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Cover and table of contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
| ☑ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||||||||
| For the fiscal year ended | December 31, 2022 | For the transition period from to |
Commission File Number 1-9210
Occidental Petroleum Corporation
(Exact name of registrant as specified in its charter)
| State or other jurisdiction of incorporation or organization | Delaware | ||||||||||||||||
| I.R.S. Employer Identification No. | 95-4035997 | ||||||||||||||||
| Address of principal executive offices | 5 Greenway Plaza, Suite 110 | Houston, | Texas | ||||||||||||||
| Zip Code | 77046 | ||||||||||||||||
| Registrant’s telephone number, including area code | (713) | 215-7000 |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
| Common Stock, $0.20 par value | OXY | New York Stock Exchange | ||||||
| Warrants to Purchase Common Stock, $0.20 par value | OXY WS | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☑ | Accelerated Filer | ☐ | Emerging Growth Company | ☐ | ||||||||||||
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the registrant’s Common Stock held by nonaffiliates of the registrant was approximately $53.0 billion computed by reference to the closing price on the New York Stock Exchange of $58.88 per share of Common Stock on June 30, 2022.
As of January 31, 2023, there were 900,072,447 shares of Common Stock outstanding, par value $0.20 per share.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement, relating to its 2022 Annual Meeting of Stockholders, are incorporated by reference into Part III of this Form 10-K.
| ABBREVIATIONS USED WITHIN THIS DOCUMENT | |||||
| AAPG | American Association of Petroleum Geologists | ||||
| AOC | Administrative Order on Consent | ||||
| Anadarko | Anadarko Petroleum Corporation and its consolidated subsidiaries | ||||
| Anadarko Acquisition | A transaction pursuant to the Agreement and Plan of Merger dated May 9, 2019, in which Occidental acquired all of the outstanding shares of Anadarko on August 8, 2019, and in which a wholly owned subsidiary of Occidental merged with and into Anadarko | ||||
| Andes | Andes Petroleum Ecuador Ltd. | ||||
| ARO | asset retirement obligations | ||||
| Bcf | billions of cubic feet | ||||
| Bcf/d | billions of cubic feet per day | ||||
| Berkshire Hathaway | Berkshire Hathaway Inc. | ||||
| BLM | U.S. Bureau of Land Management | ||||
| the Board | Occidental Board of Directors | ||||
| Boe | barrels of oil equivalent | ||||
| BOEM | U.S. Bureau of Ocean Energy Management | ||||
| CCUS | carbon capture, utilization and storage | ||||
| CERCLA | Comprehensive Environmental Response, Compensation, and Liability Act | ||||
| CO2 | carbon dioxide | ||||
| COGCC | Colorado Oil and Gas Conservation Commission | ||||
| Common Stock Warrants | a distribution of warrants to holders of Occidental common stock | ||||
| CROCE | cash returns on capital employed | ||||
| CROCEI | cash return on capital employed incentive | ||||
| DAC | direct air capture | ||||
| DASS | Diamond Alkali Superfund Site | ||||
| DD&A | depreciation, depletion and amortization | ||||
| DEL | Dolphin Energy Limited | ||||
| DIB | diversity, inclusion and belonging | ||||
| DOJ | U.S. Department of Justice | ||||
| DSCC | Diamond Alkali Chemicals Company | ||||
| EDC | ethylene dichloride | ||||
| EOR | enhanced oil recovery | ||||
| EPA | U.S. Environmental Protection Agency | ||||
| EPS | earnings per share | ||||
| ERG | Employee Resource Group | ||||
| Exchange Act | Securities Exchange Act of 1934 | ||||
| GAAP | Generally accepted accounting principles | ||||
| GHG | greenhouse gas | ||||
| HSE | health, safety and environmental | ||||
| Kerr-McGee | Kerr-McGee Corporation and certain of its subsidiaries | ||||
| LIBOR | London Interbank Offered Rate | ||||
| LIFO | last-in, first-out | ||||
| OCI | other comprehensive income | ||||
| Maxus | Maxus Energy Corporation | ||||
| Mbbl | thousands of barrels | ||||
| Mbbl/d | thousands of barrels per day | ||||
| Mboe | thousands of barrels equivalent |
| ABBREVIATIONS USED WITHIN THIS DOCUMENT | |||||
| Mboe/d | thousands of barrels equivalent per day | ||||
| Mcf | thousand cubic feet | ||||
| MMbbl | millions of barrels | ||||
| MMbtu | million British thermal units | ||||
| MMcf | millions of cubic feet | ||||
