Texas Takes the Lead in CO₂ Oversight

Texas gains CO₂ storage permitting authority, enabling faster reviews and boosting market confidence

17 Nov 2025

Texas has gained authority to approve and supervise underground carbon storage wells, a shift that developers say could shorten permitting times and support new investment in US carbon capture projects.

The Environmental Protection Agency has transferred oversight of so-called Class VI wells, the sites where captured carbon dioxide is injected deep underground, to the state after years of delays in the federal system. The move comes as industrial groups along the Gulf Coast look for ways to curb emissions and plan large-scale storage hubs.

Companies have long argued that slow federal reviews held back project development. State control, they say, may offer a clearer timetable, though progress will depend on how quickly the Railroad Commission of Texas builds its programme and begins processing applications.

Producers with major regional operations, including Chevron and ExxonMobil, are expected to benefit from more predictable reviews. Their executives have often stressed that stable rules guide capital planning, and that a streamlined pathway could reduce uncertainty even if it does not guarantee rapid approval for every project.

Texas joins North Dakota and Louisiana, which already hold similar authority and have used it to attract early schemes. Analysts note that Texas brings a larger industrial base and significant geological storage potential, factors that could influence partnerships and investment strategies as companies compete for position in the emerging carbon management market.

Oversight will remain a central point of debate. Environmental groups argue that Texas must show strong monitoring and long-term safety enforcement. Supporters counter that the state’s experience regulating oil and gas activity provides a firm foundation. Many stakeholders agree that credible supervision will be important for maintaining public trust.

The sector will now watch the state’s first permitting decisions for signals on how quickly the new regime can convert authority into tangible progress and whether it can accelerate the next phase of carbon capture development across North America.