already recorded throughout much of 2025.

Even with the Matterhorn pipeline, production growth in the Permian continues to challenge existing infrastructure, leading to price volatility and, at times, negative gas prices. According to East Daley Analytics’ latest  model, current Permian gas production is well above total effective egress capacity, leading to the flaring of nearly 500 million cubic feet of gas per day, equivalent to the emissions profile of 2.2 million cars if extended over the course of one year.

Natural gas flaring in the United States is heavily regulated and significantly reduced in many areas. While routine flaring is prohibited in some states and on federal lands, exceptions and variances are often granted for safety, operational needs, or emergencies. The U.S. has also committed to the global initiative of ending routine flaring by 2030.

According to the International Energy Agency (IEA)..’’Flaring results in the release of substantial volumes of potent GHGs, including methane, black soot and nitrous oxide. Venting causes even worse environmental damage than flaring.’’ The IEA estimates that ~140 billion cubic meters of natural gas is flared globally each year, making the practice a major source of CO2 emissions, methane and black soot. In 2022, flaring resulted in 500 Mt CO2 equivalent annual GHG emissions.  The IEA says that the elimination of all non-emergency flaring by 2030 would cut global CO2 emissions by 365 Mt per year.

Meanwhile, upcoming projects like the Palo Duro?Oklahoma pipeline and the Blackcomb will take time to take effect while pipeline operators such as Kinder Morgan (NYSE:KMI) and Targa Resources (NYSE:TRGP) are racing against rising environmental scrutiny and Texas Railroad Commission leniency on flaring permits. Last month, Midstream II LLC  launched a binding open season as it looks to gauge shipper demand for its proposed 275-mile  Palo Duro (PD) natural gas pipeline that will link residue markets at Waha with Mid-Continent outlets in the Anadarko Basin. The project intends to repurpose the existing 16-inch pipe on the company’s gathering header into western Oklahoma that runs from Nolan County to Wheeler County, Texas. Midstream aims to seek fast-tracked interstate authority from the Federal Energy Regulatory Commission since no new pipeline will be constructed, with the company targeting Q1 2026 for the pipeline to commence operations.

This Open Season marks a key milestone for the Palo Duro Pipeline and underscores our commitment to delivering scalable, market-responsive infrastructure,” said Matt Flory, Producers Midstream’s chief executive officer. “The pipeline's unique interconnectivity and strategic positioning creates a much-needed additional outlet for constrained Permian gas, while also supporting the rapid growth of AI-driven power solutions and other emerging sources of demand.”

On the other hand, a WhiteWater-backed investor group has already reached a final investment decision (FID) on the Blackcomb Pipeline. The 42-inch gas line will transport up to 2.5 Bcf/d of gas over ~365 miles from the Permian when it comes online in 2H26.

By Alex Kimani for Oilprice.com

Iraq Lifts Oil Output by 80,000 bpd Across Three Key Fields

Iraq’s Dhi Qar Oil Company has raised oil production by a combined 80,000 barrels per day across three strategic southern fields, Nasiriyah, Gharraf, and Saba, IraqiNews reported on Monday, marking one of the country’s most significant boosts this year as OPEC+ opens the door to higher member output.

According to IraqiNews, seven new wells were drilled at the Nasiriyah field alone, lifting production from 52,000 bpd to 70,000 bpd. Additional volumes from Gharraf and Saba rounded out the total increase, though specific site figures were not disclosed.

The announcement follows OPEC+’s decision last month to unwind 2.2 million bpd of voluntary cuts starting in the third quarter, a move that surprised markets with its speed and scale. Iraq stands to benefit directly, having long sought greater production room to stabilize revenues. The quota easing is set to be phased in through September, creating immediate room for operators to ramp up.

Oil accounts for over 90% of Iraq’s exports and the majority of government income, making incremental production gains vital for budgetary relief. The expansion also reduces Baghdad’s near-term dependence on politically fraught northern exports via the Kurdish region, which remain suspended amid ongoing arbitration with Turkey.

