Occidental Petroleum Sets Ambitious Cost-Cutting Goals for 2025

Published 1 hours agoOXY

Occidental Petroleum Sets Ambitious Cost-Cutting Goals for 2025

Occidental Petroleum has announced a comprehensive plan to save $350 million by 2025, focusing on boosting efficiency across its operations. A significant component of this plan includes a targeted 7% decrease in drilling and completion costs, aimed to build on a 12% boost achieved in 2024, translating to approximately $100 million in savings. Efficiency improvements are taking center stage in the company's cost reduction strategy, as detailed by Fool.com.

Supporting these efforts, synergies realized through the integration with CrownRock are expected to lower well costs by more than $1 million per well. Moreover, supply chain optimization is projected to yield nearly $10 million in savings just from water integration alone during the first quarter of 2025. The company is also investing in artificial intelligence technologies to further streamline operations by enhancing predictive maintenance and optimizing drilling locations, according to Financial Beings.

In addition to operational improvements, Occidental Petroleum is reinforcing its balance sheet, as evidenced by a achieved $4.5 billion debt repayment goal, alongside plans to divest $1.2 billion in assets in early 2025. These measures reflect the company’s commitment to bolstering financial performance through strategic cost management and operational efficiency.

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Occidental Petroleum Sets Ambitious Cost-Cutting Goals for 2025

Occidental Petroleum Sets Ambitious Cost-Cutting Goals for 2025

Occidental Petroleum has announced a comprehensive plan to save $350 million by 2025, focusing on boosting efficiency across its operations. A significant component of this plan includes a targeted 7% decrease in drilling and completion costs, aimed to build on a 12% boost achieved in 2024, translating to approximately $100 million in savings. Efficiency improvements are taking center stage in the company's cost reduction strategy, as detailed by Fool.com. Supporting these efforts, synergies realized through the integration with CrownRock are expected to lower well costs by more than $1 million per well. Moreover, supply chain optimization is projected to yield nearly $10 million in savings just from water integration alone during the first quarter of 2025. The company is also investing in artificial intelligence technologies to further streamline operations by enhancing predictive maintenance and optimizing drilling locations, according to Financial Beings. In addition to operational improvements, Occidental Petroleum is reinforcing its balance sheet, as evidenced by a achieved $4.5 billion debt repayment goal, alongside plans to divest $1.2 billion in assets in early 2025. These measures reflect the company’s commitment to bolstering financial performance through strategic cost management and operational efficiency.