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Released November 14, 2025 | SUGAR LAND
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Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)
Industrial Info is tracking about $3.4 billion worth of projects from Occidental, including the chemical assets set to be acquired soon by Berkshire.
"We now have a higher-quality portfolio with Oxy's lowest-ever geopolitical risk, as we have shifted the percentage of our oil and gas production from 50% domestic to 83% domestic," said Vicki Hollub, the chief executive officer of Occidental, in a recent quarterly earnings-related conference call. "And our portfolio has a development runway of 30-plus years that includes high-return, short-cycle, higher-decline unconventional assets, complemented by solid-return, lower-decline, mid-cycle development opportunities in our conventional oil and gas assets."
Hollub noted Occidental's offshore-drilling assets in the Gulf of Mexico outperformed the high end of the company's guidance during the third quarter, achieving the highest uptime in Occidental's operating history. Among its developments set to kick off next year is a drilling program in the Gulf's Lucius Field, in Keathley Canyon Block 875, which includes two ultra-deepwater rigs.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about the Lucius development--including capacities, investment values and necessary equipment--from a detailed project report and plant profile.
Other areas that performed well during the third quarter include the Permian Basin, which contributed 800,000 barrels of oil equivalent per day (BOE/d), the highest quarterly Permian production in Occidental's history. Drilling operations in the Rocky Mountain region also posted strong results, "thanks to strong new well performance and stable base operations," according to Hollub.
By the Numbers
Berkshire's acquisition of OxyChem, which is valued at $9.7 billion, includes the Battleground facility in La Porte, Texas, which has been undergoing an expansion of its chlorine and caustic soda production since the end of 2023. OxyChem is upgrading, modernizing and expanding equipment to boost capacity and replace its existing diaphragm-cell technology with membrane-cell technology, which is more energy-efficient. Subscribers can learn more from a detailed project report and plant profile.
"With the OxyChem sale, our U.S. onshore capital will comprise an even greater proportion of the total company investment program, which provides flexibility should the macro environment deteriorate," said Sunil Mathew, the chief financial officer of Occidental, in the earnings call. "We have an incredible runway of high-quality oil and gas opportunities and sustained momentum in delivering value through greater capital efficiency. We plan to reallocate up to $400 million to these short-cycle, high-return projects, primarily in the Permian."
Occidental subsidiary 1PointFive is preparing to begin construction early next year on its South Texas Direct Air Capture Hub in Kingsville, Texas, a joint venture with Abu Dhabi National Oil Company (ADNOC) (Abu Dhabi, United Arab Emirates). 1PointFive aims to capture 1 million tons per annum of carbon dioxide (CO2), either to produce clean fuels or to be injected into the Permian Basin for permanent storage. Subscribers can learn more from a detailed project report and plant profile.
Funding for the South Texas Direct Air Capture Hub might be in jeopardy, however, as the Trump administration seems likely to cancel roughly $50 million in federal grants for the project. It is not yet known how, or if, 1PointFive would make up the shortfall.
Occidental's net income for the third quarter totaled $611 million, down 37.3% from the same period last year; revenues totaled $6.72 billion, a 6.11% decrease. The declines were attributed largely to a drop in prices for crude oil.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Occidental.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
As Occidental bids farewell to its chemicals business, the company sees an advantage to narrowing its efforts toward the oil and gas industry, although production likely will be near-flat next year.Less Risk as Drilling Returns to U.S.
Occidental Petroleum Corporation (Houston, Texas) is preparing for a large-scale transformation, as executive express optimism that the pending sale of the company's largest chemical business, OxyChem, to Berkshire Hathaway Incorporated (Omaha, Nebraska) will allow it to reduce debt and focus on its oil and gas business. The company also is reducing its global exposure risk, as it shifts much of its oil and gas portfolio to domestic sources.Industrial Info is tracking about $3.4 billion worth of projects from Occidental, including the chemical assets set to be acquired soon by Berkshire.
