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For Eukaryotes the electron transport chain occurs in the Inner Membrane of a mitochondria. (mitochondria has 2 membranes both outer and inner). For Prokaryotes, it occurs in the plasma membrane as prokaryotes do not have mitochondria.
Oxygen. In the electron transport chain, oxidative phosphorylation occurs over a series of steps in the intermembrane space of the mitochondrion. As the NAD and FAD molecules give up the hydrogen atoms, the hydrogen atoms get split into electrons and protons. Flow of electrons through electron carriers from a higher energy level to lower energy level produces energy, some of which is used to drive the protons out of the matrix into the intermembrane space.