Terrapass and others offering these low prices are based on traditional offsets rather than carbon removal.

By this I mean they typically purchase and resell carbon credits generated by theoretically reducing emissions somewhere else - a common example to this is supplying more efficient fuel stoves to African communities. A credit is generated as theoretically there are less emissions now going into the atmosphere. This however does nothing to tackle the emissions from your car which remain in the atmosphere.

Carbon removal generally refers to these new technologies that actively capture and sequester CO2. These are currently immature and expensive but the result is "net-zero", if your car emits a ton, you remove a ton.

Some links for you:

Bloomberg dug a little into the forestation based carbon offsets: https://www.youtube.com/watch?v=20xMbGkEIQI

[Disclaimer: I co-founded this] an alternative which aims to support a portfolio of carbon removals: https://carbonremoved.com

Follow up question: I am looking at a vehicle that has a gas or PHEV option. The hybrid option is ~$9k more. I plan to own it for only 3 years to purchase a full EV, and I expect the $7,500 tax credit in the U.S. may not apply. So in effect - if I did removal (calculated at 3.2t tons/yr driving so $498 for removal).... wouldn't it be cheaper for me to $1,500 removal rather than purchasing a PHEV ($9k addl)?

Thank you! I completely overlooked this difference.

That huge removal cost just shows how underpriced oil is given the externalities.

Yeah if you do the math and squint a little, virtually all of the economic value of the benefits of oil will be required to be repaid in order to undo the costs. I think over the long term e.g. Exxon is going to be a net-negative business.

Exxon in particular seems evil. I just some articles on Guyana check it out if you haven't seen it.

I hope we are successful in some of the ongoing litigation like cigarette companies.

Specifically for energy corporations I am fine with complete Gov. sanctions/high regulation. Similar to electric companies but strip all shareholder profit until it's all spent cleaning up the mess. Not sorry to be the AOC socialist left on this one lol.