Energy Transition in Oil and Gas: The Role of Occidental Petroleum's Direct Air Capture (Dac)

Abstract

The global energy transition is an urgent response to the escalating challenges of climate change, with the oil and gas industry—historically a significant contributor to greenhouse gas emissions—facing increasing pressure to adapt. This paper examines
the role of Occidental Petroleum's Direct Air Capture (DAC) initiatives within the broader framework of energy transition, assessing its technological innovations, economic feasibility, and regulatory integration. The analysis highlights both the opportunities and challenges of integrating DAC as a decarbonisation strategy and evaluates its potential to align with global climate goals. This research recommends, among others, an increase in the rate of investment in scaling up DAC infrastructure through public-private partnerships to reduce costs and improve economic feasibility, and a stronger regulatory framework that adopts carbon capture technologies, ensuring that the oil and gas industry's transition to net-zero emissions is both effective and accountable. Nevertheless, this study questions the long-term commitment of traditional energy companies to transformative environmental practices, proposing that genuine decarbonisation requires comprehensive strategies beyond carbon capture alone.