By Vicki Hollub has made quite an impact during her tenure as CEO of Occidental Petroleum. One of the most notable achievements under her leadership was the controversial acquisition of Anadarko and its valuable West Texas shale deposits, which she managed to secure against tough competition from Chevron. However, not everyone was convinced that she made the right move, with critics, including activist investor Carl Icahn, arguing that she overpaid for the deal.
Unfortunately, just as things were starting to settle down, the oil market was hit hard by the Covid pandemic. But now, as the industry begins to recover, it seems that Hollub’s strategic decisions are paying off. Icahn has now cashed out, and even Warren Buffett, whose Berkshire Hathaway played a crucial role in financing the Anadarko acquisition through preferred shares, has been increasing his stake in the company’s common shares. In fact, Oxy’s common shares have nearly tripled in value over the past three years.
Hollub’s focus on maximizing cash flow from Occidental’s new assets has been instrumental in enabling the company to start paying off its preferred shares. However, she has an even bigger vision for the future. Her plan involves making oil production more environmentally friendly by “going green.” The first step in this ambitious undertaking is to construct the largest facility in the world for capturing carbon dioxide directly from the air. Once the CO2 is captured, Occidental plans to sell credits to polluters.
But that’s not all. The next phase of Hollub’s plan involves injecting the captured CO2 into old shale wells, effectively storing it underground while simultaneously extracting more oil. This innovative approach not only helps reduce the amount of oil left untouched in pristine areas but also has the potential to significantly decrease carbon emissions.
Hollub is confident that other oil CEOs will follow suit as they realize the benefits of such a sustainable approach. With her unwavering determination and forward-thinking mindset, Vicki Hollub is paving the way for a greener future in the oil industry.
Contact Jack Hough: [email protected]
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