Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Chevron triples low-carbon investment, but avoids 2050 net-zero goals

09/15/2021 | 09:22am EDT
FILE PHOTO: A Chevron gas station sign is seen in Del Mar, California

(Reuters) -Chevron Corp on Tuesday pledged to triple to $10 billion its investments to reduce its carbon emissions footprint through 2028, while saying it was not yet ready to commit to a 2050 net-zero emissions target.

Oil producers globally are under mounting pressure from investors and governments to join the fight against climate change and sharply cut greenhouse gas emissions by mid-century, with U.S. majors lagging efforts by European companies.

Chevron said half of its spending will go to curb emissions from fossil fuel projects. A total of $3 billion will be applied for carbon capture and offsets, $2 billion for greenhouse gas reductions, $3 billion for renewable fuels and $2 billion for hydrogen energy.

Chevron is not ready to commit to net-zero targets. Chief Executive Michael Wirth told investors on Tuesday that the company does not want to "be in a position in which we lay out ambitions that we don't believe are realistic and deliverable."

Just a minority of its shareholders currently support a strategy used by European oil companies to invest in less-profitable solar and wind power, he added.

"The board is looking to see, how do you deliver a strategy that meets the needs of shareholders today and the expectations of shareholders for the future?" the CEO said. Directors may re-address a net-zero goal later this year with the company's climate report, Wirth said.

European oil producers have set plans to shift away from fossil fuels with larger investments in renewables and 2050 emission targets. U.S. oil producers Chevron, Exxon Mobil Corp and Occidental Petroleum sought to reduce carbon emissions per unit of output while backing carbon capture and storage, and doubling down on oil.

BP Plc has said it will invest $3 billion-4 billion a year in low-carbon projects by 2025 and shrink oil and gas production by 40% in the next decade. Royal Dutch Shell Plc in February set annual investments of $2 billion-3 billion in clean energy.

Chevron maintained its goal of paring greenhouse gas intensity by 35% through 2028 compared to 2016 levels from its oil and gas output.

It said it would expand renewable natural gas production to 40 billion British thermal units (BTUs) per day and increase renewable fuels production capacity to 100,000 barrels a day to meet customer demand for renewable diesel and sustainable aviation fuel.

"We expect to grow our dividend, buy back shares and invest in lower-carbon businesses," Wirth said.

Chevron aims to increase hydrogen production to 150,000 tonnes a year to supply industrial, power and heavy duty transport customers and raise carbon capture and offsets to 25 million tonnes a year by co-developing regional hubs.

Environmentalists said Chevron's focus is on offsetting emissions from oil and gas output, not reducing oil output.

"Chevron's new announcement does not represent a particularly large strategic shift," said Axel Dalman, an associate analyst with climate change researcher Carbon Tracker. "The main item is that they plan to spend more on 'lower-carbon' business lines."

(Reporting by Sabrina Valle in Houston, Arunima Kumar in Bengaluru; additional reporting by Laura Sanicola in New York; Editing by Arun Koyyur, Will Dunham, David Gregorio and Mark Porter)

By Sabrina Valle and Arunima Kumar


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BELIEVE 0.30% 17.63 Real-time Quote.0.00%
EXXON MOBIL CORPORATION 2.28% 65.835 Delayed Quote.56.11%
LONDON BRENT OIL 0.29% 86.33 Delayed Quote.65.76%
OCCIDENTAL PETROLEUM CORPORATION 1.11% 35.62 Delayed Quote.96.01%
ROYAL DUTCH SHELL PLC -0.05% 21.145 Real-time Quote.44.76%
S&P GSCI NATURAL GAS INDEX -1.85% 279.9888 Delayed Quote.115.08%
Latest news "Economy & Forex"
02:57pWTO panel to examine Chinese duties on Australian wine as relations sour
RE
02:55pGM electric commercial vehicle unit to build dedicated dealer network
RE
02:51pLibya's Zawiya oil refinery severely damaged after skirmishes, NOC says
RE
02:42pU.S. REGULATORS BARELY CORRALLING FEVERISH BITCOIN MANIA : McGeever
RE
02:41pInvesco Says FX Rates Reduced Assets in 3Q -- Currency Comment
DJ
02:39pSaudi fund says to deposit $3 bln in Pakistan central bank -state news agency
RE
02:38pLilly kicks off application for Alzheimer's drug U.S. approval
RE
02:17pCisco creates Apple-specific development team for collaboration software
RE
02:11pU.S. consumers gear up to hit the road and foreign destinations
RE
02:02pBp has made around $500 mln on natural gas, lng trade in q3 - sources
RE
Latest news "Economy & Forex"