Chevron Corporation (NYSE: CVX) on Thursday announced that it would curb its greenhouse gas emissions from its oil production, the company said on Thursday, as the climate pressure on oil majors intensify, a company press release said.
Meanwhile, Chevron’s climate pledges are not keeping the oil major from sinking its teeth into the Permian Basin, together with its team of shale allies, where it is in a race with ExxonMobil (NYSE:XOM) to see who will be the first company to pump one million barrels of shale oil every day, Reuters reported on Thursday. It has several joint ventures in the Permian, including with shale allies Cimarex Energy, (in Culberson County, Tx) Concho Resources, Devon Energy, and EOG Resources.
In today’s press release, Chevron said it would reduce greenhouse gas emissions by 5% to 10% over a seven-year period ending in 2023. It will also target a 2% to 5% reduction in greenhouse gas emissions stemming from gas production over the same period.
As part of the Oil and Gas Climate Initiative, Chevron claims that it has forked over $1 billion on carbon capture and storage projects in Australia and Canada, which should result in a reduction in greenhouse gas emissions of 5 million metric tons every year. Ironically, Chevron skated away from its divorce with Occidental with $1 billion in the form of a breakup fee for the failed takeover.
The pledge to reduce GHG intensity applies to all of Chevron’s oil and natural gas operations, even the ones it does not have operational control over.
The promise to reduce greenhouse gases by the oil major will likely not impress the climate activist crowd such as Climate Strike youth, who protested yesterday at Chevron’s headquarters in San Ramon, asking the company to meet a rather unrealistic expectation: to abandon fossil fuels entirely by 2025. The strike also accused Chevron of environmental racism.
By Julianne Geiger for Oilprice.com
