Occidental Petroleum to Begin Construction on First Carbon Capture Project

August 25, 2022

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Occidental Petroleum Intrinsic Value – Occidental Petroleum($NYSE:OXY) said on Tuesday that it will begin construction on its first carbon capture project this fall. The project is a key part of the company’s effort to build its Low Carbon Ventures business. Tom Janiszewski, Occidental’s VP president of regulatory and land, told the Colorado Oil and Gas Association’s annual summit that the West Texas facility would begin operations by 2024, according to Reuters. The exact location for the facility has not been revealed, but Occidental has applied for tax credits for a project in Ector County, Texas, and it is evaluating a site in Livingston Parish, Louisiana, for a separate direct air capture operation. The carbon capture project is a significant investment for Occidental, and it remains to be seen how it will affect the company’s market and earnings in the long term. However, the move shows that Occidental is committed to reducing its carbon footprint and addressing climate change.

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Occidental Petroleum, one of the world’s largest oil and gas companies, announced on Wednesday that it will begin construction on its first carbon capture project. In addition to the carbon capture project, the company is also investing in renewable energy, energy efficiency, and other emission-reduction technologies. Occidental Petroleum’s stock price rose 1.5% on Wednesday on news of the construction project.

VI Analysis – Occidental Petroleum Intrinsic Value

A company’s fundamentals reflect its long term potential. The intrinsic value of a stock is the present value of all future cash flows, discounted at the required rate of return. The VI Line is a tool that calculates the intrinsic value of a stock. Currently, Occidental Petroleum is trading at $74.9, which is 64% above its intrinsic value of $45.7. This indicates that the stock is overvalued and may be due for a correction.


The project, which is located in the U.S. state of Colorado, is expected to capture and store more than one million metric tons of carbon dioxide each year. The CO2 will be captured from a power plant that burns coal and natural gas to generate electricity. The captured CO2 will then be transported by pipeline to a storage site in the Denver-Julesburg Basin, where it will be injected deep underground. Occidental Petroleum is one of the largest oil and gas companies in the world, and has been investing heavily in carbon capture and storage technology in recent years. The company believes that this technology will play a critical role in helping to reduce greenhouse gas emissions and combat climate change.

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