Module: Introduction - Occidental Petroleum · 2018-01-19 · Module: Introduction Page: Introduction ... companies in the information and communications technology sector (ICT) and

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CDP Climate Change 2017 Information Request

Occidental Petroleum Corporation

Module: Introduction

Page: Introduction

CC0.1

Introduction

Please give a general description and introduction to your organization. Occidental Petroleum Corporation's (Oxy's) principal businesses consist of three segments: (1) oil and gas exploration and production; (2) midstream and marketing; and, (3) chemicals (OxyChem). The oil and gas segment explores for, develops and produces crude oil and condensate, natural gas liquids (NGL) and natural gas. The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas and carbon dioxide (CO2), and generates power. OxyChem is a leading manufacturer of PVC resins, vinyls, chlorine and caustic soda – key building blocks to life-enhancing products such as pharmaceuticals, water treatment chemicals, building materials and plastics. Everywhere we operate, Oxy applies a robust environmental risk management approach and operational practices to increase energy efficiency and reduce greenhouse gas emissions and air pollution, even while expanding our production. Oil and natural gas operations are the core of Oxy’s business. Our exploration and production activities are concentrated in three geographic regions: the United States, the Middle East and Latin America. In each of these regions, we focus on shorter-cycle and long-lived oil and gas assets where we can increase production by applying appropriate technology and advanced reservoir management practices. We believe that using existing infrastructure -- and avoiding, in many cases, the need to develop greenfield land, build new roads, pipelines and storage and processing facilities -- to recover additional oil and gas from existing fields provides significant life-cycle environmental benefits. Oxy’s CO2 Enhanced Oil Recovery (EOR) techniques for increased oil production is a key competitive advantage for the company. Oxy is an industry leader in applying this technology. CO2 EOR can have environmental benefits. Much of the CO2 purchased to implement the CO2 flood ultimately becomes permanently and safely trapped in the underground oil reservoir contributing to the reduction of future greenhouse gas emissions to the atmosphere. Each year we inject more than 700 billion cubic feet of CO2 into oil reservoirs in the Permian Basin, making Oxy the largest injector of CO2 for EOR in the Permian Basin, and among the largest globally.

CC0.2

Reporting Year

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Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2016 - Sat 31 Dec 2016

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

United States of America

Canada

Bolivia

Colombia

Oman

Qatar

Chile

CC0.4

Currency selection

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Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

CC0.6

Modules

As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

The Environmental, Health and Safety Committee of the Board of Directors is responsible for overseeing Oxy's management of issues regarding greenhouse gas emissions. This Committee is comprised of six independent directors and meets five times each year. It provides Board-level oversight on health, environmental,

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climate change and safety issues. The Board supports Oxy’s efforts to enhance energy efficiency of operations, control emissions of GHG and air pollutants, and to engage and educate stockholders and other public parties through voluntary reporting on Oxy’s environmental stewardship.

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these

incentives?

The type of incentives

Incentivized performance

indicator

Comment

All employees Monetary reward

Emissions reduction project Energy reduction project Efficiency project Behavior change related indicator Environmental criteria included in purchases

Oxy seeks to meet its strategic goals by continually measuring its success in its key performance metrics that drive total stockholder return. In addition to production growth and capital allocation and deployment, Oxy incorporates a range of health, environmental, safety and process metrics.

All employees Recognition (non-monetary)

Emissions reduction project Energy reduction project Efficiency project Behavior change related indicator Environmental criteria

Oxy's "On-the-Spot" recognition program rewards employees who demonstrate core values, promote a positive team environment and contribute to Oxy’s success.

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Who is entitled to benefit from these

incentives?

The type of incentives

Incentivized performance

indicator

Comment

included in purchases

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency

of monitoring

To whom are results

reported?

Geographical

areas considered

How far into the future are risks

considered?

Comment

Annually Board or individual/sub-set of the Board or committee appointed by the Board

all 1 to 3 years

Internal corporate engagement and discussion of longer-term risks and opportunities, particularly with regard to carbon and fossil fuels regulations, are reported to the Board and the Environmental, Health and Safety Committee.

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CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

Oxy's Health, Environment and Safety Management System provides a rigorous methodology to help the company identify and assess specific environmental, social and operational impacts across all our businesses with regard to climate risk, community resiliency and changes to regulatory frameworks. At the asset level, Oxy integrates climate change issues into business decision making through a multi-disciplinary committee of managers, several of whom meet directly with Oxy's Board Committee. Taking into consideration a range of energy scenarios, Oxy factors carbon pricing and energy intensity assumptions to understand a range of risk around commodity prices, returns on capital, and the risks and opportunities of GHG abatement and CO2 utilization options. The scope of this assessment includes the consideration of international accords, treaties, legislation, regulation and fiscal policy initiatives that may affect the raw materials, other inputs and costs to produce our products, and the demand for and the restrictions on the use of our products. The process of risk evaluation also includes potential physical and social impacts relating to severe weather events and disruption due to proximity to flood-prone and water-stressed areas. Opportunity evaluation includes the commoditization, marketing or beneficial use of low-carbon energy supplies, GHGs including CCS and CCUS. Oxy’s mitigation of GHG emissions include utilizing CO2 injection for enhanced oil recovery in concert with CCS as a means of permanently sequestering CO2 and the potential to mitigate greater amounts of CO2 through the expansion of CCS/CCUS. The U.S. Government and the Intergovernmental Panel on Climate Change (IPCC) both support CCUS as part of a suite of pathways to reduce anthropogenic carbon emissions. Crucially, the IPCC and International Energy Agency project that most climate change models cannot meet the 1.5-2 degrees Celsius global warming scenarios without using CCUS technologies.

CC2.1c

How do you prioritize the risks and opportunities identified?

Health, Environment and Safety (HES) risk management policies, standards and procedures are in-place at all operating locations and levels of the organization to identify, prioritize and apply feasible risk mitigation options. The company's Risk Management Community of Practice leverages the collective expertise of the company's professionals to share opportunities for improvement. Higher-level risks are reported, validated by business segment management and reviewed annually with senior management and the Environmental, Health and Safety Committee of the Board of Directors, assuring that HES risk management is among Oxy's highest priorities. These risks undergo rigorous analysis to identify, prioritize and implement appropriate mitigation measures that are designed to improve performance. Our risk management approach facilitates compliance with laws and regulations and the management of HES and social responsibility risks to improve overall business performance. It encourages individual responsibility, values quantifiable results and promotes communication among employees, contractors, neighboring communities, government authorities and other stakeholders. Opportunities are considered at the facility, business unit or corporate level, as appropriate, and are risk-weighted and prioritized with all other value creating opportunities using strategic and commercial business indicators consistent with our overall goal of maximizing total returns to stockholders.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

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Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

Our business decision-making process integrates climate change-related issues with other business priorities to help us effectively manage greenhouse gas (GHG) emissions, the social and economic impacts of Oxy’s energy use and further the company's commitment to be an efficient, low-cost producer of oil and gas and commodity chemicals. Efforts to mitigate or adapt to climate change while maintaining cost-effective energy and chemicals supplies and the reliable, energy-efficient production of electricity present both challenges and opportunities for society and for Oxy. Our longstanding policy is to seek continuous improvement in resource recovery, conservation, pollution prevention and energy efficiency. Oxy integrates climate change issues into our business decisions through a team of managers and employees, with oversight from the Board of Directors' Environmental, Health and Safety Committee. The process to integrate climate issues into the business strategy is multi-tiered, occurring at the corporate, business unit and facility levels. It involves a cross-section of staff and management at all three tiers. Oxy also engages with investors, industry working groups, NGOs and other experts to assess their input. Financial implications are assessed considering current and estimated future costs and prices for energy, raw materials and electricity, demand for fossil fuels and emission fees and permits. Oxy incorporates these considerations into business decision-making through management meetings. Our business strategy includes the risk and opportunity aspects associated with climate change, such as physical, regulatory changes, commercial and reputational. Disclosure of this process is found in the Occidental Annual Report, Form 10-K and at its Social Responsibility website. Oxy publishes information on our approach to reserves estimation and capital planning and allocation. The process used to estimate oil and gas reserves includes economic feasibility at the prevailing commodity prices; changes in proved reserves, including downward revisions of previous estimates due to changes in economic conditions. Oxy provides an Industry Outlook that identifies factors influencing the price of Oxy’s products. Also considered are the actions of governments, such as actual or proposed international, national, regional and state GHG control measures, the International Energy Agency (IEA) published scenarios and the recommendations of quasi-government agencies such as the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (FSB TCFD). Outcomes of this process to integrate climate change considerations into our business strategy help inform our active engagement with institutional stockholders, state and national-level regulators, environmental groups and other public stakeholders addressing climate risks. We work with governments, companies, peer companies in our industry sector and civil society organisations to facilitate the development of viable global policies and regulatory frameworks. The engagement with these stakeholders has initiated a constructive dialogue. Oxy participates in domestic and international industry initiatives, such as the IPIECA Task Force on

