This eco-friendly oil company has a bright future

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Occidental Petroleum(OXY), an American oil company located in North America, the Middle East and, and South America, is working on a project that extracts CO2 from the air produced by factories. United Airlines(UAL) is also investing in this project which shows that this project has promise for expanding into other sectors and becoming a leader in CO2 extraction.

The stock is currently priced at $28.32, and has been up over 60% since the beginning of the year. It is projected to reach $42 or 43% by the end of the year(CNN Money). Also, 9 out of 28 analysts has a buy rating on the stock while 16 have a hold, but in the long-term, this stock seems worth the buy since it is currently at a discount and will have potential to increase a lot more in the future. Positioned well below their 52-week range of $32 allows them much flexibility for their stock to increase.

OXY's net income has been on the increasing trend from 2015-2018(2019-2020 data not available) with its net income quadrupling from 2017 to 2018. This shows that OXY has strong profits and also displays that the company is growing. Since their program has the potential to attract more large customers, they will continue to post strong profits. 

Oxy is currently receiving tax deductions for their project and this will attract more companies to join the carbon capture program since they will also receive tax incentives. 

As the United States is transitioning into greener sources of energy. Oxy's carbon capture project will help keep the fossil fuel industry competitive in this new environment, and they are one of the only oil companies planning to have almost zero emissions by 2050

Goldman Sach's also believes that OXY will report higher earnings because of the currently high gas prices which will help reduce their current debt. They also believe that OXY is positioned well for the long run.

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