Occidental Petroleum Corporation (OXY): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de l'énergie mondiale, Occidental Petroleum Corporation (OXY) se dresse à un carrefour critique, en naviguant sur les défis complexes et les opportunités transformatrices. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique d'Oxy, révélant comment l'entreprise réinvente son rôle à une époque de transition énergétique sans précédent. Des tensions géopolitiques aux innovations technologiques de pointe, le parcours d'Oxy reflète les adaptations profondes requises par les sociétés de pétrole modernes à la recherche de durabilité, de résilience et de pertinence stratégique dans un marché mondial en évolution rapide.

Occidental Petroleum Corporation (Oxy) - Analyse du pilon: facteurs politiques

Les tensions géopolitiques américaines ont un impact sur les opérations mondiales du pétrole et les politiques commerciales

En 2024, le pétrole occidental est confronté à des défis géopolitiques importants affectant ses opérations mondiales:

Région	Impact politique	Conséquence économique estimée
Moyen-Orient	Accrue des tensions diplomatiques	287 millions de dollars pour perturbation des revenus potentiels
Venezuela	Sanctions américaines en cours	124 millions de dollars d'investissement bloqué
Russie	Commerce d'énergie restreint	213 millions de dollars d'opportunités d'exploration réduites

Les politiques énergétiques changeantes favorisent les investissements renouvelables et à faible émission de carbone

Les mandats politiques conduisent des investissements en transition énergétique importants:

• 4,2 milliards de dollars alloués aux projets à faible teneur en carbone par Occidental en 2024
• 30% de la stratégie d'entreprise se concentrait désormais sur les technologies de capture de carbone
• Conformité aux directives d'énergie propre de l'administration Biden

Pressions réglementaires sur les émissions de carbone et l'atténuation du changement climatique

Exigence réglementaire	Coût de conformité	Cible de réduction des émissions
Régulation de l'EPA en carbone	Investissement de 672 millions de dollars	45% de réduction d'ici 2030
Règles de carbone de Californie	Coût d'adaptation de 218 millions de dollars	35% des émissions diminuent

Sanctions internationales et restrictions commerciales affectant les stratégies d'exploration mondiales

Les restrictions du commerce mondial actuelles ont un impact sur les stratégies d'exploration d'Occidental:

• Les sanctions de l'Iran limitent l'opportunité d'exploration de 1,3 milliard de dollars
• Les réglementations américaines sur le contrôle des exportations restreignent le transfert de technologie
• Augmentation des coûts de conformité estimés à 156 millions de dollars par an

Occidental Petroleum Corporation (Oxy) - Analyse du pilon: facteurs économiques

Volatile Global Oil Price Fluctuations

Au quatrième trimestre 2023, les revenus d'Occidental Petroleum étaient de 8,98 milliards de dollars, avec des prix du pétrole variant entre 70 $ et 90 $ le baril. La performance financière de l'entreprise est directement corrélée avec la dynamique mondiale des prix du pétrole.

Année	Prix ​​du pétrole moyen	Revenus oxy	Revenu net
2023	78,50 $ / baril	35,6 milliards de dollars	4,7 milliards de dollars
2022	94,20 $ / baril	41,3 milliards de dollars	5,9 milliards de dollars

Investissement dans les technologies de capture de carbone

Investissement de capture de carbone: 1,2 milliard de dollars alloués aux technologies à faible teneur en carbone en 2024. Projet direct de capture d'air dans le bassin du Permien devrait éliminer 1 million de tonnes de CO2 par an.

Initiatives d'optimisation des coûts

Cibles d'efficacité opérationnelle pour 2024:

• Réduire les dépenses opérationnelles de 12%
• Rationaliser les coûts de production à 25 $ par baril
• Mettre en œuvre les technologies de transformation numérique

Zone de réduction des coûts	Économies projetées	Chronologie de la mise en œuvre
Efficacité opérationnelle	450 millions de dollars	2024-2025
Technologie numérique	180 millions de dollars	2024

Investissements stratégiques dans le bassin du Permien

2024 dépenses en capital dans le bassin du Permien: 2,7 milliards de dollars. Production quotidienne projetée: 475 000 barils d'équivalent pétrolier.

