The new Occidental Petroleum Corporation will control exploration and production operations in the Permian Basin and other parts of Texas, as well as the Middle East and Colombia. It will also have a midstream segment, as well as a chemical subsidiary, OxyChem.
Karr Ingham is petroleum economist for the Texas Alliance of Energy Producers.
“There seems little doubt about the fact that it will be of increasing benefit to the state of Texas, and they've already provided a great benefit to the state of Texas, because as the state's largest crude oil producer, even though they were headquartered in Los Angeles, they've had a significant employment and activity focus in Texas for a long time.”
The new California company will remain that state's largest natural gas producer, as well as one of its leading crude oil producers. Occidental expects to complete the spin-off by early 2015.