GHG Emissions, Industrial - March 9, 2021
Chevron promises higher returns, lower carbon
Chevron Corporation announced plans to increase return on capital employed and lower carbon intensity. During its annual inventory meeting on March 9, Michael Wirth, Chevron's chairman and CEO said, "We're building on our track record of capital and cost discipline to deliver higher returns. And we're taking action to advance a lower carbon future."
The company exceeded its 2023 upstream carbon intensity reduction targets three years ahead of schedule and today announced lower 2028 targets and zero routine flaring by 2030. The new targets align with the second stock-take period under the Paris Agreement and include all of Chevron’s production on an equity-basis:
- 24 kg CO2e / boe for oil and gas GHG intensity; a combined 35% reduction from 2016
- 3 kg CO2e / boe for overall flaring intensity; 65% lower than 2016
- 2 kg CO2e / boe for methane intensity; 50% lower than 2016
"Our energy transition strategy is focused on actions that are good for both society and shareholders,” said Bruce Niemeyer, vice president of Strategy & Sustainability, “Achieving our 2028 goals is expected to keep Chevron a top quartile oil and gas producer in terms of carbon intensity.”
In addition, the company updated plans to increase renewable energy and carbon offsets and to invest in low-carbon technologies such as hydrogen and carbon capture, utilization, and storage. Over the past several weeks, Chevron launched its second Future Energy Fund with an initial commitment of $300 million and announced a new bioenergy partnership in California with Schlumberger and Microsoft, designed to qualify as carbon negative.