Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has been buying shares of Occidental Petroleum (NYSE: OXY) hand over fist. Berkshire Hathaway now owns nearly 24% of the oil company's outstanding shares. While Buffett recently dismissed the idea of acquiring Occidental, his company has the approval to boost that position up to 50%.

Occidental Petroleum's exposure to oil prices is a big reason Buffett is buying shares. However, it's not the oil stock's only upside catalyst. Two other potential long-term value drivers make it a compelling investment opportunity.

Occidental Petroleum is a semi-integrated energy company. While it doesn't have a refining business like Buffett's other top oil stock holding, Chevron, it does have a chemicals business (OxyChem).

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Source Fool.com