Will Occidental's chemical business recover in 2025?

Occidental Petroleum's chemical business, OxyChem, is poised for a recovery in 2025 due to several strategic factors and market trends:

1. **Strategic Positioning**: OxyChem's resilience is underpinned by Occidental's broader strategy to reduce reliance on oil and gas prices and enhance diversification through its chemical and midstream segments. This diversification is crucial for mitigating the impact of commodity price volatility.
2. **Market Growth and Demand**: The global chemical industry is expected to grow, with segments like specialty chemicals and renewable chemicals offering new opportunities. This growth is driven by factors such as rising demand, favorable regulations, and a focus on sustainability and innovation.
3. **Technological Advancements**: Investments in digital technologies and sustainable practices are set to improve efficiencies and reduce waste in the chemical industry. OxyChem, by focusing on innovation and customer-focused solutions, is well-positioned to capitalize on these advancements.
4. **Financial Resilience**: Despite recent challenges, Occidental has demonstrated strong financial performance, with the ability to generate cash and reduce debt. This financial strength provides a solid foundation for OxyChem's future investments and growth.
5. **Acquisitions and Expansion**: The acquisition of CrownRock is expected to add significant value to Occidental's free cash flow, which could be reinvested in OxyChem's growth. This strategic move enhances Occidental's position in the Permian Basin and bolsters its non-oil revenue streams.

In conclusion, while short-term challenges exist, Occidental Petroleum's strategic initiatives and the positive outlook for the chemical industry suggest that OxyChem is well on its way to recovering and growing in 2025.