US oil and gas giant says it is finalising a new strategy to deliver net zero emissions from its operations by 2040 and from its products by 2050
Occidental Petroleum has become the first US oil and gas major to join the industry's embrace of net zero emission targets, revealing that it is poised to announce a new net zero target.
In an earnings call with analysts yesterday, chief executive Vicki Hollub said the company will publish details on its net zero target by the end of November when it releases its updated sustainability report.
A brief statement on the company's website confirmed it would announce a target to reach net zero emissions from its operations before 2040, alongside an "ambition to achieve net zero emissions associated with the use of our products by 2050".
The statement was accompanied by a promotional video that stressed that the company was committed to "taking a leadership role in realising a low carbon world". It also argued that Occidental's focus on enhanced oil recovery meant it was well placed to lead global efforts to develop and commercialise carbon capture technologies.
Similarly, Hollub touted a recent announcement that a unit of Occidental would finance the development of a direct air capture project that aims to pull carbon dioxide out of the atmosphere for use in its enhanced oil recovery operations in the Permian Basin oil field.
The company's website also highlighted how it was using solar power at some of its sites and had become the first US oil major to sign up to the World Bank's zero routine flaring by 2030 initiative.
In addition, Hollub told analysts that the company would not spend more than $2.9bn on new projects next year, with a view to keeping oil and gas output flat as the market continues to respond to the fallout from the coronavirus crisis.
Occidental is set to become the latest in a string of oil and gas majors to announce new net zero emissions targets. BP, Shell, Equinor, Total, Repsol, and Petronas have all announced net zero ambitions in recent months, backed by varying degrees of investment and mix of interim targets.
The trend has been broadly welcomed by investors and campaigners as evidence that much of the sector is increasingly engaging with climate risks and seeking to increase investment in clean energy. But the various plans have also faced fierce criticism over the pace of decarbonisation envisaged by the industry and the failure to more rapidly wind down investment in new fossil fuel infrastructure.