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Climate Change and the Global Carbon Capture and Storage Institute that focus on GHG mitigation solutions and global climate change-related risks and opportunities.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price on carbon?

Yes

CC2.2d

Please provide details and examples of how your company uses an internal price on carbon

Oxy has integrated certain carbon pricing scenarios into the economic valuations of our proven reserves and to test our portfolio. Oxy has developed annual GHG price forecasts for companywide use in long-range planning and new project investment-related evaluations. The impacts of carbon pricing, among other considerations, on new investment projects are reviewed in light of the specific investment criteria, operating context and life-cycle of the project. If a carbon regulation is in effect in a particular country where we are doing business, the cost of carbon is part of the base financial analysis. Example: Oxy is a global leader in the application of Enhanced Oil Recovery (EOR) using carbon dioxide (CO2 ) to generate growth of its production and reserves. Operating more than 30 active CO2 EOR projects, Oxy injects over 700 billion cubic feet of CO2 each year. CO2 represents a current operating cost to Oxy’s EOR business and a future business opportunity to realize revenues from carbon capture and from the utilization of other anthropogenic sources of CO2. Oxy prices the cost of CO2 recycled from its own resources and the purchase price of additional supply of CO2 from industrial producers and commercial suppliers. Under § 45Q of the current Internal Revenue Code, there is a credit of $10 per metric ton of qualified CO2 that is captured as a tertiary injectant in a qualified EOR project, and disposed of in secure geological storage. In 2016, Oxy gained first-ever approval from the U.S. EPA to use a Measuring, Reporting and Verification (MRV) Plan to measure and account for the amount of greenhouse gases that are injected and sequestered safely underground through our CO2 EOR operations in West Texas. Since then, Oxy has received approval for a second MRV Plan at an additional CO2 facility.

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

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Direct engagement with policy makers Trade associations Other

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

Adaptation resiliency

Support

Oxy engages the U.S. EPA and Department of Energy, among other agencies, to explain our use of anthropogenic carbon dioxide (CO2) for enhanced oil recovery (EOR) operations. Oxy received approval from the U.S. Government for a first-of-its-kind Monitoring, Reporting and Verification (MRV) Plan that quantifies the amount of CO2 sequestered during CO2 EOR. The MRV Plan compliments our statutory GHG emissions reporting to the EPA. Oxy works with the National Enhanced Oil Recovery Initiative (NEORI) to support Carbon Capture Utilization and Storage (CCUS) incentive legislation and fiscal policies to spur commercial deployment of technologies to enable the capture of anthropogenic CO2 and the permanent and safe geologic storing of CO2 underground.

Advocacy to support legislation to make the existing federal CCUS incentive permanent so greater amounts of anthropogenic CO2 will be captured and sequestered during CO2 EOR operations, thereby reducing CO2 emissions to the atmosphere.

Mandatory carbon reporting

Support with minor exceptions

Oxy engages the U.S. EPA and associated state-level agencies on the EPA Greenhouse Gas Reporting Program (GHGRP), both directly and through its trade associations. Oxy monitors changes in applicable regulations, comments on technology, management systems for collecting and reporting data and provides information on testing and data collection to improve the GHGRP requirements and accuracy of the data collected.

Oxy works through its trade associations and independently with the U.S. EPA.

Regulation of methane emissions

Neutral

Oxy is an active and longstanding voluntary participant in the U.S. EPA Natural GasSTAR program and the Global Methane Initiative. Working collaboratively with the EPA, Oxy has helped to develop the GasSTAR Program guidelines, tested practices and technology and has implemented solutions aimed to reduce fugitive methane emissions. Oxy also engaged with EPA during the development of its recently promulgated methane emission rulemaking by offering technical data and ideas for improving the effectiveness of the rules.

The U.S. EPA, the federal Bureau of Land Management and their counterparts have adopted, or are in the process of adopting, regulations to further regulate methane emissions.

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Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

Carbon tax Neutral

Oxy watches and monitors closely the proposed legislative and/or fiscal measures with regards to an explicit price on carbon. Any approach to regulating GHG emissions should be holistic. Oxy does not support legislative proposals that regulate some sectors while omitting others.

Any legislative decision to impose mandatory GHG emission controls must be holistic and applied to all direct and indirect emitters of GHGs.

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on

climate change

consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

American Petroleum Institute

Consistent

API addresses climate change issues affecting the US oil and natural gas industry. API has a working group that oversees API’s Climate Challenge Program, including participation in government initiated voluntary GHG reduction programs, as well as the development of the API Compendium methodology for estimating oil and gas industry greenhouse gas emissions.

Oxy is an active member and contributor to API, engaging on certain GHG issues and other health, environment and safety standards and industry practices.

American Chemistry Council

Consistent

As an ACC member company, Oxy is committed to following the Responsible Care Guiding Principles: Promotion of pollution prevention, minimization of waste and conservation of energy and other critical resources at every stage of the life cycle of products; Cooperation with governments at all levels and organizations in the development of effective and efficient safety, health, environmental and security laws, regulations and standards.

Oxy is an active member and contributor to the ACC and is a Responsible Care Company. Oxy supports advocacy efforts on relevant issues, including product stewardship and other health, environment and safety standards and industry practices.

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Trade association

Is your position on

climate change

consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

Texas Oil and Gas Association

Consistent State level legislative advocacy; opposition to local/municipal oil and gas drilling ordinances that conflict with state law or policy.

Oxy is an active member of the TXOGA.

American Exploration and Production Council

Consistent AXPC engages with EPA to improve the Greenhouse Gas Reporting Framework standards and its leak detection and repair program methodologies for reducing GHG emissions.

Oxy is an active member of the AXPC.

National Enhanced Oil Recovery Institute

Consistent

NEORI was formed to help realize CO2-EOR’s full potential as an energy security, economic, and environmental strategy. NEORI advocates for carbon capture through EOR and by supporting legislation to expand and reform the Section 45Q federal tax credit.

Oxy is an active member of the NEORI.

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

CC2.3e

Please provide details of the other engagement activities that you undertake

Oxy engages with and belongs to the Global CCS Institute. Global CCS Institute is an international membership organization to accelerate the development, demonstration and deployment of carbon capture and storage, by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. The Institute’s membership consists of governments, private-sector companies, research bodies and non-government organizations committed to CCS as an integral pathway to a low-carbon future. Oxy is a member company to IPIECA, the global oil and gas industry association for environmental and social issues. Through IPIECA, Oxy is helping industry be part of the climate change solution by developing industry-relevant guidelines on GHG reporting, best practices on energy efficiency and GHG emissions management. IPIECA members meet several times each year and convene expert workshops to explore key climate-related issues, informing a broad base of global stakeholders such as government agencies and the UN Convention on Climate Change (UNFCCC) and the Inter-governmental Panel on Climate Change (IPCC).

