Occidental Petroleum : Water Security 2022

Occidental Petroleum Corporation - Water Security 2022

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

Occidental Petroleum Corporation (Oxy) is an international energy company with assets in the United States, Middle East, Africa and Latin America. Founded in 1920, Oxy's success is built on technical expertise, business acumen, strong partnerships and our proven ability to deliver lasting results. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and Denver-Julesburg (DJ) basins, and offshore Gulf of Mexico.

Oxy's integrated business model combines best-in-class assets and industry leadership to advance a lower-carbon future as the first major U.S. oil and gas company to establish net-zero greenhouse gas (GHG) emission goals for Scopes 1, 2 and 3, including the global use of our products. Our midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil, condensate, natural gas liquids, natural gas, CO2 and power. Our chemical subsidiary, 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. Our Oxy Low Carbon Ventures (OLCV) subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions.

We are committed to being a Partner of Choice® everywhere we operate. At our business locations, we follow established procedures to gain an understanding of how Oxy's presence affects the surrounding area and the challenges faced by local communities. By investing in programs and initiatives that manage our operational profile and address key stakeholder interests, Oxy strengthens relationships with communities and creates shared value for stakeholders and our business.

Oxy is committed to advancing a lower-carbon world, respecting the environment, operating safely and upholding the highest standards of ethical business practices. Oxy applies a robust environmental risk management approach and operational practices to increase energy efficiency and reduce emissions of GHGs and other compounds, even while sustaining our production and resource base. The production of oil and gas, electricity and chemicals requires water, and Oxy understands the importance of managing water resources responsibly. Oxy's water management program is designed to conserve and protect water resources in communities where we operate by optimizing the use of lower-quality produced water, the recycling of produced water and process water from our operations and limiting the use of freshwater and potable water in our operations where feasible.

Oxy's water stewardship program, including our use of technology for recycling and reuse and our principles of conservation, is part of our demonstrated support of and alignment with the United Nations Sustainable Development Goals (SDGs), in particular SDGs 6 (Clean Water and Sanitation), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation and Infrastructure), 12 (Responsible Consumption and Production), 13 (Climate Action), 14 (Life Below Water), and 15 (Life on Land). The SDGs give Oxy a complementary framework to use as we communicate and partner with host governments and communities.

We are also aligned with IPIECA Impact Pathway 51 (Resource Management and Biodiversity, Land, and Water Stewardship) to adopt water stewardship strategies that include: collaboration around integrated water resources management; local participation in the collective management of water, particularly in areas of water scarcity; the improvement of water quality; and recycling and reuse of water, where feasible, to reduce Oxy's usage of freshwater.

Lastly, Oxy's reporting process and performance indicators are informed by IPIECA, SASB, the ACC's Responsible Care® initiative, and the Stakeholder Capitalism Metrics of the World Economic Forum.

In 2021, Oxy's total estimated water withdrawals combining both fresh and non-fresh water, including produced water, stayed the same from 2020 even with higher field activity related to growing oil and gas demand in the second half of the year, while the global economy began improving with the subsiding coronavirus pandemic.

W-CH0.1a

(W-CH0.1a) Which activities in the chemical sector does your organization engage in?

Bulk organic chemicals

Bulk inorganic chemicals

W-OG0.1a

(W-OG0.1a) Which business divisions in the oil & gas sector apply to your organization?

Upstream

Chemicals

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W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date
Reporting year	January 1 2021	December 31 2021

W0.3

(W0.3) Select the countries/areas in which you operate.

Bolivia (Plurinational State of)

Canada

Chile

Oman

United Arab Emirates

United States of America

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

USD

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Companies, entities or groups over which operational control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

Yes

W0.6a

(W0.6a) Please report the exclusions.

Exclusion	Please explain
Water use/discharge at non-operated assets and facilities.	Occidental does not exercise operational control over certain assets and Joint Ventures (JVs).

