Occidental Petroleum is one of the largest oil and gas companies in the United States. Known for its long history in oil exploration and production, Occidental is now making big moves toward clean energy. While the company remains focused on fossil fuel production, it has also started investing in carbon capture and sustainable technologies to meet growing environmental demands.
This article explores how Occidental Petroleum is growing its business, managing challenges, and preparing for a cleaner energy future.
Occidental Petroleum, often shortened to “Oxy,” was founded in 1920. It started as a small oil company and has grown into a major player in the energy industry. Today, it operates mainly in the U.S., the Middle East, and Latin America. The company’s headquarters are in Houston, Texas.
Key highlights of its business:
Occidental made headlines in 2019 when it acquired Anadarko Petroleum in a $38 billion deal. This move boosted its oil assets in the Permian Basin, one of the richest oil-producing regions in the world.
Even as global conversations turn to clean energy, Occidental Petroleum continues to rely on oil and gas for the majority of its revenue.
Most of Occidental’s oil production happens in the Permian Basin in West Texas and New Mexico. This region is one of the most important for U.S. energy output, and Occidental is one of the top producers there. The company uses advanced drilling techniques like hydraulic fracturing and horizontal drilling to maximize output.
Outside the U.S., Occidental operates in the Middle East and North Africa. Key countries include:
These global assets help balance production risks and expand the company’s reach.
Despite the challenges in the oil market over the years, Occidental Petroleum has shown resilience. In recent quarters, higher oil prices have supported its profits. The company has used extra cash to reduce debt and return value to shareholders.
In 2024, Occidental’s revenue rose thanks to strong oil prices and improved cost control. Investors have responded positively, and the stock has gained attention as both an energy and a climate tech play.
One of the most exciting things about Occidental Petroleum is its investment in carbon capture, utilization, and storage (CCUS).
CCUS is a process that captures carbon dioxide from the air or industrial sources and stores it underground, keeping it out of the atmosphere.
This shows that Occidental is not just talking about reducing emissions — it’s actually building the tools to do it.
Another reason Occidental Petroleum draws attention is its connection with Warren Buffett’s Berkshire Hathaway. The investment firm has gradually increased its stake in Occidental and now owns more than 20% of the company.
Why this matters:
This kind of backing is rare in the oil sector and reflects how Occidental is seen as both a traditional energy player and an innovator.
Occidental Petroleum has set bold goals for reducing its environmental impact.
This is a big deal because oil companies usually struggle with Scope 3 emissions, which include the emissions from customers using their products. Occidental is one of the few U.S. oil companies to take on this ambitious goal.
The company believes that by using carbon capture, it can continue producing oil in a carbon-neutral way.
One of the main challenges for Occidental Petroleum is balancing its traditional oil business with its new focus on clean energy. Investors want short-term profits from oil, but governments and the public are pushing for greener solutions.
This hybrid approach allows Occidental to stay competitive in today’s energy market while preparing for tomorrow’s green economy.
Occidental’s clean energy efforts are helped by U.S. government support. Under the Inflation Reduction Act and other programs, companies get tax credits for capturing carbon and storing it safely.
These incentives make it easier for Occidental to invest in new technology without hurting profits. It also gives the company a head start over competitors who are slower to change.
Not everyone is convinced by Occidental Petroleum’s strategy. Environmental groups have questioned the effectiveness of carbon capture. They argue that the company is using green projects to justify continued oil production.
There are also technical challenges:
But Occidental seems committed to making it work, and its early investments give it a leading position in this new space.
So, what’s next for Occidental?
Here’s what to watch:
If Occidental can pull off this energy transition while keeping shareholders happy, it could become a model for the oil industry.
Occidental Petroleum is not the same company it was a decade ago. While still deeply involved in oil production, it’s also investing in technologies that could reduce climate harm and reshape the energy sector.
Its strategy combines fossil fuels with carbon capture, a bold approach that few other oil majors are taking at scale.
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