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CC2.3f

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

Oxy’s participation in trade associations and other advocacy organizations is regularly evaluated based primarily on the value each association provides to help advance our corporate near and long-term interests. Trade association policy and advocacy positions typically reflect a consensus among members of the association with wide ranging interests and areas of focus. Oxy does not necessarily share or endorse every position taken by every trade association to which it belongs. Occidental's Board of Directors and the Government Affairs Committee approves Oxy’s membership in any advocacy group or trade organizations that require or would require annual dues payments in excess of $50,000.

CC2.3g

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

No

CC3.1a

Please provide details of your absolute target

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ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-

based target?

Comment

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in

scope

% reduction from base

year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in absolute Scope 1+2 emissions at

target completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comment

CC3.1d

Please provide details of your renewable energy consumption and/or production target

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ID

Energy types

covered by target

Base year

Base year energy for energy type covered

(MWh)

% renewable

energy in base year

Target year

% renewable

energy in target year

Comment

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete (time)

% complete (emissions or renewable energy)

Comment

CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

(i) Fossil fuels and fossil-fuel derived chemicals are essential to the dramatic increases in life expectancy, industrial productivity, life-saving technology innovation and economic wealth generation. Oxy does not believe that setting absolute GHG emission reduction goals is an effective way for an oil, gas and chemical company to supply life-essential products while responsibly managing climate risks. Oxy will continue to report publicly and transparently on its overall GHG emissions management and environmental stewardship programs. As the company engages with its stockholders and representatives of relevant government and regulatory agencies on effective ways to mitigate and adapt to climate change, Oxy’s position on the relevance and effectiveness of emissions target(s) may evolve. (ii) Oxy is committed to responsible environmental stewardship throughout its operations. We consistently assess and manage our GHG emissions and pursue continuous improvement in the efficient production of oil and gas and commodity chemicals. Oxy will pursue lower carbon intensive sources of energy including renewable energy sources that leverage the company’s strengths and that can be deployed with competitive economic returns.

CC3.2

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Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

aggregation

Description of product/Group of products

Are you

reporting low carbon product/s or avoided emissions?

Taxonomy, project

or methodology used to classify product/s as low

carbon or to calculate avoided

emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon

product/s in the

reporting year

Comment

Group of products

By using CO2 injection with other EOR technologies, Oxy has been able to recover significantly more of the oil in place in existing reservoirs, thereby increasing the productivity and lengthening the life of existing fields. Essentially all injected CO2 becomes sequestered in the oil and gas reservoir. Leveraging the lessons learned from CO2 injection for CO2 EOR, there is the potential to significantly reduce GHG emissions through underground injection of CO2, if it can be done at sufficient scale.

Avoided emissions

Other: US EPA Monitoring, Reporting and Verification (MRV) Plan, as part of the GHGRP

0% Less than or equal to 10%

In 2016, Oxy spent approximately 10% of capital budget to its Permian EOR business in order to add to existing facilities to increase CO2 production and injection capacity.

Company-wide

The development and production of natural gas as a cleaner fuel for power generation, heating and transportation.

Low carbon product

Other: API Compendium of GHG Emissions Estimation Methodologies for the Oil and Natural Gas Industry

8.4% Less than or equal to 10%

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Level of

aggregation

Description of product/Group of products

Are you

reporting low carbon product/s or avoided emissions?

Taxonomy, project

or methodology used to classify product/s as low

carbon or to calculate avoided

emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon

product/s in the

reporting year

Comment

Product

OxyChem is developing a new raw material for use in the production of an advanced climate-friendly refrigerant. This new product produces a refrigerant with low global warming potential and ozone depletion potential. The refrigerant is approved by the U.S. EPA and meets European Union regulatory requirements for automobile air conditioning systems.

Low carbon product

Addressing the Avoided Emissions Challenge- Chemicals sector

0% Less than or equal to 10%

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 0 0

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Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

To be implemented* 1 0

Implementation commenced* 2 3700000

Implemented* 5 29600

Not to be implemented 0 0

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Low carbon energy installation

On-site combined wind and solar PV power generation

Scope 1

Voluntary

16-20 years

Energy efficiency: Processes

Construction of gas-fired combined heat and power facility

Scope 1

Voluntary

>30 years


Electrification of well pad and drilling sites, commensurate fuel switching from diesel generators

Scope 1

Voluntary

3-5 years

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Activity type




Scope



(unit currency


Investment required

(unit currency -


Payback period


the initiative

Comment

Waste recovery

Installation of methane Leak Detection and Repair (LDAR) systems and Vapor Recovery Units (VRU) for pumps, valves and controllers; infrared camera surveys on a routine basis to complement LDAR program, along with an active Management of Change Program using Maximo tracking and work order maintenance; pipeline compressor optimization.

Scope 1

Voluntary Mandatory

3-5 years

Certain projects undertaken as part of compliance programs (e.g. U.S. EPA GHGRP and Subpart W), or are voluntary projects to realize cost savings, and pilot new technologies and standards in collaboration with industry and regulatory partners.


Improve and/or maintain power generation fleet reliability in concert with our role in the Texas Demand Responsive Service, which helps the grid operator (ERCOT) reduce emissions and maintain reliability.

Scope 1 Scope 2 (location-based)

Voluntary

<1 year

Process emissions reductions

OxyChem plants in Texas and Louisiana benefited from retrofitting equipment that improved energy efficiency resulting in cumulated energy savings of 387,000 MMBTU, or

24000 Scope 1

6-10 years

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Activity type




Scope



(unit currency


Investment required

(unit currency -


Payback period


the initiative

Comment

70,000 barrels of oil equivalent.

Energy efficiency: Building services

Installation of motion sensors on office lighting; automated power setting controls and reducing plug load demands.

Scope 1 Scope 2 (location-based)

Transportation: use

Employee incentives for using higher occupancy vehicles and multi-modal commuting options.

Scope 3

Voluntary

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards

Internal price on carbon

Other Capital projects which meet investment return criteria and result in energy efficiency and GHG emissions reductions.

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CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section reference

Attach the document

Comment

In voluntary communications

Complete http://www.oxy.com/SocialResponsibility

Oxy's Social Responsibility (SR) reporting focuses on the policies, objectives, performance and activities of the company and its subsidiaries. Our corporate website provides updates to year-end performance and information on ongoing activities, environmental stewardship practices and annual GHG emissions performance.

In voluntary communications

Underway - this is our first year

Oxy is crafting a climate assessment report, in response to a 2017 shareholder proposal, to compliment the company's existing compendium of

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Publication

Status


Attach the document

Comment

climate-related and GHG emissions performance disclosures at our corporate website and in the Annual Report.

In other regulatory filings

Complete Risk Factors, pg. 7 https://www.cdp.net/sites/2017/49/13649/Climate Change 2017/Shared Documents/Attachments/CC4.1/OXY2016_AR.pdf

2016 Annual Report and Form 10-K

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

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Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Air pollution limits

In the U.S., there is uncertainty over new air pollution regulation, primarily as it relates to EPA GHG permitting regulations and policies.

Increased operational cost

3 to 6 years

Direct Likely Unknown

Oxy’s HESMS integrates compliance into our risk and operations management structure.

Compliance and management costs are integrated into our operating cost structure.

Emission reporting obligations

In the U.S., at the federal and state level, Oxy is required to identify certain GHG emissions in greater detail than previously required.


Up to 1 year

Direct Virtually certain

Unknown



Emission reporting obligations

The U.S. EPA regulates methane as a GHG under the new source performance standards (“Subpart OOOO”).


1 to 3 years

Direct More likely than not

Unknown

Unknown until regulation has been defined and applied to applicable Oxy owned assets.



Fuel/energy taxes and regulations

In the U.S., Oxy could be subject to federal legislation that could impact fuel/energy prices or the demand for these products or impose additional energy taxes.