W0.7

(W0.7) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization.	Provide your unique identifier
Yes, an ISIN code	US6745991058

W1. Current state

W1.1

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(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

	Direct use	Indirect	Please explain
	importance	use
	rating	importance
		rating
Sufficient	Vital	Important	It is important to Oxy that we use all sources of freshwater responsibly. We believe Oxy's water use does not impact the water supply of communities where we operate. Our
amounts			oil and gas production operations generate significant quantities of produced water (i.e., saline water from hydrocarbon reservoirs). This produced water would not be
of good			generated and available for use as a resource without oil and gas production. Since recycled produced water is often sufficient to meet the bulk of our needs, produced water
quality			helps us to avoid competing for freshwater resources with municipal, agricultural or industrial users or using freshwater needed to sustain riparian habitat. Oxy has introduced,
freshwater			through our water stewardship efforts, water technologies in recycling and desalination to further reduce freshwater needs, including constructing water recycling facilities in
available			eastern New Mexico starting in 2016 and in West Texas in early 2021, and we have continued to develop additional treatment and recycling with experienced contractors in
for use			the Permian Basin and the Rockies. For our New Mexico's Delaware Basin operations, we did not withdraw any water from freshwater sources in 2021. All sourced water was
			non-fresh, with 96% of it being produced water. Similarly, the Midland Basin operations were predominantly sourced with non-fresh water with 43% of it being produced water.
			As a result, we are able to limit our freshwater use to certain activities for which the quality of recycled produced water is not sufficient, such as plant process or cooling water
			for chemical, gas processing and cogeneration plants, and in certain drilling, hydraulic fracturing and water injection applications. OxyChem uses freshwater for production
			and cooling purposes, in addition to producing electricity. Freshwater is also used by our workers on an indirect basis for cleaning and drinking purposes.
Sufficient	Important	Not very	With respect to direct use, Oxy's oil and gas operations increasingly replace our use of freshwater with brackish/non-potable produced water, naturally occurring water that
amounts		important	originates in the hydrocarbon reservoir and comes to the surface along with oil and gas during production. The extraction, processing, treatment and reinjection of produced
of			water is integral to the design and efficient operation of Oxy's mature oil and gas fields, including water, steam and CO2 injection for enhanced oil recovery (EOR) operations.
recycled,			In 2021, our domestic oil and gas operations withdrew only 6% of water from freshwater sources. 94% of the total withdrawn water came from non-fresh sources, out of which
brackish			87% was produced water. In our Permian Basin, oil and gas operations freshwater withdrawal was even lower and amounted to only 4%. Of the total withdrawn water, 96%
and/or			came from non-fresh sources, out of which 93% was produced water. At OxyChem, the manufacture of chlorine and caustic soda involves the purchase and processing of
produced			brine (saltwater) streams.
water
available
for use

W1.2

(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?

	% of	Please explain
	sites/facilities/operations
Water withdrawals - total volumes	76-99	Operational facilities estimate, measure, or monitor water withdrawals from all sources, including brackish, oil and gas produced water, non-fresh
		water, freshwater and potable water. For Oxy's oil and gas operations, the vast majority of our water withdrawals for oil and gas operations
		constitute brackish/non-potable produced water - naturally occurring water that originates in the hydrocarbon reservoir and comes to the surface
		along with oil and gas during production.
Water withdrawals - volumes by	76-99	Oxy's facilities estimate, measure, or monitor water withdrawals by source to optimize operational processes and conservation opportunities. For
source		Oxy's U.S. oil and gas operations - including operations in potentially water-stressed areas, water needs are typically sourced using non-fresh
		water, including produced water.
Entrained water associated with your
metals & mining sector activities - total
volumes [only metals and mining
sector]
Produced water associated with your	76-99	For Oxy's oil and gas operations, essentially all produced water is co-produced with oil and gas extracted from wells.
oil & gas sector activities - total
volumes [only oil and gas sector]
Water withdrawals quality	76-99	Oxy's facilities measure water quality periodically to optimize operational processes and recycling opportunities or as required by state or
		national-level regulations.
Water discharges - total volumes	76-99	Oxy's facilities estimate, measure, or monitor discharges by volumes periodically to optimize operational processes and recycling opportunities
		or as required by regulations.
Water discharges - volumes by	76-99	Oxy's facilities estimate, measure, or monitor discharges by destination periodically to optimize operational processes and recycling
destination		opportunities or as required by regulations
Water discharges - volumes by	76-99	Oxy's facilities estimate, measure, or monitor discharges by treatment method periodically to optimize operational processes and recycling
treatment method		opportunities or as required by regulations.
Water discharge quality - by standard	76-99	Oxy's chemical facilities estimate, measure, or monitor discharges by effluent parameters periodically to optimize operational processes and
effluent parameters		recycling opportunities or as required by regulations.
Water discharge quality - temperature	1-25	Oxy's chemical facilities measure or monitor discharges by temperature periodically to optimize operational processes and recycling
		opportunities or as required by regulations.
Water consumption - total volume	76-99	Oxy's chemical and oil and gas facilities estimate, measure and track water consumption periodically to optimize operational processes and
		conservation opportunities or as required by regulations.
Water recycled/reused	76-99	Oxy's chemical and oil and gas facilities estimate, measure and track water recycled and reused to optimize processes and evaluate additional
		recycling opportunities or as required by regulations.
The provision of fully-functioning,	100%	Oxy's offices, field camps, OxyChem and oil and gas facilities provide adequate water facilities for potable uses, sanitation and hygiene.
safely managed WASH services to all
workers