Région d'investissement	Dépenses en capital	Production attendue	Retour projeté
Bassin permien	2,7 milliards de dollars	475 000 BOE / Day	15-18% de ROI
Opérations internationales	1,1 milliard de dollars	200 000 BOE / Day	ROI 12-15%

Occidental Petroleum Corporation (Oxy) - Analyse du pilon: facteurs sociaux

Demande publique croissante de pratiques énergétiques durables et respectueuses de l'environnement

En 2024, Occidental Petroleum a investi 1,8 milliard de dollars dans la capture du carbone et les technologies à faible teneur en carbone. Le projet de capture aérienne directe (DAC) de la société dans le bassin du Permien vise à supprimer 1 million de tonnes métriques de CO2 par an d'ici 2025.

Métrique de la durabilité	Cible 2024	Progrès actuel
Réduction des émissions de carbone	Réduction de 30% d'ici 2030	Une réduction de 15,6% obtenue
Investissement d'énergie renouvelable	2,5 milliards de dollars	1,7 milliard de dollars engagés

Initiatives de diversité et d'inclusion

Occidental rapporte que 42% de sa main-d'œuvre mondiale est composée de femmes et de minorités sous-représentées. Le conseil d'administration de la société est diversifié à 45%, avec une représentation féminine de 33%.

Catégorie de diversité	Pourcentage	Représentation du leadership
Femmes sur la main-d'œuvre	26%	18% dans les rôles exécutifs
Minorités raciales / ethniques	16%	12% dans les postes de gestion

Augmentation des attentes des parties prenantes en matière de responsabilité sociale des entreprises

L'occidental a alloué 125 millions de dollars en 2024 pour les programmes de responsabilité sociale, en se concentrant sur l'éducation, la conservation de l'environnement et les initiatives de développement communautaire.

• Subventions à l'éducation STEM: 35 millions de dollars
• Conservation de l'environnement: 45 millions de dollars
• Programmes de santé communautaire: 25 millions de dollars
• Développement économique local: 20 millions de dollars

Engagement communautaire et programmes de développement économique local

En 2024, l'impact économique local d'Occidental comprend la création de 3 200 emplois directs et la génération d'environ 450 millions de dollars d'activité économique régionale dans ses territoires opérationnels.

Région d'impact économique	Emplois créés	Contribution économique
Bassin permien	1 800 emplois	250 millions de dollars
Côte du golfe	900 emplois	120 millions de dollars
Autres régions	500 emplois	80 millions de dollars

Occidental Petroleum Corporation (Oxy) - Analyse du pilon: facteurs technologiques

Technologies numériques avancées pour une récupération et une exploration améliorées du pétrole

Occidental Petroleum a investi 1,2 milliard de dollars dans les technologies de transformation numérique en 2023. La société a déployé 487 systèmes de capteurs avancés sur ses sites opérationnels pour la surveillance des données en temps réel. La mise en œuvre de la technologie de jumeaux numériques a augmenté l'efficacité opérationnelle de 22% dans les segments d'exploration et de production.

Type de technologie	Investissement ($ m)	Amélioration de l'efficacité (%)
Cartographie souterraine	423	18.5
Maintenance prédictive	276	15.3
Télédétection	501	24.7

Mise en œuvre de l'IA et de l'apprentissage automatique dans l'efficacité opérationnelle

Occidental a déployé 67 algorithmes d'apprentissage automatique dans son infrastructure opérationnelle. L'entretien prédictif basé sur l'IA a réduit les temps d'arrêt de l'équipement de 34%. Les investissements d'apprentissage automatique de l'entreprise ont totalisé 356 millions de dollars en 2023.