The Dhi Qar push reflects Iraq’s shift toward intensifying output from brownfield assets rather than launching new megaprojects, many of which remain stalled by financial and logistical hurdles, with officials now calling for probes. The Oil Ministry has not yet confirmed whether Basra Oil Company, which oversees much of Iraq’s southern production, will follow with similar ramp-ups.

With OPEC+ now prioritizing market share over strict price defense, Baghdad is moving quickly to reinforce its reliability and capture revenue gains. However, persistent infrastructure constraints and rising gas flaring risks continue to shadow Iraq’s upstream growth.

By Charles Kennedy for Oilprice.com

 

U.S. Department of Energy Warns Risk of Blackouts Is Rising

The U.S. Department of Energy has warned that blackouts could increase substantially in the coming years unless more baseload capacity is added to the grid.

The department issued its warning in a report that said the premature retirement of generation capacity and the delay in replacing that capacity with new baseload facilities had created a mismatch between demand and supply. This mismatch has increased the risk of a potential twofold increase in blackouts by 2030.

“This report affirms what we already know: The United States cannot afford to continue down the unstable and dangerous path of energy subtraction previous leaders pursued, forcing the closure of baseload power sources like coal and natural gas,” Energy Secretary Chris Wright said.

“In the coming years, America’s reindustrialization and the AI race will require a significantly larger supply of around-the-clock, reliable, and uninterrupted power,” Wright added, saying the Trump administration would ensure that supply by focusing on “all forms of energy that are affordable, reliable, and secure.”

The North American Reliability Corp. has been warning of blackouts for two years now, citing extreme temperatures but also increased reliance on weather-dependent sources of electricity, notably wind and solar installations. The latest warning came earlier this year, with NERC attributing the danger to the surge in demand for electricity. The surge, in turn, was driven by the proliferation of data centers, which consume enormous amounts of electricity.

Meanwhile, a proliferation in wind and solar capacity has made the grid less stable and electricity supply less reliable, the grid watchdog said.

“With higher demand and less firm resources,” NERC said in June, the grid “is at elevated risk of operating reserve shortfalls during periods of high demand or low resource output.”

The current management of the DoE expects new capacity additions of some 209 GW by 2030, replacing 104 GW of retired capacity. However, just 22 GW of that 104 GW will come from baseload facilities, which is too little to ensure grid stability, the DoE said.

By Irina Slav for Oilprice.com

 

Beyond the Numbers: A Look at Global Carbon Footprints

  • Carbon emissions are typically measured in metric tons, but context matters. 

  • It contrasts the emission profiles of different nations, such as China's high total but modest efficiency, the U.S.'s declining emissions but high consumption, and India's rapid growth with low per capita emissions.

  • The piece emphasizes the importance of historical responsibility for emissions, illustrating how past U.S. contributions still impact current atmospheric CO2 levels, and concludes that emissions must always be viewed within their broader context.

The previous article discussed global and regional carbon emission trends. Today, I take a closer look at the world’s ten biggest carbon emitters.


Carbon emissions are typically measured in metric tons, but context matters. To better understand the cause and impact of a country’s carbon emissions, we must look at emissions per capita and carbon productivity—how efficiently nations generate economic output from each ton of CO2-equivalent emissions (defined in the previous article) released.  

A Deeper Look at the World’s Top 10 Carbon Emitters

In 2024, the same ten countries topped the list of the world’s largest CO2 emitters, although Canada and South Korea swapped positions at the bottom. Population and GDP data, sourced from national statistics agencies, the IMF, and World Bank estimates, offer valuable context for analyzing emissions in terms of scale, efficiency, and fairness. 

Cumulatively, these ten countries account for nearly 70% of all global CO2 emissions. But a closer look at the numbers shows that not all emissions are created equally.

The table reveals structural differences between mature economies and emerging ones, between per capita emissions and economic productivity, and between nations whose emissions are falling and those where they’re still accelerating.

China: Big Footprint, Modest Efficiency

China was responsible for more than the combined emissions of the next four countries on the list. Despite significant investments in renewables, China’s emissions continue to rise, growing 1.8% per year over the past decade.

