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Occidental Petroleum Corporation
Good neighbor.
Good business.
Social Responsibility Report
2006
Oxy
GOOD NEIGHBOR. GOOD BUSINESS.
SOCIAL RESPONSIBILITY REPORT 2006
CONTENTS
Introduction to Worldwide Social Responsibility
º Message from the Chairman
1
2
One Management System
º Integrating Social Responsibility and Health, Environment and Safety
º HES Principles
4
Responsible Workplace Practices
º Compliance Commitment and Responsible HES Management
º A Safe and Healthy Workplace
º Environmental Performance
º Energy Efficiency and Climate Change
º Compliance
º Employment Practices
º Developing Expertise in Our International Workforce
6
Ethical Business Practices
º Commitment to Human Rights
º Responsibility and Integrity in Conducting Our Business
24
Good Neighbor Practices
º Educational Enrichment
º Encouraging Safe and Healthy Communities
º Helping People Help Themselves
º Stimulating Local Development
28
Tomorrow
36
Business Overview
37
GLOSSARY
ACC
API
BLS
CHP
EPA
GHG
HES
IIR
M
MM
American Chemistry Council
American Petroleum Institute
U.S. Bureau of Labor Statistics
Combined Heat Power (Cogeneration)
U.S. Environmental
Protection Agency
Greenhouse Gas
Health, Environment and Safety
Injury and Illness Incidence Rate
(Incidents per 100 worker-years)
Thousand
Million
NGO
Occidental
OSHA
SEC
SR
TRI
WHC
Nongovernmental Organization
Occidental Petroleum Corporation
(Oxy), together with its affiliates and
subsidiaries
U.S. Occupational Safety and
Health Administration
U.S. Securities and Exchange
Commission
Social Responsibility
Toxics Release Inventory
Wildlife Habitat Council
ON THE COVER: In Arauca, Colombia, school children enthusiastically greet an Oxy representative. Through the A Crecer literacy and
adult education program, illiteracy rates have been reduced to near zero.
WORLDWIDE SOCIAL RESPONSIBILITY
Occidental Petroleum Corporation (Oxy) is committed to being
an outstanding and responsible corporate citizen, as we strive for
continual improvement in our worldwide Health, Environment and
Safety (HES) systems and Social Responsibility (SR) performance.
Our responsible workplace practices combined with
our good neighbor initiatives motivate our employees,
minimize our operating risks, lower our costs and
enhance our reputation. These activities directly
affect our business success and stockholder value.
Previously, we have reported separately on our
annual HES and SR activities. This year, we are
combining these two reports into one as part of our
process of integrating SR into our comprehensive
HES management system. The process will allow
us to design, implement and measure SR activities
using standards similar to those we have long
applied to our HES programs. This integration
ensures that we are both supporting our business
goals and making the most effective contributions to
the communities where we operate.
Our report profiles many of our activities around
the world. These include safeguarding the health
of our employees and stakeholders, protecting,
preserving and enhancing the environments in which
we operate as well as contributing to the enhancement of the quality of life in communities near our
operations. These profiles provide insight into the
people and processes that help make Oxy a good
neighbor and a highly successful oil and gas and
chemical company.
In our operations
In the communities where we work
In the environment
United States
Colombia
Oman
1
1
Message from the Chairman
Generating profits for our stockholders
while operating a socially responsible
company is challenging, rewarding and
absolutely necessary for Oxy’s success.
Fueling human progress and economic growth while focusing on
operational integrity requires a solid, well-designed approach to
social responsibility. Over the years, we have implemented sound,
well thought out social responsibility programs to ensure the
safety of our employees, maintain high environmental standards
and to support social programs in the communities in which we
operate. Social responsibility is not just a fashionable term — it is
one of Oxy’s core values. We believe it. We live it.
Dr. Ray R. Irani
Chairman, President and Chief Executive Officer
Our values shape everything we do in business. Our strong
performance in 2006 was due in large part to our successful
implementation of strategic investments and being a good
corporate citizen. Not only is Oxy delivering good returns to
our shareholders, we are also one of the safest companies
in both the oil and gas and chemicals industries.
Oxy’s continued commitment to safety and social responsibility
benefits our bottom line by reducing risk, improving employee
productivity, reducing operating costs and lost production time,
while enhancing our reputation. We are proud to report our
progress in this year’s report.
In 2006 we significantly increased our employee human rights
training programs worldwide. Oxy formalized our corporatewide
human rights program more than three years ago and we will
continue expanding our efforts. Insight to our progress appears
throughout this report and includes examples of our activities
in Chile, Colombia, Libya and Oman.
The graphs, statistics and numbers in this report are one measurement
of our social responsibility accomplishments. But, the satisfaction
of helping a community take advantage of the opportunities created
by natural resource development is measured more by the human
factor. Our “Homes for Houston” project illustrates our commitment
to being a good neighbor and is one of Oxy’s success stories.
This report also provides highlights and insights into our efforts in
several additional areas.
2
2
For example, our coral reef protection study in
the Arabian Gulf will help preserve and protect a
sensitive ecosystem for future generations. We
also implemented an emissions reduction system
in our Hugoton gas field operations in Kansas
by retrofitting production wells with electric
motors and eliminating the need for gas-fired
engines. Our accomplishments have earned
us numerous awards.
We are also highlighting some of our significant
community activities, including our participation
and support of Best Buddies; an “Opportunities
Bank” in Colombia supporting small businesses;
the Safe T. Turtle program — a child safety
education program in our Permian operations;
and a Petroleum Technology Academy near our
Elk Hills, California operation.
We remain fully committed to HES and Social
Responsibility policies that are responsible, ethical
and accountable. We recognize the need to maintain
a balance between financial and operational
performance. Our responsibility to our stockholders,
our communities and the future depends upon our
success in building a stable platform for sustainable
growth economically, socially and environmentally.
Being a good neighbor is simply good for business.
Ray R. Irani
Chairman, President and
Chief Executive Officer
Elk Hills is one of seven Oxy sites certified by the Wildlife Habitat Council.
3
ONE MANAGEMENT SYSTEM
Integrating Social Responsibility and
Health, Environment and Safety
Sustainable success demands strong systems and performance.
More than 25 years ago, Oxy implemented a comprehensive
HES management system, which has helped us achieve continual
improvement. We are now extending this rigorous approach to
promote improvement in our SR performance, creating a social
responsibility standard that defines the requirements business units
must meet in their stakeholder relations, social risk management
activities and quality of social programs.
In 2006, Occidental Oil and Gas Corporation established interdisciplinary SR teams to assess SR performance and serve
as champions of social responsibility by determining areas for
improvement and promoting effective action planning.
HES Principles
As a fundamental business element, Oxy’s goal is
continued HES system and performance improvement. Our corporate HES vision statement and
guiding principles give direction to Occidental
HES activities.
4. Reduce pollutant releases to the environment.
These principles, as implemented through Oxy’s
HES policies and procedures, incorporate
the following commitments.
7. Provide information on the safe use and
disposal of Occidental’s products.
1.
2.
3.
4
4
Protect the environment and the health and
safety of people using design procedures,
work practices and employee training.
Correct operating conditions that have
a significant adverse health, safety or
environmental impact.
Reduce waste generation and responsibly
manage waste disposal.
5. Make efficient use of nonrenewable natural
resources.
6. Use energy efficiently.
8. Maintain a dialogue with neighboring
communities about HES concerns.
9. Keep Oxy’s Board of Directors informed
about HES issues.
10. Report annually on Oxy’s HES performance.
The full text of these principles is included in the
Health, Environment and Safety section of our
Internet site, www.oxy.com.
Workers at Oxy’s offshore Qatar unit are reminded each day
that “Safety Comes First.”
RESPONSIBLE WORKPLACE PRACTICES
Compliance Commitment and Responsible HES Management
Oxy is committed to operating in compliance with all applicable
HES laws by employing stringent internal programs that often
exceed prevailing legal requirements.
In addition, our businesses endeavor to achieve a
worldwide standard of care that provides the same
degree of protection to employees, contractors, the
public and the environment, wherever we operate
in the world. Oxy’s Board of Directors has a comprehensive view of HES activities and leadership. HES
performance is considered in employee annual
performance review and compensation.
Oxy diligently works to strengthen existing programs
by benchmarking against leading corporations and
tracking developing issues and HES management
trends. Oxy also actively participates in progressive
organizations, such as the Global Environmental
Management Initiative, the World Environment Center,
ORC Worldwide, the Auditing Roundtable and the
Wildlife Habitat Council.
Oxy’s HES quality assurance and quality control
(QA/QC) processes measure program effectiveness.
Our multifaceted QA/QC process, which ranges
from frequent facility-level inspections and audits
to comprehensive audit team reviews, verifies
necessary program elements are in effect and that
a process for implementing and monitoring change
exists. It assures compliance with applicable legal
requirements and company policy and confirms that
management systems and physical controls are
maintaining operations in compliance with these
requirements. HES professionals and non-HES
personnel who are selected for their management
potential are staffed on review teams to further
their understanding of Oxy’s HES programs and
requirements. Resulting action plans are tracked
from conception to completion. During 2006, HES
audits for 25 operating locations were completed
and reviewed by senior management.
Oxy sets high standards of HES performance aimed
at ensuring responsible environmental stewardship
and sustainable operations. We challenge ourselves
to conduct business in a manner that creates value
for society — including our employees, neighboring
communities, partners, suppliers, host governments
and stockholders. We believe Oxy’s exemplary
performance provides a competitive advantage
in today’s complex global marketplace.
From the Long Beach shoreline, THUMS islands are often mistaken for resorts, when in fact, they are active oil and gas operations.