Application d'IA	Économies de coûts ($ m)	Impact opérationnel
Optimisation du réservoir	127	Augmentation de la production de 15%
Maintenance prédictive	89	Réduction des temps d'arrêt de 34%
Gestion de la chaîne d'approvisionnement	140	Gain d'efficacité de 22%

Capture et stockage de carbone (CCS) Investissements technologiques

Occidental a engagé 1,8 milliard de dollars dans les technologies de capture du carbone en 2023. La société exploite 4 installations de capture d'air directes avec une capacité de séquestration en carbone totale de 1,2 million de tonnes métriques par an. Partenariat stratégique avec le développement de la technologie CCS élargi Worley Limited.

CCS Facility	Emplacement	Capacité de capture (tonnes métriques / an)	Investissement ($ m)
Facilité DAC 1	Texas	350,000	512
Facilité DAC 2	New Mexico	425,000	623
Facilité DAC 3	Californie	425,000	665

Intégration des technologies des énergies renouvelables dans les opérations de pétrole traditionnelles

L'occidental a alloué 745 millions de dollars à l'intégration des technologies des énergies renouvelables en 2023. Les technologies solaires et éoliennes représentent désormais 12,6% de l'infrastructure énergétique totale de l'entreprise. Des projets géothermiques se sont développés avec 3 nouvelles installations générant 187 MW d'énergie propre.

Technologies renouvelables	Investissement ($ m)	Génération d'énergie (MW)	Pourcentage de l'infrastructure totale
Solaire	276	87	5.4%
Vent	342	112	6.2%
Géothermique	127	187	1%

Occidental Petroleum Corporation (Oxy) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations environnementales et aux normes d'émissions

Occidental Petroleum Corporation fait face à des exigences strictes de conformité environnementale dans plusieurs juridictions. En 2024, la société a investi 1,3 milliard de dollars dans l'infrastructure de conformité environnementale.

Catégorie de réglementation	Investissement de conformité	Dépenses réglementaires annuelles
Conformité de l'EPA Clean Air Act	425 millions de dollars	78,6 millions de dollars
Normes d'émission de gaz à effet de serre	350 millions de dollars	62,4 millions de dollars
Règlement sur la qualité de l'eau	275 millions de dollars	49,2 millions de dollars

Contentieux en cours et défis juridiques liés aux impacts environnementaux

Occidental Petroleum est actuellement impliqué dans 17 cas de litige environnemental actif avec une exposition juridique potentielle totale de 2,7 milliards de dollars.

Type de litige	Nombre de cas	Impact financier potentiel
Poursuites en émissions de carbone	7	1,2 milliard de dollars
Réclamation de contamination de l'eau	5	850 millions de dollars
Conflits de restauration des terres	5	650 millions de dollars

Cadres réglementaires internationaux complexes pour les opérations mondiales

Occidental opère dans 4 pays avec divers environnements réglementaires, nécessitant 276 millions de dollars de gestion de la conformité annuelle.

Pays	Indice de complexité réglementaire	Coût de conformité
États-Unis	8.7/10	156 millions de dollars
Émirats arabes unis	6.5/10	62 millions de dollars
Colombie	5.3/10	38 millions de dollars
Oman	4.2/10	20 millions de dollars

Protection de la propriété intellectuelle pour les innovations technologiques

Occidental détient 237 brevets actifs avec une évaluation totale de la propriété intellectuelle de 1,45 milliard de dollars.

Catégorie de brevet	Nombre de brevets	Valeur estimée
Technologie de capture de carbone	84	562 millions de dollars
Récupération d'huile améliorée	67	398 millions de dollars
Solutions d'énergie renouvelable	53	312 millions de dollars
Traitement chimique	33	178 millions de dollars

Occidental Petroleum Corporation (Oxy) - Analyse du pilon: facteurs environnementaux

Investissement important dans les stratégies de neutralité et de réduction des émissions de carbone

Occidental Petroleum a engagé 1,2 milliard de dollars dans les projets de capture et de stockage du carbone (CCS) en 2023. La société vise à atteindre des émissions opérationnelles nettes de zéro d'ici 2040. Capacité de capture de dioxyde de carbone ciblé à 30 millions de tonnes métriques par an d'ici 2035.

