Occidental Petroleum is putting serious money into carbon capture, and this article explains why. The company sees direct air capture and carbon storage as a way to generate revenue from carbon credits while keeping its oil and gas operations running. OXY is building one of the largest direct air capture facilities in the Permian Basin, aiming to sell carbon removal credits to companies that need to offset hard to abate emissions. For anyone tracking carbon markets, this is a real world test of whether large scale DAC can work commercially. Occidental is betting that federal tax credits under 45Q and a growing voluntary market for carbon removal credits will make the math work. The article walks through the business case and the risks, including the high cost of capture and the need for permanent storage. It is worth a read if you want to see how a major oil company is positioning itself in the carbon management space.
