Douglas Leggate : Yes. Vicki, just to clarify. So these obviously very ambitious growth plans going forward, it doesn’t require that, it’s Oxy Capital, I guess, was my point. Am I right in thinking that outsourcing the capital, once the technology is proven, has potential to be a revenue stream as a like a license revenue. That’s what I was really getting at.
Vicki Hollub: Yes. That’s incredibly important to us. There’s absolutely no way that we would have the capability to provide all of the capital. We can’t do it. We’re going to continue to be an oil and gas business because oil and gas is also important for the world. We’ll continue our investments in oil and gas and grow our oil over time because our oil will be, carbon, neutral or carbon negative ultimately. And so that’s, to mean the last barrel of oil produced in the world should come from an enhanced oil recovery reservoir using CO2 from the atmosphere. So we will be doing that, but you’re right, Doug, in that, we will be licensing a lot of this out. And we’ve talked about regional concepts, having partners, around the world that can manage and drive their own construction of these facilities as we go and they, what would come back to us would be those licensing fees.
Operator: Our next question will come from Neal Dingmann with Truist Securities.
Neal Dingmann: Jeff, and Vicki, congrats on a nice quarter. My first question is on your Permian plan. Specifically, just wondering. We all turn to more co development in the Dell or maybe just discuss your future broader completion plans there?
Vicki Hollub: Richard?
Richard Jackson: Yes. I’d answer that a couple of ways. I think one that’s been really important to us and we’ve tried I’d highlight is again back to some of the secondary benches, and the way we think about those developments. We’ve been pretty precise in terms of how we put together our DSUs with those in mind. I would say this year, we have increased our, I’ll generalize it completion intensity, but it’s really frac intensity. And some of that was some of the capital that we put back into the Permian that delivered increasing cash flow for us this year. So I’d say a good portion of that capital increase was due to our increased completion intensity. So as we think about playing it forward, I think over the next several years, we’re going to continue to be methodical in the way we develop those secondary benches.
They’ll ultimately become a bigger part of our portfolio. But we’ve seen with these positive surprises, the ability to optimize really the next kind of 3- to 5-year type programs some of the success, I would say, even in the Midland Basin that we’ve seen in the secondary benches, as we looked into this year, I think we changed about half of our development plan due to improvements in our appraisal activity there last year. So I think we’ll continue to do what we do, which is really focused on the subsurface. We want to make sure our recovery is outstanding, and we want to really DSU across multiple benches to be fit for purpose for the geology for that area.
Neal Dingmann : And then second also on the Permian. The second largest earthquake in the Perm was reported this morning. I realize it’s probably too early to know if you had any direct impact. I’m just wondering, could you all discuss the continued disposal process and if that has changed in recent years?
Vicki Hollub : I’m sorry, Neal, I didn’t get that — the first part of that question.
Neal Dingmann : This morning, there was announced the second largest earthquake hit the — it looks like it hit the…
Vicki Hollub : Earthquake.
Neal Dingmann : And I’m just wondering — I’m not asking for the impact too early there, but just wondering maybe if you could discuss — I know you had changed some disposal process and things in the past. If you could maybe just hit that quickly?
Richard Jackson : Yes. Our plans continue to leverage really the work we’ve done around water recycling, just in general, I’d say, independent of any of the hazards. We just believe that responsible use of water is a big part of what we should do. we actually had a trip here recently to the Permian, got to revisit the large recycling facility that we put together with our partner there in the Midland Basin, and that continues to be helpful not only for Oxy but actually some of our offset peers. So we’re expanding that into the Delaware. It’s actually a very nice link as you think about other carbon capture projects that we have. Responsible use of industrial water is a technology that we really think is important for the future. So aware of some of what you’re asking about in some of the hazards that’s been identified. But again, we’re trying to get out in front of that just in general and recycle more water in all areas of operations.
Operator: Our next question will come from Matt Portillo with TPH.
Matt Portillo : I wanted to start out on the Gulf of Mexico. You mentioned you’ll be running 2 drillships there next year. Just curious if you could just give an idea of key projects you’re progressing in 2024? And maybe expand a little bit on the depth of the tie-in opportunities and potential, I think, Vicki, you commented last quarter for possible growth out of the asset in the second half of the decade?
Vicki Hollub : Yes. I would just reiterate, we’re really excited about not just what we’re doing from a capital perspective and the new development, but also what we’re doing with the development that we have and Ken has some really good things to share with you about that.
Ken Dillon : If I start off with the first part of your question, as part of the development initiatives, we plan to drill and complete 5 wells in close proximity to our facilities tied back to existing subsea manifolds with available capacity. We also do test on 2 promising exploration opportunities in the Eastern GoM probably have a working interest of around 40%, that aligns to our sort of approach of more shots on goal through partnering. If I can maybe give some context to Vicki’s comments on the last call, we basically see gone through 3 portfolio lenses. One is primary production with base optimization and drilling, including horizontals and stimulation; second aspect is secondary recovery, which is one of Oxy’s strengths as a company worldwide with water flooding and artificial lift, including subsea pumping and ESPs. On the assets, very little has been done on water flooding in the past for our reservoirs, and we see significant upside including reservoirs that already have direct analogs nearby.