>6 years Indirect (Supply chain)

Unknown Unknown

Establishment of a global or federal carbon pricing mechanism and pricing on CO2 could stimulate Carbon Capture and Storage project

Oxy’s longstanding policy is to seek continuous improvement in resource recovery, pollution prevention and energy efficiency. Oxy has ongoing efforts

Business development, compliance and management costs are integrated into our operating cost structure.

23

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Also, there is potential indirect exposure over the next 5 years to higher electricity prices through suppliers.

development. This would have implications both in terms of increased demand for our products but also potential new revenues from CO2 storage.

focused on identifying cost-effective and environmentally sound solutions that yield continuous improvement in the management of GHG, including the opportunity of expanding the use of CCS/CCUS technologies.

Uncertainty surrounding new regulation

Generally, efforts by various U.S. and foreign jurisdictions to propose or adopt legislation, regulations or policies, some of which have been adopted, seek to control or reduce emissions of greenhouse gases or consumption of fossil fuels. Although the effect of these efforts on Oxy is uncertain, Oxy faces risks of delays in new or expanded development


>6 years Direct Unknown Unknown

Establishment of a global or federal carbon pricing mechanism and pricing on CO2 could stimulate Carbon Capture and Storage project development. This would have implications both in terms of increased demand for our products but also potential new revenues from CO2 storage.

Oxy’s longstanding policy is to seek continuous improvement in resource recovery, pollution prevention and energy efficiency. Oxy has ongoing efforts focused on identifying cost-effective and environmentally sound solutions that yield continuous improvement in the management of GHG and other air emissions associated with our oil and gas and chemical

Business development, compliance and management costs are integrated into our operating cost structure.

24

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

projects, increases in taxes, increases in costs to produce and reductions in the demand for, and restrictions on the use of, its products.

production businesses.

CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Tropical cyclones (hurricanes and typhoons)

Oxy has several facilities located near the Gulf Coast (Texas and Louisiana) that have been in the path of hurricanes, which have at times resulted in the interruption of some operations. Significant changes

Reduction/disruption in production capacity

Unknown Direct Very unlikely

Low Low

Third party and self-insurance with respect to losses.

Low

25

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

in weather or climate could, unless the impacts of such changes were mitigated, affect access to or operation of these or other Oxy facilities. However, Oxy is not aware of credible projections that natural disasters, whether or not driven by changes in climate could result in immitigable impacts are probable within the anticipated operating life of its facilities.

Change in precipitation extremes and droughts

The occurrence of events, such as floods or droughts, could cause operations to cease or be curtailed, and may negatively affect Oxy’s businesses and the communities in which it operates.


Unknown Direct Unknown Low Low

Oxy’s HESMS integrates water issues into our risk and operations management structure. Also, third party and self-insurance with respect to losses.

Low

Change in precipitation extremes

The occurrence of prolonged drought could cause Oxy’s on-site power


Unknown Direct Unknown Low Low

Oxy’s HESMS integrates water issues into our risk and

Low

26

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

and droughts

generation to cease or be curtailed, and may negatively affect grid-supplied power.

operations management structure. Also, third party and self-insurance with respect to losses.

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Uncertainty in market signals

Considering the uncertain outcome and timing of both actual and proposed international, national and state climate related measures, it is difficult to predict their specific business or market-based effects. The likelihood that international, national and state level governments take different, or even contradictory, legal, regulatory and market-based approaches risks creating a patchwork of


>6 years Direct More likely than not

Low Difficult to predict

Oxy’s HESMS integrates market uncertainty into our risk and operations management structure.


27

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

incompatible and incoherent market signals.

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

28

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulation Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management


Oxy's natural gas reserves could become more valuable if future changes in energy demand include a shift to natural gas.

Increased demand for existing products/services

>6 years Direct Very likely Low-medium

Difficult to predict

Match investment to increase production with growth in demand

Oxy has management systems and existing natural gas infrastructure, thus costs are low to manage this potential opportunity.

Carbon taxes

Because of Oxy’s expertise in enhanced oil recovery (EOR) techniques,


Unknown Direct Unknown Unknown

Establishment of a carbon pricing mechanism and pricing on

Match investment to increase production

The incremental cost is low to manage this

29

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

particularly CO2 EOR, Oxy's oil reserves could become more productive from regulatory changes that drive the capture and sequestration of anthropogenic CO2 or burden greenfield oil developments.

CO2 could also stimulate CCS/CCUS projects to market. This would have implications both in terms of increased demand for our products but also potential new revenues from CO2 storage.

with growth in demand

potential opportunity


The expansion of enforcement of methane emissions from new sources to existing sources could accelerate the use of cutting-edge technologies and processes to control and capture methane emissions, therefore modestly increasing the marketable volume of

Increased production capacity

1 to 3 years

Direct More likely than not

Low Difficult to predict

Oxy has ongoing efforts to capture methane emissions and control leaks.

Difficult to predict based on range of technical solutions available.

30

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

produced methane.

CC6.1b

Please describe your inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

CC6.1c

Please describe your inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Fluctuating socio-economic conditions

Analyses of global energy demand by the International Energy Agency, OECD, and World Economic Forum, and energy industry groups


3 to 6 years

Direct Very likely Medium Difficult to predict

Oxy’s management approach at both company and asset levels will factor these trends and pricing

Management costs are integrated into our operating cost structure.

31

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

consistently forecast growth in demand for all forms of energy over the next 15-25 years, particularly in faster-growing Asian economies. Growth in GDP, population and per capita living standards are expected to create the commensurate increase in demand for fossil fuels, as well as renewable and alternative energy sources.

signals as part of operations and capital allocation decisions.

Reputation

As a leader in EOR and CO2 EOR, Oxy extends oil and gas production from long-lived assets. We believe that using CO2 EOR technologies and existing infrastructure to recover additional oil and gas from mature oil fields while

Wider social benefits

Up to 1 year

Direct Unknown Low

Oxy plans to invest $195 million in 2017 for additional and expanded CO2 in the Permian Basin. Establishment of a global or federal carbon pricing mechanism and on CO2 could stimulate CCS project

Oxy has a unique competitive advantage in CO2 EOR its ability to share knowledge between our operations to optimize production, and to leverage our significant midstream infrastructure

Management costs are integrated into our operating cost structure.

32

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

demonstrating that large-scale geologic sequestration of CO2 that otherwise would be emitted provides significant life-cycle environmental benefits.

development. This would have implications both in terms of increased demand for our products but also potential new revenues from CO2 storage.

and marketing operations.

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

Oxy’s management believes that forecasts regarding future physical changes driven by climate parameters are, at this time, too speculative to generate a substantive change in our business operations.

33

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Sat 01 Jan 2011 - Sat 31 Dec 2011

9600000

Scope 2 (location-based) Sat 01 Jan 2011 - Sat 31 Dec 2011

6400000

Scope 2 (market-based) Thu 04 May 2017 - Thu 04 May 2017

0

CC7.2

34

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009

US EPA Mandatory Greenhouse Gas Reporting Rule

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 IPCC Fourth Assessment Report (AR4 - 100 year)

CH4 IPCC Fourth Assessment Report (AR4 - 100 year)

N2O IPCC Fourth Assessment Report (AR4 - 100 year)

CC7.4

35

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Crude oil 20.29 Other: MMTC/BTU API GHG Compendium (2009)

Other: Natural Gas Liquids (NGL) 17.5 Other: kg C/J API GHG Compendium (2009)

Natural gas 14.47 Other: MMTC/BTU API GHG Compendium (2009)

Further Information

Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

10450000

CC8.3

36

Please describe your approach to reporting Scope 2 emissions

Scope 2, location-based

Scope 2, market-

based

Comment

We are reporting a Scope 2, location-based figure

Oxy applies the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-based

Scope 2, market-based (if applicable)

Comment

5380000

CC8.4

Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes

CC8.4a

37

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1

emissions from this source

Relevance of

location-based Scope 2 emissions

from this source

Relevance of market-based

Scope 2 emissions from this source (if

applicable)

Explain why the source is excluded

The flaring of natural gas in foreign countries where the state-owned oil company owns the gas.

