Industry Overview - The carbon capture and sequestration (CCS) market is projected to grow significantly, with an estimated value of approximately $4.5 billion by 2025 and expected to reach around $14.5 billion by 2032, indicating a compound annual growth rate (CAGR) of over 18% [1][2]. Company Insights - California Resources (CRC) is pursuing the first CCS project in California at Elk Hills, which has received authorization from the Environmental Protection Agency to construct Class VI wells, a significant milestone for CCS in the U.S. [4][5][6]. - Occidental Petroleum (OXY) is developing a direct air capture (DAC) plant through its STRATOS project, which is set to start capturing CO₂ in 2025. The company has a significant stake from Warren Buffett's Berkshire Hathaway, valued at approximately $13 billion [8][9]. - ExxonMobil (XOM) is already operational in the CCS space, capturing and storing carbon for third parties. The company anticipates the CCS market could grow to $4 trillion by 2050, highlighting the potential for significant revenue opportunities [11][12]. Investment Opportunities - Investors have opportunities to gain exposure to the expanding CCS market through investments in CRC, OXY, and XOM, as these companies are making substantial moves to enhance their CCS capabilities [3][13]. - While these companies are not pure plays in CCS, their investments in this area could significantly supplement their overall growth, adding upside potential in the long term [13][14].

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].