Occidental Petroleum (NYSE:OXY) and Canadian engineering company Carbon Engineering Ltd. are set to begin the construction of a direct air capture plant that will withdraw 500,000 tons of carbon dioxide every year, making it the world’s largest carbon removal site.
The partnering companies are said to be prepping the chosen site in the Permian Basin, according to Bloomberg. The ceremony for the first day of construction has been scheduled for November 29. The plant is expected to be ready for operations by the end of 2024.
Occidental is taking large strides in reducing its carbon footprint and using carbon for other environmentally friendly purposes. The company is also planning to produce “net-zero oil” by injecting the carbon dioxide emitted during the extraction of oil back into oil reservoirs. This technique pushes out more oil while recycling carbon dioxide.
In further efforts, the company is looking to develop a carbon dioxide removal hub in southeast Texas in partnership with Natural Resource Partners.
Is OXY a Good Stock?
Wall Street analysts are split in their opinions about OXY stock, as understood from the Moderate Buy consensus rating based on seven Buys, seven Holds, and one Sell. The average price target is $75.79, reflecting a 4.39% room for Occidental stock to appreciate.
Moreover, insiders are also confidently buying the stock, according to TipRanks, with five informative Buy transactions made over the past three months by five unique insiders.