| NAV | net asset value | ||||
| NEPA | National Environmental Policy Act | ||||
| NGL | natural gas liquids | ||||
| NPL | National Priorities List | ||||
| NYMEX | New York Mercantile Exchange | ||||
| NYSE | New York Stock Exchange | ||||
| Occidental | Occidental Petroleum Corporation, a Delaware corporation and one or more entities in which it owns a controlling interest (subsidiaries) | ||||
| OEPC | Occidental Exploration and Production Company | ||||
| OLCV | Occidental’s low-carbon ventures businesses | ||||
| OPEC | Organization of the Petroleum Exporting Countries | ||||
| Options | stock options | ||||
| OTC | Over-the-Counter | ||||
| OU | Operable Unit | ||||
| OxyChem | Occidental Chemical Corporation, and its consolidated subsidiaries | ||||
| the Plan | stockholder-approved 2015 Long-Term Incentive Plan, as amended and restated, for certain employees and directors | ||||
| PP&E | property, plant & equipment | ||||
| PSC | production sharing contracts | ||||
| PUD | proved undeveloped | ||||
| PVC | polyvinyl chloride | ||||
| RCF | revolving credit facility | ||||
| Reserves Committee | Corporate Reserves Review Committee | ||||
| ROD | Record of Decision | ||||
| RSUs | restricted stock units | ||||
| Ryder Scott | Ryder Scott Company, L.P. | ||||
| S&P 500 | Standard & Poor’s 500 Stock Index | ||||
| SEC | U.S. Securities and Exchange Commission | ||||
| SOFR | Secured Overnight Financing Rate | ||||
| Sonatrach | The national oil and gas company of Algeria | ||||
| STEP | Strategic Technical Excellence Program | ||||
| the Trust | Maxus Liquidating Trust | ||||
| TSRI | total shareholder return incentive | ||||
| UAE | United Arab Emirates | ||||
| VCM | Vinyl chloride monomer | ||||
| WES | Western Midstream Partners, LP | ||||
| WTI | West Texas Intermediate | ||||
| Zero Coupons | Zero Coupon senior notes due 2036 | ||||
| 2022 Form 10-K | Occidental’s Annual Report on Form 10-K for the year ended December 31, 2022 |
 | BUSINESS AND PROPERTIES |
Part I
ITEMS 1 AND 2. BUSINESS AND PROPERTIES
In this Form 10-K, “Occidental”, “we”, “our” and “the Company” refers to Occidental Petroleum Corporation, a Delaware corporation incorporated in 1986, or Occidental and one or more entities in which it owns a controlling interest (subsidiaries). Occidental conducts its operations through its various subsidiaries and affiliates. Occidental’s executive offices are located at 5 Greenway Plaza, Suite 110, Houston, Texas 77046; telephone (713) 215-7000.
| GENERAL |
Occidental’s principal businesses consist of three reporting segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops and produces oil (which includes condensate), NGL and natural gas. The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil, NGL, natural gas, CO2 and power. It also optimizes its transportation and storage capacity, and invests in entities that conduct similar activities, such as WES.
The midstream and marketing segment also includes OLCV. OLCV seeks to leverage Occidental’s legacy of carbon management expertise to develop CCUS projects, including the commercialization of DAC technology, and invests in other low-carbon technologies intended to reduce GHG emissions from its operations and strategically partner with other industries to help reduce their emissions.
| HUMAN CAPITAL RESOURCES |
Occidental’s culture is built upon the following core values:
■Lead with Passion
■Outperform Expectations
■Deliver Results Responsibly
■Unleash Opportunities
■Commit to Good
Occidental’s human capital resources and programs are managed by its Human Resources department, with support from business leaders across the company. Occidental’s senior management team plays a key role in setting and monitoring Occidental’s culture, values and broader human capital management practices, with oversight by Occidental’s Board of Directors, the Sustainability and Shareholder Engagement Committee of the Board and the Environmental, Health & Safety Committee of the Board. The Sustainability and Shareholder Engagement Committee periodically receives briefings on Occidental’s human capital strategy and the Environmental, Health & Safety Committee receives briefings on employee and contractor health and safety statistics and related matters, including workforce health and safety initiatives. Senior management and the Board also engage regularly on workforce-related topics.
