Occidental Petroleum, a leading oil company, has made a startling admission about its intentions behind carbon removal technology. In a recent earnings call, the company's president and CEO, Vicki Hollub, revealed that Occidental sees carbon removal as a means to increase fossil fuel production, rather than a genuine effort to combat climate change.

This revelation comes as a surprise, given Occidental's previous efforts to position itself as a climate tech leader. The company acquired Carbon Engineering, a pioneer in direct air capture (DAC) technology, in 2023. DAC is a process that filters CO2 out of the air, which can then be sequestered underground or used in enhanced oil recovery (EOR). Occidental's subsidiary, 1PointFive, is building large DAC facilities in Texas, with support from the Biden administration and companies like Amazon and Microsoft.

However, Hollub's comments suggest that Occidental's primary goal is to use captured carbon for EOR, a process that involves injecting CO2 into depleting oil fields to extract more oil. This approach raises concerns about the company's commitment to addressing climate change, as EOR would only serve to increase fossil fuel production and exacerbate the problem.

Hollub estimated that the use of CO2 in EOR could add 50 to 70 billion barrels of reserves, a significant increase in fossil fuel production. This admission has sparked criticism, as it appears to contradict Occidental's previous claims about using DAC technology to combat climate change.

While some companies, like Amazon and Microsoft, have partnered with Occidental to purchase carbon removal services, their agreements include stipulations that the captured carbon must be permanently sequestered without being used to produce more oil and gas. However, the success of these agreements hinges on the commercial viability of DAC technology, which remains prohibitively expensive, costing hundreds of dollars per ton of CO2 captured.

The implications of Occidental's admission are far-reaching. If DAC technology fails to become commercially viable, companies that have invested in carbon removal services may be left with stranded assets. Moreover, the focus on EOR could divert attention and resources away from more effective climate change mitigation strategies, such as transitioning to cleaner energy sources.

Ultimately, Occidental's revelation highlights the need for transparency and accountability in the energy sector. As the world grapples with the challenges of climate change, it is essential to separate genuine efforts to address the problem from those that prioritize profits over the planet's well-being.

In the face of growing concerns about climate change, Occidental's admission serves as a stark reminder of the need for vigilance and critical examination of corporate claims. As the energy landscape continues to evolve, it is crucial to prioritize sustainability and environmental responsibility over short-term gains.