Métrique de réduction du carbone	Valeur 2023	Cible 2030
Portée 1 & 2 Réduction des émissions	Réduction de 35%	Réduction de 50%
Investissement de capture directe du carbone	1,2 milliard de dollars	2,5 milliards de dollars

Engagement envers le développement durable et la gestion de l'environnement

L'occidental a alloué 500 millions de dollars aux projets d'énergie renouvelable en 2023. L'investissement direct dans les technologies à faible émission de carbone a atteint 750 millions de dollars. Les dépenses de développement durable représentent 12% du budget total du capital.

Catégorie d'investissement en durabilité	2023 dépenses
Projets d'énergie renouvelable	500 millions de dollars
Technologies à faible teneur en carbone	750 millions de dollars

Réduire l'empreinte écologique grâce à des technologies d'extraction avancées

Mise en œuvre des techniques de fracturation hydraulique avancées réduisant la consommation d'eau de 22% en 2023. Réduction des émissions de méthane de 18% obtenue par le biais de technologies de surveillance de précision.

• Amélioration de l'efficacité de l'eau: 22%
• Réduction des émissions de méthane: 18%
• Investissement de technologie de forage avancée: 340 millions de dollars

Initiatives de gestion de l'eau et de conservation dans les régions opérationnelles

Le taux de recyclage de l'eau a augmenté à 65% en 2023. La consommation totale d'eau a diminué de 28% par rapport à la ligne de base de 2020. Investissement dans les technologies de gestion de l'eau: 215 millions de dollars.

Métrique de gestion de l'eau	Performance de 2023
Taux de recyclage de l'eau	65%
Réduction de la consommation d'eau	28%
Investissement de gestion de l'eau	215 millions de dollars

Occidental Petroleum Corporation (OXY) - PESTLE Analysis: Social factors

Public and investor scrutiny on using captured $\text{CO}_2$ for Enhanced Oil Recovery (EOR)

The social license for Occidental Petroleum's (OXY) low-carbon strategy is under intense scrutiny, especially concerning the use of captured carbon dioxide ($\text{CO}_2$) for Enhanced Oil Recovery (EOR). While EOR is a core competency, the public and some investors question whether using captured atmospheric $\text{CO}_2$ to produce more oil is a genuine climate solution or a way to extend the life of fossil fuels.

The company is actively marketing 'net-zero oil,' which involves injecting captured $\text{CO}_2$ to offset the entire lifecycle emissions of the crude oil produced. For example, OXY signed an agreement to supply up to 200,000 barrels of net-zero oil over five years, with the commitment to inject approximately 100,000 tonnes of captured $\text{CO}_2$ to offset its emissions. To be fair, this is a complex issue; the captured $\text{CO}_2$ is permanently stored, but the resulting oil is still burned.

The flagship Direct Air Capture (DAC) facility, STRATOS, expected to launch in mid-2025, will capture 500,000 metric tons of $\text{CO}_2$ per year from the atmosphere. The key social challenge is the perception that this technology is primarily a license to continue oil production, rather than a standalone decarbonization effort.

Growing investor demand for transparent carbon accounting to avoid greenwashing claims

Investor demand for clear, auditable carbon accounting has never been higher, driven by the need to mitigate 'greenwashing' risk-the deceptive marketing of a company's environmental practices. This is a crucial near-term risk for OXY's low-carbon ventures.