To enhance senior leadership’s engagement with employees, Occidental hosts quarterly executive virtual conversations where Occidental’s President and CEO, Vicki Hollub, and other executive officers review recent financial and operational performance as well as topics pertinent to employees. Occidental’s CEO also answers employee questions during these conversations. The quarterly executive virtual conversations form one piece of Occidental’s employee outreach and engagement, which consists of newsletters, focus groups and employee resource groups, among other channels and tools.
DIVERSITY, INCLUSION AND BELONGING
The intent of Occidental’s DIB culture is to create an environment where employees’ differences are appreciated, celebrated and encouraged. Occidental conducted a robust survey across the organization, the results of which were reviewed by the Board and became a basis for Occidental’s core values.
The Company’s human capital resources extend across several regions. Occidental has attracted, and continues to recruit, a diverse workforce of exceptional talent, including employees from many nations. This diversity enriches Occidental’s culture, its employees' experiences on the job and contributes to an innovative and effective business model that encourages local communities to thrive. DIB powers Occidental’s innovation and spirit of excellence, as well as its knowledge and results. Embedding DIB into Occidental’s culture enhances collaboration, performance and growth and helps uphold its organizational values.
The DIB Advisory Board, which is chaired by Occidental’s President and CEO and includes members of senior leadership, provides DIB governance and oversight to ensure that Occidental’s integrated DIB strategy is executed and aligns with the Company’s mission, vision and strategic objectives. The DIB Ambassador Committee, which is chaired by Occidental’s Vice President of Diversity and Inclusion, consists of a diverse group of employee representatives from all
| OXY 2022 FORM 10-K | 3 |
| BUSINESS AND PROPERTIES |
business segments, domestic and international. This committee leads company-wide initiatives to raise DIB awareness through educational resources and programs. Educational sessions are available to the entire workforce for continued growth and development on topics such as inclusive leadership, diversity advocacy, recognizing and addressing micro aggressions, overcoming unconscious bias and psychological safety at work.
Occidental’s senior management, together with the support of Occidental’s DIB Advisory Board and the DIB Ambassador Committee, works to leverage employees’ varied backgrounds, unique experiences and points of view to spark innovation, empower growth, outperform expectations and maximize results.
In October 2022, as part of Occidental’s integrated DIB strategy, the Human Resources department launched eight new Employee Resource Groups. An ERG is a group of employees who actively engage in communicating or gathering around a central purpose, mission, background or activity. ERGs can help advance inclusion and a sense of belonging of employees with a common set of interests and/or goals. The mission and goals of ERGs are fully aligned with Occidental’s expectation to be an employer, partner, and neighbor of choice. Each ERG is inclusive of all employees—everyone can benefit from and participate in an ERG, either as a member or an ally. Occidental’s ERGs are as follows:
-
Allyship
-
Black Employee Network
-
Early Career Network
-
FRIEND (Friends, Relatives and Individuals Empowering Neurodiversity)
-
Hispanic Network
-
Mental Health Matters
-
Mosaic (Multicultural) Network
-
Out (LGBT+) Network
-
Veterans Network
-
Women of Oxy Network
TALENT ATTRACTION AND RETENTION
Occidental recruits candidates through job fairs, professional societies and campus recruiting, including expanded recruiting at historically black colleges and universities.
In 2022, Occidental began to return to in-person interviews, and the university relations team worked with universities and their staff to ensure that any in-person interviews and events were conducted safely. In addition, all college internships were in-person with appropriate health and safety precautions as senior leadership continued to monitor federal, state and local guidance and public health data.
In response to employee feedback received by the Human Resources department, to attract and retain talent, Occidental implemented the Balanced Workplace Program in 2022 under which eligible office-based employees may opt to work three days in the office and two days at home each week. The program affords employees more flexibility and promotes increased balance. The Human Resources department solicited feedback from employees participating in the Balanced Workplace Program regarding their experience and to gauge interest in other work arrangements. Following review of such feedback, in June 2022, the Human Resources department began conducting a fully remote pilot program for employees in certain functions.
In 2021, Occidental implemented its global Strategic Technical Excellence Program to recruit, develop and retain highly skilled and valued geoscientists, engineers, scientists and other petrotechnical professionals who will collectively drive innovation, advance performance and inspire the future of energy. STEP is a highly valued program for technical contributors to focus and advance on a technical, non-managerial career path and provides a competitive advantage for Occidental through the optimum application of technology. The Chief Petrotechnical Officer leads all aspects of STEP and reports directly to Occidental’s President and CEO.
