Occidental Petroleum has built a Carbon Capture and Sequestration (CCS) portfolio that bundles high-volume CO2 storage sites with pipeline access along the U.S. Gulf Coast. The portfolio targets industrial emitters like refineries, power plants, and chemical producers, offering multi-decade storage capacity in saline formations and depleted reservoirs. Service contracts provide predictable fees per tonne of CO2 stored, with monitoring obligations built into the deal. The economics of the portfolio depend heavily on the U.S. 45Q tax credit, which pays per tonne of CO2 permanently stored underground. Occidental markets this as part of its Oxy Low Carbon Ventures arm, alongside planned Direct Air Capture plants. For investors, the CCS portfolio gives Occidental a story beyond oil and gas, though geological risk, long-term liability, and community acceptance remain factors to watch. Regulatory frameworks like EPA Class VI well permits and long-term surveillance requirements form a key part of the pitch. Customers are buying into a regulated system of baseline tests, seismic checks, and detailed records for auditors. The portfolio is available to industrial emitters primarily in North America via contractual agreements.
