The Green Mirage: Oklahoma Signs Up For CO2 Sequestration

Burying Dollars, Not Solutions: Why Oklahoma Should Reject CO2 Sequestration

By Marven Goodman, June 25, 2025

Dr. Jordan Peterson’s words cut through the climate hysteria with a truth that resonates in Oklahoma’s heartland: CO2 isn’t the villain it’s made out to be.

‘On the climate side when I look at the data the thing that leaps out for me is greening. The planet is 20 percent greener than it was 30 years ago, okay, 20 percent. This is NASA data, I’m not inventing this, okay, and then you think, oh 20 percent, if 20 percent of the plants had vanished you’d be sure we’d heard about that, yes, okay, so, and agricultural output’s gone up 13 percent. Now whether all that additional carbon dioxide is a function of human activity, that’s still debatable, it doesn’t matter, there is an association between the carbon dioxide’s rise and the plant propagation, okay. It’s even more particular than that because a lot of the greening has occurred in semi-arid areas so areas around deserts and the reason for that is that if there’s more carbon dioxide the plants can close their breathing pores more and they don’t lose water and so not only is there 20 percent more vegetation, which is a lot. I think it’s twice the area of the United States that’s greened. That’s a lot of green. And where our agricultural production is more effective. And the places that have greened were the very places that the deserts were supposed to expand into. And so, right, because they’ve greened, they’ve shrunk, not grown. Now, you know, you could say, well, that rate of change has its problems. And, you know, rates of change have their problems. But I don’t see, on the climate side, when I look at the data, the thing that leaps out for me is greening. The planet is 20% greener than it was 30 years ago.’ — Dr. Jordan Peterson on the Joe Rogan Podcast (1:11:01 through 1:14:30)

In a state that powers America with oil, gas, and wind, the federal government’s Inflation Reduction Act (IRA) of 2022 is a bloated overreach, funneling billions into green energy and carbon dioxide (CO2) capture, utilization, and sequestration (CCUS). This subsidy-soaked scheme clashes with Oklahoma’s free-market ethos, squandering taxpayer dollars on CO2 sequestration, a costly dead end that ignores the natural benefits of CO2 in greening the planet and boosting agriculture. Conservatives across the Sooner State are demanding an end to federal meddling and a return to innovation-driven prosperity.

The Federal Subsidy Surge

The IRA floods Oklahoma with subsidies for renewables and CCUS, distorting the state’s energy landscape. The Section 45Q tax credit, the backbone of CO2 capture, pays $85 per metric ton for CO2 stored underground, $60 per ton for enhanced oil recovery (EOR) or industrial uses, and up to $180 per ton for direct air capture (DAC). Available for projects starting construction before 2033, 45Q fuels ventures like CapturePoint’s Oklahoma Carbon Hub, which captures 750,000 tons of CO2 annually from ammonia production and 5,000 tons via DAC, piped 68 miles from Coffeyville KS to EOR in Osage County OK. Enhanced Oil Recovery, is a technique used to extract additional oil from reservoirs by injecting substances like carbon dioxide (CO₂). In carbon capture, CO₂-EOR involves injecting captured CO₂ to boost oil production while storing the CO₂ underground.

The Congressional Budget Office estimates 45Q’s cost at $43.4 billion from 2025–2034, with projections soaring to $850 billion by 2042 if extended, and the Institute for Energy Economics and Financial Analysis warns of a potential $2.1 trillion tab if credits persist long-term.

Renewable subsidies are equally lavish. The Solar Investment Tax Credit (ITC) offers a 30% credit on solar system costs (e.g., $5,502 on an $18,340 system) through 2032, while the Production Tax Credit (PTC) for wind cost $31.4 billion nationally in 2024. Oklahoma, the nation’s third-largest renewable producer, generates 47% of its electricity from wind. The IRA also allocates $129 million for home efficiency rebates, delayed until 2025–2026, and $1.3 billion for carbon capture demonstrations, with applications due July 2025.

State-level support remains limited, reflecting “grassroots” (pun intended) Oklahoma’s skepticism of government handouts. The Oklahoma Carbon Sequestration Enhancement Act (2001) and Carbon Capture and Geologic Sequestration Act (2009) certify CO2 offsets for EOR and geologic storage but offers no direct tax credits.

