PATH FORWARD: Effect of Joe Biden’s Climate Policies on Oil and Gas

President Joe Biden is due to unveil a new emissions reduction target for 2030 by April 22 and Alex Dewar, senior director of Boston Consulting Group (BCG) Center for Energy Impact, said he sees carbon capture playing a vital role in the new administration’s climate ambitions.

For example, Dewar cited additional tax credits like 45Q for carbon capture as well as the prospect of hydrogen tax credit as sparking tremendous investment in decarbonization technologies, which he told Hart Energy’s Faiza Rizvi in a recent interview will be instrumental in getting the U.S. toward a pathway for net-zero.

“Companies who have already done the groundwork, built the portfolio of options and have the opportunity to finance projects will benefit most from tax credits,” he said using Occidental Petroleum Corp. as an example, which he noted has already carved a niche area in carbon capture, utilization and sequestration (CCUS) with projects “ready to go.”