THUMS, Long Beach is one of six Oxy sites certified by the Wildlife Habitat Council.
6
6
OSHA Star
OSHA Star status is the highest recognition for excellence
in safety from the U.S. government’s Occupational Safety
and Health Administration (OSHA).
Nationwide, less than one-hundredth of one percent
of approximately six million work sites have attained
OSHA Star status. OxyChem has achieved OSHA
Star recognition at 34 facilities with 18 currently
operating (16 of the 34 sites have been sold or shut
down). Contractors at seven OxyChem sites also
have received OSHA Star awards.
An OSHA Star work site (or state equivalent) must
have comprehensive and successful safety and
health programs that achieve total reportable and
lost workday injury rates below private industry’s
national average. OSHA criteria for Star status
strongly encourages management and employee
commitment to meet or exceed all regulatory
requirements. Once a facility meets the OSHA Star
criteria, it must be recertified every three to five
years to retain its OSHA Star status. No Occidental
facility has ever lost its OSHA Star designation
OxyChem’s strong safety programs contribute
to ongoing recognition under the federal government’s prestigious OSHA Voluntary Protection
Program (VPP).
OXYCHEM OSHA STAR SITES
(INITIAL APPROVAL YEAR)
Chicago, Illinois (2006)
Wichita, Kansas (2005)
Cincinnati, Ohio (2000)
Mobile, Alabama (1998)
OxyChem Headquarters — Dallas, Texas (1998)
Muscle Shoals, Alabama (1996)
Delaware City, Delaware (1996)
Niagara Falls, New York (1996)
Taft, Louisiana (1994)
Taft On-site Contractor (1998)
Dallas, Texas (1993)
Convent, Louisiana (1991)
Convent On-site Contractor (2000)
Ingleside, Texas (1991)
OXYVINYLS, LP
Pedricktown, New Jersey (2004)
Deer Park, Texas (two sites: 1997–2001)
Deer Park On-site Contractor (two sites in 2003)
La Porte, Texas (two sites in 1997)
La Porte On-site Contractor (two sites in 2003)
Pasadena, Texas (1991)
Pasadena On-site Contractor (2003)
OxyChem’s Ingleside, Texas
facility has earned the OSHA Star
designation since 1991.
7
RESPONSIBLE WORKPLACE PRACTICES
Safe and Healthy Workplace
Oxy is demonstrably committed to providing a safe and healthy
workplace. Rigorous policies at every work site help to protect
our employees, contractors and neighboring communities.
CONTINUED SAFETY EXCELLENCE
Oxy has consistently ranked as one of the world’s
safest companies with 11 consecutive years of Injury
and Illness Incident Rates (IIR — recordable injuries
and illnesses per 100 worker-years) of less than one.
The most recently published (2005) U.S. Bureau of
Labor Statistics (BLS) Industry average is 4.6. In
2006, Oxy’s employee IIR of 0.47 reflects a 4-percent
per year improvement trend over the past 10 years
and indicates that injuries to Oxy’s employees occur
about one-tenth as often as injuries to the average
U.S. worker.
Oxy also is one of the top performers among its
industry competitors. The most recent data available
from the American Petroleum Institute (API) show
that the average IIR for all U.S. exploration and
production company employees is 0.55, while
the average for American Chemistry Council (ACC)
peer companies is 1.27.
The same commitment to safety that has reduced
the number of recordable injuries also has led to
fewer severe injuries. This is indicated by the Lost
Time Case Rate, which represents the total annual
number of cases per 100 workers that resulted in an
employee being unable to return to work or perform
Occidental Contractor Injury
and Illness Incidence Rate
Per 100 Workers
Per 100 Workers
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
2.08 1.93 2.17 1.10 1.67 1.28 1.15 1.55 1.09 1.18 1.24
1996
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
Our business segments rely on service contractors
for specialized or short-term work. Occidental
expects its contractors to share its commitment
to workplace safety and reinforces this expectation
by including it in its contractual agreements. HES
performance is an important factor in the selection
of contractors. Oxy monitors the performance of its
contractors during the contract period by requiring
that the company be notified of all injuries along with
plans to prevent recurrence. The data indicate that
contractors working full time for Oxy perform far
better than those doing similar work for other
companies. Oxy’s 2006 consolidated worldwide
full-time contractor IIR was 1.24, reflecting a 4-percent
improvement over the past 10 years. Based on
2005 BLS data, Oxy’s contractor results were
approximately five times better than the average
for the U.S. construction industry.
Occidental Employee Injury and Illness
Incidence Rate and Lost Time Case Rate
0.88 0.73 0.68 0.65 0.83 0.69 0.62 0.68 0.34 0.47 0.47 IIR
0.39 0.33 0.23 0.29 0.35 0.33 0.43 0.26 0.22 0.25 0.26 Lost Time
8
normal duties the day after an occupational injury or
illness. Occidental’s performance, which includes all
of its worldwide operations, compares favorably with
the 2.4 rate for all U.S. private industry based on the
most recent BLS data. Oxy’s employee Lost Time
Case Rate has improved about two percent per year
over the last 10 years.
Responsible Care at OxyChem
Occidental Chemical Corporation’s (OxyChem) active participation in the ACC’s Responsible Care®
initiative is an excellent example of this commitment. The Responsible Care® program requires member
companies to conform their practices to a set of industry-wide metrics that often go well beyond
government mandates. The Responsible Care® program has not only helped significantly reduce
emissions, but also contributed to raising safety performance to a level well above the overall
manufacturing sector.
As a testimonial to the sustained excellence of Occidental’s safety and
environmental performance, the ACC in 2005 awarded OxyChem
the Responsible Care® Leadership Award — one of the industry’s most
prestigious awards.
Injury and Illness Incidence Rates
for Selected Industries
(Source: U.S. Bureau of Labor Statistics – 2005)
Per 100 Workers
Dentists
0.20
Stock Brokers
0.30
Occidental (year 2006)
0.47
Insurance Agents and Brokers
0.70
Legal Services
0.70
Computer & Electronic Products
2.00
Oil & Gas Extraction
2.10
Basic Chemicals
2.40
Mgmt. of Companies & Enterprises
2.40
Paper Mills
3.70
All Industries
4.60
Coal Mining
5.10
Construction
6.30
Grocery Stores
6.30
Meat Processing
7.80
Saw Mills
9.60
Steel Foundries
10.70
Motor Vehicle Manufacturing
12.90
9
RESPONSIBLE WORKPLACE PRACTICES
Environmental Performance
SUSTAINED ENVIRONMENTAL PROGRESS
Oxy seeks continuous improvement in resource conservation,
release reduction, pollution prevention and energy efficiency.
Strong HES programs are designed and
implemented to meet specific business and
environmental objectives, and to enable resource
allocations to be made in accordance with HES
risk management priorities.
For example, OxyVinyls’ Louisville PVC plant was
designated an American Chemistry Council’s Energy
Efficiency/Environmental Impact Award site for 2005
for implementing a project that annually conserves
45 million gallons of potable water and reduces sewer
discharges by an equal amount. The Louisville facility
achieved these results by installing automated equipment that replaced city water with recycled water.
Oxy also makes progress in land and habitat
conservation. As a member of the Wildlife Habitat
Council (WHC), Oxy’s efforts at the 102nd Street
Landfill in Niagara Falls, New York received certification in 2006 for the implementation of a successful,
comprehensive wildlife habitat management program.
Since 1988, the nonprofit, nonlobbying WHC has
worked to increase biodiversity, create and protect
habitats and expand environmental awareness.
SPILL PREVENTION
Oxy’s HES program addresses spill prevention in
a variety of ways, including investing in technology
to detect and prevent pipeline corrosion, making
extensive use of secondary containment, operator
training programs, auditing and inspection. If an oil
spill occurs, liquids typically are quickly recovered
and impacted soil is treated by natural bioremediation methods. Generally, the primary contaminant in
a produced water release is salt, which is usually
addressed by rinsing the soil with fresh water.
Despite increasing oil production by more than 150
percent since 1995, the ratio of oil unintentionally
released into the environment versus production is
only one-thousandth of one percent. In 2006, less
than 30 percent of Oxy’s oil spill incidents involved
releases of more than 10 barrels. Excluding three
produced water spills, which accounted for more
than 75 percent of the total amount of produced
water released during the year, worldwide releases
averaged less than 25 barrels per incident. Even
though these amounts spilled are very low, Oxy
strives to achieve a goal of zero spills.
Oxy has six additional sites certified by the WHC.
Oxy’s other WHC certified sites are located in Long
Beach, California; Montague, Michigan; Copper
Basin, Tennessee; Elk Hills, California; Wichita,
Kansas; and Geismar, Louisiana. All sites have
cooperative efforts involving management,
employees, community members, local conservation groups, and local, state or federal agencies.
Liquids Unintentionally
Discharged Compared
to Production
10
4.8
1.4
6.3
33.1
6.4
4.9
20.1
3.3
3.3
4.1
5.4
4.5
7.3
18.0
2000
2001
2002
2003
2004
2005
2006
Barrels Per Million Barrels of Oil Equivalent
Oil
Water
TRANSFERS AND WASTE REDUCTION
Oxy’s HES Principles and policies require a constant
focus on waste reduction and resource conservation.
Within Oxy’s wide range of operations, different
approaches are used to achieve continuous improvement. Pollution prevention and release reduction
projects are included in the annual budget process.
Toxics Release Inventory (TRI) data submitted by
OxyChem to the U.S. Environmental Protection
Agency (EPA) are shown in the table and graph
below. For 2005 (the most recent report year), total
reportable releases and transfers to off-site facilities
for destruction or disposal were 7.8 million pounds.