Emissions are relevant and calculated, but not disclosed

No emissions from this source

Oxy does not exercise operational control over certain assets and JVs.

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty range

Main sources of

uncertainty

Please expand on the uncertainty in your data

Scope 1 More than 10% but less than or equal to 20%

Data Gaps Assumptions Extrapolation Metering/ Measurement Constraints Sampling

The value shown for uncertainty is an estimate. Most of our GHG emissions estimates are based on metered fuel flows and gas compositions but some are based on engineering estimates, which are inherently less precise. The degree of uncertainty varies by the type of estimate, which is influenced by the age, and sophistication of the control and measurement systems at a facility.

38

Scope

Uncertainty range

Main sources of

uncertainty

Please expand on the uncertainty in your data

Scope 2 (location-based)

More than 10% but less than or equal to 20%

Assumptions Metering/ Measurement Constraints

Oxy does not measure certain office building emissions.

Scope 2 (market-based)

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verification or

assurance cycle in place

Status in the

current reporting year

Type of verification or

assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions

verified (%)

39

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emission Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based or

market-based figure?

Verification or


Status in the


Type of verification

or assurance



Relevant standard

Proportion of

reported Scope 2 emissions verified

(%)

CC8.8

40

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified

Comment

No additional data verified

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

Yes

41

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

North America 7800000

South America 170000

Africa and Middle East 2470000

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

Oil and gas 4390000

Chemicals 6050000

42

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


Further Information

43

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1

Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed electricity,

heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (MWh)

North America 5200000

South America 90000

Africa and Middle East

60000

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business division

44

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2, location-based (metric tonnes CO2e)


Oil and gas 2490000

Chemicals 2890000

CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility



CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity



45

Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Heat 0

Steam 1223026

Cooling 0

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

47310000

CC11.3a

46

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Distillate fuel oil No 2 13000

Natural gas 47300000

Propane 100

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with low

carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes CO2e per

MWh)

Comment

Direct procurement contract with a grid-connected generator or Power Purchase Agreement (PPA), where electricity attribute certificates do not exist or are not required for a usage claim

2397000 Nuclear, hydropower and non-hydropower renewable sources

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

47

Total electricity consumed

(MWh)

Consumed

electricity that is purchased (MWh)

Total electricity produced

(MWh)

Total renewable

electricity produced (MWh)

Consumed renewable

electricity that is produced by company (MWh)

Comment

13829000 8947000 10615000 0 0

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value (percentage)

Direction of change

Please explain and include calculation

Emissions reduction activities

1 Decrease Enhanced facility maintenance; emissions control techniques and methane Leak Detection and Repair (LDAR) regiments; gas capture and reuse projects; regulatory requirements to install vapour recovery and gas compression units; reduced flaring.

Divestment 1 Decrease Divestment of operations in the Piceance Basin (Colorado), Eagle Ford (South Texas ) and Bahrain, Iraq, Libya and Yemen.

Acquisitions 1 Increase Acquired producing and non-producing leasehold acreage, CO2 properties and related infrastructure in the Permian Basin.

48

Reason

Emissions value (percentage)

Direction of change

Please explain and include calculation

Mergers 0 No change

Change in output 7 Increase Higher estimated direct emissions from U.S. domestic oil and gas production and higher estimated indirect emissions from chemicals operations.

Change in methodology

4 Increase Higher estimated direct emissions from U.S. domestic oil and gas production and operations due to the addition of new source categories, per U.S. EPA greenhouse gas reporting regulations.

Change in boundary 0 No change

Change in physical operating conditions

0 No change

Unidentified

Other

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

49

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

.00157 metric tonnes CO2e 10090000000 Location-based

38.3 Increase

Global emissions per unit of revenue were higher due to the combined effect of higher direct and indirect emissions and lower revenues on commodity prices realized. Since revenues (net sales) can vary significantly with the highly variable nature of oil and gas prices and hydrocarbon-based products, emissions/revenues is not a useful intensity metric for our industry.

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator

Metric

denominator: Unit total

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

.072 metric tonnes CO2e barrel of oil equivalent (BOE)

219730000 Location-based

21.1 Increase

Global emissions per unit of production (per boe) were higher due to the combined effect of higher emissions and lower revenues. The year over year increase is an outlier compared to Oxy’s long-term emissions management performance. For the period 2011-2016, emissions per boe declined from .074 to .072, a 7.5% decrease in emissions intensity.

Further Information

50

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

CC13.2a

51

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits canceled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation

methodology

Percentage of emissions

calculated using data obtained from suppliers or value chain

partners

Explanation

Purchased goods and services

Not relevant, explanation provided

The total estimated amount of purchased goods and services are not relevant to our global gross emissions

Capital goods Not relevant, explanation provided

The total estimated amount of capital goods are not relevant to our global gross emissions

Fuel-and-energy-related activities (not included in Scope 1 or 2)


GHG Protocol Guidance not applicable

GHG Protocol Guidance not applicable

52


Evaluation status

metric tonnes CO2e


methodology



partners

Explanation

Upstream transportation and distribution

Relevant, not yet calculated

Upstream transportation and distribution related emissions have not yet been estimated or measured

Waste generated in operations


Total estimated waste volumes are not relevant to our global gross emissions

Business travel Not relevant, explanation provided

Air travel and commuting miles not relevant to our global gross emissions

Employee commuting Not relevant, explanation provided

Air travel and commuting miles not relevant to our global gross emissions

Upstream leased assets Relevant, not yet calculated

Emissions from upstream leased assets have not yet been estimated or measured

Downstream transportation and distribution


Occidental does not have downstream operations

Processing of sold products Relevant, not yet calculated

Oxy has not yet estimated or calculated emissions related to the processing of sold products

Use of sold products Not relevant, explanation provided

Oxy has not yet estimated or calculated emissions related to the processing of sold products

End of life treatment of sold products

Not evaluated Oxy does not have downstream/consumer end product operations. Oxy does not control the use of its products

Downstream leased assets Not relevant, explanation provided

Oxy does not have downstream assets or operations

Franchises Not relevant, explanation provided

Oxy does not have franchise operations

53


Evaluation status

metric tonnes CO2e


methodology



partners

Explanation

Investments Not relevant, explanation provided

Oxy does not have investments or off-balance sheet ventures

Other (upstream)

Other (downstream)

CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Verification or


Status in the


Type of

verification or assurance



Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

54

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

No, we don’t have any emissions data

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3

emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers Yes, other partners in the value chain

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

Oxy is committed to building trust with our stakeholders through regular and transparent communication and engagement. By actively engaging with our stakeholders, we strive to understand and address their interests and concerns and develop mutually beneficial outcomes. We often partner with local, regional and international institutions that benefit communities by promoting public health and safety, environmental stewardship, economic development, education and cultural life. Oxy's stakeholder engagement process includes the identification of key stakeholders; an assessment of stakeholder interests and issues; an evaluation of the

55

community's socio-economic needs; the development and implementation of a stakeholder engagement plan. Oxy’s management hold regular dialogue, meetings and consultations with stakeholder groups. For example, Oxy engages with investors and industry working groups (e.g., IPIECA, API, Society of Petroleum Engineers and the Global CCS Institute) to address issues such as global climate change, human rights and water management and risks. Based on these engagements and dialogue, Oxy has addressed and reported on company environmental performance and shared best management practices with suppliers. Also, OxyChem works with stakeholders to ensure products deliver their intended benefits to society while protecting public health and the environment. As a participant in the American Chemistry Council’s Responsible Care® initiative, OxyChem applies a management system that regularly measures and tracks performance through established metrics and extends best environmental stewardship, safety and security practices to its business partners and suppliers. OxyChem facilities also regularly participate in community advisory panels to discuss HES&S improvements, performance and other items of interest.