Occidental also offers employees development opportunities, competitive compensation and attractive benefits, as discussed further below.
DEVELOPMENT AND TRAINING
Occidental employees have access to extensive development and training opportunities and programs to expand their personal and professional skills and knowledge. Occidental’s approach to education includes:
■Leadership/management training to develop leadership skills at all levels;
■Self-directed learning and development, including web-based and instructor-led training;
■An employee development library;
■Mentoring programs;
■Employee resource groups; and
■Educational assistance to support employees’ continuing education.
In January 2022, Occidental expanded its development and training opportunities and programs from 94 on-demand professional development classes to over 3,000 on-demand classes with over 26,000 types of learning materials (videos, audio books, etc.).
| 4 | OXY 2022 FORM 10-K |
| BUSINESS AND PROPERTIES |
In May 2022, Occidental launched its new domestic mentoring program, EMPower. The purpose of this program is to provide an avenue for enhancing critical business skills, broadening employee networks, and engaging our employees. This program is available for all domestic employees. EMPower is intended to help employees reach their potential through training and empowerment, allowing employees to advance in their careers and develop critical skills.
EMPLOYEE COMPENSATION AND BENEFITS
In addition to prioritizing employee engagement and development, Occidental’s compensation and benefits program is designed to attract and retain the talent necessary to achieve its business strategy. The compensation and benefits program recognizes and rewards strong company and individual performance with competitive base salaries, an annual bonus program, recognition awards, long-term performance incentives and advancement opportunities. In 2022, Occidental awarded a one-time special bonus to recognize the innovative and dedicated work of the company’s employees and resulting strong operational and financial performance. The Company’s compensation and benefits program is routinely reviewed and benchmarked to ensure competitiveness and to provide the benefits that matter most to current and future employees.
Occidental strives to give employees the tools and resources they need to succeed both professionally and personally and to foster a safe and collaborative work environment. To that end, Occidental offers, and regularly evaluates, its comprehensive health, welfare and retirement and savings benefits plans, professional memberships and work/life balance benefits. It also provides programs to enhance and support employees’ overall well-being, including their physical, mental, social and financial health.
In January 2022, Occidental introduced a new benefit service provider that provides a health care concierge service to help families manage and navigate medical, in-home care, housing, and social/emotional support, for their own or their families’ complex care needs. Furthermore, to make the most of employees’ benefits, it is important employees are aware of all that the company has to offer to help employees live well and work well. In the fall of 2022, members of the company’s Employee Benefits department presented a Total Rewards Roadshow and traveled to numerous Occidental sites to connect with employees, answer questions and share valuable information about benefits.
MENTAL HEALTH
Addressing well-being is imperative to ensure that Occidental’s employees stay resilient, healthy and productive. In 2021, Occidental launched the global well-being campaign “Commit to You” to educate employees and leaders about how its benefits can support them under the four pillars of well-being: mental, physical, social and financial.
In 2022, Occidental prioritized the importance of mental health and well-being through manager and employee programs and events. One program, sponsored by OxyHealth and the Mental Health Matters ERG, was a "Talk Saves Lives" conversation with the American Foundation for Suicide Prevention to learn about common risk factors, how to spot warning signs in others, and how to keep employees, loved ones, and those in the community safe. Most recently, on January 1, 2023, the company launched an enhanced mental health benefit through Lyra Health. Lyra Health provides mental and emotional healthcare that is effective, convenient and personalized to all employees globally.
Occidental continues to be a member of One Mind at Work, an employer coalition dedicated to implementing a gold standard for workplace mental health by combating stigma, improving access to treatment and prevention services and fostering a psychologically safe culture. In 2022, Occidental’s CEO and the Chairman of One Mind at Work participated in a video broadcast for employees about breaking down the stigma around mental health challenges at work and what Occidental employees can expect as we transition into an organization where mental health is an accepted and visible part of its well-being.