W1.2b

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(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed across all your operations, and how do these volumes compare to the previous reporting year?

	Volume	Comparison	Please explain
	(megaliters/year)	with
		previous
		reporting
		year
Total	480579	About the	In 2021, Oxy's total estimated water withdrawals, combining fresh and non-fresh water as well as produced water, stayed about the same as 2020 values even with
withdrawals		same	higher production activity related to oil and natural gas demand. Throughout our global operations, Oxy strives to increase the rate of recycling and reuse of water,
			which decreases our freshwater withdrawals, and also the need for transportation of water and disposal of surplus produced water. Since submitting the last year's
			CDP Water Security Questionnaire, we updated our Total Withdrawals in 2020 from 419,680 megaliters to 482,053 megaliters based on our ongoing internal data
			reviews regarding produced water. Accordingly, we used that updated amount as the basis for the comparisons with 2021 that we have reported in this response.
Total	188471	Lower	In 2021, Oxy's wastewater discharge decreased 4% compared to 2020 values. Oxy defines total wastewater discharges = process water and/or wastewater
discharges			discharged to surface bodies, land application, and Publicly Owned Treatment Works (POTW), Oxy-owned and third-party-operated disposal wells.
Total	292108	Higher	Total water consumption was 2% higher in 2021 compared to 2020 due to increased field activities as the coronavirus pandemic impact on the global economy
consumption			became weaker. Since submitting the last year's CDP Water Security Questionnaire, we updated our Total Consumption in 2020 from 285,309 megaliters to 285,394
			megaliters, based on our ongoing internal data reviews. Accordingly, we used that updated amount as the basis for the comparisons with 2021 that we have
			reported in this response.

W-OG1.2c

(W-OG1.2c) In your oil & gas sector operations, what are the total volumes of water withdrawn, discharged, and consumed - by business division - and what are the trends compared to the previous reporting year?

