Santos, an Australian energy company, is leading the way in carbon capture initiatives within Alaska’s oil industry, aiming for a net-zero status by 2026 through innovative technologies and industry collaboration.
Australian Company Santos Pursues Carbon Capture in Alaska Oil Industry
Santos, an Australian energy company, is developing the Pikka oil field in Alaska’s North Slope, asserting the project will be climate-friendly by utilizing carbon capture and sequestration technologies. Pikka aims to be “net-zero” by 2026, covering emissions from the oil production process itself but not the subsequent combustion of the produced oil.
To achieve net-zero status, Santos plans to capture emissions from power plants and drill pads, and directly remove CO2 from the air, injecting it underground. This is in line with a broader industry trend where firms like ConocoPhillips are exploring similar measures.
Carbon capture initiatives in Alaska are spurred by both market pressures and regulatory requirements. Santos has formed a consortium with Repsol and ASRC Energy Services, gaining a $3 million grant from the U.S. Department of Energy to explore direct air capture feasibility in the harsh Arctic environment.
While some environmentalists critique carbon capture as insufficient and accuse companies of “greenwashing,” industry experts argue these technologies are essential for achieving net-zero goals and mitigating financial risks in a low-carbon economy. However, significant questions remain about the costs and effectiveness of such technologies, and whether they can scale to meet global emission reduction targets. Santos aims to commence oil production at Pikka by 2026, with its broader carbon capture efforts still under development.
