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Could Buying Occidental Petroleum Stock Today Set You Up for Life?
OXYOXY(US:OXY) The Motley Foolยท2025-04-21 12:24

Core Viewpoint - Occidental Petroleum is positioned as a potential long-term investment opportunity, supported by its vast resources, commitment to carbon capture technology, and growth in its chemicals business [2][3][10]. Group 1: Investment Positioning - Occidental Petroleum is one of Berkshire Hathaway's top holdings, with nearly 265 million shares owned, representing 28.2% of its outstanding shares, valued at $10.5 billion [3]. - Warren Buffett views Occidental as a "forever holding," similar to Coca-Cola and American Express, indicating strong confidence in its long-term potential [3]. Group 2: Growth Catalysts - The company possesses extensive low-cost oil and gas resources across 9.3 million net acres in key regions, which should support production growth for years [4]. - Occidental is investing heavily in carbon capture and sequestration (CCS), aiming to build the world's largest direct air capture facility, with the potential for a $3 trillion to $5 trillion global industry [6][7]. - The chemicals business, OxyChem, is projected to add approximately $325 million in annualized earnings by 2026, driven by increasing global demand for petrochemicals [8]. Group 3: Future Outlook - The combination of vast oil and gas resources, leadership in CCS, and a strong management team under CEO Vicki Hollub positions Occidental for significant shareholder value growth [11]. - While there are uncertainties regarding the future of oil and gas and the unproven nature of CCS technology, the company has multiple avenues for growth that could yield substantial returns [10].