Wednesday, June 21, 2017

After Hess Pulls Out, OXY Is Now Dominant US Producer Of Oil Via Carbon Injection -- Reuters -- June 21, 2017

Data points:
  • Hess will sell its stake in EOR projects in the Permian Basin of West Texas and New Mexico to Occidental Petroleum for $600 million in cash
  • the deal cements OXY's status as the dominant US producer of oil via carbon injection
  • carbon injection: favored by faux environmentalists and oil producers alike
  • carbon injection: could grow if Congress expands tax credits this summer
  • OXY also gets complete control of naturally occurring sources of underground CO2
  • this naturally occurring source: boosts OXY's bottom line 
  • cost of carbon is generally the largest expense in EOR projects

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