Occidental CEO Vicki Hollub compared using CO2 in enhanced oil recovery to fracking, the technology that sent U.S. oil and gas production skyrocketing. © 2024 TechCrunch. All rights reserved. For personal use only.
Oil and gas companies like Occidental are investing in carbon capture technology, such as direct air capture, to enhance oil production through enhanced oil recovery (EOR). Occidental acquired Carbon Engineering, a direct air capture startup, to access CO₂ needed for EOR, which CEO Vicki Hollub likened to the impact of fracking on oil production. While direct air capture remains costly ($600-$1,000 per metric ton), incentives from the Inflation Reduction Act, offering up to $130 per metric ton for stored CO₂, make the practice more financially viable. These incentives, coupled with carbon credit sales, could allow Occidental to profit by the end of the decade. Despite challenges, such as limited CO₂ availability, the potential for carbon-negative oil production and federal support may help sustain the technology.