	Volume	Comparison	Please explain
	(megaliters/year)	with
		previous
		reporting
		year %
Total withdrawals -	340949	About the	In 2021, Oxy's total estimated water withdrawals combining both fresh and non-fresh water, including produced water, remained about the same from
upstream		same	2020 values even with higher field activity related to oil and natural gas demand. It is important to note that our global oil and gas operations withdrew only
			5% of water from freshwater sources; the remainder came from non-fresh sources, primarily produced water. Throughout our global operations, Oxy
			strives to increase the rate of recycling and reuse of water, which decreases our freshwater withdrawals, and also the need for transportation of water and
			disposal of surplus produced water.
Total discharges -	87766	Lower	In 2021 discharges from oil and gas operations were 11% lower due to: (1) decreased development activity in New Mexico to sustain 2020 exited
upstream			production rates; (2) increased recycling of produced water in the Midland Basin due to a newly built recycling facility at the South Curtis Ranch; and (3)
			divestiture of produced water piped to third parties by some of our Delaware Basin assets. Throughout our operations, Oxy is increasing the rate of
			recycling and reuse of water, which decreases our freshwater withdrawals and also the need for transportation of water and disposal of surplus produced
			water. Total wastewater discharges = process and/or wastewater discharged to surface bodies, land application and Publicly Owned Treatment Works
			(excludes Oxy on-site and third-party disposal).
Total consumption -	253183	About the	An increase of 4% total consumption was due to higher field development activity.
upstream		same
Total withdrawals -		<>
midstream/downstream		Applicable>
Total discharges -		<>
midstream/downstream		Applicable>
Total consumption -		<>
	Applicable>
midstream/downstream
Total withdrawals -	139630	About the	OxyChem's sustainability goal around water consumption has generated several projects to reduce its water footprint. These activities resulted in a 1%
chemicals		same	decrease in OxyChem's water withdrawals in 2021 compared to 2020. Idling of OxyChem's Convent facility in Louisiana for half of 2021 due to hurricane
			Ida and a maintenance shutdown at a cogeneration plant also contributed to lower volumes of water withdrawals by OxyChem.
Total discharges -	100705	Higher	The total amount of discharges attributed to OxyChem increased 3%. Where feasible, OxyChem focuses on reusing process water and strives to reduce
chemicals			its water discharge. OxyChem's water stewardship target has generated several projects in 2021 at our facilities in Wichita, Kansas, and Ingleside and
			Dallas, Texas to reduce our water footprint by reconfiguring the water flow, reusing steam condensate, recovering wastewater, routing the water blowdown
			between cooling towers, and decreasing make-up water demand requirements.
Total consumption -	38925	Higher	In 2021, total water consumption by OxyChem was 9% lower due to idling of chemical plant and a maintenance shutdown of a cogeneration plant, as well
chemicals			as production levels in certain other plants.
Total withdrawals -		<>
other business division		Applicable>
Total discharges -		<>
other business division		Applicable>
Total consumption -		<>
other business division		Applicable>

W1.2d

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(W1.2d) Indicate whether water is withdrawn from areas with water stress and provide the proportion.

	Withdrawals	%	Comparison	Identification	Please explain
	are from	withdrawn	with	tool
	areas with	from	previous
	water stress	areas with	reporting
		water	year
		stress
Row	Yes	1-10	About the	WRI	Oxy's oil and gas water management program is designed to conserve and protect water resources in communities where we operate by optimizing
1			same	Aqueduct	the use of lower-quality produced water, the recycling of water and limiting the use of freshwater withdrawals. Oxy works to ensure our water use
					does not compete with municipal, agricultural or industrial users of freshwater resources, or water needed for riparian habitat. Accordingly, we are
					reporting the percentage of our freshwater usage that comes from water-stressed areas in the Permian Basin and Oman. Oxy's U.S. operations are
					concentrated in the Permian Basin, considered a historically water stressed region in West Texas and New Mexico. Our high degree of recycling and
					reuse of produced water In the Permian alleviates stress to regional freshwater supplies. Focusing on only our make-up water in the Permian, without
					regard to our recycling and reuse, 96% is from non-fresh sources, with only 4% from freshwater sources (primarily for use in plants and certain drilling,
					completion and well servicing activities). Oxy's operations both consume and generate water and most of our operational needs in the Permian are
					met by recycling or reusing produced water, supplemented by other non-freshwater sources. Additionally, we have implemented a variety of water
					stewardship initiatives and investments to reduce our overall water footprint. In operating areas subject to water stress, we apply our Operational
					Management System (OMS) and the use of other industry water management tools, like the World Resources Institute's Aqueduct. We also used the
					Global Environmental Management Initiative®, Local Water Tool™ (GEMI Local Water Tool™) to help validate the efficacy of existing water-related
					safeguards and identify new opportunities to ensure the protection of water sources and receiving water bodies for equitable use by municipal,
					agricultural, and industrial users and for riparian habitat. Oxy considers the longer-term patterns of integrated water resources management,
					regenerative capacity of ground water and aquifers, population growth/demand shifts, and the potential for weather-related impacts in evaluating and
					mitigating the effects of water risks on key operations and the safety and well-being of employees and contractors. Evaluating a new site or asset
					involves evaluating legal and regulatory issues and hydrological yield in terms of the reliability of sources and proximity of other water users during
					exploration and production activities. Our analysis of water-related risks includes an information-gathering process, environmental due diligence,
					participation in industry association work groups (for example, the IPIECA Water Working Group and the American Chemistry Council Responsible
					Care® program) and external stakeholder engagement to inform and refine our risk management and strategic planning processes. Part of Oxy's
					assessment involves the identification of water-related risks and impacts as well as opportunities. Oxy uses various approaches to assess risks and to
					evaluate water use and discharge at key operations, taking into account factors such as: • Physical and climatic characteristics • Future physical
					supply reliability • Population growth and industrial growth trends • Affected ecosystems • Regulatory issues • Social context Oxy's water stewardship
					program is part of our demonstrated support of and alignment with the United Nations SDGs, in particular SDGs 6, 8, 9, 12, 13, 14 and 15. The SDGs
					give Oxy a complementary framework to use as we communicate and partner with host governments and communities. We are also aligned with
					IPIECA Impact Pathway 51 (Resource Management and Biodiversity, Land, and Water Stewardship) in implementing water stewardship strategies
					that include: collaboration around integrated water resources management; local participation in the collective management of water, particularly in
					areas of water scarcity; and improvement of water quality and recycling and reuse of produced water and process water, where feasible, to reduce
					usage of freshwater.

