Vicki made a huge bet on DAC. To me, the business case was always shaky even if it works PERFECTLY. I’m told it is over schedule and over budget, and we just got rid of OxyChem, which could have been a critical resource.
What if it doesn’t work? Do we have to pay back all of the companies that bought credits? Write off the purchase of Carbon Engineering? Write off the DAC complex?
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@4j9 do you realize they transfer part of the DAC workforce from Oxychem to Oxy to continue with the DAC?
Blame oxychem for the mess since they are gone and sell DAC to Exxon or whoever wants it. Time to focus on O&G and only O&G.
Let it cook. Will be producing tons of CO2 for EOR. CO2 is expensive and hard to source. What better than to make your own. The credits are just gravy.
It's a perfect combination of vurtue signaling, impossible physics, and artificial/inauthentic demand to create a black hole for money. It's absolute best case is to get close to breaking even on an infinite timeline. It's a chefs kiss of hindsight and foresight being exactly the same. Super impressive all the way around.
@sq - well said. And sad
Oxy does a great job at efficient application of technology even if they don’t have a research & development lab.
Deploying technology that doesn’t exist, at a scale that doesn’t exist, to a market that doesn’t exist.
What could go wrong?… other than the fact we aren’t a company with a R&D team & the end goal is to develop for unconventional EOR… another thing that doesn’t exist
@a3 it’s too late now.
DAC will work technically, no doubt. The business case is risky in the 3 yr time frame because of DT. After DT goes away and reasonable people control this country the need for DAC may come back. Agreed that it was a huge gamble and not worth the amount of money spent. It is time for a management change because you don’t gamble with stockholders money. Do you think the CEOf XOM would do this?
@a3 - they had a golden opportunity to dump it off in the OxyChem sale.
5 to 10 years?...See if Oxy is still here in the next 5 to 10 months... On the endangered species list I'm afraid. Oxy sold for $52 ;-)
What is the expected operating expense ratio? Will it make a profit for us anytime in the next 5-10 years?
We need to get rid of DAC immediately. It doesn’t make money and Trump has threatened to cancel the gov subsidies for it numerous times.