Idle Chatter Regarding OXY USA

With the ongoing discussion of OXY USA, this might be a good time to look back at two articles. I don't remember if I posted the first article, and I know I didn't understand the ramifications of the second article.

First, this article from SeekingAlpha, October 16, 2013:

Occidental thrives on its expertise in extracting oil out of declining oil fields by using carbon dioxide injection. In fact, carbon dioxide EOR is its most profitable business, and approximately 60% of its oil production in the Permian basin is from implementing these projects. Occidental is an industry leader in applying this technology, and it is one of the largest injectors of carbon dioxide for EOR in the U.S. Additionally, the company is a leading player in the Permian basin, where it is the largest operator with a net acreage of 2.5 million. The entire Permian basin accounts for 15% of the total U.S. oil production, and Occidental contributes 16% of the overall Permian oil production.

The Permian basin produced close to 900,000 barrels of oil equivalent, or BOE, per day in the first six months of this year. Occidental produced more than 20 million BOE in this period, riding on its EOR technique. Permian is expected to reach 1.4 million BOE per day by the end of 2013 and 2 million BOE per day in the next five years. It is expected that the average domestic oil production for Occidental in the second half of 2013 will be 6000 to 8000 BOE per day, which is about 3% more than the production in the first half. The Permian basin will be a significant contributor to this growth. This indicates the growth potential that exists for Occidental going forward.

If you are interested in carbon dioxide EOR, look at Denbury.

Then, this post. Again, I don't know if this has any relevance to the discussion but whenever the Obama administration says "something, anything" is not a hazardous waste, one has to pay attention:

The Environmental Protection Agency (EPA) yesterday issued a final rule that exempts CO2 injected underground from hazardous waste regulations, a step the agency said would help ensure “safe and effective deployment” of carbon capture and sequestration (CCS) technologies. 

And for those curious about OXY's plans for the Bakken as articulated in their 3Q13 earnings conference call, the transcript is very, very enlightening. If you go to the link, open it (all 11 pages) as a single page, and then search "Bakken." Yes, it is mentioned only in the Q&A. You can see how incredibly excited OXY is about the biggest shale play in the US. LOL.

An Easter egg can be found at the OXY page on the blog.

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