HEALTH AND SAFETY
The health and safety of Occidental’s workforce and communities is a top priority. In 2022, the Board approved updates to the company’s longstanding Health, Safety and Environmental Principles (as revised, the HSE and Sustainability Principles) that management recommended based on engagement with shareholders, employees and other stakeholders. The HSE and Sustainability Principles reinforce the alignment among Occidental’s core values, goals and strategies, underpin the operational management system, and help to guide Occidentals global workforce. Occidental endeavors to apply these principles to improve workplace and contractor safety, prevent and mitigate incidents, and safeguard people and the environment in the communities where it operates. In addition to complying with applicable HSE laws, regulations, policies and procedures, employees and contractors are empowered and expected to stop any job or activity if they observe conditions that may give rise to a safety or environmental incident, and they are often recognized for doing so.
| OXY 2022 FORM 10-K | 5 |
| BUSINESS AND PROPERTIES |
WORKFORCE COMPOSITION
The below table approximates regional distribution of Occidental’s employees as of December 31, 2022:
| North America | Middle East | Latin America | Other (a) | Total (b) | ||||||||||||||||||||||||||||
| Union | 416 | 800 | 50 | — | 1,266 | |||||||||||||||||||||||||||
| Non-Union | 7,842 | 2,624 | 121 | 120 | 10,707 | |||||||||||||||||||||||||||
| Total | 8,258 | 3,424 | 171 | 120 | 11,973 |
(a)Other headcount included North Africa, Europe and Asia.
(b)Included approximately 2,800 employees in OxyChem.
The below table approximates the self-reported gender and ethnicity, excluding non-specified ethnicities, of Occidental’s domestic leadership and other employees as of December 31, 2022. Executive and senior officials and managers are considered top leadership while first- and mid-level officials and managers are considered junior leadership. Individual contributors are excluded from the leadership categories but included in all employee percentages.
| Male | Female | White | non-White | |||||||||||||||||||||||
| All employees | 78 | % | 22 | % | 66 | % | 34 | % | ||||||||||||||||||
| All leadership | 78 | % | 22 | % | 75 | % | 25 | % | ||||||||||||||||||
| Top leadership | 83 | % | 17 | % | 85 | % | 15 | % | ||||||||||||||||||
| Junior leadership | 78 | % | 22 | % | 75 | % | 25 | % |
We have also publicly disclosed the Consolidated EEO-1 Report that Occidental submitted in 2022 to the U.S. Equal Employment Opportunity Commission for the 2021 fiscal year, which can be found on the sustainability section of our website.
| ENVIRONMENTAL REGULATION |
For environmental regulation information, including associated costs, see the information under Environmental Liabilities and Expenditures in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section under Part II, Item 7 of this Form 10-K, Risk Factors under Part I, Item 1A of this Form 10K and in Note 12 - Environmental Liabilities and Expenditures and Note 13 - Lawsuits, Claims, Commitments and Contingencies in the Notes to Consolidated Financial Statements in Part II Item 8 of this Form 10-K.
| AVAILABLE INFORMATION |
Occidental’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports are available free of charge on its website, www.oxy.com, as soon as reasonably practicable after Occidental electronically files the material with, or furnishes it to, the SEC. In addition, copies of Occidental’s annual report will be made available, free of charge, upon written request.
From time to time, Occidental has made and expects in the future to use its website as a channel of distribution of material information regarding the Company. Financial and other material information regarding the Company is routinely posted on Occidental’s website and accessible at www.oxy.com/investors/.
Information contained on Occidental’s website is not part of or incorporated into this Form 10-K or any other filings with the SEC.
| 6 | OXY 2022 FORM 10-K |
| BUSINESS AND PROPERTIES |
| OIL AND GAS OPERATIONS |
GENERAL
Occidental primarily conducts its ongoing exploration and production activities in the United States, the Middle East and North Africa. Within the United States, Occidental has operations primarily in Texas, New Mexico and Colorado, as well as offshore in the Gulf of Mexico. Internationally, Occidental primarily conducts operations in the UAE, Oman and Algeria. Refer to the Oil and Gas Acreage section in Supplemental Oil and Gas Information under Item 8 of this Form 10-K for further disclosure of Occidental’s holdings of developed and undeveloped oil and gas acreage.
COMPETITION
As a producer of oil, NGL and natural gas, Occidental competes with numerous other domestic and international public, private and government producers. Oil, NGL and natural gas are sensitive to prevailing global and local market conditions, as well as anticipated market conditions. Occidental’s competitive strategy relies on producing hydrocarbons in a capital efficient manner through developing conventional and unconventional fields, and utilizing primary, secondary (waterflood) and tertiary (CO2 and steam flood) recovery techniques in areas where Occidental has a competitive advantage as a result of its successful operations or investments in shared infrastructure. Occidental also competes to develop and produce its worldwide oil and gas reserves safely, sustainably and cost-effectively, maintain a skilled workforce and use high quality service providers. Occidental believes that its core competencies in CO2 separation, transportation, use, recycling and storage in EOR provide a competitive advantage over its peers as the world transitions to a less carbon-intensive economy and seeks to remove CO2 from the atmosphere.