Shareholders have directly challenged the company, requesting a public disclosure on how OXY will account for the $\text{CO}_2$ removals from its DAC facilities. The central concern is the potential for double counting, where OXY might use the same captured $\text{CO}_2$ to:

• Offset its own operational or product emissions.
• Sell carbon removal credits to other corporations (like Microsoft, which bought 500,000 metric tons of credits over six years).

Honestly, if OXY doesn't provide a crystal-clear framework for the generation and retirement of these carbon credits, the reputational damage could be significant, undermining the entire multi-billion-dollar investment in DAC technology. Institutional investors like BlackRock, who invested \$550 million in the STRATOS DAC project, are watching this closely.

Commitment to the World Bank's Zero Routine Flaring by 2030 initiative is ahead of schedule

OXY's commitment to eliminating routine flaring-the burning of excess natural gas during oil production-is a strong positive social factor that demonstrates tangible progress. The company was the first U.S. oil and gas company to endorse the World Bank's Zero Routine Flaring by 2030 Initiative.

The company is defintely ahead of its 2030 target. In 2024, OXY sustained zero routine flaring across its U.S. oil and gas operations. This operational achievement is a direct result of investments in infrastructure to capture and use the associated gas instead of burning it.

Globally, the reduction is also material. OXY decreased routine flaring in its global oil and gas operations by 80% compared to its 2020 baseline. This is a clear, measurable metric that resonates with socially conscious investors and local communities concerned about air quality.

Workforce focus on efficiency drove a 9% reduction in domestic lease operating expenses per barrel in 2024

The focus on efficiency within the workforce is a social factor that directly translates into financial performance, which is exactly what investors want to see. A culture of operational excellence, driven by employee ingenuity, is a sustainable competitive advantage.

In 2024, OXY's teams reduced domestic lease operating expenses (LOE) per barrel by approximately 9%. This reduction was achieved through better execution efficiencies, strong well performance, and enhanced base production.

Here's the quick math: Domestic operating costs fell from around \$11 per barrel to approximately \$8.65 per barrel in late 2024. This lower operating cost per barrel provides a greater margin cushion against volatile oil prices, making the company more resilient. This operational discipline is a testament to the workforce's ability to integrate new technologies and processes effectively.

Social Factor Metric (2024/2025 Data)	Value/Amount	Social/Reputational Impact
Domestic Lease Operating Expense (LOE) Reduction (2024)	Approximately 9% reduction in LOE per barrel	Positive: Demonstrates operational excellence and workforce efficiency.
Reduced Domestic LOE per barrel (Late 2024)	Fell to approximately \$8.65 per barrel	Positive: Increases margin and financial resilience against oil price drops.
U.S. Routine Flaring Status (2024)	Sustained zero routine flaring in U.S. oil and gas operations	Highly Positive: Ahead of World Bank's 2030 target; strong environmental credibility.
Global Routine Flaring Reduction (vs. 2020 baseline)	Reduced by 80%	Positive: Shows significant global progress on a key environmental issue.
STRATOS DAC Annual Capture Capacity (Mid-2025 launch)	500,000 metric tons of $\text{CO}_2$ per year	Mixed: Positive for climate action; faces scrutiny over EOR use and greenwashing risk.
Largest Carbon Removal Credit Sale (Microsoft)	500,000 metric tons over six years	Mixed: Positive for commercial viability; heightens investor demand for transparent carbon accounting to prevent double counting.

Occidental Petroleum Corporation (OXY) - PESTLE Analysis: Technological factors

Occidental Petroleum Corporation (OXY) is aggressively using technology to pivot toward a lower-carbon business model, specifically through Direct Air Capture (DAC) and Carbon Capture, Utilization, and Sequestration (CCUS). This isn't just a marketing play; it's a core strategic shift backed by significant capital and acquisitions in the 2025 fiscal year. Their technological investments are designed to create a new, high-growth revenue stream while simultaneously addressing operational emissions.

The STRATOS DAC facility is starting up in mid-2025, capturing 500,000 tonnes of CO2 annually.

