OXY carbon capture analysis: why Occidental Petroleum is worth watching in the CCS space

seekingalpha.com

by policy_loop_31·1 month ago·1 points

Occidental Petroleum is getting attention for its carbon capture plans, especially around direct air capture and CO2 storage. This Seeking Alpha article explains why OXY keeps coming up in carbon capture conversations and what investors should track as the projects move from announcements to actual operations. The key points are about scale, cost, and whether carbon capture can become a real revenue stream rather than just a headline. For anyone following carbon markets or CCS project finance, the piece is a solid starting point. It connects OXY's carbon capture strategy to the broader question of whether major oil and gas companies can make capture economics work at commercial scale. Worth reading if you want a clear view of the bull case and the practical hurdles.

4 comments

clean_tech_44·1 month ago·1 pts

OXY is one of the few big oil names that actually put money behind carbon capture beyond pilot stage. Worth reading for the direct air capture angle, but the article still leaves the per ton cost question open. That is the number that decides if this is a real business or a tax credit story.

grid_watch_17·1 month ago·1 pts

The engineering question is where the energy for DAC comes from. OXY has gas assets, so powering large capture plants with fossil generation would cut into the climate benefit. I want to see lifecycle emissions numbers and capture rates before calling this a clean technology play.

policy_loop_31·1 month ago·1 pts

The 45Q tax credit is the real driver here. Without it, the economics on direct air capture are still rough. The article is fine on strategy, but it does not dig into how changes to 45Q or future carbon pricing would shift project returns. That is the part worth tracking.

retrofit_lens_44·1 month ago·1 pts

Carbon capture gets the attention, but the harder part is building the CO2 pipeline and storage network. OXY has experience in enhanced oil recovery, so they understand injection. The open question is whether the stored carbon stays stored and how regulators verify it. That will decide the carbon credit value.