Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Investor Presentation (March 2022)
42 slides from Occidental Petroleum's investor presentation, March 2022
Slide 1: Stepping Up to Bring Emissions Down
STEPPING UP TO BRING EMISSIONS DOWN OXY LOW CARBON VENTURES MARCH 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS ◦ This presentation contains forward-looking statements based on Oxy’s current expectations, beliefs, plans and forecasts. All statements other than statements of historical fact are forward-looking statements. Words, and variations of words, such as "can," "will," "may,"
Slide 3: Today's Key Participants
INVESTOR UPDATE 3 TODAY’S KEY PARTICIPANTS Vicki Hollub Rob Peterson Ken Dillon Richard Jackson President and Senior Vice President, International President, U.S. Onshore CEO President and CFO Oil & Gas Operations Resources and Carbon Management, Operations INVESTOR UPDATE
Slide 4: Today's Discussion
INVESTOR UPDATE 4 TODAY’S DISCUSSION 01 02 03 CARBON MANAGEMENT VISION THE LOW-CARBON OPPORTUNITY 1POINTFIVE BUSINESS STRATEGY Positioned to advance Carbon Defining carbon markets and Advancing with speed and scale Capture, Utilization and Storage investment approach (CCUS) INVESTOR UPDATE
Slide 5: Carbon Management Vision
5 01 CARBON MANAGEMENT VISION
Slide 6: Strategy Framework: Key Takeaways
OXY LOW CARBON VENTURES 6 STRATEGY FRAMEWORK: KEY TAKEAWAYS 01 02 The OLCV strategy enhances Oxy’s business value and creates a path to net zero for ourselves and for others Global net zero requires technological solutions with speed 03 We’ve made focused investments in technology, projects and deve
Slide 7: A Net-Zero System
7 THE FUTURE OF SUSTAINABILITY Captured emissions enable net-zero A NET-ZERO transportation & industry SYSTEM With our low-carbon investments, we are connecting technologies to ZERO-EMISSION NET-ZERO OIL POWER create a closed-loop system whereby carbon dioxide (CO2) can be captured and sequestered w
Slide 8: From Innovation to Real-World Solutions
FROM INNOVATION TO 8 Oxy is investing in and accelerating CCUS REAL-WORLD SOLUTIONS technologies to bring new businesses and solutions to market—our first is 1PointFive OXY 1POINTFIVE OXY LOW CARBON VENTURES LEADING THE DELIVERING ACCELERATING SOLUTIONS PROGRESS INNOVATION An integrated CCUS platfor
Slide 9: Pathway to Net Zero
PATHWAY TO NET ZERO 9 Oxy has set the following goals, among others, to achieve net zero across our total emissions inventory in accordance with the Paris Agreement1: 2024 2032 2040 2050 BEYOND Reduce total operational Facilitate geologic storage Achieve net-zero Achieve net zero for our Capture and
Slide 10: Positioned to Accelerate a Net-Zero Economy
POSITIONED TO ACCELERATE 1010 Our existing infrastructure and experience lay a unique foundation for our expansion into A NET-ZERO ECONOMY low-carbon markets WORLDWIDE OPERATIONS CO2 EOR MAJOR PROJECTS OXYCHEM • Experienced, integrated teams • 50 years’ experience utilizing CO2 • Experience building
Slide 11: Building a Future Net-Zero Economy
DIRECT AIR CAPTURE & AIR TO FUELS™ CO2-TO-PRODUCT ZERO-EMISSION POWER SOLUTIONS MANUFACTURING 11 KOH & PVC FROM OXYCHEM TO DAC POINT-SOURCE CAPTURE LOW-CARBON DIESEL AND JET FUELS MADE FROM ATMOSPHERIC CO2 BUILDING A FUTURE NET-ZERO OIL PRODUCTION DEDICATED CO2 NET-ZERO SEQUESTRATION HUBS ECONOMY Il
Slide 12: The Low-Carbon Opportunity
12 02 THE LOW-CARBON OPPORTUNITY
Slide 13: Getting to Net Zero
13 CO2 CHALLENGE Curbing temperature rise to 1.5°C requires rapid deployment of multiple solutions including point-source capture and GETTING carbon removals TO NET ZERO GLOBAL • Current emissions reduction EMISSIONS PROJECTION commitments and policy scenarios do not put global emissions on a trajec
Slide 14: Our Targeted Market Opportunities
BY THE NUMBERS 14 OUR TARGETED MARKET OPPORTUNITIES INTERNATIONAL AVIATION CARBON REMOVALS U.S. POINT-SOURCE CAPTURE DECARBONIZATION 15,000 2,600 1,200 MTPA MTPA MTPA BY 2050 10,000 – 20,000 MTPA carbon U.S. industrial sources emitted The aviation industry is expected removal is expected to be
Slide 15: Strategic Investment Approach
BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 15 STRATEGIC INVESTMENT APPROACH Oxy is leveraging its carbon management expertise, experience and infrastructure to accelerate the global development and commercialization of CCUS technologies, scale carbon markets and develop innovativ