"We now have a higher-quality portfolio with Oxy's lowest-ever geopolitical risk, as we have shifted the percentage of our oil and gas production from 50% domestic to 83% domestic," said Vicki Hollub, the chief executive officer of Occidental, in a recent quarterly earnings-related conference call. "And our portfolio has a development runway of 30-plus years that includes high-return, short-cycle, higher-decline unconventional assets, complemented by solid-return, lower-decline, mid-cycle development opportunities in our conventional oil and gas assets."
Hollub noted Occidental's offshore-drilling assets in the Gulf of Mexico outperformed the high end of the company's guidance during the third quarter, achieving the highest uptime in Occidental's operating history. Among its developments set to kick off next year is a drilling program in the Gulf's Lucius Field, in Keathley Canyon Block 875, which includes two ultra-deepwater rigs.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about the Lucius development--including capacities, investment values and necessary equipment--from a detailed project report and plant profile.
Other areas that performed well during the third quarter include the Permian Basin, which contributed 800,000 barrels of oil equivalent per day (BOE/d), the highest quarterly Permian production in Occidental's history. Drilling operations in the Rocky Mountain region also posted strong results, "thanks to strong new well performance and stable base operations," according to Hollub.
By the Numbers
- $9.7 billion: All-cash transaction value of Berkshire's purchase of Occidental's chemicals business
- 50% to 83%: Change in the domestic component of Occidental's oil and gas production business
- 1.47 million BOE/d: Occidental's oil and gas production in third quarter, including a record 800,000 BBL/d in the Permian
Big-Ticket Projects Hit Milestones
Despite better-than-expected growth in the third quarter, Occidental is tempering expectations for 2026. Executives expect overall production to increase by no more than 2%, driven largely by the Permian. Executives also expect capital expenditures for the coming year will total between $6.3 billion and $6.7 billion, down from its projected $7.1 billion to $7.3 billion for full-year 2025.Berkshire's acquisition of OxyChem, which is valued at $9.7 billion, includes the Battleground facility in La Porte, Texas, which has been undergoing an expansion of its chlorine and caustic soda production since the end of 2023. OxyChem is upgrading, modernizing and expanding equipment to boost capacity and replace its existing diaphragm-cell technology with membrane-cell technology, which is more energy-efficient. Subscribers can learn more from a detailed project report and plant profile.
"With the OxyChem sale, our U.S. onshore capital will comprise an even greater proportion of the total company investment program, which provides flexibility should the macro environment deteriorate," said Sunil Mathew, the chief financial officer of Occidental, in the earnings call. "We have an incredible runway of high-quality oil and gas opportunities and sustained momentum in delivering value through greater capital efficiency. We plan to reallocate up to $400 million to these short-cycle, high-return projects, primarily in the Permian."
Occidental subsidiary 1PointFive is preparing to begin construction early next year on its South Texas Direct Air Capture Hub in Kingsville, Texas, a joint venture with Abu Dhabi National Oil Company (ADNOC) (Abu Dhabi, United Arab Emirates). 1PointFive aims to capture 1 million tons per annum of carbon dioxide (CO2), either to produce clean fuels or to be injected into the Permian Basin for permanent storage. Subscribers can learn more from a detailed project report and plant profile.
Funding for the South Texas Direct Air Capture Hub might be in jeopardy, however, as the Trump administration seems likely to cancel roughly $50 million in federal grants for the project. It is not yet known how, or if, 1PointFive would make up the shortfall.
Occidental's net income for the third quarter totaled $611 million, down 37.3% from the same period last year; revenues totaled $6.72 billion, a 6.11% decrease. The declines were attributed largely to a drop in prices for crude oil.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Occidental.
Key Takeaways
- Berkshire's acquisition of OxyChem will allow Occidental to focus its efforts on oil and gas holdings.
- Occidental's capital expenditures are expected to be lower--and oil and gas production nearly flat--in 2026.
- Subsidiary 1PointFive is preparing to begin work on a major carbon-capture project in South Texas.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