The STRATOS Direct Air Capture (DAC) facility, being developed by Occidental Petroleum's subsidiary 1PointFive, is on track to begin operations by the end of 2025. Located in Ector County, Texas, this facility is designed to be the world's largest of its kind, with an annual capture capacity of 500,000 tonnes of atmospheric carbon dioxide (CO2).

This massive project represents a substantial technological bet. The total estimated cost for the STRATOS project is approximately $1.3 billion, with BlackRock Inc. committing a $550 million investment through a joint venture with 1PointFive. The commercial viability is already supported by pre-sales of Carbon Dioxide Removal (CDR) credits to major corporations like JPMorgan, which secured 50,000 tonnes, and Palo Alto Networks, which purchased 10,000 tonnes of CO2 removal credits.

STRATOS DAC Facility Metric (2025)	Value/Amount	Notes
Annual CO2 Capture Capacity	500,000 tonnes	Expected when fully operational.
Estimated Project Cost	Approximately $1.3 billion	Major capital investment.
BlackRock Investment (via JV)	$550 million	Significant third-party financial backing.
Secured CDR Credit Sales (Initial Examples)	60,000 tonnes	Includes sales to JPMorgan and Palo Alto Networks.

Acquired Holocene Climate Corp. in April 2025 to diversify its DAC technology portfolio.

In April 2025, Occidental Petroleum's subsidiary, Oxy Low Carbon Ventures, acquired Holocene Climate Corp. This move was strategic, not just for capacity, but for technological diversification. Holocene's technology uses a liquid-based, low-temperature, thermochemical approach to DAC, which is different from the technology acquired through Carbon Engineering in 2023.

The goal is to combine these distinct DAC technologies to advance research and development (R&D), ultimately improving capture efficiency and reducing the cost of CO2 removal. Honestly, this is a smart move. You can't rely on just one process to scale a whole new industry. The acquisition is intended to accelerate DAC deployment, positioning Occidental Petroleum to lead in this nascent, high-growth sector.

Deploying advanced methane detection and the industry's first electric well servicing rig in the Permian Basin.

Occidental Petroleum is also applying advanced technology to reduce emissions and improve efficiency in its core oil and gas operations. In the Permian Basin, the company is continuing the deployment of advanced methane detection technologies to quickly identify and mitigate leaks, which is critical for reducing greenhouse gas emissions.

Furthermore, the company has deployed the industry's first fully electric well service rig-the EPIC RIG from Axis Energy Services-on its production wells in the Permian Basin under a long-term contract. This switch to electric-powered intervention and completion rigs, which can run on grid power, is integral to Occidental Petroleum's strategy. It contributes to emissions reductions, increases operational efficiency, and generates cost savings by reducing reliance on diesel fuel.

Developing six sequestration hubs along the U.S. Gulf Coast and Permian Basin for CO2 storage.

The company is building the essential infrastructure to support its DAC and point-source capture business by developing six sequestration hubs across the U.S. Gulf Coast and the Permian Basin. These hubs are critical for the permanent, secure storage of captured CO2.

Here's the quick math on the scale: Occidental Petroleum has secured interests in more than 300,000 acres of pore space in Texas and Louisiana for these planned hubs. By the end of 2024, the company had submitted 21 Class VI CO2 injection well permit applications to the Environmental Protection Agency (EPA). For a sense of scale, the Bluebonnet Hub in East Texas alone has a resource potential to store approximately 1.2 billion metric tons of CO2, a huge number.

• Secured 300,000+ acres of pore space for storage.
• Submitted 21 Class VI permit applications for injection wells.
• Bluebonnet Hub capacity: 1.2 billion metric tons of CO2 storage potential.

Occidental Petroleum Corporation (OXY) - PESTLE Analysis: Legal factors

Increased legal and reputational risk over potential double counting of DAC carbon credits.

