Just move the business OUT of California and to Texas - that would be a bump of about $10 per share by itself, even after the moving costs. Lower wage costs, lower taxes, lower real estate costs. No reason to run an oil company from Los Angeles.
Oil town hopes for a boom in jobs from California's Monterey Shale
The small oil town of Taft was built on petroleum -- and is now hoping for a second boom from the Monterey Shale.
In a story on Sunday's front page, The Times wrote about the shale that runs miles underground through Southern and Central California. Oil companies are already drilling exploratory wells.
Oil trapped in deep rock deposits in the Monterey is estimated at 15 billion barrels. That's four times the amount of oil in North Dakota's Bakken Shale, which has fueled a boom that's driven that state's unemployment rate to 3.3%, the nation's lowest.
I think OXY is better to stay in California
OXY is headquarted in a very expensive section of Los Angeles. Taft is hundreds of miles away in the desert south of Bakersfield.
They won't allow drilling in the Monterrey Shale for many, many, many years as it would involve FRAKKING. The environmentalists will not allow it in CA until it has been tested and proven everywhere else.
OXY has some of the highest engineering costs per production of any oil company -- because Occidental pays very very well.