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Occidental Petroleum Corp OXY

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American Petroleum Institute Reverses Stance to Now Support Carbon Pricing

Stephen Ellis Sector Strategist

Analyst Note

| Stephen Ellis |

The American Petroleum Institute, or API, which is considered to the be one of the most influential lobbying groups for the U.S. oil and gas industry, is now supportive of a carbon pricing policy. This shift marks a reversal from its earlier rejection of carbon pricing during former President Barack Obama's administration (notably the American Clean Energy and Security Act of 2009). While the API is not endorsing a specific carbon price or specific implementation approach (cap and trade versus tax and so on), it is supportive of a broader set of market-based principles on the idea. On a similar note, the API is specifically supporting methane emissions regulation, as well as industrywide standards for collecting and reporting key environmental, social, and governance-related data points. Finally, the group is supporting further action by President Joe Biden's administration to fund carbon capture technology and expand tax credits.

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Company Profile

Business Description

Occidental Petroleum is an independent exploration and production company with operations in the United States, Latin America, and the Middle East. At the end of 2020, the company reported net proved reserves of 2.9 billion barrels of oil equivalent. Net production averaged 1,306 thousand barrels of oil equivalent per day in 2020 at a ratio of 74% oil and natural gas liquids and 26% natural gas.

5 Greenway Plaza, Suite 110
Houston, TX, 77046
T +1 713 215-7000
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 11,800