3 Warning Signs that You Shouldn't Do a Project
Clients turn to us when making strategic decisions about energy projects. It’s a big responsibility and one that we take seriously. And, although we want to see every project gain liftoff, sometimes we must share hard truths that ultimately cause a change of course—even when it negatively impacts our bottom line.
Here are three warning signs to look for when questioning a project’s likelihood of success.
#1: Land Prices are Too High in Your AOI
Our nation is hungry for energy, but that hunger must be weighed against the realities of basic economics. Paying too steep of a price for land in your area of interest (AOI) can negatively impact the eventual return on investment of a project.
So, how much is too much for a tract of land? The answer likely depends on a number of factors ranging from landowner density to existing infrastructure and future production. Partnering with an experienced land company like our team at Trigen Energy provides an opportunity to weigh your options and make an informed decision about project siting.
#2: Community Sentiment is Mostly Negative
Despite the potential benefits to the local economy and domestic energy supply, not everyone is enthusiastic about oil, gas, and CCS (carbon capture and storage) projects. Petroleum products must be extracted from the ground, which could involve drilling new wells and constructing local, intrastate, and interstate pipelines. In the case of CCS, compressed carbon dioxide must be transported to the injection and storage site, which means more pipelines and wells.
Negative voices can often be louder than those of advocates, making it difficult to objectively evaluate community support for a project. In some cases, the noise turns out to be nothing more than noise. In other situations, a community may actually be so opposed that the effort to change local sentiment is not worth the forecasted return. Measuring true sentiment usually requires a local presence and thorough community engagement.
#3: Ordinances and Moratoriums
State and local governments regularly consider and, in some cases, pass legislation that impacts the viability of energy projects. For example, the State of Illinois passed its SAFE Carbon Capture and Sequestration Act (SAFE CCS) in 2024, which instituted regulations for the capture, transportation of, and sequestration of carbon dioxide. According to the Governor’s news release, the law also placed a two-year moratorium on new pipelines.
For CCS and other energy developers, ordinances and moratoriums can pose serious roadblocks for project completion. Maintaining a close eye on pending legislation is essential for keeping projects on track.
Need Land Support for CCS or Energy Projects?
Contact us to discuss your project and inquire about availability. We’re capable of supporting clients in oil and gas, carbon capture and storage, geothermal, and other industries.
Learn about Trigen Energy’s services.