More so than any other fossil fuel company, Occidental Petroleum — known as Oxy — has developed a climate strategy centered around innovative technologies that capture carbon before it can be released into the atmosphere or remove it directly from the air. With over $23 billion in revenue last year, this Texas-based oil giant aims to achieve net-zero greenhouse gas emissions and pave the way for a lower-carbon future through what it calls “visionary technologies.” Scientists recognize the importance of such technologies in combatting global warming.
However, a recent analysis from the nonprofit Carbon Market Watch suggests that Oxy’s emphasis on carbon capture and removal may not be as focused on sustainability as it appears. Instead, it could be a way to continue profiting from fossil fuels while claiming emissions reductions under the guise of “net-zero oil” and “sustainable aviation fuels.” According to Marlène Ramón Hernández, an expert on carbon removal and a co-author of the report, Oxy’s approach contradicts the need to phase out fossil fuels rather than prolong their use.
Despite Oxy’s commitment to achieving net-zero emissions for its operations and energy use by 2040, the company is less clear on addressing emissions associated with the oil and gas it sells, known as Scope 3 emissions. These emissions make up a significant portion of Oxy’s greenhouse gas footprint, and the company aims to eliminate them by 2050 through investments in carbon removal technologies like direct air capture (DAC). Oxy plans to deploy numerous DAC plants in the coming years, with a focus on capturing and utilizing the captured carbon rather than storing it permanently.
However, the way Oxy plans to utilize the captured carbon, such as creating “net-zero oil” through enhanced oil recovery, raises concerns among experts and organizations like Carbon Market Watch. The potential for DAC to inadvertently increase greenhouse gas emissions due to its energy-intensive nature and reliance on fossil fuels is a major point of contention. Furthermore, Oxy’s intention to generate carbon credits from DAC projects could lead to double-counting issues if not managed properly.
While some experts see the potential benefits of responsible DAC implementation, others emphasize the need for fossil fuel companies like Oxy to prioritize more immediate and reliable emissions reduction strategies. Suggestions include investing in renewable energy to power DAC facilities, donating technology to developing countries, or focusing on proven measures like renewable energy deployment, building efficiency, and energy storage.
In light of these concerns, a more credible net-zero strategy for Oxy could involve reevaluating its plans to expand oil and gas extraction and redirecting resources toward proven emissions reduction measures. This shift aligns more closely with the urgent need to reduce greenhouse gas emissions and address the climate crisis effectively.