Slide 16: OLCV Technology, Projects and Platforms
BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 16 OLCV TECHNOLOGY, PROJECTS AND PLATFORMS ZERO-EMISSION CO2 CAPTURE & PIPELINES & CO2 CARBON TRACKING CARBON UTILIZATION & POWER REMOVAL GAS PROCESSING SEQUESTRATION METHODOLOGIES AND PRODUCTS TOOLS OXY EXISTING THREE U.S. EPA APPROVED
Slide 17: 1PointFive CCUS Platform Ready for Commercial Deployment
17 1POINTFIVE CCUS PLATFORM READY FOR COMMERCIAL DEPLOYMENT • DAC, point-source capture, sequestration and AIR TO FUELS™ technologies demonstrated and tested, ready for commercial scale • Expanded Oxy assets and subsurface recognized under CCUS pathways to support commercial development COMMERCIALIT
Slide 18: 1PointFive Business Strategy
18 03 1POINTFIVE BUSINESS STRATEGY
Slide 19: 1PointFive Overview
DEVELOPMENT AT SCALE 19 1POINTFIVE OVERVIEW A wholly-owned Oxy subsidiary, 1PointFive is a durable, integrated CCUS platform with a mission to curb global temperature rise to 1.5°C by delivering carbon capture, sequestration, utilization and products CO2 CAPTURE & CO2 CO2 REMOVAL PRODUCTS ENABLED PR
Slide 20: Direct Air Capture
DIRECT AIR CAPTURE 20 TECHNOLOGY ENGINEERING & CONSTRUCTION DAC FIRST-MOVERS AND EARLY ADOPTERS ARTIST RENDERING
Slide 21: Progress Toward DAC 1
DIRECT AIR CAPTURE 21 PROGRESS TOWARD DAC 1 LICENSE TO BUILD Exclusive DAC and AIR TO FUELS™ license for U.S. deployment and OLCV has a worldwide agreement as the execution partner for all DAC and AIR TO FUELS™ deployments INNOVATION CENTRE Carbon Engineering Innovation Centre built for technology a
Slide 22: 1PointFive DAC Development
CURRENT SUPPORT SCENARIO1 22 1POINTFIVE DAC DEVELOPMENT 70 DIRECT AIR CAPTURE PLANTS EXPECTED TO BE ONLINE BY 2035 Europe We plan to build Direct Air Capture facilities in regions that meet key criteria: • Have public policy and incentives that support CO2 removals in place today or are expected dur
Slide 23: DAC Development Scenarios
DAC DEVELOPMENT SCENARIOS 23 Current support scenario assumes today’s policy, voluntary and compliance markets Net-zero support scenario assumes increase in global policy incentives and demand in voluntary and compliance markets led by net-zero business to achieve global targets for society by 2050
Slide 24: Major Projects Track Record
MAJOR 24 ABU DHABI - AL HOSN GAS PLANT • 1.3 BCFD sour gas project (~25% H2S) PERMIAN - DAC 1 PROJECTS • State-of-the-art sulfur recovery units SUCCESSFUL • Produces and pelletizes 5% of world’s sulfur TRACK • Many process elements RECORD • $10B project • 43,000 people in construction INGLESIDE - ET
Slide 25: Cost Down – Some Examples
25 DIRECT AIR CAPTURE COST DOWN – Cost of Capture Roadmap SOME EXAMPLES LCOC1 $/t MOVING AIR 600 Improved capture efficiency of air contactors ◦ Reduces number of air contactors needed 550 Thousands of innovation tasks Improvements in pressure drop in air contactor 500 ◦ Reduces energy needed 45
Slide 26: Getting to 70 DAC Facilities
GETTING TO 70 DAC FACILITIES 26 ENGINEERING & SUPPLY CHAIN SCALABILTY • Visionary Vendors™ selected to provide six key types of Economies of scale for 1 MTPA equipment Modular, repeatable air will be achieved with aqueous contactors aggregate CO2 industrial-scale central • Worldwide alliances proces
Slide 27: Point-Source Capture
1POINTFIVE 27 POINT-SOURCE CAPTURE POINT-SOURCE CAPTURE CORE MARKETS 50+ pre-FEED projects in multiple industries across the United States In commercial discussions with key point- ETHANOL REFINING AMMONIA source emitters representing more than 40 MTPA CO2 emissions Enabling industrial and energy
Slide 28: Supporting Projects Across Industry Sectors
POINT-SOURCE CAPTURE 28 SUPPORTING PROJECTS ACROSS INDUSTRY SECTORS ETHANOL BIOFUELS The OLCV team has been • Carbon capture and transportation of CO2 • CO2 offtake, transportation and sequestration actively engaged in CCS project from White Energy’s two ethanol plants in of CO2 captured from planne
Slide 29: Markets and Drivers
POINT-SOURCE CAPTURE 29 MARKETS AND DRIVERS FEASIBILITY OF REGIONAL SEQUESTRATION HUBS DRIVEN BY INTERSECTION OF SEVERAL KEY FACTORS: High concentration of low-cost capture projects with additional regulatory or policy incentives Access to high-quality pore space Favorable access to rights-of-