PROVED RESERVES AND SALES VOLUMES
The table below shows Occidental’s year-end oil, NGL and natural gas proved reserves. See the information under Oil and Gas Segment in the Management's Discussion and Analysis section under Part II, Item 7, of this Form 10-K for details regarding Occidental’s proved reserves, the reserves estimation process, sales and production volumes, production costs and other reserves-related data.
COMPARATIVE OIL AND GAS PROVED RESERVES AND SALES VOLUMES
Oil and NGL is in MMbbl; natural gas is in Bcf.
| 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
| Oil | NGL | Gas | Boe | (a) | Oil | NGL | Gas | Boe | (a) | Oil | NGL | Gas | Boe | (a) | |||||||||||||||||||||||||||||||||
| Proved Reserves (b) | |||||||||||||||||||||||||||||||||||||||||||||||
| United States | 1,639 | 654 | 4,073 | 2,972 | 1,466 | 564 | 3,419 | 2,600 | 1,144 | 384 | 2,446 | 1,936 | |||||||||||||||||||||||||||||||||||
| International | 274 | 192 | 2,277 | 845 | 305 | 202 | 2,431 | 912 | 331 | 215 | 2,573 | 975 | |||||||||||||||||||||||||||||||||||
| Total | 1,913 | 846 | 6,350 | 3,817 | 1,771 | 766 | 5,850 | 3,512 | 1,475 | 599 | 5,019 | 2,911 | |||||||||||||||||||||||||||||||||||
| Sales Volumes | |||||||||||||||||||||||||||||||||||||||||||||||
| United States | 185 | 83 | 445 | 342 | 182 | 79 | 477 | 341 | 205 | 81 | 561 | 380 | |||||||||||||||||||||||||||||||||||
| International | 41 | 12 | 164 | 81 | 44 | 12 | 172 | 85 | 59 | 13 | 195 | 104 | |||||||||||||||||||||||||||||||||||
| Total | 226 | 95 | 609 | 423 | 226 | 91 | 649 | 426 | 264 | 94 | 756 | 484 |
(a)Natural gas volumes are converted to Boe at six Mcf of gas per one barrel of oil. Conversion to Boe does not necessarily result in price equivalency.
(b)Excluded reserves and sales volumes related to Occidental’s discontinued operations.
| OXY 2022 FORM 10-K | 7 |
| BUSINESS AND PROPERTIES |
| CHEMICAL OPERATIONS |
GENERAL
OxyChem owns and operates manufacturing plants at 21 domestic sites in Alabama, Georgia, Illinois, Kansas, Louisiana, Michigan, New Jersey, Ohio, Tennessee and Texas and at two international sites in Canada and Chile.
COMPETITION
OxyChem competes with numerous other domestic and international chemical producers. OxyChem’s market position was first or second in the United States in 2022 for the principal basic chemical products it manufactured and marketed as well as for VCM. OxyChem ranks in the top three producers of PVC in the United States. OxyChem’s competitive strategy is to be a low-cost producer of its products in order to compete on price.
OxyChem produced the following products:
| Principal Products | Major Uses | Annual Capacity | ||||||
| Basic Chemicals | ||||||||
| Chlorine | Raw material for EDC, water treatment and pharmaceuticals | 3.2 million tons | ||||||
| Caustic soda | Pulp, paper and aluminum production | 3.3 million tons | ||||||
| Chlorinated organics | Refrigerants(a), silicones and pharmaceuticals | 1 billion pounds | ||||||
| Potassium chemicals | Fertilizers, batteries, soaps, detergents and specialty glass | 0.4 million tons | ||||||
| EDC | Raw material for VCM | 2.1 billion pounds | ||||||
| Chlorinated isocyanurates | Swimming pool sanitation and disinfecting products | 150 million pounds | ||||||
| Sodium silicates | Catalysts, soaps, detergents and paint pigments | 0.6 million tons | ||||||
| Calcium chloride | Ice melting, dust control, road stabilization and oil field services | 0.7 million tons | ||||||
| Vinyls | ||||||||
| VCM | Precursor for PVC | 6.2 billion pounds | ||||||
| PVC | Piping, building materials and automotive and medical products | 3.7 billion pounds | ||||||
| Ethylene | Raw material for VCM | 1.3 billion pounds(b) |
(a)Included 4CPe, a raw material used in making next generation refrigerants with low global warming and zero ozone depletion potential.
