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Occidental Petroleum
Occidental Petroleum was founded in 1920 and incorporated in Delaware, rising through aggressive international exploration under the late Armand Hammer to...
Occidental Petroleum
Occidental Petroleum was founded in 1920 and incorporated in Delaware, rising through aggressive international exploration under the late Armand Hammer to become one of the largest US-headquartered independent oil and gas producers. Its modern identity shifted decisively with the 2019 acquisition of Anadarko Petroleum for $38 billion — a deal backed by a $10 billion preferred equity investment from Berkshire Hathaway that gave Warren Buffett a major stake and a window into Oxy's strategic pivot (per Reuters, 2019). The company operates across three segments: oil and gas exploration and production in the Permian Basin, the DJ Basin, and international assets in the Middle East and Algeria; a chemicals arm via its subsidiary OxyChem, a major US producer of chlorine and caustic soda; and low-carbon ventures through its 1PointFive subsidiary. The low-carbon strategy centers on direct air capture (DAC), with the Stratos facility in Ector County, Texas, designed to capture up to 500,000 metric tons of CO₂ annually once operational (per the firm's official communications, 2023). Occidental also participates in enhanced oil recovery, using captured CO₂ to extract additional barrels from legacy fields. Vicki Hollub runs the firm with a mandate to build what she calls a "carbon management" business alongside the legacy hydrocarbon portfolio. In September 2023, Occidental acquired DAC technology supplier Carbon Engineering for $1.1 billion, consolidating its low-carbon supply chain (per Bloomberg, 2023). The firm's investor base includes Berkshire Hathaway, which holds roughly 28% of outstanding shares, and a board that includes former Canadian ambassador to the US David MacNaughton. West Texas, Oman, and the Gulf Coast anchor the firm's operational geography. Occidental's structural differentiator is its singular bet on converting atmospheric carbon removal into a durable revenue stream. No other major US oil producer has staked its capital-allocation narrative on DAC at comparable scale, making the firm a litmus test for whether industrial carbon capture can coexist with a publicly traded oil-and-gas equity story. The reliance on DOE grants and 45Q tax credits for the Stratos economics links Oxy's trajectory to federal energy policy (per the firm's investor updates, 2024).
General information
Firm type
Asset Manager
Year founded
1920
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Houston
Corporate office
5 Greenway Plaza, Houston, TX 77046, United States
Principals
Vicki Hollub
President and Chief Executive Officer
Sector focus
Frequently asked questions
Who runs investment decisions at Occidental Petroleum?
President and CEO Vicki Hollub oversees Occidental's strategic and capital-allocation decisions, including the expansion of its low-carbon ventures. Hollub has led the company since 2016 and is the first woman to run a major US oil and gas firm. Major capital commitments, particularly the direct-air capture buildout, are executed under her direction with board oversight.
How does Occidental plan to generate returns from direct air capture?
Occidental's 1PointFive subsidiary aims to monetize captured CO₂ through two main channels: selling carbon removal credits to companies seeking to offset emissions, and using the captured CO₂ for enhanced oil recovery in legacy wells. The IRA's expansion of the 45Q tax credit to $180 per metric ton for DAC is a critical economic component. The firm has publicly stated that it sees atmospheric carbon removal as a durable industrial business, not a compliance exercise (per the firm's communications, 2023).
What is Berkshire Hathaway's role in Occidental Petroleum?
Berkshire Hathaway holds approximately 28% of Occidental's common stock and also owns preferred shares and warrants acquired during the 2019 Anadarko acquisition financing. Warren Buffett's initial $10 billion preferred equity investment carried an 8% dividend and was central to completing the deal. Buffett and his investment deputies have since endorsed Hollub's strategy, making the stake one of Berkshire's largest energy positions.
Does Occidental participate in renewable energy or only carbon capture?
Occidental's low-carbon focus is overwhelmingly on carbon capture, utilization, and storage, not on wind or solar generation. The firm's 1PointFive subsidiary develops DAC facilities and sequestration hubs, while its chemicals division and traditional upstream business remain the core revenue drivers. The direct-air capture bet is an addition to, rather than a replacement for, its oil-and-gas portfolio.
Which sectors does Occidental explicitly avoid?
Occidental does not invest in traditional renewable generation assets such as wind farms or utility-scale solar, unlike European majors such as BP or Shell. The firm has exited or divested international positions in politically volatile regions when regulatory risk rises, most notably reducing exposure in Yemen and Libya over the past decade. Its strategy avoids deepwater frontier exploration, concentrating instead on onshore US basins and select Middle Eastern assets.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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