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Social Responsibility
Overview
Governance
HES Management System
Health and Safety
Environment
Economic Development
Overview
Economic Contributions
Local Hiring
Local Purchasing and Taxes
Contractor Workforce
Partnerships
Employee Relations
Human Rights
Community and Engagement
2011 SR Report
Overview 

Oxy strengthens local economies, applying a proven business model that encourages communities in our business locations to develop and thrive. In addition, we engage in numerous partnerships that address regional needs and generate economic activity in the communities where we operate. These activities promote local economic sustainability and Oxy’s ongoing success.


Oxy Supports Literacy in Colombia through the "Learning for Life" Program

Since 2002, more than 8,000 people have enhanced their scholastic skills through Oxy Colombia’s A Crecer Para la Vida (Learning for Life) program, created jointly with El Alcaraván, a foundation that Oxy actively supports. A Crecer tackles illiteracy in the communities surrounding Oxy's operations in Arauca.

A Crecer aims to achieve national and international development goals by offering universal primary education. In addition to educational content specifically designed for the cultural and social characteristics of the Arauca region, A Crecer promotes peace-building, democratic values, human rights and environmental sustainability. Colombia’s National Ministry of Education, the Governor’s office, Ecopetrol and two non-governmental organizations coordinate with Oxy to further support the program. In 2012, A Crecer expanded to middle schools and high schools.

One 70-year-old woman voiced her enthusiasm for A Crecer, saying, "I'm very pleased to be taking part in the program. When I was young I didn't listen to what my parents had to say, and didn't go to school. Now that I'm old, I want to study and achieve my goals; it's never too late for that."

A Crecer has not only expanded employment and educational opportunities for Oxy's neighbors, it has also reinforced cultural values that unify the communities in the Arauca region and demonstrated Oxy's commitment to those communities.

Reflecting the program's success and widespread recognition, the National Ministry of Education is implementing the A Crecer literacy model in other regions of Colombia.

OxyChem Supports Economic Development in Chile

OxyChile participates in a variety of activities that support local economic development. At its Talcahuano facility, OxyChile is a member of Fundación INTEGRARE, a nonprofit trade association that supports micro-entrepreneurs from diverse backgrounds by providing them with opportunities to broaden their market reach. INTEGRARE fosters strategic alliances that create win-win relationships, affording local entrepreneurs access to the purchasing processes of larger companies, which in turn benefit from competitive offers from local businesses. In 2011, 10 micro-entrepreneurs benefited from the INTEGRARE program, which is chaired by OxyChile’s General Manager. For 2012, the program has been expanded to provide training in marketing and cost analysis.

OxyChile has also partnered with Corporación Simón de Cirene, which offers volunteer mentoring to assist local entrepreneurs in growing their businesses. During 2011, for instance, mentors from OxyChile worked with a group of business students from the Universidad Católica de Chile to help a website developer refocus and clarify his target market segment.

Oxy Elk Hills Celebrates 100 Years of Local Economic Development

Oxy employees recently had the pleasure of celebrating the 100th anniversary of the Elk Hills Oil Field discovery well. Elk Hills is one of the largest oil and natural gas fields in the United States, with cumulative production over the life of the field approaching 2 billion barrels of oil equivalent (BOE). In 1998, Oxy acquired the U.S. government’s 78% ownership in Elk Hills and became the operator of the field.

Elk Hills exemplifies Oxy’s focus on acquiring large, long-lived properties and, by applying advanced recovery techniques, continuing to increase production in mature fields. Oxy is California’s largest natural gas producer and largest oil and gas producer on a gross-operated BOE basis. The Elk Hills Oil Field, Oxy’s California flagship operation, is the fourth-largest oil producer in the state.

Since taking over Elk Hills’ operations, Oxy has played a significant role in the economic development of Kern County and the state of California. The number of employees and contractors working for the company in Elk Hills increased from 900 in 1998 to more than 5,000 in 2012. Employment opportunities at Elk Hills have grown significantly in recent years due to Oxy’s investments in this legacy asset. Oxy’s net capital investment in Elk Hills since 1998 has exceeded $5 billion. The company’s development of the Elk Hills Field has made Oxy the No. 1 property taxpayer in Kern County for many years.

Oxy is also committed to supporting economic development in the communities surrounding Elk Hills. Since purchasing Elk Hills, the company has contributed more than $2 million to qualifying charitable organizations, such as United Way of Kern County, the American Cancer Society and the Bakersfield Homeless Center, that support programs in the area.

In addition, Oxy supports local educational enterprises, including the Kern County Science Foundation and the Taft Union High School Oil Technology Academy. For example, as part of the Elk Hills centennial celebration, Oxy donated $25,000 to the Taft College STEM (Science, Technology, Engineering and Math) Mobile Unit Program. The program’s mobile classroom introduces K-12 students to the four STEM disciplines and encourages them to be part of the next 100 years of oil industry history.

