Chevron commits to invest US$10 billion in low carbon by 2028
- It reiterated its goal of reducing greenhouse gas intensity by 35% by 2028 compared to 2016 oil and gas production levels.
US oil producer Chevron pledged on September 14, 2021, that by 2028, its investment in low-carbon fuels and projects will triple to $10 billion. Global oil producers are facing increasing pressure to join the fight against climate change and have stepped up their plans to transition to less carbon-intensive production. Shareholders and the government insist that they are planning a path to significantly reduce greenhouse gas emissions by 2050.
Chevron said that half of its expenditures will be used to curb emissions from fossil fuel projects, of which US$3 billion will be used for carbon capture and offsetting, US$2 billion will be used for greenhouse gas reduction, and US$3 billion will be used for renewable fuels. 20 100 million U.S. dollars is used for hydrogen energy. It reiterated the goal of reducing greenhouse gas intensity by 35% by 2028 compared to 2016 oil and gas production levels. However, it has not committed to a 2050 net zero emission reduction target like some competitors.
European oil producers have developed ambitious plans to get rid of fossil fuels by investing heavily in renewable energy and a mid-century net-zero emission target. Chevron, ExxonMobil and Occidental Petroleum seek to reduce carbon emissions per unit of output while supporting carbon capture and storage. CEO Michael Voss told investors on Tuesday: "We are trying to avoid setting ambitions that we think are unrealistic and unachievable."
BP Plc has stated that by 2025 it will invest US$3-4 billion annually in low-carbon projects and reduce oil and natural gas production by 40% in the next ten years. Royal Dutch Shell set an annual clean energy investment of USD 200-300 million in February. Chevron stated that it will expand its renewable natural gas production to 40 billion British thermal units (BTU) per day and increase its renewable fuel production capacity to 100,000 barrels per day to meet customer demand for renewable diesel and sustainable aviation fuel. .
"We want to increase dividends, buy back stocks and invest in low-carbon businesses." Voss said. Chevron, the second largest oil producer in the United States, aims to increase hydrogen production to 150,000 tons per year to supply industrial, power, and heavy-duty transportation customers, and to increase carbon capture and offsets to 25 million tons per year through joint development of regional centers . Environmentalists say that Chevron’s focus is on offsetting emissions from oil and gas production, rather than reducing oil production.
"Chevron's new statement does not represent a particularly large strategic shift." said Axel Dalman, an associate analyst at Carbon Tracker, a climate change research organization. "The main reason is that they plan to invest more in the'low-carbon' business line." In 2021, Chevron announced the establishment of a new department to manage low-carbon investment. The initial focus was on alternative energy sources such as hydrogen and including carbon capture. Technology.
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Chevron reiterated on September 14, 2021 that it expects to generate $25 billion in cash flow in the next five years, which is higher than its dividend and capital expenditures.Editor/XuNing