Was there a strategy shift in the last couple of weeks? I thought Oxy was supposed to build and operate 50? 70? 100? plants and sell credits. Now they are talking about licensing them instead?
I'm not complaining - as an investor, I wasn't sold on the business model anyway. Just wondering if this is following the same trend as other O&G companies backing off on their grand green plans.
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If you think logically about this, the "franchising" of the DAC plants makes sense. Oxy gets paid to help design and build the facilities; then contracts for the operation of them (in other industries, this might be referred to as "Design/Build/Run"). Oxy also can help the investor market the credits generated.
Oxy gets a steady revenue stream from these lines of business and the investor gets the risk/opportunity of the carbon credit market. Not a lot different from buying a McDonalds' or Starbucks' franchise.
You can argue the value of the product being sold (the carbon credits) but guess that is why in a free-market economy, investors get to choose.
cause no. 27,001 in Tyler County, Texas is the reason Oxy should have not bought Anadarko. Anadarko has been involved in fraudulent illegal drilling and oil and gas operation in Austin Chalk, Tyler County. Reason anadarko went into their assets sale in 2016. Oxy is named in lawsuit as Successor for Anadarko fraud. Amarado Oil, Zarvona energy, Anadarko, Occidental and JP Morgan chase.
Yep. They needed that to pay CVX for being smarter than them in APC deal
At least Oxy got a billion from the govt.