You need to pay close attention to the legal and reputational fallout from Occidental Petroleum's carbon credit accounting, specifically around Direct Air Capture (DAC). The core issue is the potential for double counting, which is a serious legal risk in the emerging carbon market. Occidental Petroleum plans to use the carbon dioxide (CO2) captured by its DAC facilities, like STRATOS, to both offset its own Scope 3 emissions (the emissions from customers using its products) and sell Carbon Dioxide Removal (CDR) credits to corporate buyers like Microsoft and Amazon.

Here's the quick math on the pre-sold volume: Microsoft has a deal for 500,000 metric tons of CDR credits over six years, and Amazon secured 250,000 tons over 10 years. If Occidental Petroleum uses that same captured CO2 to claim progress toward its own net-zero ambitions, while simultaneously selling the credit to another company for their claims, that's a blatant issue of double-counting. Shareholder groups are already demanding transparent disclosure on the generation and retirement of these credits.

Regulatory certainty is needed for Class VI CO2 injection well permits to validate sequestration hubs.

The regulatory path for carbon sequestration has been a major bottleneck, but Occidental Petroleum has achieved a critical legal milestone. In April 2025, the U.S. Environmental Protection Agency (EPA) approved the final Class VI permits for three injection wells associated with the STRATOS DAC facility in Ector County, Texas. This is a huge win because it validates the technical and legal framework for their sequestration hubs, marking the first Class VI permits issued for CO2 sequestration from a DAC project.

This permit approval provides the necessary regulatory certainty to unlock the value of the STRATOS project, which is designed to capture up to 500,000 tonnes of CO2 per year and is on track to start commercial operations in 2025. Still, the multi-year, rigorous approval process for Class VI wells remains a significant hurdle for the dozens of other sequestration projects Occidental Petroleum and its subsidiary 1PointFive have planned across the U.S. The speed of future permit approvals will defintely dictate the pace of their low-carbon strategy deployment.

Long-term environmental remediation liability resulted in a Q4 2024 loss of $0.32 per diluted share.

A major financial hit in late 2024 underscores the long-tail risk of historical operations. Occidental Petroleum reported a net loss of $297 million, or $0.32 per diluted share, in the fourth quarter of 2024. This loss was primarily driven by a substantial after-tax charge of $1.1 billion booked for an increase in long-term environmental liability.

This charge followed a federal court ruling related to legacy operations, which the company is appealing. While the cash outlay for the remediation costs is expected to be spread out over 10 to 20 years or more, the immediate accounting impact was significant. It's a concrete example of how legal rulings on decades-old environmental issues can still materially affect current-year earnings.

Compliance with existing methane regulations remains a significant operating cost.

Federal methane regulations, specifically the Waste Emissions Charge (WEC) established under the Inflation Reduction Act, translate directly into a clear operating cost or a capital expenditure requirement. For 2025, the WEC is set to charge facilities that exceed a waste emissions threshold at a rate of $1,200 per metric ton of methane, a jump from $900 per metric ton in 2024. This regulatory pressure is a strong incentive to invest in leak detection and repair programs.

Occidental Petroleum has proactively invested to mitigate this exposure. In 2024, the company's efforts resulted in a 78.6% reduction in methane emissions intensity compared to the 2019 baseline. Key compliance actions include:

• Eliminating or converting over 4,600 gas-driven pneumatic devices in U.S. onshore operations.
• Consolidating compression facilities to remove approximately 130 natural gas-powered compressors from service.
• Expanding deployment of advanced methane detection sensors and aerial monitoring.

This is a cost of doing business now, but it's manageable if you stay ahead of the regulatory curve.

Occidental Petroleum Corporation (OXY) - PESTLE Analysis: Environmental factors

Net-Zero Strategy targets Scope 1 and 2 emissions before 2040.