This is approximately 50 percent lower than in 1998.
The increase from 2004 was due to the acquisition
of additional manufacturing capacity. Total releases are
less than 0.2 pound per ton of production capacity, or
approximately one-hundredth of one percent. The
majority of TRI reportable chemicals were incinerated, treated, recycled or burned for energy
recovery. The remainder was safely disposed of in
permitted deep well injection facilities.
In 2005, OxyChem used the mercury cell chlor-alkali
process at two of its U.S. manufacturing locations,
one in Delaware City, Delaware, another in Muscle
Shoals, Alabama. OxyChem permanently shut down
the Delaware City facility in 2005 and in early 2006,
announced plans to close its Muscle Shoals, Alabama
mercury cell chlor-alkali operation in 2008.
1.8
4.4
2.4
5.4
Total Releases
Transfers
2004
2005
192 155 161 142
51 53 55 51
62
48
55
51
54
43
66
45
2005
2.3
4.1
2004
1.9
4.1
2003
2.2
7.5
2002
11.2 10.5 1.9
4.6 21.9 10.8
2001
Land
Underground Injection
Water
Air
2000
0.0
1.3
<0.1
1.1
1999
0.0
0.8
<0.1
1.0
1998
3.3
0.7
<0.1
1.2
2000
0.2
0.5
<0.1
1.2
2003
Thousands of Tons (Data Excludes Wastewater)
2002
Millions of Pounds
2001
Waste Generation from
OxyChem Operations
0.6
0.4
<0.1
1.2
1999
8.9
0.3
<0.1
1.3
OxyChem waste generation data include activity
related to ongoing production operations at OxyChem
plants and its 74-percent owned OxyVinyls, LP
chemical plants. In 2005, total waste generation
increased due to the addition of manufacturing
capacity. Hazardous waste generated in 2005 was
equivalent to less than 0.3 percent of the amount
of OxyChem production capacity and reflects a
53-percent decline in waste generation since
1998. OxyChem’s well-established waste minimization program is a structured approach to refine
and improve manufacturing processes, operating
protocols and maintenance procedures. Waste
minimization projects entail significant engineering
effort, extensive process modifications and capital
expenditures. In 2005, more than 90 percent of
OxyChem’s solid hazardous waste was incinerated,
treated, recycled or burned to recover energy. Most of
this material was processed at OxyChem’s on-site
incineration facilities. The remainder was disposed of
off-site at licensed commercial incinerators or landfills.
OxyChem Releases
and Transfers
0.7
0.2
<0.1
1.0
1998
10.0
0.1
<0.1
1.0
Although its vinyl chloride emissions are well below
permitted levels, OxyVinyls, LP voluntarily entered
into an enforceable commitment (discussed further
on page 18) in 2006 to reduce its combined vinyl
chloride emissions by almost 50 percent from four
manufacturing facilities. The company will undertake
emission reduction projects at a cost of approximately $1.1 million to redesign stripper columns and
reactor vessels, and install vacuum systems for
railcar unloading.
Nonhazardous
Hazardous
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PIPELINE MAGAZINE’S “EXCELLENCE IN ENERGY”
ENVIRONMENTAL AWARD
Pipeline Magazine awarded Dolphin Energy Limited
(24.5 percent owned by Oxy) the 2006 “Excellence
in Energy” Environmental Award for its participation
in an ongoing coral reef study in the Arabian Gulf
between Abu Dhabi and Qatar. The award encompasses the Middle East energy sector.
The coral reef study is a joint initiative sponsored by
Dolphin Energy, the Emirates Wildlife Society, World
Wide Fund for Nature, the Environmental Agency —
Abu Dhabi and Qatar’s Supreme Council for the
Environment and Natural Reserves. The study’s goal
is to establish methods of protecting coral reefs in
the Arabian Gulf via a thorough evaluation of coral
cover, species diversity, degraded reef recovery
levels, as well as to confirm the accuracy of reef
mapping. Results revealed that most reefs in the
area are in good health and that those that have
suffered damage from past temperature fluctuations
can recover provided they are not subjected to further
disturbances. Following completion in 2007, the
study will be used to prepare a conservation plan to
preserve and restore reefs in the Gulf.
Oxy and Dolphin Energy Limited are sponsoring a comprehensive
study on the coral reefs offshore between Abu Dhabi and
Qatar to gather specific data needed for a conservation plan
to preserve and protect the coral reef habitats.
“Best in Class”
Storebrand Investments, a Norway-based international investment and insurance firm, honored Oxy in
February 2007 with its “Best in Class” award in recognition of the company’s industry-leading environmental and social performance.
As part of its investment strategy, Storebrand conducts periodic analyses of the environmental and social
responsibility performance of companies listed in the Morgan Stanley Capital International World Index.
Each company analyzed is benchmarked against others in its industry sector. Companies ranking in the
top 30 percent earn Storebrand’s “Best in Class” designation. Oxy was the only U.S. oil company to make
the list. The environmental and social responsibility analysis criteria for the oil and gas industry include
environmental risk management, human rights, labor rights, governance and labor relations.
12
Near the southern boundary of Oxy’s Colorado
acreage, geoscientists Nicki Atkinson and
Steve Slauson take a moment to appreciate
the natural environment.
RESPONSIBLE WORKPLACE PRACTICES
Energy Efficiency and Climate Change
The Environmental, Health and Safety Committee of the Board,
together with Oxy’s management, staff and operations personnel,
consider climate change-related issues and seek cost-effective
methods for minimizing the greenhouse gas (GHG) emissions from
our operations.
Numerous inquiries into this subject by universities,
think tanks and independent researchers provide
insight into the complexities of the climate system
and its drivers, the difficulty of modeling this system,
the challenges involved in predicting future temperature effects and related consequences, and the
adaptation and emission mitigation options that
may be available.
While Oxy conducts no independent climate
change research, we closely monitor the scientific
and public research to better understand the
impact of GHG emissions and how adaptation
and emission mitigation options may influence or
impact our operations. Management, staff and line
operations personnel are engaged in developing
GHG emission estimates, evaluating the impact
of proposed regulations, assessing carbon credit
trading markets and voluntary climate change
activities, and discussing these topics with
stakeholders and the public.
Principal industry trade associations, including
the API and the ACC developed voluntary climate
change programs consistent with the U.S.
Department of Energy’s ‘Climate VISION’ effort in
which Oxy participates. Also, the company has
responded to inquiries by the Carbon Disclosure
Project (www.cdproject.net), a consortium of
institutional investors that surveys the world’s
largest companies on this topic.
While many climate advocates urge aggressive
action to reduce worldwide GHG emissions and
some initial steps have been taken, essentially
no regulations requiring GHG emissions controls
14
have been implemented by national governments
in the areas where we operate. Recently, some
U.S. states have adopted laws establishing GHG
emission inventories and eventual reduction goals.
Oxy is participating in the development of these laws.
When the California Global Warming Solutions Act
of 2006 was adopted, Oxy was the first upstream oil
and gas producer in California to join the voluntary
California Climate Action Registry, committing to
tracking and publicly reporting GHG emissions. Oxy
is actively preparing emissions estimates and
working to obtain third-party expert certification.
Although the impact of climate change on Oxy’s
operations is uncertain, new regulatory controls may
affect costs, demand and market prices. We believe
our business plans are consistent with the goal of
mitigating GHG emissions. Furthermore, Oxy is well
positioned because of our leadership in carbon
dioxide (CO2) injection for enhancing oil recovery.
This process is viewed by the Intergovernmental
Panel on Climate Change (IPCC) as the way in
which wide-spread sequestering of CO2 emissions
could occur.
Carbon dioxide is the principle GHG related to Oxy’s
activities and is a product of hydrocarbon combustion to generate power for our operations. Methane,
another GHG, is the main constituent of natural gas
that sometimes is flared during oil production in
operations where no local gas markets or transportation facilities exist. Oxy is pursuing various methods
for delivering natural gas — the fossil fuel with the
lowest GHG emissions — such as our programs in
Oman and the United Arab Emirates. OxyChem
also uses natural gas extensively in many of its
production activities.
Oxy estimates GHG emissions for our oil and
gas, chemicals and other operations using the
Greenhouse Gas Protocol developed by the World
Business Council for Sustainable Development and
the World Resources Institute, supplemented by
more detailed, business-specific protocols prepared
by the ACC and the API. We continually refine
our GHG estimation methodology. For consolidated
reporting purposes, we adjust all compounds
to CO2 equivalents.
We estimate that Oxy’s share of GHG Protocol
Scope 1 (direct) emissions from facilities operated in
2006 was approximately 10.23 million metric tons of
CO2 equivalents. Carbon dioxide is the predominant
component, with the remainder being methane.
Other GHG emissions: nitrous oxide, hydrofluorocarbon compounds, perfluorocarbon compounds
and sulfur hexafluoride are insignificant. Oxy’s share
of Scope 2 (indirect) emissions (those associated
with electricity purchased from off-site suppliers)
for facilities we operate, totaled 5.99 million metric
tons of CO2 equivalents.
The GHG emissions estimates in the graph below
are based on Oxy’s share of equity ownership in the
facilities we operate (excluding emissions from
natural-gas flaring where required by contracts with
certain state-owned oil companies). If the basis
reflected 100 percent of emissions from facilities Oxy
operates instead of equity share, Oxy’s estimate of
Scope 1 plus Scope 2 greenhouse gas emissions
would increase by 10.1 million metric tons of CO2
equivalents. GHG Protocol Scope 3 emissions are
not estimated because the largest amounts would
be related to the ultimate use by others of our
crude oil and natural gas products, of which Oxy
has no knowledge.
