American multinational oil and gas producer with significant business interest in Nigeria, Chevron, has declared a mix of commercial and environmental strategies that would propel the sustainability of the company in the prevailing energy transition circumstance.
The measures, according to financial performance by the company, project 100 percent profit in the next five years, grow cash flow by 10 percent and cut carbon intensity by 38 percent.
Chevron Corporation had, at its annual investor meeting, announced plans to increase return on capital employed and lower carbon intensity to enable superior distributions to shareholders.
Chairman and Chief Executive Officer, Michael Wirth, stated that the company would improve on capital and cost discipline to deliver higher returns and advance lower carbon future.
The company stated in the report that it would continue to drive disciplined capital and cost program and reaffirmed its 2021-2025 guidance for organic capital and exploratory expenditures of $14 billion to $16 billion.
It also stated that initial estimate of Noble synergies has been increased by 100 percent to $600 million, leading to reduction in 2021 operating expenses by 10 percent from 2019 levels.
Chevron’s Chief Financial Officer (CFO), Pierre Breber, stated that the company would focus on investment in only the highest-return projects in order to position for increased returns and enhanced cash flow.”
Investments, according to the company, would target a number of Chevron’s attractive assets, including its world class position in the Permian while decreasing capital for major expansion in Kazakhstan.
On carbon performance, Chevron stated that it exceeded its 2023 upstream carbon intensity reduction targets three years ahead of schedule and announced lower 2028 targets and zero routine flaring by 2030.
The company stated that 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.
Chevron’s Vice President of Strategy & Sustainability, Bruce Niemeyer, stated: “Our energy transition strategy is focused on actions that are good for both society and shareholders. 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.
Chevron stated that it earlier 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.
“We released our third TCFD-aligned climate report today, which details how Chevron plans to deliver long-term value in a lower carbon future,” Wirth said. “We expect to invest more than $3 billion in the coming years to advance our energy transition strategy.”