Direct air capture of carbon dioxide (CO2) would extend the US' energy independence by more than 10 years, Occidental Petroleum's chief executive Vicki Hollub said today, but tax subsidies now at risk from the White House are still needed.
The US could tap into another 50bn-70bn bls of oil by using enhanced oil recovery techniques with CO2 pulled in by direct air capture facilities, like the projects Occidental is developing, Hollub said on a call with analysts on Wednesday. Direct air capture technology removes CO2 from the atmosphere.
Naturally occurring CO2 from underground formations is already used in enhanced oil recovery projects in the US, but it has limits, Hollub said.
"There's not enough organic CO2 in the country to be able to flood all the [reservoirs] we're going to need to flood," Hollub said.
Such projects are counting on 45Q tax credits offered through the Inflation Reduction Act (IRA) passed during the administration of former president Joe Biden. But President Donald Trump suspended IRA funds soon after taking office, criticizing it as "the Green New Scam".
"We know that we have the capability to get the costs down on these direct air capture facilities," said Hollub. "But to get to where we need to be, we really need to have 45Q."
Occidental's low carbon strategy has not yet changed since Trump took office.
"President Trump knows the business case for this," said Hollub. "I've had several conversations with him."
Occidental produced 1.46mn b/d of oil equivalent (boe/d) of oil and natural gas in the fourth quarter, the company reported on 18 February, up from 1.23mn boe/d in the fourth quarter 2023, largely due to its massive $12bn acquisition of CrownRock in August last year.
