Biden Administration Grants $1.2 Billion For Big Oil To Controversially Extract CO2 From The Air To Produce More Oil
Portfolio Pulse from Caleb Naysmith
The Biden administration has allocated $1.2 billion to support direct air capture technology, a method to extract CO2 from the atmosphere, with Occidental Petroleum Corp. (OXY) being a main recipient. This initiative aims to help achieve a net zero carbon emissions target by 2050, despite controversy over its potential to extend the oil industry's lifespan. The United States Oil ETF (USO) has seen a 9% increase in value due to rising oil prices and geopolitical concerns.
February 13, 2024 | 2:00 pm
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Occidental Petroleum Corp. is a primary beneficiary of the Biden administration's $1.2 billion grant for direct air capture technology, aiming to reduce carbon emissions and potentially extend the oil industry's lifespan.
As a main recipient of the grant, OXY's involvement in direct air capture technology could enhance its environmental reputation and open up new revenue streams, positively impacting its stock in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The United States Oil ETF has seen a 9% increase in value at the start of the year, influenced by rising geopolitical concerns in the Middle East and the ongoing need for oil despite a global shift towards renewable energy.
The increase in USO's value is attributed to rising oil prices and geopolitical concerns, which are likely to sustain or increase demand for oil futures in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70