See "Elk Hills Celebrates 100 Years of Oil Production" video in the Media Library.

Building for the Future

OxyChem announced plans in 2011 to build a new chlor-alkali plant in Humphreys County, Tennessee, where it will supply basic chemicals to an adjacent DuPont plant that manufactures titanium dioxide. The OxyChem plant is expected to create approximately 85 permanent jobs and help sustain more than 900 jobs at DuPont. In addition, construction of the OxyChem plant, which began site preparation work in February 2012, will create at least 250 to 300 construction jobs prior to startup. Once completed, the project has the potential to enhance the local economy by $30 million to $50 million annually through employee salaries as well as purchasing activities. Startup is expected in 2013.

OxyChem held an open house in September 2011 to introduce the project to the community. More than 300 people attended. The potential employment and economic benefits of the OxyChem plant are significant in Humphreys County.

“I’m pleased OxyChem has selected Humphreys County to invest hundreds of millions of dollars to build a new plant,” said Tennessee Governor Bill Haslam. “This is great news for the region as we continue to focus on making Tennessee the No. 1 location in the Southeast for high-quality jobs. This project will further strengthen not only the local economy but our state’s, and we wish the company great success at this new facility.”

Promoting Sustainable Development for Omani Women

Oxy has partnered with the Transformation Institute’s Rural Women Centre to develop a professional training program for women in Dhofar in southeastern Oman. The program’s main objective is to promote sustainable development by providing women with the skills to work from home. In 2011, 10 local women received training to enhance their skills in making cheese and dairy products. Oxy Oman funded the project and worked closely with the Centre to select women interested in working in this field, and in need of generating sustainable income to help support their families.

The program incorporates a variety of training elements, ranging from lectures and individual homework to practical application and group workshops. Course material covers topics such as animal health, milk specification and quality, testing, filtration and packaging. In addition to the training, the Centre provides marketing assistance to aid the women in selling their products. The program not only directly benefits the participants and their families, but also benefits neighboring restaurants and supermarkets that can purchase the locally made products.

Oxy Colombia Partnership Creates Opportunity for Local Farmers

Oxy Colombia and Oxy-supported foundation El Alcaraván have teamed with Servicios Daza, a catering and cleaning service provider in Caño Limón, to create a network of local farm producers. The program’s goal is to promote and strengthen sustainable economic activities by increasing local business opportunities for Arauca farmers, to enhance their ability to become regional or national suppliers.

In the 2010 project, a newly formed cooperative of local producers joined forces with an existing cooperative to sell five and a half tons of produce, eggs and fish to Servicios Daza. The pilot program created the participants’ first opportunity to reach a major buyer. As it expands, the program is expected to improve the quality of life for farming families in Arauca while increasing growth opportunities for local producer groups.

Oxy and the Al Wafa Social Centre: A Perfect Fit in Oman

The Al Wafa Social Centre in the Ibri province of northeastern Oman provides services to young people with special needs. Oxy's support of the center is enabling women with disabilities to learn a practical skill and run their own small business. With funding from Oxy, the center purchased new sewing machines and trained the women on stitching and tailoring techniques. In 2009, Oxy and the center management established and equipped a tailoring shop where several of the women are now working.

See "Community Engagement in Oman" video in the Media Library.

Oxy Computer Lab at CSU, Bakersfield

In September 2008, California State University, Bakersfield, opened the doors of Science III, its first new science facility in over 30 years. Donations from Oxy Elk Hills and other companies helped to equip the three-story building, which houses classrooms, research facilities, faculty offices and digital labs - including the new Occidental Petroleum Computer Lab. Students and faculty alike are benefiting from the innovative programming made possible by Science III's state-of-the-art features.

Mukhaizna Waste Management Program in Oman

Oxy's new waste treatment and recycling program at the Mukhaizna oilfield in Oman has had a positive impact on the local economy through the creation of new jobs and contractor partnerships, and also benefits the environment. Oxy hired local contractors from Mukhaizna Trading and Contracting and provided the necessary facilities to create a community-based business that effectively and responsibly recycles, treats and disposes of waste. The contractors operate the facility and coordinate with local recycling plants.

THUMS Gets Scientific with Aquarium of the Pacific

The Aquarium of the Pacific is acting as the science department for Long Beach, California's Cesar Chavez Elementary School (CCES) in a unique educational partnership sponsored by Oxy's subsidiary THUMS. Each year about 600 students participate in this innovative program, for which THUMS supports lesson plans, materials and supplies; teaching time; and student field trips and boat trips at the Aquarium. Since the Chavez-Aquarium Partnership was launched in 2005, CCES has seen measurable improvement of scientific achievement on standardized tests.