W1.2h

(W1.2h) Provide total water withdrawal data by source.

	Relevance	Volume	Comparison	Please explain
		(megaliters/year)	with
			previous
			reporting
			year
Fresh surface	Relevant	113419	About the	In 2021, Oxy's total estimated water withdrawals of fresh surface water was about the same as compared to 2020 levels. Only 5% of our
water, including			same	withdrawals were from freshwater sources; 95% were non-freshwater withdrawals, primarily produced water. Throughout our global operations,
rainwater, water				Oxy strives to increase the rate of recycling and reuse of water which decreases our freshwater withdrawals, and also the need for transportation
from wetlands,				of water and disposal of surplus produced water. Oxy characterizes freshwater sources as TDS <1,000 ppm and the volume includes water from
rivers, and lakes				third-party sources (includes produced freshwater + groundwater supply wells + municipal supply + surface water + other sources; excludes
				company generated freshwater from reverse osmosis (RO) and other processes).
Brackish surface	Relevant	15433	Lower	In the Gulf of Mexico, we use treated seawater for our operations to limit the use of freshwater. In 2021, Oxy's brackish surface water/seawater
water/Seawater				withdrawals decreased by 1% from 2020 values.
Groundwater -	Relevant	39224	Higher	In 2021, Oxy's fresh and non-freshwater withdrawals from groundwater sources increased two-fold compared to 2020. Oxy's water supply
renewable				sources, including groundwater, surface water and recycled produced water, are periodically tested to ensure suitability for operations. Oxy
				strives to minimize the withdrawal of freshwater resources (TDS <1,000 ppm) and maximize the use of non-freshwater sources.
Groundwater -	Relevant	0	Much lower	Oxy did not withdraw water from non-renewable groundwater sources. Only 5% of total oil and gas related withdrawals were from freshwater
non-renewable				sources; 95% were non-freshwater withdrawals, primarily produced water.
Produced/Entrained	Relevant	285783	Lower	In 2021, Oxy's estimated withdrawals from produced/entrained water decreased by 4% from 2020 due to lower production rates and obtaining
water				produced water from third party sources. Only 5% of oil and gas related withdrawals were from freshwater sources; 95% were non-freshwater
				withdrawals, primarily produced water. Oxy focuses on increasing the treatment and reuse of produced water in operations as part of our
				objective to reduce freshwater consumption.
Third party sources	Relevant	26719	Much higher	In 2021, Oxy's total water withdrawals from third-party sources increased four-fold compared to 2020 mainly due to higher field development
				activities for our oil and gas operations. OxyChem is the main consumer of fresh water supplied by third-party sources. OxyChem generally
				prioritizes the use of freshwater withdrawal from surface freshwater where supplies are plentiful and not in competition with domestic or other
				users. Water from third parties is mainly utilized for potable water demand and process water needs are met by surface water sources. The main
				consumers of non-fresh water from third party sources were our Permian Delaware and Midland Basins. These operations were supplied with
				treated produced water from other operators' operations as well as purchased brackish water from third parties. Oxy has its own produced water
				recycling facilities; however, when recycled produced water volumes are insufficient, we supplement with these third-party sources of non-fresh
				water.

W1.2i

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