U.S. Occidental Petroleum Sees Lower Realized Oil Price in First Quarter

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Occidental Petroleum continues to face market headwinds. Its realized crude oil price for the first quarter was about 13% below the global average during the first quarter.

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No War Support for Occidental

Despite a significant war premium supporting crude oil prices, U.S. shale oil producer Occidental Petroleum said its first-quarter global averaged realized price was 1.6% lower than year-ago levels.

According to Industrial Info Resources data, Occidental has 55 active projects worth $13.33 billion.

Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Projects Database can view a list of detailed project reports.

Brent crude oil, the global benchmark for the price of oil, was trading at around $102 per barrel in early-morning trading on Monday, supported largely by conflict in the Middle East. Joint U.S.-Israeli military action on February 28 left Iran's Supreme Leader Ali Khamenei and a handful of top officials dead, triggering regional conflict that's had global economic consequences.

Brent was trading closer to $70 per barrel in the week before the conflict began. In its monthly market report for February, released before the start of fighting, the U.S. Energy Information Administration (EIA) forecast Brent would average $58 per barrel this year.

In a Friday filing with the U.S. Securities and Exchange Commission, deposited ahead of its first-quarter earnings report, Occidental Petroleum reported that it realized a global average of $69.91 per barrel, down 1.6% from the same period last year.

EIA data show Brent averaged $75.81 per barrel during the first quarter of 2025, compared to $80.21 over the three-month period ending March 31.

By the Numbers

• $69.91: Occidental's realized crude oil price
• $102: Brent crude price on Monday

A Rough Patch

The lower-for-longer outlook for crude oil prices that preceded war in the Middle East had already created headwinds for Occidental. However, the company reported a net loss of $68 million for the fourth quarter, an improvement from a net loss of $297 million in fourth-quarter 2024.

Efficiencies and optimization led Occidental to reduce its 2026 capital spending plan by about $550 million from 2025 levels, with its capital guidance for 2026 set between $5.5 billion and $5.9 billion. About 70% of the reduction was tied to cost savings, with the rest attributed to well efficiencies.

Industrial Info Resources is tracking seven projects led by Occidental Petroleum in the United States slated for capital spending this year, the largest of which is the King Ranch direct air capture (DAC) facility for carbon sequestration in Texas, part of so-called Project Revolution. Subscribers can learn more about Occidental's programs--including capacities, investment values and necessary equipment--from a detailed project list.

Production wise, Occidental reported that fourth-quarter global production averaged 1.48 million barrels of oil equivalent per day (BOE/d), about 1.5% above its mid-point guidance. Volumes were lifted primarily by the Permian shale basin and reserves in the Rocky Mountain region.

Operators are doing more with less by using multi-bore wells and extended laterals. In the U.S. shale patch, Occidental said those improvements led to "exceptional" well performance. Analysts at EIA expect total U.S. shale production to increase by 3% this year to average 11.5 million barrels per day.

Occidental plans to issue its earnings for first-quarter 2026 after the end of trading on May 6.

Key Takeaways

• Occidental's realized crude oil price inches lower.
• The company already faced headwinds last year.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, Industrial Info Resources has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).