The Gulf of Mexico’s potential as a leading location for offshore carbon capture and sequestration (CCS) was underlined in recent federal oil and gas lease sales where oil companies showed keen appetite for shallow water acreage, but the spotlight is falling on federal regulators as companies face uncertainty about when they can move move forward with CCS projects in federal waters.

Gulf of Mexico offshore areas are drawing interest for carbon dioxide sequestration given the abundance there of depleted oil and gas fields offering potential locations for CCS, but barriers in permitting dedicated wells and offshore leases for sequestration are delaying potential timelines.