Oxy’s emissions estimates between 2006 and 2005
indicate a 15-percent increase in direct emissions
and a 16-percent increase in indirect emissions,
reflecting the acquisition of additional oil and gas
assets and chemical manufacturing capacity and
higher operating rates to satisfy market demands.
Oxy believes that the most effective way to reduce
GHG emissions is to become more efficient. Consistent
with our business focus on being an efficient, lowcost producer, Oxy has been implementing new
maintenance and operating practices, installing
more energy-efficient equipment and constructing
efficient natural gas and hydrogen-fired cogeneration
facilities and investigating methods of capturing and
selling natural gas.
Oxy is proud to participate in the EPA’s Natural Gas
STAR Program to evaluate, implement and report
cost-effective technologies and practices to reduce
methane emissions from our oil and gas operations.
This innovative program is a voluntary, non-regulatory
partnership between the EPA and oil and gas industry,
which provides a forum for companies to share
Million Metric Tons CO2 Equivalents
1.55
0.14
0.92
0.01
North
America
South
America
Middle
East
Direct
Indirect
8.14
4.75
8.10
5.00
8.87
5.18
10.23 Direct
5.99 Indirect
2006
7.75
5.85
2005
Million Metric Tons CO2 Equivalents
2004
Occidental Estimated GHG Emissions
(Equity Share Basis)
2003
Occidental Estimated GHG Emissions
for 2006 (Equity Share Basis)
15
technical knowledge for efficiently reducing methane
emissions, and recognize best practices. As a
result of our STAR Program participation, Oxy has
implemented a broad spectrum of projects — some
traditional and some innovative — which have
produced sustainable annual methane reductions
estimated to be more than 1.5 billion cubic feet.
In 2006, at EPA’s invitation, Oxy joined the new
EPA-sponsored Natural Gas STAR International
Program, where significant reductions in methane
emissions that were achieved in Oxy’s international
assets (primarily by capturing gas for sale) are being
recognized and best practices shared.
investments in energy conservation and cogeneration projects. Oxy’s 2006 oil and gas operations
reported a 5-percent energy use reduction on a
production-weighted basis even as operations grew.
More than 25 years ago, Oxy began investing in
building several highly efficient cogeneration plants for
electrical power and steam to supply Oxy oil and gas
and chemicals operations. Cogeneration, or combined
heat and power (CHP), significantly increases electrical
power generation efficiency over traditional methods
while reducing CO2 by as much as 66 percent. CHP is
the simultaneous production of electrical energy and
another form of useful thermal energy from the same
fuel source. The thermal energy, when converted to
steam, can drive turbines to generate more electrical
power without additional GHG emissions.
Occidental Oil and Gas’ Worldwide Environmental
Manager, Krish Ravishankar, was recognized by EPA
as the Natural Gas STAR “Implementation Manager
of the Year.” Working to promote best practices in
Oxy’s oil and gas operations, he led the effort in
2006, which resulted in EPA’s first international
“Methane to Markets” workshop in Colombia.
The GHG emission reduction benefits from Oxy’s
cogeneration facilities are substantial. Using typical
assumptions for the national electrical grid average
CO2 emission factor, installed capacity of the
cogeneration units, steam boiler thermal efficiencies
and steam quality and usage, Oxy’s cogeneration
facilities at full utilization are estimated to reduce
GHG emissions by more than four million metric
tons per year, or 20 percent of what the company’s
combined equity share basis Scope 1 and 2
emissions otherwise would be.
Oxy evaluates energy efficiency using an energy
intensity index that employs revenue as a normalizing factor. The index illustrates a 39-percent
improvement in energy efficiency since 1996.
OxyChem has decreased its energy use per pound
of production by 20 percent since 1995 with
Occidental Energy Intensity Factor
Base Year 1995 = 1.0
16
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1.00 1.28 0.97 0.97 0.92 0.73 0.70 0.90 1.18 0.98 0.82 0.78
Occidental Oil and
Gas’s Worldwide
Environmental Manager,
Krish Ravishankar, was
recognized by EPA
as the Natural Gas
STAR “Implementation
Manager of the Year.”
EMISSION REDUCTIONS/INCREASED PRODUCTION
Oxy’s electrification and automation program in
the Hugoton gas field in Kansas and Oklahoma is
reducing CO2 emissions and is just one example
of similar efforts in several Oxy operations. In addition
to GHG reductions, the program is expected to reduce
time and costs associated with well monitoring and
maintenance while increasing field production.
At completion of
Hugoton’s retrofit
project, it is estimated
that CO2 emissions
will be reduced by
more than 20,000
tons per year.
The project involves retrofitting production wells with
electric motors and eliminating the need for gas-fired
engines, thereby reducing emissions. Electric motors
can operate intermittently, unlike gas engines that
work best when operating on a 24-hour basis. As
a result, Oxy has been able to market the gas that
otherwise would have been burned in the engines.
Pump-off controls have been automated and
connected to a computer system so that lease
operators can more efficiently monitor production
rates and operating conditions, respond to well
problems more quickly and, in some cases, anticipate
and correct operating anomalies before they occur.
The average production rate from the newly equipped
wells has risen by approximately four percent. In
addition, the reduction in daily running time has
reduced wear and tear on the equipment and is
expected to extend the average time between shut
downs for maintenance — resulting in lower operating
costs and increased production from the field.
Corollary benefits have been observed; for example,
lease operator driving time has been reduced by
extending well-maintenance schedules. This means
reduced risk of traffic accidents and lower vehicle
fuel and maintenance costs.
Full electrification and automation of more than
1,000 wells in the Hugoton field is scheduled to be
completed during 2007 and will result in estimated
annual cost savings of more than $1 million due to
reduced maintenance and downtime. At completion
of the retrofit project, we estimate additional annual
net reductions of more than 20,000 tons of CO2
emissions and that 365 million cubic feet of methane
will flow into the sales pipeline annually.
17
RESPONSIBLE WORKPLACE PRACTICES
Compliance
ENFORCEMENT AND PERFORMANCE
Throughout Oxy’s operations there are hundreds of thousands of
HES-related legal and permit requirements.
Oxy seeks strict adherence to these requirements,
addresses required corrective actions in a timely
manner and seeks ways to further strengthen
compliance. As a result of this effective HES
management system, compliance is high and Oxy
receives very few citations, especially considering
Oxy’s size and scope.
citations are summarized according to the applicable
environmental media: air, water, land or other. The
“other” category includes administrative, productrelated and employee safety issues. One trend
is apparent — enforcement activity relating to the
Title V operating permit program under the U.S.
Clean Air Act is increasing.
Citation and penalty data reflect the level and focus
of agency enforcement activity, which varies from
year to year with agency priorities. As a result, these
data do not necessarily serve as good leading
indicators of any company’s HES management
systems’ performance. However, enforcement
priorities can present additional opportunities to
strengthen HES management systems. Oxy strives
to capitalize on these opportunities even as the
regulatory framework becomes more complex
and restrictive.
In 2006, total penalties paid by Oxy were $557,032,
a small amount as compared to other large industrial
companies. In 2006, the OxyVinyls partnership
concluded voluntary discussions with federal, state
and local environmental agencies with jurisdiction
over four manufacturing facilities, with Oxy agreeing
to reduce vinyl chloride emissions and to resolve
disputed administrative claims and allegations of
environmental violations at those facilities. In addition
to emission reduction projects, OxyVinyls paid
penalties of $340,000 to resolve the matter. Excluding
the OxyVinyls matter, the average penalty amount in
2006 was just over $7,000. Another method for
assessing performance trends is the amount of
penalties paid by the year in which the notice of
the alleged deviation was received, as shown on
the graph below (this data excludes commitments
by Oxy for Supplemental Environmental Projects).
Citations, which are actions initiated by a governmental agency, include notices of violation, warning
notices, administrative orders, consent orders/
agreements and civil actions or court orders. Often,
citations focus on administrative matters. Citations
are tracked by Oxy worldwide and may include
health, environment, safety, process risk management
and transportation activities. In the table below,
Air
Water
Land
Other
29
22
33
39
31
52
45
40
64
Total
2001
2002
2003
2004
2005
2006
150 149
67
152 314 325 129 180 417
2006
54
2
8
—
2005
32
5
—
3
2004
26
13
4
2
2003
32
8
9
3
2002
22
2
2
5
2001
24
7
4
4
2000
7
9
1
16
1999
12
4
3
3
1998
8
5
1
15
2000
Thousands of Dollars
1999
Occidental Penalties Paid*
Number of Occurrences
1998
Occidental Citations
* Through 2006, reported by year in which notice was received.
18
ENVIRONMENTAL EXPENDITURES
Oxy’s U.S. business operations are subject to
stringent laws and regulations relating to improving or
maintaining the quality of the environment. Likewise,
international operations subject to environmental
protection laws. Environmental expenditures related
to current operations are factored into overall business
planning. Operating expenses are incurred continuously, while capital expenditures relate to longer-lived
improvements in currently operating facilities.
Oxy’s 2006 environmental operating expenses and
capital expenditures for projects related to environmental protection are shown in the table below.
Oxy’s commitment to maintaining compliance and
improving HES performance means that significant
expenditures will continue. Although total costs may
vary in any one year, over the long-term, segment
operating and capital expenditures for environmental
compliance are expected to increase.
performance of remediation and, in some cases,
compensation for alleged property damage, punitive
damages and civil penalties. In most of these
proceedings, Oxy is one of many companies that have
shared in the costs involved. With all such environmental proceedings, Oxy accrues reserves when it
is probable that a liability has been incurred and the
amount of loss can be reasonably estimated.
