Occidental Chairman and CEO Vicki Hollub said the company aims to achieve net zero carbon by 2050, and that includes interim targets that it will definitely achieve.
In an interview with Al Arabiya, Vicki added that this is very important for a sustainable oil and gas company.
“This will require setting very strict targets on how we invest our money, how we manage our emissions, as net zero is something that has to be achieved,” she explained.
“Every year, we set up a model that looks at the scale of our emissions and compares this to the value of our investments, as well as to our returns. In light of this, we try to ensure that our investments achieve the maximum value for our shareholders while reducing climate risks,” Vicki added.
She emphasized that the company is continuing to do so, as it works to keep emissions from its operations as low as possible, by applying the best practices followed today, in addition to developing new technologies to further reduce emissions from our operations.
The CEO said, “This is what distinguishes our company from some other oil and gas companies. We are developing carbon capture technology directly from the air and we have invested in Carbon Engineering, which developed this technology. We will implement this technology in our company to give us the opportunity to capture carbon dioxide directly.” from the atmosphere.”
She indicated that this method will help deal with the company’s own emissions and reach net zero.
She stated, “We can also offer this opportunity to other companies and industries to also become net zero, and in this way we have addressed our third-tier emissions. This category of emissions is caused by the consumption of our products, and therefore unlike others, carbon capture technology directly from the air gives us an opportunity opportunity to zero our emissions from the third band.”
On the imposition of the coupon tax, Vicki said: “I imagine that this may be impossible! It is very difficult for individual countries to reach agreement on how to put a tax on carbon or price it.”
She predicted that markets would be able to price carbon alone in regional areas.
“In light of our experience in the United States, we found that when we announced our direct-to-air carbon capture technology, we started getting calls from many companies that wanted to reduce their emissions and become net-zero companies,” Vicki said.
She added that the interest we have seen from these companies indicates that over time, these companies will be ready to pay and pay the necessary funds to reduce their carbon footprint.
She expected that the carbon dioxide market will arise and develop on its own in the future.
The CEO revealed that the company has enormous absorptive capacities, and owns in the Berman oil production basin 3 geological reservoirs that have been licensed to capture and store carbon there.
“We are looking at additional licenses in the Berman Basin and even beyond,” she said. “So we have enough storage capacity in several states to capture carbon.”
Currently, Vicki sees the Berman basin capable of storing up to 50 gigatonnes of carbon dioxide. “We are a big operator in that basin and we have many licenses and rights to operate below the surface in this basin,” she says.
She noted that the company is working on a process to convert carbon dioxide into bio-ethylene, “and we tested it in the lab and it really worked! Through the company Cemvita that we have invested in, which is based in Houston, this process will create new use for the captured carbon.”
“This will help our chemical processes that need a lot of ethylene. So this is an additional way that we can handle our emissions through another part of our company,” Vicki added.
Vicki stated that the oil and gas industry cannot continue as it used to, stressing that “we have to change what we are doing, and this is very important. But this change will come through technology.”
She stated that the company has been dealing with carbon dioxide for forty years in the Berman Basin for use in enhanced oil recovery, and we are the largest user of carbon dioxide for this purpose in the world! So we know that technology can work.
“Now we will start using a new technology, which is carbon capture directly from the air,” she said. “The technology is available, it just needs further development to reduce its costs.”
Vicki expects that costs will decrease, as have solar and wind energy costs, explaining that years ago, everyone believed that these renewable energies are very expensive and that they will never succeed, but in the past 15 years, the cost of wind has decreased by 70%, while the cost of solar energy has decreased by 80%, And we can do the same with carbon capture and use technologies.
supply and demand equilibrium
“I think it makes sense to balance supply with demand,” said the CEO. “So it’s basically about demand. We don’t want to oversupply the market…we have to make sure our supply is in balance with what is needed.”
“When the financial community refers to the issue of discipline, they think that this means keeping the level of production constant. But this will not work if demand continues to grow, raising prices with it. Thus to balance the cost of what consumers spend on oil and gas products… We have to meet this demand, so it depends mainly on the developments in the markets.”