AOGA Testimony on Carbon Capture Utilization and Storage
Chairman McKay and members of the committee, good afternoon. For the record, my name is Kara Moriarty, President and CEO of the Alaska Oil and Gas Association, commonly referred to as “AOGA.” Thank you for hearing HB50 on Carbon Capture and for the opportunity to express AOGA’s thoughts on this bill.
AOGA represents the majority of oil and gas companies exploring, developing, producing, transporting, marketing and refining in our state. Our mission is the advocate for the long-term viability of the oil and gas industry for the benefit of all Alaskans. Our members have state and federal interests, both onshore and offshore. Our industry is the single most important economic driver in our state accounting for roughly 25% of all jobs and wages, and it is estimated the industry will provide local and state governments with approximately $4 billion dollars this fiscal year.
More broadly than this bill, AOGA supports the advancement of the research, development, and demonstration of carbon capture utilization and storage (CCUS). We agree with Governor Dunleavy – Alaska is uniquely positioned to be a leader in this industry. Many of our members, as you have likely seen in past presentations to the committee, have net-zero goals they are working to achieve. In an all-of-the-above energy environment like Alaska, CCUS and oil and gas development are not mutually exclusive. We appreciate the Governor being innovative and working to capitalize on this fast-growing industry. AOGA supports CCUS public policies that:
- Support technology research, development, and demonstration that work to reduce the cost of CCUS;
- Recognize the range of carbon mitigation technologies and emissions sources;
- Provide operators with the choice to deploy CCUS;
- Recognize market-based solutions and a variety of CCUS methods, including for the purpose of enhanced oil recovery, as a legitimate carbon reduction option;
- Establish a competitive pricing environment that encourages investment;
- Allow the deployment of CCUS to be counted as avoided emissions toward net-zero goals, and in any applicable regime that seeks to limit GHG emissions, including offsets;
- Encourage new carbon capture facilities and supporting infrastructure to be constructed by facilitating their permitting;
- Address the long-term storage of CO2 to reflect a division of public and private responsibility, according to the latest scientific research;
- Encourage consistency by utilizing best practices learned from other jurisdictions while also addressing the unique regulatory and operating environment in Alaska.
We appreciate the administration’s efforts to engage with industry early and often on this topic as we are all learning more about the CCUS opportunities. With respect to HB50 specifically, we are supportive of the general framework the bill is working to establish. We understand legislation is a work in progress and there is more learning ahead. We look forward to continued engagement and learning as this bill works through the process.