To enhance efficiency and effectiveness, Oxy
manages its environmental remediation efforts
through a wholly owned subsidiary, Glenn Springs
Holdings, Inc., which reports its results directly to
Oxy’s corporate management. Cash expenditures
related to site remediation activities in 2006 were
approximately $71 million. The table below presents
Oxy’s environmental remediation reserves at yearend 2006, 2005 and 2004 grouped by three
categories of environmental remediation sites:
$ amounts in millions
ENVIRONMENTAL EXPENDITURES RELATED TO BUSINESS SEGMENTS
In millions
2006
2005
2004
$ 95
73
$168
$ 65
67
$132
$ 51
59
$110
$55
25
$80
$43
21
$64
$44
12
$56
OPERATING EXPENSES
Oil and Gas
Chemical
CAPITAL EXPENDITURES
Oil and Gas
Chemical
REMEDIATION
Laws that require or address environmental remediation
may apply retroactively to past waste disposal practices
and releases of substances to the environment. In
many cases, the laws apply regardless of fault, legality
of the original activities or current ownership or control
of sites. Oxy and certain of our subsidiaries are
currently participating in environmental assessments
and cleanups under these laws at federal Superfund
sites, comparable state sites and other domestic and
foreign remediation sites, including currently owned
and previously owned sites. Also, the company and
certain of our subsidiaries, have been involved in a
number of governmental and private proceedings
involving historical practices at various sites including,
in some instances, having been named in proceedings
under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) and similar
federal, state and local environmental laws. These
environmental proceedings seek funding or
CERCLA &
equivalent sites
Active facilities
Closed or sold
facilities
Total
2006
2005
2004
# of Reserve
Sites Balance
# of Reserve
Sites Balance
# of Reserve
Sites Balance
105
21
$226
116
128 $236 125 $239
18
114
16
75
40
166
70
$412
39
68
39
61
185 $418 180 $375
As of December 31, 2006, Occidental or certain of
its subsidiaries have been named in 105 CERCLA or
state equivalent proceedings, as shown below.
$ amounts in millions
Minimal/No exposure (a)
Reserves between $1–10 MM
Reserves over $10 MM
Total
#of
Sites
85
14
6
105
Reserve
Balance
$
6
55
165
$226
(a) Includes 32 sites for which Maxus Energy Corporation has retained the
liability and indemnified Occidental, 5 sites where Occidental has denied
liability without challenge, 15 sites where Occidental’s reserves are less
than $50,000 each, and 33 sites where reserves are between $50,000
and $1 million each.
In determining the environmental remediation
reserves, Oxy refers to currently available information,
including relevant past experience, available technology, regulations in effect, the timing of remediation
and cost-sharing arrangements. For a complete
discussion of these factors and other information
concerning the environmental remediation reserves,
see our 2006 Annual Report on SEC Form 10-K.
19
RESPONSIBLE WORKPLACE PRACTICES
Employment Practices
EMPLOYER OF CHOICE
Oxy strives to be an employer of choice in the oil and gas,
and chemical industries.
During the past three years, the number of
Occidental Oil and Gas employees has grown
significantly through acquisitions and the staffing of
new projects. The rapid growth of our workforce has
required the enhancement of the traditional key
human resource management programs such
as Employee Empowerment and Mentoring,
Leadership at All Levels and Training.
Through the development of these programs and
employee activities identified through the TeamOxy
employee association, Oxy was named one of
Houston’s Best Places to Work in 2006. The annual
Houston Business Journal award is given based on
an employee satisfaction survey, with nominated
companies required to have a certain percentage of
their employees respond to the survey. Employees
were asked to identify reasons why they believe they
work at one of the best workplaces in Houston. Oxy
is one of the first companies in the oil and gas
industry to receive this prestigious award.
To help new employees adapt more quickly to
their new jobs and to the company’s
culture, we have redesigned our “On
Boarding Program.” This system helps
integrate new employees into the organization,
so they can become highly productive and responsible members of the workforce in the shortest
possible timeframe.
The On Boarding program activities include “New
Employee Luncheons” where new employees have
the opportunity to meet company leaders and learn
more about the business, and technology exchange
conferences where they can network with leading
technical experts across the company.
Our “Mentoring Program” provides technical mentors
to new employees. This program is designed to
accelerate the learning and acculturation process
among new employees by providing a support
system to enhance their potential for success.
20
New Oxy employees and their mentoring partners
work together formally for a year, but many choose
to continue their relationship beyond that point.
More than 100 employees, at all levels of the
company, have attended mentoring training
workshops to enhance their mentoring skills.
DEVELOPING LEADERS AT ALL LEVELS
Oxy’s future depends on strong leadership and new
employees are not the only ones to receive professional development training. Developing employees
as leaders at every level of the organization is a
cornerstone of Oxy’s success. Our employees make
decisions every day that impact the business, the
community and the environment. We want to ensure
that they have the skills and resources to make and
manage their decisions effectively; therefore a variety
of employee development programs are in place to
support their effort.
The “Leadership Development Program” (LDP)
is focused on developing the current and future
generation of senior leaders across the organization.
The LDP provides current and future leaders with
the tools to implement and drive business strategy
and manage challenges. Since 2001, more than
175 participants from every Oxy business unit
and operational location around the world have
completed the program.
“OxyChem Leadership Essentials” (LE) was created
by OxyChem, which recognized the need for
continuous development of the organization’s
leadership talent. OxyChem is implementing its LE
training program by targeting first-line manufacturing
supervisors and managers. The LE training complements other programs developed for leaders at
all levels and is designed to be delivered internally
by OxyChem employees. The modular curriculum
develops leaders who are entrusted to execute
the organization’s strategies and meet its goals by
building and maintaining a high-performing workforce.
TECHNICAL TRAINING
Occidental’s global employee technical training
program emphasizes the development and ongoing
enhancement of the critical workforce competencies
needed to execute our strategic plan. Training takes
many forms including formal classroom, distance
learning, on-the-job work experience and job rotations.
worldwide. Most of the courses are designed
to encourage a multidisciplinary approach to
reservoir description and characterization. More
than 370 individuals participated in 2006.
º
“Oil and Gas Engineering Development Program”
(EDP) was created in 2006 as a formal engineering development program to address the
increasing need for high-quality engineering talent.
Increasingly, Oxy is hiring more engineering
students from college campuses around the world
and EDP, supplemented with a combination of
focused formal training and early job rotations,
accelerates their ability to rapidly reach core
competency. More than 100 engineers are
currently enrolled in the program.
º
“OxyChem Technician Training” ensures OxyChem’s
superior HES knowledge is transferred to new
employees. Oxy trains employees in HES processes
and procedures, job fundamentals, and the safe
and effective handling of the chemicals used in
the business.
Oxy is focused on training employees to gain the
skills necessary to adjust to the changing demographics of our workforce. In addition, existing
training programs, procedures and guidelines are
being reviewed and combined with feedback
from various technical assessments to identify
actions for improving the quality and effectiveness
of technician training.
Examples of employee development efforts:
º “Oil and Gas Geoscience Functional Training
Initiative” (FTI) is a focused effort to improve
the ability of Oxy geoscientists and engineers to
understand and predict reservoir quality. Formal
training and associated field trips are offered
At the 2006 Functional
Training Initiative
Carbonate Reservoir
Characterization course,
engineers Ravi Sharma
and Robert Kramm
examine a modern
carbonate core from a
tidal flat environment
with geoscientists
Natalia Aristizabal and
Alexandra Webster.
Sixty Oxy geoscientists
and engineers studied
a modern carbonate
environment to learn more
about facies predictability, reservoir properties
and geologic risk.
RESPONSIBLE WORKPLACE PRACTICES
Developing Expertise in Our International Workforce
RESPECTING DIVERSITY
An influential factor in Oxy’s success is the broad cultural diversity
of its multinational, multiethnic workforce.
As our business has expanded around the world,
we have attracted thousands of employees of
exceptional talent from numerous countries and
cultures, bringing a broad world perspective to the
corporate culture. Oxy’s ability to work effectively in
highly diverse cultural environments enhances value
for Oxy’s partners, employees and stockholders.
Oxy has established comprehensive programs to
hire national employees in the different countries
where we operate, and train them in all operational
and professional disciplines. This program has
contributed to our operating efficiencies, and
expanded the overall technical and management
expertise of the workforces in emerging countries
where we have operations.
In Oxy Oman, we maintain our strong commitment
to the “Omanization” program at all levels of our
Oman operations — from executive management to
entry-level positions. This program is designed to
replace foreign expatriates with Omani citizens in
all job positions. Aside from the new Mukhaizna
operations, Omani employees comprise 90 percent
of Oxy’s workforce in Oman. As our operations
continue to expand in Oman, so will our efforts to
train and recruit local employees.
A WORKPLACE FREE FROM DISCRIMINATION,
HOSTILITY AND HARASSMENT
Any hostility or harassment of any employee based
on age, color, gender, sexual orientation, national
origin, religion, or any racial, ethnic or other personal
characteristic is a violation of Oxy’s policies. Every
Oxy manager is responsible for the communication,
implementation and enforcement of this policy at
their location and for complying with all applicable
anti-discrimination laws and regulations.
PROTECTING EMPLOYEE RIGHTS
Oxy has a long-standing policy of respecting
employees’ voluntary freedom of association with
respect to causes, organizations or political parties
they wish to support or join. Oxy encourages
employees to participate in the political process on
their own time. Employees have a right to make
political contributions in their own name and from
their own assets. Employees are not required by the
company to make any political contributions.
EQUAL OPPORTUNITY EMPLOYER
We provide equal opportunity to all individuals in every
aspect of employment without regard to race, color,
religion, ethnicity, gender, national origin, disability,
age, sexual orientation or veteran status. This applies
In Latin America, we continue our long-standing
efforts to maintain a predominantly national
workforce in each of our operations.
In addition to building the workforces in our international operations through the hiring and training
of local employees, Oxy also assigns these
employees to responsible positions throughout our
worldwide operations as part of our comprehensive
career development process.
PROVIDING FAIR COMPENSATION AND BENEFITS
Oxy’s wages, benefits and employment terms are
designed to attract and retain top-quality talent.
Compensation is targeted to be competitive within
the respective labor markets and to provide
significant opportunity for personal growth based
on performance.
22
Supervisory Positions Worldwide
Within Oxy’s Oil and Gas, and Chemical operations
Out of 691 supervisory
positions held in Oxy’s Oil
and Gas and Chemical
operations worldwide, 547
or about 79 percent of
these positions are held
by non-US employees.
144 U.S. employees
547 non-U.S. employees
Sonya Chavez, THUMS Island White Facilities Operations Supervisor, has
more than 25 years of service with THUMS, Long Beach. The first woman
to hold a top supervisory position at the site, she is known to her colleagues
and management for her focus on safety.
Oxy Oman’s Sadiq Al-Lawati, Vice President — Health, Environment and
Safety, and Najeeb Al Harthy, Vice President for B9 and B27 Operations
review geographic data.
To encourage improved health of
Oxy employees, one of the innovative
programs introduced by OxyWellness
is “Walk This Way” where employees
log the number of steps they take to
win cash prizes.
to all phases of employment, including recruitment,
hiring, compensation, promotion, training, work
assignments and performance evaluations.
We believe every employee at Occidental is a
potential leader, and our recruiting, training and
development programs are designed to help realize
their full potential. Our vision is that every employee
knows that he/she will be constrained only by their
ability and desire in contributing fully to their own
personal and the company’s success.
WORK/LIFE BALANCE
Oxy recognizes that maintaining a healthy balance
between job duties and the responsibilities associated with everyday life is important in order to retain
talent and maximize performance. In addition to
competitive paid time off and vacation policies,
many Oxy sites offer flexible work schedules,
telecommuting and other programs aimed at
accommodating the needs of a diverse workforce.
There are times when an employee may struggle
with family, emotional or other issues that can
affect the employee’s well-being and ability to
function effectively at work or in their personal lives.
Acknowledging the impact of these issues, Oxy
offers an Employee Assistance Program, which
provides free counseling sessions to support
employees, dependents and retirees.
OXY WELLNESS PROGRAM
Oxy initiated an expanded health improvement and
wellness program in 2006 that is available to all
U.S.-based Oxy employees and their spouses. The
program takes a preemptive approach to finding and
addressing health risks to keep participants healthy.
Oxy recognizes that health improvement has been
shown to provide significant benefits, including higher
productivity and reduced medical costs, for the
company and our employees.
Oxy’s wellness program incorporates online health
risk assessments, free health screenings and other
elements that provide health risk education and risk
reduction assistance. Participants can meet with
a health advisor to discuss their individual results
and consider ways to improve personal health and
wellbeing. More than 4,000 employees and spouses
have completed their online health assessments in
the months since this program was launched.
23
ETHICAL BUSINESS PRACTICES
Commitment to Human Rights
Oxy is committed to conducting its business in a manner that
observes the law, respects the cultural values of the communities
in which we operate and reflects a high standard of ethics.
Oxy is a signatory of the Voluntary Principles on
Security and Human Rights, which guide companies
in maintaining the safety and security of operations
while ensuring respect for human rights and
fundamental freedoms.
Oxy’s corporatewide Human Rights Policy was
formalized in 2004 to reinforce our ethical business
practices with respect to the promotion of human
rights within all areas of our activities and influence.
Our policy requires human rights training for all
security personnel, managers and new hires.
Background checks are conducted for all security
personnel, including contracted employees. It also
requires impact assessments, consistent with the
Voluntary Principles, to be conducted before new
work activities begin in any non-U.S. location.
PROMOTING HUMAN RIGHTS AWARENESS
THROUGH TRAINING
Oxy’s Human Rights Policy is based on international
standards and supports the universally recognized
rights and freedoms set forth in the Universal
Declaration of Human Rights, the International Labor
Organization (ILO) Declaration on Fundamental
Principles and Rights at Work, the Voluntary
Principles on Security and Human Rights and the
Global Sullivan Principles. More than 2,000 Oxy
employees, including nearly all employees from
operations in Argentina, Colombia, Libya and Oman
have received human rights training. Trainees
discuss the policy and important human rights and
social responsibility issues. Special attention is given
to Oxy’s commitments to stakeholders and ways in
which the company develops an understanding of
issues of the local culture. The training material used
in these electronic courses is customized to adapt
to local cultures and translated into local languages.
Arabic and Spanish training modules facilitate the
learning process for trainees.
Oxy’s training materials include case discussions,
examples from extractive industries and illustrations
of good practices, and are available to all employees
through our internal Human Rights Web Site. Our
Human Rights Policy can be viewed at www.oxy.com.
Human rights training sessions such as this one in Chile
are conducted by Oxy’s Director of Social Responsibility,
Luis Fernando De Angulo. The one-on-one training offers
employees the opportunity to discuss human rights and
social responsibility issues unique to their communities and
reinforce that human rights are core values at Occidental.
24
24
CONDUCTING SOCIAL IMPACT ASSESSMENTS
The Human Rights Policy requires our operations to
conduct social impact assessments that include
stakeholder analysis, issue identification and
consideration of community needs. These social
impact assessments include risk evaluations
consistent with the terms of the Voluntary Principles.
Oxy Libya’s Protocol Affairs Manager, Leila Elkial, helps
our staff in raising awareness and understanding of culture
and history at the beautifully preserved Roman ruins
of Sabratha located on the Mediterranean Sea in Libya.
Checks and balances are incorporated into our
business practices in an effort to ensure that our
operations promote economic development, without
jeopardizing human rights. In 2006, assessments
were completed in Oman, Libya and Colombia —
including the La Cira project in Colombia (see the
following page) — and additional assessments
were initiated in Argentina and Yemen.
In new projects like Mukhaizna, Oman, acquired by
Oxy in late 2005, the social impact assessment is
performed concurrent with the environmental impact
assessment. This practice informs a comprehensive
approach to addressing the relationship of
environmental and community issues.
Conducting risk assessments allows us to incorporate stakeholder expectations and the unique
characteristics of local institutions and cultures into
our project-planning and decision-making processes.
For example, we pay close attention to our interaction with Bedouin populations in Oman, addressing
archaeological heritage in Libya and maximizing
opportunities for local labor and skills development
in our new projects in the Middle East. Many recent
social initiatives have emerged from these assessments, such as training programs for neighbor
communities in Oman, developing local vendors in
La Cira, Colombia and addressing youth unemployment issues in Argentina.
In the future, the implementation of our Human
Rights Policy throughout the company will be
increasingly integrated with the HES and SR
Management System, providing a source of quality
assurance for our efforts and making every employee
responsible for social responsibility performance.
Through risk assessments and training in Oman, employees
now are paying close attention to their interaction with local
communities and have developed relationships of mutual respect.
PROMOTING THE VOLUNTARY PRINCIPLES ON
SECURITY AND HUMAN RIGHTS IN COLOMBIA
Occidental has been actively participating in the
initiative led by the Colombian government to
promote the Voluntary Principles on Security and
Human Rights in the country’s extractive sector.
Oxy is a member of the National Committee on
the Voluntary Principles, convened and chaired
by the Colombian Vice President. This committee
conducts periodic progress reviews with the
participation of local representatives of signatory
governments and companies, and the Colombian
Oil Industry Association (ACP). Oxy’s participation
is helping the National Committee achieve its
aspiration to make the Voluntary Principles an
industry-wide practice and to expand the
involvement of reputable nongovernmental
organizations (NGOs).
These efforts have had such widespread impact that
Colombia is now recognized by many as a showcase
in demonstrating progress and commitment to the
Voluntary Principles.
25
ETHICAL BUSINESS PRACTICES
Commitment to Human Rights
A CONSTRUCTIVE COLLABORATION WITH INTERNATIONAL ALERT AND FUNDACIÓN IDEAS PARA LA PAZ
Occidental de Colombia recently agreed with ECOPETROL
(Colombia’s national oil company) to jointly operate an enhanced
oil recovery project at the La Cira oil field in the Middle Magdalena
Valley — a region that has been impacted by violence and
diminishing economic opportunities for the local population.
Much of the project’s future success depends on
proactively addressing security, human rights and
social issues.
In 2006, Oxy and ECOPETROL partnered with
two nongovernmental organizations to conduct an
innovative Social Risk Assessment of the project and
the region, to identify issues that needed remediation,
to find opportunities that could be developed and to
comply with a key requirement of Oxy’s Human Rights
Policy requiring such social impact assessments.
International Alert (Alert), a London-based conflict
resolution and peace-building NGO, which has been
actively engaged in global multistakeholder initiatives
to address development issues, was selected to
conduct an independent assessment. Alert used
their proprietary tool, Conflict Sensitive Business
Practices (CSPB), which allows companies to apply
two-way risk and impact analysis with a specific, but
not exclusive, focus on issues of security and human
rights. Alert, teamed with its local Colombian partner,
Fundación Ideas Para la Paz (FIP) — on the pilot
application of a human rights and social risk program
in La Cira to test the CSBP approach it had developed
based on field research and consultation with
various stakeholders.
the field analyses, as well as training for the La Cira
project teams. To ensure the independence
and autonomy of all parties involved, a formal
Memorandum of Understanding was drafted. This
Memorandum set forth the specific roles of the
working relationship between the NGOs and
the companies.
The utilization of the CSBP and the coaching from
the NGOs provided clear guidance for current and
future stakeholder consultation on issues including:
identifying specific actions for further implementation
of the Voluntary Principles in the region; providing
valuable feedback on key aspects of the La Cira
project, including managing land issues with
neighbors; and promoting safe utility use among
the local population who had installed unsafe
connections to the oil field pipes. The most
important long-term effect of the NGO collaboration
has been the introduction of risk analysis and
stakeholder engagement as a continuous practice.
Oxy and ECOPETROL’s staff, from managers to
field workers, participated in this collaborative effort
through workshops, training, interviews and
extensive review of the project documents and
socioeconomic information of the region.
After a three-month pilot, a full risk assessment,
including field work was conducted, providing
valuable analysis and recommendations to address
the social, security and economic impacts of the
project. FIP and Alert provided guidance in conducting
26
Key aspects of
the La Cira projects
include sharing and
exchanging information
with neighbors.
ETHICAL BUSINESS PRACTICES
Responsibility and Integrity in Conducting Our Business
CODE OF CONDUCT
Oxy adheres to a written code of business conduct that fosters
a high standard of ethical behavior as part of the foundation for
all business management.
The code includes a policy of “zero tolerance”
for violations and applies to all employees and
businesses of Oxy. In many geographic areas where
we do business, the code’s requirements are more
stringent than the prevailing legal requirements.
Strong corporate governance policies are fundamental to good corporate citizenship. Oxy’s Board
of Directors and management are committed to
accountability and continue to upgrade policies
to ensure the company stays at the forefront of
good governance.
Our corporate governance practices have been
given high ratings by several independent entities.
For example, GovernanceMetrics International (GMI),
an independent corporate governance and ratings
agency, rated Oxy 10 out of a possible 10 in
December 2006. Oxy was one of only 38 companies
from among 3,800 firms assessed to receive GMI’s
highest rating.
Oxy publishes additional information on our
policies in the proxy statement and on our web
site www.oxy.com.
Oxy corporate legal assistant, Carre Soppe reviews the company’s
Code of Business Conduct brochure. All employees are expected
to be familiar with the details of the policy.
Excerpt from Oxy’s Code of Business Conduct
…before taking any action each employee should consider the following questions, and unless the answer
to each question is “yes” the action should not be taken:
º
Is this action, legal, ethical, and socially responsible?
º
Does this action comply with both the spirit and the letter of the Code of Business Conduct?
º
Will this action appear appropriate?
º
Is it clear that the Company would not be embarrassed or compromised if this action were to become
known within the Company or publicly?
27
GOOD NEIGHBOR PRACTICES
Educational Enrichment
ELK HILLS, TAFT ACADEMY — OIL RELATED EDUCATION FOR THE NEXT
GENERATION OF ENGINEERS, GEOLOGISTS AND IT PROFESSIONALS
The rural town of Taft, California lies 15 miles from Oxy’s giant
Elk Hills oil and gas operation and is one of the ‘neighbors’ in
Oxy’s Good Neighbor program.
Recognizing the untapped human resources in
Taft, Oxy was instrumental in founding the Petroleum
Technology Academy as an integral part of the
Taft High School curriculum in 2001.
The Academy is a unique three-year alternative
learning program emphasizing petroleum technology
and preparing students for a career in the oil
and gas industry. Oxy and other industry affiliates
worked with Taft High School in developing a
strong academic program accredited by the State
of California.
Liliana Torres, one of 40 students in the program’s
inaugural class, is now a third-year mechanical
engineering student at California State University
at Fullerton (CSUF) and President of the Society of
Women Engineers at CSUF. Liliana credits her
achievements to the support she received from her
parents and Oxy, and the education she received
in the Academy. “Attending the academy gave me
confidence and an opportunity at a young age to
learn valuable skills which opened doors leading me
toward a career in petroleum engineering.” Liliana
has been an intern at Occidental Elk Hills for the
past three years, and hopes to have a career with
Oxy when she graduates.
Liliana Torres presents
documentation on
production trend analysis
to Oxy’s Executive Vice
President, John Morgan.
28
28
Oxy’s contribution to the Academy includes mentoring,
field trips, career and curriculum consulting, leadership skills, providing an in-depth understanding of
the petroleum industry, and most of all, helping build
confidence and self-esteem.
In addition, with Oxy’s support, the Polk county High
School at Copper Basin, Tennessee has established
a student exchange program with Taft High School,
furthering the scope of knowledge of students from
each region. The Independent Petroleum Association
of America (IPAA) discovered the Academy’s unique
program in 2006. The IPAA visited the Academy
and recognized its curriculum integrity, leadership
building attributes, student accountability and the
collaborative efforts between administration, teaching
team, students, parents and the strategic partnerships.
The IPAA is planning to initiate a similar program in
the Houston Independent School District in 2008.
As an intern conducting field work
at Oxy of Elk Hills, Liliana Torres
is a graduate from the Petroleum
Technology Academy. Developing
a career in petroleum engineering
will be a win/win situation for both
Liliana and Oxy Elk Hills.
A Crecer was launched in 2003 and by the end of 2006, 19 area villages in the Caño Limón oil field area participating in the program
had illiteracy rates reduced to almost zero.
A CRECER — TO GROW OXY COLOMBIA
A Crecer, meaning to grow in Spanish, is a literacy and adult
education program being carried out in Arauca, Colombia, where
Occidental de Colombia has operations in the Caño Limón oil field.
Jointly sponsored with ECOPETROL (Colombia’s
national oil company) and the El Alcaravan
Foundation, the program designs and applies
learning methodologies that encourage individual,
family and community participation in literacy,
educational and personal development activities.
It offers area residents the opportunity to work with
facilitators in weekly gatherings, to attend personalized classes, participate in learning games and
recreational activities to gain literacy, and expand
education and personal development.
A Crecer, launched in 2003, is working to ensure
continuation of the program and planning to add
2,000 participants from the region. In addition, A
Crecer is working with Oxy to replicate the program
in other areas in Colombia where we have operations.
29
GOOD NEIGHBOR PRACTICES
Encouraging Safe and Healthy Communities
OXY PERMIAN — “SAFE T. TURTLE”
Tragedy strikes most communities at one time or another.
It is the character of those in the community that determines
how the tragedy is handled.
In 2003, following a West Texas oil field accident that
occurred when two local youths breached security,
Oxy’s Permian operations recognized the need to
educate children about dangers in the oil field. A
public service campaign to deal with this issue was
created by Oxy in collaboration with the Permian
Basin Petroleum Association’s (PBPA) public
relations committee. Billboards and advertisements
were designed, videos were produced and a
mascot was born — Safe T. Turtle. Oxy Permian
supports this program on an ongoing basis, serving
on the PBPA Public Relations Committee that
oversees the program and participating directly in
school presentation activities.
“Presenters sometimes wonder if their messages are
getting through, but trust me, they are!” said Principal
Joy Jones of Crane Elementary School in Crane,
Texas. “Two of our staff members who had kids in
our school’s presentation said their kids were talking
about it at home, quoting messages from the
presenter and the video.”
Since the inception of the program, Safe T. Turtle
has appeared on numerous billboards throughout
West Texas and has been seen and heard in multiple
public service announcements on television and
radio both in English and Spanish.
Ben Sheppard, PBPA’s Executive Vice President
said, “With thousands of oil field facilities and related
equipment throughout West Texas, it is imperative
that we teach kids not to play on or around that
equipment. We also want to show them the many
precautions our industry takes to be safe when
working in the oil field.”
The most important part of this education program
is done in the classroom. Safe T. Turtle appears in
his naturally protective safety shell and wears a hard
hat and steel-toed boots. He holds a sign displaying
his main message, “Play it Safe… Don’t Take Chances!”
The children are drawn to him. Safe T. Turtle has
visited dozens of schools and has talked with
thousands of children in the Permian Basin area
about the various hazards they could encounter
around oil field operations. Accompanied by an
industry safety representative, who discusses safety
precautions, Safe T. Turtle also hands out stickers
and leaves posters reminding the children that the
oil field is not a playground.
30
Safe T. Turtle appears in his naturally protective
safety shell and wears a hard hat and steeltoed boots.
Safe T. Turtle with Texas Governor, Rick Perry,
displaying the program’s main message,
“Play it Safe… Don’t Take Chances!”
Launched in 2006, the Oman Safe Driving program film has been shown to
all Oman employees who drive company vehicles. The companion brochure
distributed to more than 10,000 drivers, has been so successful that other
companies have asked permission to reprint the brochure.
OMAN SAFE DRIVING PROGRAM
As part of our contribution to the safety of the
communities in which we operate and to address
issues of local importance, Oxy is working with the
Royal Oman Police, the Ministry of Education and
Oman TV to address the growing number of road
accidents in the Sultanate of Oman.
Oxy’s financial support helped to fund the printing
and distribution of a brochure and production of a
powerful film, “Pain and Hope,” which focuses
on the experiences of auto accident survivors and
family members. The film will be distributed to
schools throughout the Sultanate and shown to the
general public. The brochure will be distributed to
thousands of drivers throughout the Sultanate.
The Oman safe driving program demonstrates
Oxy’s longstanding interest in preventing vehicle
accidents. Due to the location of Oxy Oman’s
operations, all company employees attend a
desert driving training program to reinforce the
care that must be taken when driving on unpaved
roads in remote areas. A journey management
system is employed to check-in with drivers at
various waypoints. Also, company vehicles are
stocked with emergency supplies and equipped
with systems to record operating parameters
such as speed, braking and engine function that
are downloaded and analyzed to reinforce safe
driving behavior.
