Occidental Petroleum's acquisition of Carbon Engineering aimed to buttress its oil production using carbon capture technology to enhance oil recovery. CEO Vicki Hollub asserted that employing CO2 to boost oil output is essential, likening it to fracking's impact on production. While capturing CO2 from the atmosphere can be costly, the Inflation Reduction Act offers incentives that, when combined with potential carbon credit sales, could make the venture profitable by the end of the decade. The situation illustrates a complex relationship between fossil fuel companies and climate technology, especially amid changing governmental policies.
Hollub compared using CO2 in enhanced oil recovery to fracking, the technology that sent U.S. oil and gas production skyrocketing.
The Inflation Reduction Act provides significant incentives for using captured CO2 in enhanced oil recovery, up to $130 per metric ton in 2026.
Taking CO2 out of the atmosphere is a technology that needs to work for the United States, and President Trump knows the business case for this.
Occidental expects it can turn a profit by the end of the decade, coupled with carbon credit sales to boost financial viability.
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