THE ROLE OF CARBON CAPTURE AND STORAGE IN THE EUROPEAN OIL AND GAS INDUSTRY: REGULATORY, TECHNOLOGICAL, AND FINANCIAL PERSPECTIVES

Since the rise of the hydrocarbons the demand for fossil fuels has been steadily growing, however the negative side-effects started to appear. Fossil fuels are among the accelerators of climate change, however many countries have started to decarbonize their economies and set up targets to become carbon-neutral in the future. As the European Union accelerates its decarbonization efforts, carbon capture and storage (CCS) has emerged as a potential solution for reducing greenhouse gas (GHG) and it can drive the oil and gas industry into a more sustainable future as well. This master’s final work examines if CCS is the right tool to reach net-zero emission goal, moreover it analyses the regulatory, technological, and financial dimensions of CCS, with a focus on its implementation within major European oil and gas companies. It uses a mixed method, as it applies qualitative and quantitative research. Through in-depth interviews with industry experts at MOL Plc. presents the real-life application aspects of the technology, while with an empirical analysis of financial and emissions data from nine leading firms the master final work explores the feasibility, economic implications, and long-term results of CCS implementation. The findings reveal that while CCS can contribute to emission reduction and provide financial benefits in the long term, its large-scale implementation faces critical challenges. These include high costs, regulatory uncertainties, and the finite availability of suitable storage reservoirs. However, financial analysis indicates a positive correlation between emissions reduction and profitability, which should enhance the proliferation of the technology as it mitigates GHG emissions and increases the companies’ profitability. Despite the positive effects, experts caution that CCS alone is not a sufficient long-term solution. Instead, it serves as a time-gaining measure, allowing companies to reduce their emission in the short-term, while transitioning toward more sustainable energy sources.