Occidental's Low-Carbon Projects Face Inflationary Headwinds

November 14, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas) has been enjoying plenty of attention as one of the leading developers of carbon capture and sequestration (CCS) technology, with ambitious, multi-phase projects planned along the U.S. Gulf Coast. But executives acknowledge the company can't hide from inflationary pressures, with costs rising for their major endeavors.

Industrial Info is tracking $1.7 billion worth of projects owned or co-owned by Occidental, in addition to those for which it is performing services. During the third quarter, Occidental's Oxy Low Carbon Ventures (OLCV) and 1PointFive subsidiaries started site preparation on the first in a series of direct air capture (DAC) projects planned for Ector County, Texas. Despite making strides in the carbon-capture arena, Occidental has been facing consistent pressure from investors to toughen its goals to reduce greenhouse gas emissions.

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