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Type of engagement

Number of suppliers

% of total spend (direct and indirect)

Impact of engagement

Compliance 100% Due to commercial confidentiality, we decline to disclose our supplier base and the nature of any direct engagements.

CC14.4c

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

56

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

Christopher Thomas Senior Advisor Environment/Sustainability manager

Further Information

Module: Oil & Gas

Page: OG0. Reference information

OG0.1

Please identify the significant petroleum industry components of your business within your reporting boundary (select all that apply)

Exploration, production & gas processing Storage, transportation & distribution Specialty operations

Further Information

Page: OG1. Production, reserves and sales by hydrocarbon type - (1 Jan 2016 - 31 Dec 2016)

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OG1.1

Is your organization involved with oil & gas production or reserves?

Yes

OG1.2

Please provide values for annual gross and net production by hydrocarbon type (in units of BOE) for the reporting year in the following table. The values required are aggregate values for the reporting organization

Product

Gross production

(BOE)

Net production

(BOE)

Production

consolidation boundary

Comment

Natural gas condensate Natural gas liquids (NGL) Light oil Medium oil Heavy oil Shale oil Tight oil

152205000 Operational control

Conventional non-associated natural gas

29443000 Operational control

OG1.3

Please provide values for reserves by hydrocarbon type (in units of BOE) for the reporting year. Please indicate if the figures are for reserves that are proved, probable or both proved and probable. The values required are aggregate values for the reporting organization

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Product

Country/region

Reserves (BOE)

Date of assessment

Proved/Probable/Proved+Probable

Light oil Medium oil Shale oil Tight oil


960000000 Sat 31 Dec 2016

Proved

Natural gas condensate Natural gas liquids (NGL)


219000000 Sat 31 Dec 2016

Proved

Conventional non-associated natural gas


174000000 Sat 31 Dec 2016

Proved

OG1.4

Please explain which listing requirements or other methodologies you have used to provide reserves data in OG1.3. If your organization cannot provide data due to legal restrictions on reporting reserves figures in certain countries, please explain this

Reserves are presented in accordance with Item 1202(a)(2) to Regulation S-K under the U.S. Securities Exchange Act of 1934, under the heading “Supplemental Oil and Gas Information”. Proved reserves are stated on a net basis after applicable royalties.

OG1.5

Please provide values for annual sales of hydrocarbon types (in units of BOE) for the reporting year in the following table. The values required are aggregate values for the reporting organization

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Product

Sales (BOE)

Comment

Natural gas condensate Natural gas liquids (NGL) Light oil Medium oil Heavy oil Tight oil

5414260350 383 MBOPD x $38.73 worldwide average realized price, per 2016 Form 10-K

OG1.6

Please provide the average breakeven cost of current production used in estimation of proven reserves

Hydrocarbon/project

Breakeven cost/BOE

Comment

Crude oil (WTI) 50.00 Assumes after dividend and 5%-8% production growth

Natural gas (Henry Hub) 3.30 3.30/MCF assumes after dividend and 5%-8% production growth

OG1.7

In your economic assessment of hydrocarbon reserves, resources or assets, do you conduct scenario analysis and/or portfolio stress testing consistent with a low-carbon energy transition?

Yes, compatible with IEA 450 Yes, other

OG1.7a

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Please describe your scenario analysis and/or portfolio stress testing, the inputs used and the implications for your capital expenditure plans and investment decisions

Taking into consideration a range of energy scenarios and climate-risk frameworks, Oxy assesses potential risks and opportunities as part of its ongoing process to assess overall business risks and opportunities. Scenario planning, which factors intrinsic carbon pricing and energy intensity assumptions, enables us to understand a range of risk around commodity prices, expected returns on capital, and the risk and opportunity associated with various GHG abatement and CO2 utilization options. The scope of scenario assessment includes the consideration of international accords, treaties, legislation, regulation and government policy initiatives that may affect the raw materials, other inputs and costs to produce our products, and the demand for and the restrictions on the use of our products. The process of risk evaluation also includes potential physical and social impacts relating to severe weather events and disruption of operations due to proximity to flood-prone and water-stressed areas. Other aspects that influence risk factors and assumptions include potential physical risks, commercial and reputational risks; the actions of governments, such as actual or proposed international, national, regional and state GHG control measures; scenarios developed for the International Energy Agency (IEA) Energy Outlooks and; the recommendations of quasi-government agencies such as the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (FSB TCFD). Key elements include: • Considering a range of possible future carbon-constraint scenarios, including the IEA 450 Scenario, which articulates an energy pathway consistent with the goal of limiting the global warming to no more than 2°C • Developing strategic alternatives to maximize shareholder value in a future with either uncertain carbon constraints or with defined carbon budgets • Testing strategies under various scenarios • Developing actionable insights to enhance risk management related to more stringent regulation of CO2 emissions and potentially changed demand for oil and gas.

OG1.7b

Please explain why you have not conducted any scenario analysis and/or portfolio stress testing consistent with a low-carbon energy transition

Further Information

Page: OG2. Emissions by segment in the O&G value chain - (1 Jan 2016 - 31 Dec 2016)

OG2.1

Please indicate the consolidation basis (financial control, operational control, equity share) used to report the Scope 1 and Scope 2 emissions by segment in the O&G value chain. Further information can be provided in the text box in OG2.2

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Segment

Consolidation basis for reporting Scope 1 emissions

Consolidation basis for reporting Scope 2 emissions

Exploration, production & gas processing Operational Control Operational Control

OG2.2

Please provide clarification for cases in which different consolidation bases have been used and the level/focus of disclosure. For example, a reporting organization whose business is solely in storage, transportation and distribution (STD) may use the text box to explain why only the STD row has been completed

Occidental reports GHG emissions estimates based on share of ownership in oil and gas production facilities that we operate as well as emissions from facilities where we serve as the operator but may not own the facility. Estimates are not adjusted for the terms of complex Production Sharing Contracts and similar contracts, and do not include emissions from non-operated assets. Estimates exclude emissions from natural gas flaring in certain foreign countries in accordance with requirements of those governments or state-owned oil companies, such as when flaring is required for safe operations or due to lack of a market.

OG2.3

Please provide masses of gross Scope 1 carbon dioxide and methane emissions in units of metric tonnes CO2 and CH4, respectively, for the organization’s owned/controlled operations broken down by value chain segment

Segment

Gross Scope 1 carbon dioxide emissions (metric tonnes CO2)

Gross Scope 1 methane emissions (metric tonnes CH4)

Exploration, production & gas processing 3730000 25000

Specialty operations

OG2.4

Please provide masses of gross Scope 2 GHG emissions in units of metric tonnes CO2e for the organization’s owned/controlled operations broken down by value chain segment

62

Segment

Gross Scope 2 emissions (metric tonnes CO2e)

Comment

Exploration, production & gas processing 2490000

Specialty operations 2900000

Further Information

Page: OG3. Scope 1 emissions by emissions category - (1 Jan 2016 - 31 Dec 2016)

OG3.1

Please confirm the consolidation basis (financial control, operational control, equity share) used to report Scope 1 emissions by emissions category

Segment

Consolidation basis for reporting Scope 1 emissions by emissions category

Exploration, production & gas processing Operational Control

OG3.2

Please provide clarification for cases in which different consolidation bases have been used to report by emissions categories (combustion, flaring, process emissions, vented emissions, fugitive emissions) in the various segments

Occidental reports GHG emissions estimates based on share of ownership in oil and gas production facilities that we operate as well as emissions from facilities where we serve as the operator but may not own the facility or production. Estimates are not adjusted for the terms of complex Production Sharing Contracts and similar contracts, and do not include emissions from non-operated assets. Estimates exclude emissions from natural gas flaring in certain foreign countries in accordance with requirements of those governments or state-owned oil companies, such as when flaring is required for safe operations or due to lack of a market.

OG3.3

63

Please provide masses of gross Scope 1 carbon dioxide and methane emissions released into the atmosphere in units of metric tonnes CO2 and CH4, respectively, for the whole organization broken down by emissions category

Emissions category

Gross Scope 1 carbon dioxide emissions (metric tonnes CO2)

Gross Scope 1 methane emissions (metric tonnes CH4)

Combustion 2900000 1500

Flaring 740000 1500

Process emissions 20000 1600

Vented emissions 64000 12000

Fugitive emissions 15000 9000

OG3.4

Please describe your organization’s efforts to reduce flaring, including any flaring reduction targets set and/or its involvement in voluntary flaring reduction programs, if flaring is relevant to your operations

Oxy strives to minimize flaring of natural gas by bringing natural gas to market rather than flaring or emitting it to the atmosphere. Oxy devotes significant resources to capture emissions of methane and other organic compounds, both in design and construction of new facilities and in retrofitting existing facilities (e.g., adopting "green completion" practices). In upstream oil and gas operations, flaring is necessary for safety reasons when gas processing plants have periodic plant shutdowns or turnarounds to conduct inspections, and during repair and maintenance that cannot occur during normal operations. Oxy strives to achieve 100% reduction of all routine flaring of natural gas. Oxy has developed business-specific plans to minimize gas flaring. For example, with the active support of our partner, Qatar Petroleum, Oxy Qatar has successfully reduced flaring emissions by more than 98 percent since 2005 and continues to work at reducing flaring in Qatar. In its domestic oil and gas operations, Oxy has achieved a 30% reduction in CO2 emissions from gas flaring (primarily the result of non-routine operations, maintenance and weather related upsets) over the period of 2012-2016. This reduction is the result of investments in gas process plant capacity, enhanced control systems and upgraded gas handing infrastructure.

Further Information

Page: OG4. Transfers & sequestration of CO2 emissions - (1 Jan 2016 - 31 Dec 2016)

OG4.1

64

Is your organization involved in the transfer or sequestration of CO2?

Yes

OG4.2

Please indicate the consolidation basis (financial control, operational control, equity share) used to report transfers and sequestration of CO2 emissions

Activity

Consolidation basis

Transfers Operational Control

Sequestration of CO2 emissions Operational Control

OG4.3

Please provide clarification for cases in which different consolidation bases have been used (e.g. for a given activity, capture, injection or storage pathway)

OG4.4

Using the units of metric tonnes of CO2, please provide gross masses of CO2 transferred in and out of the reporting organization (as defined by the consolidation basis). Please note that questions of ownership of the CO2 are addressed in OG4.6

Transfer direction

CO2 transferred – Reporting year

CO2 transferred in

CO2 transferred out

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OG4.5

Please provide clarification on whether any oil reservoirs and/or sequestration system (geological or oceanic) have been included within the organizational boundary of the reporting organization. Provide details, including degrees to which reservoirs are shared with other entities

In the Permian Basin (West Texas and Southeast New Mexico), nearly three-quarters of Oxy's enhanced oil recovery (EOR) business unit oil production is from fields that actively employ CO2 flood technology. Oxy’s CO2 EOR systems and sequestration facilities in the Permian Basin are included within the defined boundary of our reporting to CDP.

OG4.6

Please explain who (e.g. the reporting organization) owns the transferred emissions and what potential liabilities are attached. In the case of sequestered emissions, please clarify whether the reporting organization or one or more third parties owns the sequestered emissions and who has potential liability for them

In the case of CO2 that would otherwise be emitted but has been captured for use in enhanced oil recovery, Oxy owns the CO2.

OG4.7

Please provide masses in metric tonnes of gross CO2 captured for purposes of carbon capture and sequestration (CCS) during the reporting year according to capture pathway. For each pathway, please provide a breakdown of the percentage of the gross captured CO2 that was transferred into the reporting organization and the percentage that was transferred out of the organization (to be stored)

Capture pathway in CCS

Captured CO2 (metric tonnes CO2)

Percentage transferred in

Percentage transferred out

OG4.8

Please provide masses in metric tonnes of gross CO2 injected and stored for purposes of CCS during the reporting year according to injection and storage pathway

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Injection and storage pathway

Injected CO2 (metric tonnes CO2)

Percentage of injected CO2 intended for long-

term (>100 year) storage

Year in which injection began

Cumulative CO2 injected and stored

(metric tonnes CO2)

CO2 used for enhanced oil recovery (EOR) or enhanced gas recovery (EGR)

4200000 100% 2016 4200000

OG4.9

Please provide details of risk management performed by the reporting organization and/or third party in relation to its CCS activities. This should cover pre-operational evaluation of the storage (e.g. site characterization), operational monitoring, closure monitoring, remediation for CO2 leakage, and results of third party verification

Oxy performs all required pre-operational evaluations and operational monitoring of its CO2 flood projects required by the State of Texas, which has been delegated the U.S. EPA's authority to administer the underground injection program, as required by the U.S. Clean Water Act. Oxy’s Hobbs and Denver City CO2 EOR Units in the Permian Basin have approval from the U.S. EPA to inject CO2 with the subsidiary purpose of establishing long-term sequestration of a measurable quantity of CO2. The risk management approach and monitoring parameters for both Oxy facilities are in accordance with 40 CFR 98.440-449 (Subpart RR). Specifically, the approved Monitoring, Reporting and Verification (MRV) Plan for each CO2-EOR facility entails a risk-based monitoring process that utilizes Oxy’s reservoir management system to identify and prevent potential leakage, an inspection process, reporting of CO2 flows against baseline storage volume and reservoir data and a robust quality assurance program to ensure data integrity and record retention.

Further Information

Page: OG5. Emissions intensity - (1 Jan 2016 - 31 Dec 2016)

OG5.1

Please provide estimated emissions intensities (Scope 1 + Scope 2) associated with current production and operations

67

Year ending

Segment

Hydrocarbon/product

Emissions intensity (metric tonnes

CO2e per thousand

BOE)

% change

from previous

year

Direction of change from

previous year

Reason for change

2016 Exploration, production & gas processing

Natural gas condensate Natural gas liquids (NGL) Shale gas Light oil Medium oil Heavy oil Shale oil

.031 18.7 Increase

Growth in production contributed to an emissions intensity increase. Note that 2015 -2016 change is an outlier. From 2011-2016, the intensity decreased by 14%.

OG5.2

Please clarify how each of the emissions intensities has been derived and supply information on the methodology used where this differs from information already given in answer to the methodology questions in the main information request

No difference

Further Information

Page: OG6. Development strategy - (1 Jan 2016 - 31 Dec 2016)

OG6.1

For each relevant strategic development area, please provide financial information for the reporting year

68

Strategic development area

Describe how this relates to your business

strategy

Sales generated

EBITDA

Net assets

CAPEX

OPEX

Comment

Other: CO2-EOR production

Oxy is the largest injector of CO2 for EOR in the Permian Basin, and one of the leaders globally in this technology. Underground injection of CO2, especially as practiced during enhanced oil recovery (EOR), is a ready and proven method for the large-scale geologic sequestration of CO2. Establishment of a future carbon pricing mechanism or pricing on CO2 could also stimulate new CCS/CCUS project development. This would have implications both in terms of increased demand for our products but also potential new revenue opportunities for CO2 storage.

2000000000

Acquired producing and non-producing leasehold acreage, CO2 properties and related infrastructure in the Permian Basin.

Carbon Capture and Storage (CCS)

Oxy’s CO2 EOR Units in the Permian Basin have approval from the U.S. EPA to inject CO2 with the subsidiary purpose of establishing long-term sequestration of a measurable quantity of CO2.