The Oklahoma Conservation Commission verifies agricultural and forestry sequestration, while Public Service Company of Oklahoma (PSO) rebates and State Energy Program grants ($423,945 in 2024) promote efficiency. Net metering credits solar at low avoided cost rates (2–8 cents/kWh), and Oklahoma lacks state solar rebates, prioritizing market-driven solutions.

CO2: Boon, Not Bane

Peterson’s analysis, grounded in NASA data, highlights a truth ignored by climate alarmists: CO2 is driving a greener, more productive planet. While he cites a 20% increase in global vegetation over 30 years, NASA studies confirm a significant rise since the 1980s, with CO2 fertilization contributing about 70% to this greening. In Oklahoma, this translates to tangible benefits for the $10 billion agriculture sector, with wheat and soybean yields rising 10–20% due to enhanced photosynthesis. As Peterson notes, semi-arid regions, once feared to become deserts, are greening as plants use CO2 to conserve water, shrinking arid zones rather than expanding them. “CO2 helps our crops, not hurts ‘em,” a Kay County farmer posted on social media, echoing rural sentiment.

Yet, the IRA’s obsession with CO2 sequestration dismisses these benefits, burying a resource that fuels Oklahoma’s farmland. CCUS captures a mere 42.5 million tons of CO2 globally each year, a drop in the bucket compared to the 3.8 billion tons desired as a target by 2050, per the International Energy Agency. Capture costs, ranging from $27–$150 per ton, are prohibitive, with Oklahoma projects often at the higher end due to complex infrastructure. A 2025 Environmental Science & Technology study found that 45Q can incentivize increased CO2 production to maximize credits, perversely undermining climate goals. Worse, lifecycle emissions from energy-intensive capture and transport often exceed sequestration’s benefits, with some projects emitting more CO2 than they store, according to a 2024 Global CCS Institute report.

Oklahoma’s CapturePoint Oklahoma Carbon Hub is one of the largest of its kind in the U.S. Yet, this pales against Wyoming’s Shute Creek (7 million tons) or Texas’ Century Plant (8.4 million tons). Plans to scale the hub to 2–4 million tons rely on billions in 45Q credits, a subsidy crutch that burdens taxpayers without delivering meaningful results. Peterson’s point is clear: why vilify CO2 when it’s greening the planet and boosting crop yields, all without government intervention?

Markets Over Mandates

Oklahoma’s energy legacy, oil and gas proves markets triumph over federal mandates. Since state incentives ended in 2017, private capital has driven $10 billion in wind investment, with farmers earning $8,000–$15,000 per turbine in leases. Still there are Federal subsidies for wind farms in Oklahoma, primarily through the Production Tax Credit (PTC) and Investment Tax Credit (ITC), remain active in 2025 under the Inflation Reduction Act (IRA) of 2022. The PTC offers approximately 2.6 cents per kWh for 10 years, while the ITC provides a 30% tax credit on capital costs, both requiring prevailing wage and apprenticeship compliance for full value.

The Rural Energy for America Program (REAP) and Modified Accelerated Cost-Recovery System (MACRS) also support wind projects. Solar, though lagging (37th nationally), achieves a 13–15-year payback period (think hail storms). Oklahoma, with 11,790 MW of wind capacity, benefits significantly. 2024 Cost: Federal PTC and ITC for wind and solar nationwide cost $31.4 billion. 2025–2034 Projection: The IRA’s PTC and ITC for wind and solar are projected to cost $421 billion over this period, with wind subsidies comprising a significant portion due to Oklahoma’s current high capacity.

Contrast this with CO2 sequestration’s subsidy dependence. The Oklahoma Carbon Hub, despite its scale, captures a fraction of the 3.8 billion tons needed by 2050, propped up by 45Q’s billions. Globally, many of the 30 major CCS projects have collapsed under cost and complexity, per the Global CCS Institute. Enhanced oil recovery (EOR), a practical CO2 use, thrives without subsidies, with Oklahoma leading the U.S. in anthropogenic CO2 injection since 1982, unlocking 9–20 billion barrels of oil, per DOE estimates. Private firms like CapturePoint prove EOR’s profitability, no federal handouts required.

