Occidental Petroleum Is Getting Up to $650 Million to Accelerate Its Ability to Capture This Potentially $5 Trillion Market Opportunity

Occidental Petroleum (NYSE: OXY) has long been a leader in using carbon dioxide in its oil business. It injects the greenhouse gas into underground oil reservoirs in the Permian Basin to boost the production of those legacy fields through a technique known as enhanced oil recovery (EOR). The oil company is now leveraging that expertise to become an early leader in carbon capture and sequestration (CCS). The oil company believes CCS could eventually grow into a $3 trillion to $5 trillion global market opportunity. It aims to capture a slice of that potentially lucrative market by building out Direct Air Capture (DAC) hubs. The U.S. Department of Energy recently awarded the company up to $650 million to accelerate the development of future DAC facilities. The U.S. Department of Energy's Office of Clean Energy Demonstrations will provide Occidental Petroleum's 1PointFive subsidiary with funding to help accelerate the development of its next DAC facility. It will supply up to $500 million to support the development of the company's South Texas DAC Hub. It could potentially increase the award by up to $650 million to develop an expanded regional carbon network in South Texas. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool