It was recently revealed that Occupy Petroleum (NYSE:OXY) has reached an agreement with the UAE's ADNOC to develop a direct air capture facility in South Texas. Let us articulate this development.
Occupy Petroleum (NYSE:OXY) is one of the largest oil and gas producers in the United States, including major producers in the Permian and DJ Basins and near the Gulf.
It was recently announced that Occupy Oil Company (NYSE:OXY) and its subsidiary 1PointFive have entered into an agreement with XRG, an investment firm of Abu Dhabi National Oil Company, to evaluate potential JVs to develop a Direct Air Capture (DAC) plant in South Texas. As part of the joint venture, ADNOC will consider investing up to $500 million in the development of the facility, which aims to capture 500,000 tons of carbon dioxide per year. Since the signing of the Memorandum of Understanding in 2023, the two energy giants have been discussing opportunities for carbon capture, leverage and storage projects in the United States and the UAE.
The strategic DAC framework agreement was signed during President Trump's recent visit to the United Arab Emirates when the Gulf state announced plans to increase its U.S. energy investment to $440 billion over the next decade.
Vicki Hollub, president and CEO of Occupy Petroleum (NYSE: OXY) said:
“We are proud to have a decades-long partnership with ADNOC and XRG on the South Texas DAC Hub, and we believe we will provide game-changing technologies to support our energy independence and global goals. Agreements like this, along with our DOE support, demonstrate continued confidence in DACs that can create jobs and economic value in the U.S. and Texas and Texas.”
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