NET Power will transform the power industry around the world where there is access to natural gas

Ms. Hollub says Oxy got into the low-carbon ventures business “because we’re actually leveraging our core competence of using CO₂ for enhanced oil recovery, which we’ve done for about 50 years.” Oxy is the largest handler of CO₂ for enhanced oil recovery in the world, and it has about 2 billion barrels of resources remaining to be developed in its conventional reservoirs. Ten years ago, the company set out to find a long-term, steady, no-decline source of CO₂, and settled on anthropogenic CO₂ as the solution. “As we got further into that, we realized it’s not only the better way to go to be able to maximize the development of the resources that we had, but also to help the world reduce emissions.” She’s also very confident they can make it work because of all the synergies between Oxy’s chemicals business and direct air capture.

For example, they will use potassium hydroxide to extract the CO₂ out of the atmosphere. Oxy is the largest marketer of potassium hydroxide in the US, second largest in the world. So, it’s quite familiar with the fluid. Then, it’s using PVC for the contact tower where atmospheric air will be diffused. Oxy markets PVC and has the  infrastructure in the Permian to support the direct air capture plant and inject the CO₂ in either a geologic reservoir for sequestration or to extract oil.

Ms. Hollub’s plans for monetizing direct air capture include selling CO₂ credits to companies and countries having difficulty reducing their carbon footprint and using its captured CO₂ for enhanced oil recovery projects around the world. “Based on our market intelligence and what we’re hearing from our potential customers, companies will be willing to pay more for that net zero oil. So that’s another source of revenue for us.”

Oxy has plans to build 30 DACs in Southern Texas, as part of its scenario for 135 globally, all of which Hollub says will require partnerships to achieve company net zero goals. “In addition to the incentives from the Inflation Reduction Act, we need JVs and partnerships. We need people to come in and work with us to help make that happen. So, we’re having a lot of really good conversations with potential partners that will come in, and with us make this happen, not just in the United States but in other places around the world.”

Ms. Hollub expects Oxy’s low carbon business to ultimately grow in revenue, cash flow, and earnings equal to its oil and gas business, while that continues growing as well.