31
GOOD NEIGHBOR PRACTICES
Helping People Help Themselves
THE BEST BUDDIES CHALLENGE: 2006
Hurtling down the twisting, turning 100 miles of scenic California
coast from Monterey to the Hearst Ranch in San Simeon, more than
500 colorfully clad cyclists rode to benefit Best Buddies International.
Oxy served as a Golden State sponsor and Host
Committee Member for the 2006 Volvo Best Buddies
Challenge: Hearst Castle, which raised close to
$2.5 million for Best Buddies International, a nonprofit organization dedicated to helping people with
intellectual disabilities by providing opportunities for
one-to-one friendships and integrated employment.
Founded in 1989 by Anthony Kennedy Shriver, Best
Buddies is a vibrant, international organization that
has grown from one chapter to more than 1,300
middle school, high school and college campuses
across the U.S. and internationally. Best Buddies’
six formal programs — Best Buddies Middle
Schools, High Schools, Colleges, Citizens, Jobs
and e-Buddies will positively impact more than
300,000 individuals this year.
Oxy’s active investment in the community is not
simply providing financial support, it is also about
participation, commitment and being a ‘good
neighbor.’ TeamOxy, our employee-driven community
volunteer program, promotes employee involvement
in programs aligned with our strategic business
objectives, and reflects our vision and values.
TeamOxy’s participation in the Challenge provided
not only sponsorship, but also an employee team
of 49 riders who raised $61,000.
TeamOxy cyclists from Long Beach, Los Angeles,
Elk Hills and Houston participated as one of the
event’s top fundraising teams in this high-energy,
family event chaired by California’s First Lady, Maria
Shriver. Our community involvement illustrates Oxy’s
core values and the beneficial relationships we are
building throughout our sphere of influence.
California’s First Lady, Maria Shriver with distinguished Student Leader
Katie Meade at the kick off of the Best Buddies Challenge 2006.
Katie will be recognized at the 18th Annual Best Buddies Ball with the
Spirit of Friendship Award for her dedication to the mission of friendship
for people with intellectual disabilities.
32
“It’s Oxy’s focus on being a
socially responsible company
and its employees commitment
to that goal that makes them
a great company.”
— Anthony Kennedy Shriver
Founder Anthony Kennedy Shriver,
right, has built Best Buddies into the
world’s largest nonprofit dedicated
solely to providing opportunities
for one-to-one friendships and
integrated employment to people
with intellectual disabilities.
Richard Hallock, below, Oxy’s
Executive Vice President of Human
Resources, was one of the 49
TeamOxy employees to participate
in the 2006 Best Buddies Challenge.
TeamOxy raised $61,000 for the event.
Oxy Oil and Gas Strategic Staffing
Lead, Amanda Mackintosh, below
far right, is up before dawn to start
the challenge.
33
GOOD NEIGHBOR PRACTICES
Stimulating Local Development
OXY COLOMBIA: “OPPORTUNITIES BANK” — BUSINESS COUNSEL AND MICRO LOANS
For Jose Fernelli Aguirre, a 67-year-old owner of a small bicycle
manufacturing and sales business in Arauca, Colombia, the Banco
de Oportunidades (Opportunities Bank) has been a godsend.
The program, created by Oxy Colombia, through the
El Alcaravan Foundation, has provided Mr. Aguirre
with business advice and financial assistance that
helped him create a successful business.
with El Alcaravan to move more of these programs
forward by committing additional resources to
enable more local business people to participate
in and benefit from this program.
Mr. Aguirre is just one of many small business
owners receiving assistance from the Opportunities
Bank program. The initiative grew out of the Arauca
Municipal Development Plan, which focused on job
creation and preservation in the area.
To date, the program has helped more than 300
area residents who were interested in starting,
building and/or sustaining a business. The Bank of
Opportunities program offers personalized business
consulting that takes into account individual needs.
Its principal focus in the Arauca area is on the sale of
meats, produce, clothing and household products.
Oxy and El Alcaravan Foundation have developed
and run successful microcredit and small business
support programs in rural areas of Colombia. Results
have been so positive that the local Municipality of
Arauca and other social entities have partnered
Mr. Jose Aguirre, at
right, is one of the
many small business
owners who have
received assistance
from the “Opportunities
Bank” program.
34
HABITAT FOR HUMANITY
“Homes for Houston” project inspires OxyChem volunteers to dedicate
a week of their time and labor to a Houston family.
Seventy-five OxyChem volunteers participated in
an ambitious eight-day homebuilding spree for the
Habitat for Humanity “Homes for Houston” project
in partnership with the Vinyl Institute in April and
May, 2006. Employees from OxyVinyls’ Houston
operations worked as carpenters, roofers, framers,
painters and landscapers to make a home a reality
for a deserving local family. The project concluded
with a ceremonial dedication of the home built by
OxyChem employees for local residents Mr. and Mrs.
Achour Amari and their three young children, who
were delighted to accept the keys of their new home.
“We were so surprised! We are very happy!”
exclaimed Achour Amari. “We have little babies
and only I work. A mortgage is too tough for us
and now I will have a home to raise my children
in. We have suffered and now hope is on the way.
I thank all of you for what you are doing.”
OxyChem President Chuck Anderson participated,
pounding nails alongside other OxyChem employees.
Houston’s Habitat project leaders acknowledged
his exemplary leadership as the first major company
president to be personally involved in an area
Habitat project.
volunteer coordinator. “Then they get involved, see
the house form and realize the significant impact
their involvement had in helping a less fortunate
family. It is a very rewarding feeling.”
“One of the tenets of Habitat for Humanity is to build
homes that are not only affordable, but are high
quality and energy efficient. Vinyl building products
help achieve that goal and are part of every Habitat
for Humanity home we build,” said Houston Habitat
for Humanity President and CEO Laurence J. Payne.
The finished house featured several vinyl products
donated by OxyChem customers, including vinyl
siding, windows, doors, flooring and PVC pipe.
Vinyl products are lighter than wood or metal, they
transport easily and are more durable than other
traditional building materials.
Later in 2006, building upon the OxyChem
experience, other Houston-based Oxy Oil and Gas
and Energy Marketing employees assisted the local
chapter of Habitat for Humanity with a weekend
“wall build.” The dedicated Oxy team built 18 walls in
record time for a house slated to be constructed in
mid 2007.
Many of the OxyChem volunteers worked in group
shifts, working one to four days at a time, lending
their expertise at each phase of the construction.
“Often, people feel like they do not have the time
for a project of this magnitude,” said Chris Corwin,
Oxy Human Resources Manager and the project’s
Mr. and Mrs. Achour
Amari are the “Homes
for Houston” recipients,
thanks to Habitat
for Humanity and
OxyChem volunteers.
OxyChem President Chuck Anderson participated in Habitat
for Humanity’s “Homes for Houston” project, pounding nails
alongside Human Resources Manager Dave Mayeaux and
other OxyChem employees.
35
Oxy’s success working
with local communities
has helped create a
prosperous business
model that encourages
cultures where we
operate to thrive. At left,
an Omani fisherman
mends his net near the
town of Al Bustan.
Tomorrow
We believe that responsible health, environment, safety and
social responsibility practices, are fundamental requirements
of the Oxy family.
Drawing on our past successes and our many lessons learned, our thousands of employees will continue
their dedication to upholding the high standards and values Oxy has established. In the four continents and
12 countries where we operate, we pledge to bridge cultural and language differences, and to seek and
implement continuous improvement in our HES and SR programs.
While helping to meet the world’s energy needs, Occidental and our employees are committed to being
outstanding and responsible corporate citizens. That is our pledge… and our promise.
36
Oxy
GOOD NEIGHBOR. GOOD BUSINESS.
SOCIAL RESPONSIBILITY REPORT 2006
Business Overview
Occidental Petroleum Corporation (NYSE: OXY) is an international oil and gas exploration and production
company with operations in the United States, Middle East/North Africa and Latin America regions.
Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy’s wholly owned
subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls.
Occidental is committed to safeguarding the environment, protecting the safety and health of employees
and neighboring communities and upholding high standards of social responsibility in all of the company’s
worldwide operations.
For additional information on the company’s operational and financial performance, see our 2006 Annual
Report on SEC Form 10-K.
CURRENT NEWS AND GENERAL INFORMATION
Information about Occidental and its Social Responsibility and Health, Environment and Safety activities,
including news releases, is available at www.oxy.com. Or call 1-888-OXYPETE (1-888-699-7383) toll-free
to request an investor package.
FOR MORE INFORMATION
Occidental welcomes your thoughts, questions and suggestions on this report. To send your comments or to
request more information or additional copies of this report, please contact Richard S. Kline, Vice President,
Communications and Public Affairs at:
Occidental Petroleum Corporation
10889 Wilshire Boulevard
Los Angeles, California 90024
Occidental, Oxy, OxyChem and OxyVinyls, mentioned in this report, are trademarks or trade names of
Occidental Petroleum Corporation, or one of its subsidiaries or equity investees, registered or used in the
United States or other countries throughout the world.
Forward Looking Statements: Statements in this report that contain words such as “will,” “expect” or “estimate,” or otherwise relate to the future,
are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to differ
materially include, but are not limited to: exploration risks, such as drilling of unsuccessful wells; global commodity pricing fluctuations and
supply/demand considerations for oil, gas and chemicals; higher-than-expected costs; political risk; and not successfully completing (or any
material delay in) any expansion, capital expenditure, acquisition, or disposition. You should not place undue reliance on these forward-looking
statements which speak only as of the date of this report. Unless legally required, Occidental does not undertake any obligation to update
any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the sources set forth above.
© 2007 Occidental Petroleum Corporation
This report was printed on recycled paper.
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