CAPEX/OPEX for sourcing CO2 and expanding CCS technologies are part of the $2 billion dedicated toward EOR business above.

OG6.2

Please describe your future capital expenditure plans for different strategic development areas


CAPEX

Total return expected from CAPEX investments

Comment

Other: CO2-EOR including CCS

195000000 15 CAPEX for sourcing CO2 and expanding CCS technologies are part of the $195 million dedicated toward EOR business in 2017.

OG6.3

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Please describe your current expenses in research and development (R&D) and future R&D expenditure plans for different strategic development areas


R&D expenses – Reporting year

R&D expenses – Future plans

Comment

Further Information

Page: OG7. Methane from the natural gas value chain

OG7.1

Please indicate the consolidation basis (financial control, operational control, equity share) used to prepare data to answer the questions in OG7

Segment

Consolidation basis

Exploration, production & gas processing Operational Control

OG7.2

Please provide clarification for cases in which different consolidation bases have been used

OG7.3

Does your organization conduct leak detection and repair (LDAR), or use other methods to find and fix fugitive methane emissions?

Yes

OG7.3a

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Please describe the protocol through which methane leak detection and repair, or other leak detection methods, are conducted, including predominant frequency of inspections, estimates of assets covered, and methodologies employed

Oxy has implemented a broad spectrum of projects and LDAR activities that reduced cumulative estimated methane emissions since 1990 through the year-end 2016 by more than 17.2 billion cubic feet. This corresponds to almost 8.65 million metric tons of CO2 equivalents or the same as the annual emissions from 2.5 coal-fired power plants. Oxy has an ongoing effort to maintain and improve the reliability of the equipment and facilities used in its oil and gas activities. Oxy works diligently to comply with the U.S. Environmental Protection Agency (EPA) rules to control emissions of volatile organic compounds (VOCs), including methane, from new hydraulically fractured gas wells and from oil wells. The New Source Performance Standards – Subpart OOOO, rely on proven technologies and best practices that are in use today to reduce methane and VOC emissions from oil and gas operations, including hydrocarbon storage tanks, equipment/compression leaks and pneumatic controller emissions. In 2016, Oxy completed 132 LDAR surveys in its Permian Basin acreage. This coverage included 173 equipment sites. Oxy employs cutting-edge technologies and processes to contribute to the decline in methane emissions. Among such efforts are: Adopting lower emission thresholds to eliminate leaks and to repair connections (e.g., valves, flanges, pump seals). Adopting "green completion" practices to capture gas at the wellhead during well completion and prevent its release to the atmosphere. Replacing diesel generators and engines with electric drives, where feasible. Installing air supply systems to control instruments, rather than using natural gas controls and instruments. Installing Vapor Recovery Units (VRUs) to capture and recover gas from certain equipment, rather than venting to atmosphere. Adopting better control devices (e.g., low-bleed or no-bleed pneumatic valves) to reduce methane emissions. Adopting cutting edge monitoring systems to help identify and eliminate sources of fugitive emissions. Oxy also uses Infrared (IR) cameras to visually identify possible emissions leaks. Equipment exhibiting possible leaks identified by IR cameras are further inspected and components are repaired or replaced, as appropriate. IR cameras are being used to monitor fugitive emissions on equipment and components such as pneumatic valves, plunger lift systems, storage tanks, compressors, glycol dehydrators and similar components, especially where the equipment or components are geographically dispersed or difficult to access.

OG7.3b

Please explain why not and whether you plan on conducting leak detection and repair, or other methods to find and fix fugitive methane emissions

OG7.4

Please indicate the proportion of your organization’s methane emissions inventory estimated using the following methodologies (+/- 5%)

Methodology

Proportion of total methane emissions estimated with methodology

What area of your operations does this answer relate to?

Direct detection and measurement >0% to <5% USA only

Engineering calculations 25% to <50% All

Source-specific emission factors (IPCC Tier 3) 50% to <75% All

IPCC Tier 1 and/or Tier 2 emission factors 0% All

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OG7.5

Please use the following table to report your methane emissions rate

Year ending

Segment

Estimate total methane emitted expressed as % of natural gas production or throughput at given

segment

Estimate total methane emitted expressed as % of total

hydrocarbon production or throughput at given segment

OG7.6

Does your organization participate in voluntary methane emissions reduction programs?

Yes

OG7.6a

Please describe your organization’s participation in voluntary methane emissions reduction programs

In our oil and gas business, we are pursuing initiatives to bring natural gas (methane) to market rather than flaring or emitting it to the atmosphere. We participate in the U.S. EPA's voluntary Natural GasSTAR Program. Oxy has implemented a broad spectrum of projects that reduced cumulative estimated methane emissions by more than 8.65 million metric tons of carbon dioxide equivalents (CO2e), according to EPA emission factors. Oxy devotes significant resources to capture emissions of methane and other organic compounds, both in design and construction of new facilities and in retrofitting existing facilities. However, in upstream oil and gas operations, gas streams are flared for safety reasons when gas processing plants have planned shutdowns or during turnarounds, enabling inspections, repairs and maintenance activities that cannot occur during operation to be performed safely. Oxy has achieved a 30% reduction in CO2 emissions from gas flaring (primarily the result of non-routine operations, maintenance and weather related upsets) over the period of 2012-2016. Historically, Oxy's offshore oil production operations in Qatar were the largest source of gas flaring in the company's operations. The co-produced natural gas, which is owned by Qatar Petroleum, was flared because there was no domestic or export market for the gas. Occidental of Qatar (Oxy Qatar), with the active support of Qatar Petroleum, has implemented significant projects at the Idd El Shargi North Dome field to reduce flaring. These efforts have included capturing a substantial portion of the produced gas and shipping it to Mesaieed for treatment and use by Qatar Petroleum as a feedstock or fuel, reinjecting it for enhanced oil recovery and using it to generate electricity for Oxy Qatar's operations. Oxy Qatar has successfully reduced flaring emissions by more than 98 percent since 2005 and continues to work at reducing flaring. Oxy has an ongoing effort to maintain and improve the reliability of the equipment and facilities used in its oil and gas activities. Occidental employs cutting-edge

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technologies and processes to contribute to the decline in methane emissions. Among such efforts are: • Adopting lower emission thresholds to eliminate leaks and to repair connections (e.g., valves, flanges, pump seals). • Adopting "green completion" practices to capture gas at the wellhead during well completion and prevent its release to the atmosphere. • Replacing diesel generators and engines with electric drives, where feasible. • Installing air supply systems to control instruments, rather than using natural gas controls and instruments. • Installing Vapor Recovery Units (VRUs) to capture and recover gas from certain equipment, rather than venting to atmosphere. • Using infrared cameras to detect leaks and sources of fugitive emissions. • Adopting better control devices (e.g., low-bleed or no-bleed pneumatic valves) has reduced our methane emissions by 55 percent. • Adopting cutting edge monitoring systems to help identify and eliminate sources of fugitive emissions.

OG7.7

Did you have a methane-specific emissions reduction target that was active (ongoing or reached completion) in the reporting year and/or were methane emissions incorporated into targets reported in CC3?

Yes, a methane-specific emissions reduction target

OG7.7a

If you have a methane-specific emissions reduction target that is not detailed as a separate target in CC3, please provide those details here, addressing all of the metrics requested in table CC3.1a or CC3.1b (for an absolute or intensity target, respectively)

Oxy implements country-specific operating plans to minimize gas flaring and venting in our global operations. Oxy strives to achieve 100% reduction of all routine flaring of natural gas.

OG7.7b

If methane emissions were incorporated into targets reported in CC3 (but not detailed as a separate target), please indicate which target ID(s) incorporate methane emissions, and specify the portion of those targets that is comprised of methane

OG7.7c

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Please explain: (i) why you do not have a methane-specific emissions reduction target or do not incorporate methane into your targets reported in CC3; and (ii) forecast how your methane emissions will change over the next five years

Further Information

CDP