Occidental Petroleum's Climate Strategy: A Closer Look

Occidental Petroleum, an oil giant that has previously presented itself as a climate tech leader, is now openly stating its interest in capturing carbon dioxide emissions as a strategy for fossil fuel production. This comes despite the company's previous claims of fighting climate change, including its acquisition of Carbon Engineering, a pioneer in developing technologies that filter CO2 out of the air. The company's subsidiary, 1PointFive, is constructing large facilities in Texas using Carbon Engineering's technology. However, this strategy, known as direct air capture (DAC), does not address the root cause of climate change - the extraction and burning of fossil fuels. It also raises questions about what happens to the captured carbon.

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The Role of Direct Air Capture

Direct Air Capture (DAC) is a strategy that involves sucking carbon dioxide out of the air to eliminate the pollution causing climate change. This strategy is promoted as a climate solution, as the captured carbon can be stored underground, preventing the greenhouse gas from accumulating in the atmosphere and raising global average temperatures. However, this approach does not tackle the root problem of climate change, which is the extraction and burning of fossil fuels.

Carbon Capture for Enhanced Oil Recovery

Historically, fossil fuel companies have used captured CO2 in a process called enhanced oil recovery, which involves injecting carbon into depleting oil fields to extract hard-to-reach reserves. In a recent earnings call, Occidental described its DAC business as crucial to the company's ability to produce more oil. Occidental's president and CEO, Vicki Hollub, suggested that the use of captured carbon for enhanced oil recovery could be the biggest boon for fossil fuels since fracking enabled the US shale revolution.

Implications for Climate Change Action

Occidental Petroleum's strategy raises questions about the company's commitment to genuine climate change action. While the company has made efforts to position itself as a climate tech leader, its focus on capturing carbon for fossil fuel production suggests that its primary interest may lie in using climate technology to enhance oil production rather than to combat climate change.