(b)Amount is gross production capacity for 50/50 joint venture with Orbia.
| 8 | OXY 2022 FORM 10-K |
| BUSINESS AND PROPERTIES |
| MIDSTREAM AND MARKETING OPERATIONS |
GENERAL
Occidental’s midstream and marketing operations primarily support and enhance its oil and gas and chemical businesses. The midstream and marketing segment strives to optimize the use of its gathering, processing, transportation, storage and terminal commitments and to provide access to domestic and international markets. To generate returns, the segment evaluates opportunities across the value chain to provide services to Occidental subsidiaries, as well as third parties. The midstream and marketing segment operates or contracts for services on gathering systems, gas plants, co-generation facilities and storage facilities and invests in entities that conduct similar activities, such as WES and DEL, which are accounted for as equity method investments. WES owns gathering systems, plants and pipelines and earns revenue from fee-based and service-based contracts with Occidental and third parties. DEL owns and operates a pipeline that connects its gas processing and compression plant in Qatar and its receiving facilities in the UAE, and uses its network of DEL-owned and other existing leased pipelines to supply natural gas across the UAE and to Oman. The midstream segment includes Al Hosn Gas, a processing facility in the UAE that removes sulfur from natural gas and processes the natural gas and sulfur for sale. The midstream and marketing segment also includes OLCV businesses.
LOW-CARBON BUSINESS
Leveraging Occidental’s carbon management expertise, OLCV primarily focuses on advancing carbon removal and CCUS projects, including developing and commercializing DAC technology. OLCV also invests in third-party entities that are developing technologies that advance other low-carbon initiatives, including NET Power, a clean energy technology company.
COMPETITION
Occidental’s midstream and marketing businesses operate in competitive and highly regulated markets. Occidental competes for capacity and infrastructure for the gathering, processing, transportation, storage and delivery of its products, which are sold at current market prices or on a forward basis to refiners, end users and other market participants. Occidental’s marketing business competes with other market participants on exchange platforms and through other bilateral transactions with direct counterparties. OLCV and its businesses and investees also face a broad range of competitors including state-owned enterprises; multinational companies in the energy, infrastructure, manufacturing, transportation, technology and financial sectors; and startup companies, with nascent markets for low-carbon products and CO2 removal credits that are subject to rapidly changing laws, regulations, policies and reporting and verification mechanisms that can significantly impact the financing, construction and operation of projects and the development of markets.
Occidental’s midstream and marketing operations are conducted in the locations described below as of December 31, 2022:
| Location | Description | Capacity (a) | ||||||
| Gas Plants | ||||||||
| Texas, New Mexico and Colorado | Occidental and third-party-operated natural gas/CO2 gathering, compression and processing systems | 2.2 Bcf/d | ||||||
| Texas, Rocky Mountains and Other | Equity investment in WES - gas processing facilities | 5.0 Bcf/d | ||||||
| UAE | Natural gas processing facilities for Al Hosn Gas | 1.3 Bcf/d | ||||||
| Pipelines and Gathering Systems | ||||||||
| Texas, New Mexico and Colorado | CO2 fields and pipeline systems transporting CO2 to oil and gas producing locations | 2.8 Bcf/d | ||||||
| Qatar, UAE and Oman | Equity investment in the DEL natural gas pipeline | 3.2 Bcf/d | ||||||
| United States | Equity investment in WES involved in gathering and transportation | 14,712 miles of pipeline | ||||||
| Power Generation | ||||||||
| Texas and Louisiana | Occidental-operated power and steam generation facilities | 1,218 megawatts of electricity and 1.6 million pounds of steam per hour | ||||||
| OLCV | ||||||||
| Texas | Occidental-owned solar generation facility | 16.8 megawatts of electricity | ||||||
| Texas | Equity investment in a zero-emission natural gas generation demonstration facility | up to 50 megawatts of electricity | ||||||
| Canada | Equity investment in developing DAC technology, which captures CO2 directly from the atmosphere | N/A |
(a)Amounts are gross, including interests held by third parties. Gas capacities are expressed in Bcf/d.
| OXY 2022 FORM 10-K | 9 |
| RISK FACTORS |