# Why Carbon Capture Tax Credits Are Reshaping Oil and Gas

Page: https://stenobird.com/podcast/climate-economics-with-fexingo-carbon-pricing-green-policy-and-sustainability-costs-7871781/why-carbon-capture-tax-credits-are-reshaping-oil-and-gas
Text version: https://stenobird.com/podcast/climate-economics-with-fexingo-carbon-pricing-green-policy-and-sustainability-costs-7871781/why-carbon-capture-tax-credits-are-reshaping-oil-and-gas.md
Podcast: [Climate Economics with Fexingo: Carbon Pricing, Green Policy, and Sustainability Costs](https://stenobird.com/podcast/climate-economics-with-fexingo-carbon-pricing-green-policy-and-sustainability-costs-7871781)
Published: 2026-06-23T07:09:25+00:00
Episode link: https://audio.fexingo.com/business/climate-economics/episode-0068.mp3
Audio file: https://audio.fexingo.com/business/climate-economics/episode-0068.mp3
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JSON: https://stenobird.com/v1/public/podcasts/climate-economics-with-fexingo-carbon-pricing-green-policy-and-sustainability-costs-7871781/episodes/why-carbon-capture-tax-credits-are-reshaping-oil-and-gas
Duration seconds: 817

## Resource

Lucas and Luna explain how the 45Q tax credit for carbon capture is turning oil and gas companies into unlikely carbon storage operators. They walk through the mechanics of the credit—$85 per ton for permanent storage—and why it's creating a new revenue stream for legacy energy firms. The episode centers on Occidental Petroleum's direct air capture facility in Texas and the tension between climate goals and fossil fuel profits. Lucas breaks down the math: how a company can earn credits for capturing CO2 from its own operations while continuing to produce oil. Luna raises the question of additionality and whether these credits genuinely reduce emissions or just offset them. They also touch on the broader policy landscape in mid-2026, including the IRS's updated guidance on qualifying for the credit. #CarbonCapture #45QTaxCredit #OccidentalPetroleum #DirectAirCapture #OilAndGas #ClimatePolicy #CCUS #CarbonTaxCredits #EmissionsReduction #FossilFuels #InflationReductionAct #TexasEnergy #CarbonStorage #NetZero #Economics #ClimateEconomics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo

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