More striking is China’s carbon efficiency. For every kilogram of CO2 emitted, China generates just $1.50 USD in economic output, a modest return compared to more efficient economies. Its per capita emissions, at 8.9 tons, are still lower than in many developed countries, but far higher than in other emerging economies.

United States: Lower Emissions, Higher Consumption

The U.S. ranks second in total emissions at 5.1 billion metric tons, or 12.5% of the global share. But the underlying trends are encouraging. 

Over the past decade, U.S. emissions have declined by an average of 1.0% per year. And when it comes to carbon efficiency, the U.S. is the best in the top ten. Every kilogram of CO2-equivalent emissions yields $5.71 in economic output.

Still, individual consumption remains high. The average American emits 15 tons of CO2 annually—more than double the average Chinese citizen and nearly seven times the per capita emissions of an Indian.

The U.S. is decarbonizing, but personal and lifestyle emissions remain a major challenge.

India: Growing Fast, But Not Yet a Huge Contributor

India illustrates the classic dilemma of the developing world. Emissions have grown 3.8% per year for the past decade—faster than any other country in the top ten except Indonesia. Per capita emissions remain extremely low at just 2.2 tons, but productivity is one of the lowest on the list at $1.21/kg of carbon emitted.

This reflects India’s population size, its ongoing industrialization, and its efforts to lift millions out of poverty. In climate discussions, India’s leaders often point to these disparities to argue for more flexible targets.

Contrasts and Outliers

Other nations offer useful contrasts:

  • Saudi Arabia has the highest per capita emissions on the list, at 20.9 tons, despite producing just 1.8% of global emissions. With a relatively modest GDP per kilogram of CO2 ($1.70), its high emissions are driven by energy subsidies, heavy oil reliance, and energy-intensive lifestyles.
  • Russia and Iran also show low economic returns per unit of carbon, at $0.97/kg and $0.45/kg, respectively—well below global averages.
  • In contrast, Japan and Canada show stronger productivity, with $3.90/kg and $3.70/kg respectively, despite relatively high per capita emissions.

The Legacy U.S. CO2 Inventory

Although China currently dominates growth of global carbon emissions–and will continue to do so for quite some time–the legacy atmospheric contribution is important. 

To understand the long-term impact of emissions, it’s useful to step back and ask: What is the legacy impact of U.S. carbon emissions? What if we could magically erase all the carbon dioxide the U.S. has ever released into the atmosphere?

As of May 2025, global atmospheric CO2 levels hover around 430.5 parts per million (ppm)—up from about 280 ppm before the Industrial Revolution. 

The United States is responsible for approximately 24% of all historical CO2 emissions since the 1800s, contributing an estimated 421 billion metric tons. Converting that into atmospheric impact isn’t an exact science—it depends on how much CO2 is absorbed by the oceans and forests—but a widely accepted estimate is that 1 ppm of CO2 in the atmosphere equals roughly 7.8 billion metric tons of carbon emissions.

Doing the math: 421 billion metric tons ÷ 7.8 billion metric tons per ppm ≈ 54 ppm

That means if all of the U.S.’s historical emissions were somehow removed from the atmosphere, today’s CO2 level would drop from 430.5 ppm to around 376.5 ppm. That’s roughly where the world’s atmospheric CO2 concentration stood in the late 1990s.

It’s a powerful reminder that carbon dioxide doesn’t just vanish. It accumulates over time, creating a legacy effect that today’s climate policies must reckon with. And it underscores why historical responsibility—alongside current emissions—is a key part of international climate discussions.

Legacy emissions play a key role in climate discussions, but current emissions shape our trajectory. China’s current output raises atmospheric CO2 by roughly 1.6 ppm per year. The U.S. adds around 0.65 ppm. 

Final Thoughts: Emissions Must Be Viewed in Context

Looking at emissions only in total terms misses critical context. Per capita and GDP-based metrics provide a more nuanced view of who is emitting, why, and with what result. These measurements also highlight the complexity of balancing economic growth, energy access, and climate commitments.

In the next article in this series, I’ll look at global oil production and consumption trends, which are helping drive record carbon emissions. 

By Robert Rapier