Progress and Implications of Carbon Dioxide Geological Utilization and Storage in the Oil and Gas Industry

Amid the global push for carbon neutrality, the oil and gas industry is undergoing a rapid low-carbon transition. Carbon dioxide geological utilization and storage (CGUS), a subset of carbon capture, utilization, and storage (CCUS) technologies, has emerged as a pivotal strategy due to its substantial potential for enhancing resource recovery and reducing carbon emissions. This study systematically evaluates the strategic initiatives of international oil companies in CGUS, examines global policy frameworks and technological advancements, and assesses the development of supporting infrastructure. Tailored to China’s national context, it identifies key challenges in CGUS implementation within the oil and gas sector and proposes actionable recommendations. Key findings include: (1) CGUS is a cornerstone of the industry’s low-carbon transition, with international firms achieving early commercialization through technological leadership, while Chinese companies, leveraging CO2-enhanced oil recovery (CO2-EOR) pilots, are scaling up large demonstration projects. (2) Globally, robust CGUS support systems are emerging, encompassing tax incentives, dedicated funds, carbon trading mechanisms, advanced reservoir evaluation and monitoring technologies, and standardized frameworks that facilitate large-scale deployment. (3) In China, CGUS faces economic, technical, and institutional barriers. Recommendations include accelerating infrastructure development, fostering innovative business models, refining policy incentives, advancing geological evaluation and monitoring technologies, and strengthening regulatory and carbon market integration to drive high-quality industry growth.