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Chevron (CVX) Adds Texas Hub to Its Carbon Capture Project

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Chevron Corporation (CVX - Free Report) , a major oil company, and its partner, Talos Energy Inc (TALO - Free Report) ), recently disclosed that they have tripled the size of a projected carbon capture and storage hub for the Gulf Coast. CVX reported that it has acquired approximately 100,000 acres of onshore land in the Texas counties of Chambers and Jefferson, thereby expanding its carbon dioxide (“CO2”) storage footprint. The acquisition's price wasn't made public.

The joint venture, which also includes Carbonvert Inc, intends to collect and bury greenhouse gases from clients in the petrochemical, cement, steel and other industrial businesses along the Texas coast.

The Bayou Bend hub, one of Chevron's biggest global bets for carbon capture, utilization and sequestration (CCUS), is a potential multi-trillion dollar market by 2050. The expanded Bayou Bend project now covers about 140,000 acres of pore space for long-term CO2 sequestration, alongwith the previously announced approximately 40,000 acres offshore Beaumont and Port Arthur, Texas. The hub is positioned to be a leading carbon transportation and storage solution, given the total acreage's gross storage capacity of more than 1 billion metric tons.

Until 2028, Chevron will invest $10 billion in its low-carbon initiatives, including CCUS and hydrogen fuel. Austin Knight, the company’s vice president of hydrogen, stated that the company is investing in technologies to enable hydrogen transportation, including through ammonia. Although there is existing technology for hydrogen production, it is still in its infancy for use in mass transportation, he noted.

Talos Energy is a technically oriented independent exploration and production company, focused on safe and efficient maximization of long-term value through its operations in the United States and offshore Mexico.

Zacks Rank & Key Picks

Currently, Chevron carries a Zack Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks for investors interested in the energy space include CVR Energy (CVI - Free Report) , sporting a Zacks Rank #1, and Murphy USA Inc. (MUSA - Free Report) carrying a Zacks Rank #2 (Buy).

CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.

Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed upward earnings estimate revisions for 2023 and 2024.

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