Carbon Management Strategies

March 11, Monday

Daniel Yergin, vice chairman, IHS Vicki Hollub, president and chief executive officer, Occidental

Summary Hollub said that so-called carbon capture will be imperative to keep the global temperature from rising to less than 2 degrees Celsius above pre-industrial levels -- the goal set in the Paris Agreement. U.S. oil upstream company currently sequesters about 2.6 bcf/day of carbon dioxide in Permian Basin, and about 40% remains in the oil and gas field. For drilling operations, Occidental uses carbon dioxide flooding, in which injected CO2 releases trapped oil from rocks within the reservoir. That CO2 is eventually trapped underground. This method is used in (EOR), which Hollub said is an “important first step” in creating and enhancing carbon capture technology. She noted that Occidental is working to find profitable ways to capture CO2 for use in EOR operations or to make products. Late last year, Oxy Low Carbon Ventures, a subsidiary of Occidental, announced its investment in NET Power, the developer of an electric power system that captures its own CO2 emissions. NET Power plants are to generate CO2 as a by-product, which Occidental plans to use in the EOR process, Hollub said. The partnership will also lower Occidental’s electric costs for its operations, she said. Hollub stressed the importance of collaboration in developing greenhouse gas capture strategies. Occidental participates in the Oil and Gas Climate Initiative, a consortium of 13 oil and gas companies, she said. Turning to climate policy, Hollub said that carbon reduction legislation should advance technology, and not just employ a market-based approach like cap and trade. --Bridget Hunsucker, [email protected]