Occidental Petroleum Corp. CEO Vicki Hollub said on April 6 she opposes a carbon tax, an idea that has gained the backing of large rival oil companies and some trade groups.
“A carbon tax would be bad for a lot of the industry, a carbon tax would be bad for the consumers and especially for those consumers who are more disadvantaged from an economic standpoint,” Hollub told the virtual summit of the Texas Independent Producers and Royalty Owners Association.
The American Petroleum Institute (API), the largest U.S. oil and gas trade group, said last month that it endorses a carbon-price policy as one measure to mitigate climate change risk.
Oil majors Exxon Mobil Corp. and Chevron Corp. back the idea. Major U.S. financial trade groups have also called for some type of carbon pricing.
President Joe Biden’s administration is due to unveil a new economy-wide emissions reduction target for 2030 to comply with the Paris climate agreement by April 22, when Biden convenes world leaders on climate change.
Occidental collects carbon tax credits through its EOR operations. The method harnesses the CO₂produced during the extraction of oil and forces it back into the fields, which helps drive more oil to the surface.
The company has also set ambitious climate targets to reach net-zero emissions in its operations before 2040 and is trying to turn its low-carbon unit into a profitable business after it cut jobs and output last year when the coronavirus pandemic hammered global energy demand.
Recommended Reading
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Marketed: Stone Hill Minerals Holdings 95 Well Package in Colorado
2024-02-28 - Stone Hill Minerals Holdings has retained EnergyNet for the sale of a D-J Basin 95 well package in Weld County, Colorado.