The other thing I would say is just really the environment over the last couple of years, as we restated capital or began to put capital back into the program since 2020. That’s allowed us to really develop some new areas in zone. So for example, the First Bone Springs wells that we noted, very proud of those. What happened during that under investment cycle, we continue to work the technology and the development plans to really advance those zones. And so those type advancements in areas and zones like that also are adding to our inventory. But that restoration and capital, we believe this year especially will allow us to further advance our inventory. For example, we have 40 target wells in 2023 that we believe will fully replenish the wells we drill this year.
And so we’re pretty thoughtful in terms of how we’re expanding that and approaching that inventory. And so hopefully, as we go, that will continue to grow in the Permian. But even in areas like the Powder River Basin, we’re resuming some activity this year.
Jeanine Wai: Okay. Great. Moving to the sustaining CapEx In the $3.5 billion sustaining CapEx estimate, how much of that is allocated to the Permian? And does that keep Permian production flat versus ’23 levels? We know Oxy has got a ton of different operating areas, and there’s a lot of different ways to keep production flat there?
Vicki Hollub: Yes. When we think about sustaining capital levels, it’s really how do we maximize the return on capital employed for each of the assets that we have, while ensuring that we could do that for on a multiyear basis. And for example, when you talk about the Permian, there’s the resources part of the business and the EOR part. The EOR part, the way we’ve been able to maximize return on capital employed for it is to actually keep the facilities fully loaded all of the time. So we’re not — we don’t have unused capacity and keeping those facilities fully loaded requires a certain level of capital. We certainly have the potential to continue to grow the EOR business beyond that. But up to this point, that’s what we’ve been able to do to get the most value out of it.
The Resources business, combined with the AUR business, would require about $1.8 billion for sustaining capital. And this year, we did increase the EOR and that’s part of the reason to do that is that the lower decline of our EOR business, the lower decline of the chemicals business and our gas flow assets in the Middle East those are critically important to us. And as you know, we’re expanding Al Hosn, which will very — not by very much. will that increase the sustaining capital there, but will provide us additional low decline cash flow from that asset as well. And that’s what we most like about our portfolio is that this diversity of having the lower decline assets combined with the higher decline, but higher cash flow generating assets in least initially is very complementary.
So we have the best of all worlds, I think, in the diverse portfolio that we have.
Operator: And our next question today comes from Matt Portillo with TPH.
Matt Portillo : Just maybe to start out, I was hoping to see if you could give us an update maybe how things have progressed since the LCB Day on the PointSource business, maybe some of the conversations you’re having with the IRA Bill coming out? And any color that we may be able to look through on when the first project might start up and how you guys are thinking about kind of the total volumes you’ve secured so far for sequestration on point source.
Vicki Hollub: Okay. Thank you for the question. I’ll pass that to Richard.