Slide 30: Dedicated Sequestration Hubs
CO2 STORAGE 30 DEDICATED SEQUESTRATION HUBS Our hub-based model is a scalable solution that allows access to a shared carbon infrastructure, bringing more options to emitters looking to explore more viable carbon management strategies. A typical sequestration hub includes: Multiple CO2 emission so
Slide 31: Hub Development
CO2 STORAGE 31 HUB DEVELOPMENT CURRENT SUPPORT SCENARIO 3 DEDICATED SEQUESTRATION HUBS Project Tundra EXPECTED TO BE ONLINE BY 2025 Multiple land/pore space access agreements executed with expectation of more than 100,000 net acres by the end of 2022 Planning multiple sequestration sites on the
Slide 32: Product Development & Enablement
PRODUCT DEVELOPMENT & ENABLEMENT 32 Products created and enabled by 1PointFive support the decarbonization of global industry PRODUCTS ENABLED PRODUCTS CO2 Feedstock Low-Carbon Fuels Carbon Removal Credits Net-Zero Oil Low-Carbon Products GLOBAL CROSS-INDUSTRY MARKETS Aviation Long-Haul Trucking Mar
Slide 33: CCUS Protocols and Methodologies
CCUS PROTOCOLS 33 AND METHODOLOGIES High-integrity, internationally recognized CCUS protocols and methodologies for generating tax and carbon credits are paramount for scaling the CCUS industry Secured 1st two MRV plans approved by the U.S. EPA and has been reporting under these for over a decade to
Slide 34: Aviation Industry: SAF, LCAF and Carbon Removals
IATA CO2 REDUCTION PROJECTION & GOALS 34 AVIATION INDUSTRY: SAF, LCAF AND CARBON REMOVALS DAC carbon removal credits Technology Improvements PROJECTED EMISSIONS provide a near-term, lower- cost pathway for the aviation Operational Efficiencies sector to decarbonize while SAF/LCAF SAF production incr
Slide 35: Carbon Engineering's Air to Fuels Process
CARBON ENGINEERING’S 35 AIR TO FUELS™ PROCESS CO2 from Direct Air Capture facilities can be integrated into multiple fuel synthesis technologies to create low-carbon fuels. Direct Air Capture Produces low-carbon fuels with up to ~90% emissions reduction factor (ERF) when compared to conventional d
Slide 36: Net-Zero Oil: A Closed-Loop System for Energy Production
NET-ZERO OIL: A CLOSED-LOOP 36 SYSTEM FOR ENERGY PRODUCTION DAC paired with EOR allows us to proactively capture the lifecycle emissions of a barrel of oil Enables affordable energy utilizing existing FUEL USED NET-ZERO OIL infrastructure without adding to atmospheric CO2 PRODUCED 1 MILLION TONN
Slide 37: DAC, Net-Zero Oil and the EOR Business
DAC, NET-ZERO OIL AND THE EOR BUSINESS 37 Pairing DAC with existing EOR operations supports global decarbonization while enhancing Oxy’s business value HISTORIC CURRENT FUTURE 01 02 03 04 05 Increased Low Low Margin Differentiated Reserves Decline Capital Expansion Net-Zero Recovery Production Inten
Slide 38: Roadmap to Commercial Developments
CCUS TECHNOLOGY AND MARKET ADVANCEMENT 38 ROADMAP TO COMMERCIAL DEVELOPMENTS 2021 – 2024 2025 – 2030 Beyond VOLUNTARY & COMPLIANCE POLICY COMMODITY DE-RISK & INNOVATE MANUFACTURING MODE DEVELOPMENT NET ZERO CURRENT DIRECT AIR REVENUE CAPTURE & $250 – 450/t $250 – 450/t $125 – 175/t SEQUESTRATION NET
Slide 39: Capital Plan & Priorities
1POINTFIVE 39 CAPITAL PLAN & PRIORITIES Near-term priority is to execute 1PointFive’s development plan while ensuring fit to Oxy’s cash flow priorities. Long-term priority is to maximize value over time for Oxy’s shareholders by maintaining 1PointFive ownership through advances in the technology, po
Slide 40: Capital Funding Considerations
1POINTFIVE 40 CAPITAL FUNDING CONSIDERATIONS Funding Principles 2021 – 2024 2025 – 2030 Beyond DE-RISK & INNOVATE MANUFACTURING MODE COMMODITY DEVELOPMENT Capital will be allocated based on strong and growing market demand capable of supporting attractive long-term returns • Oxy Capital • Minimize
Slide 41: Creating Value for the Business, Creating the Path to Net Zero
CREATING VALUE CREATING THE PATH 41 FOR THE BUSINESS TO NET ZERO FOR OURSELVES AND OTHERS FUTURE OLCV TECH DEVELOPMENT 01 Accelerating and commercializing technologies with speed and scale to support global emissions reduction 1POINTFIVE Adding new DEVELOPMENT VALUE business value 02 Providing multi
Slide 42: Oxy Zero In
7 OXY ZERO IN™
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