Peterson’s skepticism of climate alarmism aligns with Oklahoma’s distrust of federal overreach. “The deserts are shrinking because the planet is greening, because there’s more carbon dioxide,” he argues, challenging the narrative that CO2 is a crisis. Alternatives like precision agriculture or methane capture cut emissions without burying CO2 or taxpayer dollars, offering market-driven solutions that resonate with Oklahoma’s conservative values.

Some Legislative Resistance to Green Overreach

A few in Oklahoma’s legislature, reflecting its conservative distrust of green agendas, have pushed back against federal subsidies, here are some 2025 bills that underscore resistance to federal green policies:

House Bill 1450

HB 1450 introduced by Rep. Jim Shaw (R-Mill Creek), proposed a moratorium on new industrial wind and solar facilities, citing land use and competition with oil and gas. It failed in committee, with opponents arguing it would deter private investment.

House Bill 1452

HB 1452 also by Shaw, sought to tax wind and solar companies equal to their federal subsidies, dubbed the Green Energy Subsidy Recapture Tax Act. It stalled amid legal concerns but highlighted the desire to level the playing field for unsubsidized fossil fuels.

Senate Bill 239

SB 239 sponsored by Sen. Jonathan Wingard (R-Tulsa), aimed to eliminate zero-emission tax credits for pre-2017 wind farms, saving $16 million annually. It deadlocked in the Senate Finance Committee (5-5 vote), reflecting tensions between fiscal hawks and rural economies tied to wind leases.

Senate Bill 269, Lobbyist Supported Carbon Capture

SB 269’s passage, supported by lobbyist at the Petroleum Alliance of Oklahoma and Oklahoma Farm Bureau, contrasts with these failures, highlighting CCUS’s industry backing but fueling distrust among conservatives wary of green lobby influence. In April 2025, the House Energy and Natural Resources Committee approved Senate Bill 269, co-authored by Rep. Ken Luttrell (R-Ponca City) and Sen. Dave Rader (R-Tulsa), to expand regulatory support for carbon capture, utilization, and sequestration (CCUS) by granting the Oklahoma Corporation Commission (OCC) exclusive state agency authority over Class VI CO2 injection wells.

Signed into law by Governor Kevin Stitt on May 20, 2025, and effective November 1, 2025, the bill streamlines permitting, 63% land ownership, detailed site maps, and public notice, while creating a $5 million dollar revolving fund for long-term monitoring. Extreem skepticism abounds over its backing by green energy lobbyists, whose ties to the Inflation Reduction Act’s 45Q subsidies, projected to cost taxpayers $43.4 billion by 2034, per the Congressional Budget Office, raise suspicions of corporate cronyism over the interests of Oklahoma’s farmers and ranchers.

Social media backlash labels SB 269 a “green scam,” citing seismic risks tied to the 2016 Pawnee earthquake and fears of groundwater contamination, despite Oklahoma Corporation Commission (OCC) oversight through seismic surveys and well integrity tests, which critics deem inadequate. Dr. Jordan Peterson’s claim that CO₂ promotes beneficial greening, potentially boosting Oklahoma’s agriculture by 10–20%, bolsters critics’ arguments that carbon capture, CCUS, is a subsidy-driven folly, wasting resources on a naturally beneficial gas.

A Free-Market Path Forward

Oklahoma’s energy legacy proves markets outshine mandates. CO2 sequestration, a subsidy-drenched mirage, wastes resources on a problem that Peterson’s NASA-cited data shows CO2 itself helps solve, greening fields and boosting crop yields. As Rep. Shaw declares, “Stop burying CO2 and cash. Let Oklahoma’s innovators lead.” In a state that values self-reliance, the path is clear: unleash the market, not government, to keep the Sooner State thriving.

Sources

• OK House GOP News Release, June 6, 2025

• Oklahoma Energy Today, March 18, 2025

• Oklahoma Energy Today, June 3, 2025

• HPPR, May 28, 2025

• LegiScan: SB 269 (2025)

• Global CCS Institute, 2024

• Environmental Science & Technology, 2025

• NASA: CO2 greening effects

• The Joe Rogan Experience: Dr. Peterson’s interview with Joe Rogan, April 2025

• Social Media posts: Public sentiment on CO2 and sequestration