You are seeing Occidental Petroleum Corporation (OXY) make a decisive, multi-billion-dollar bet on carbon management to future-proof its business. The core of this is the Net-Zero Strategy, which commits to achieving net-zero greenhouse gas ($\text{GHG}$) emissions from its operations and energy use (Scope 1 and Scope 2) before 2040, with an ambition to hit that goal even earlier, before 2035. This is a strong commitment, especially since it is designed to cover substantially all, meaning greater than 95%, of the $\text{GHG}$ source types from facilities the company operates.

What this target hides is the company's Scope 3 emissions-the emissions from customers using the products sold-which account for approximately 90% of the total carbon footprint. OXY has an ambition to achieve net-zero for its total emissions inventory, including Scope 3, before 2050, but the near-term focus is on what they directly control.

Routine flaring decreased globally by 80% compared to the 2020 baseline.

The company is showing real progress on operational emissions reduction, which is defintely a key risk area for any oil and gas major. By the end of 2024, OXY had decreased routine flaring in its global oil and gas operations by a significant 80% compared to the 2020 baseline. This puts them well ahead of the World Bank's Zero Routine Flaring by 2030 Initiative, which OXY is a signatory to.

In the U.S., the company has already sustained zero routine flaring across its oil and gas operations in 2024. This was achieved through projects like installing gas compression and rich gas injection, particularly in international operations like Oman, to capture natural gas that would otherwise be burned off.

DAC technology is a core business pivot to remove atmospheric $\text{CO}_2$, creating a new revenue stream.

Direct Air Capture (DAC) technology is not just an environmental initiative for OXY; it's a new, high-margin business line. The company's subsidiary, 1PointFive, is spearheading this pivot, with the flagship STRATOS plant in Ector County, Texas, on track for commissioning and start-up operations in 2025. This facility is expected to be the world's largest atmospheric carbon removal plant and will capture up to 500,000 metric tons of $\text{CO}_2$ annually.

The new revenue stream comes from selling Carbon Dioxide Removal ($\text{CDR}$) credits. Approximately 90% of the captured $\text{CO}_2$ is expected to be monetized through these credits, which currently trade between \$500 and \$1,100 per ton as of mid-2025. Plus, the 2023 acquisition of Carbon Engineering for approximately \$1.1 billion also added technology licensing and royalties as new revenue sources.

Here's the quick math on the DAC project's potential scale and revenue:

Metric	Value (2025 Fiscal Year Data)	Source/Context
Stratos DAC Plant Annual Capture Capacity	Up to 500,000 metric tons of $\text{CO}_2$	World's largest atmospheric carbon removal plant.
Monetization of Captured $\text{CO}_2$	Approximately 90%	Sold as Carbon Dioxide Removal ($\text{CDR}$) credits.
Current $\text{CDR}$ Credit Price Range (Mid-2025)	\$500 to \$1,100 per ton	Underpins future revenue streams.
2025 LCV Net Capital Expenditures (Estimated)	\$450 million	Investment in low-carbon projects like DAC.

Emissions intensity decreased by 11.15% in 2024 from 2023 across company-wide operations.

Operational efficiency is improving alongside the DAC pivot. In 2024, the company-wide emissions intensity from direct and indirect energy use ($\text{Scope 1}$ and $\text{Scope 2}$) decreased by 11.15% compared to 2023. This reduction is a tangible result of projects focused on methane abatement and energy efficiency across the oil and gas and OxyChem operations.

Specific operational improvements in 2024 include:

• Methane emissions from oil and gas operations were 22.9% below 2023 levels.
• The oil and gas $\text{CO}_2$e emissions intensity decreased 28.7% from the 2019 baseline.
• OxyChem implemented process optimization projects to reduce energy consumption and enhance heat recovery at several plants.

The company has a 2025 target to reduce total oil and gas operational $\text{GHG}$ emissions intensity to 0.02 MTCO$_2$e/BOE. This focus on intensity metrics, while not an absolute reduction, shows a clear path to lower-carbon production per barrel of oil equivalent.

Finance: draft 13-week cash view for Low Carbon Ventures by Friday.