Chevron Corp. on March 9 unveiled its plan to hit new upstream emissions intensity reduction targets by 2028 while focusing on delivering higher returns to shareholders by keeping a disciplined capital and cost program.
By 2028, Chevron now aims to achieve 24 kg CO2 equivalent per barrel of oil equivalent for oil and gas greenhouse gas intensity, representing a combined 35% drop from 2016; 3 kg of CO2e/boe for overall flaring intensity, which is 65% lower than 2016; and 2 kg CO2e/boe for methane intensity, which is a 50% decrease from 2016, according to a news release. Chevron also plans to achieve zero-routine flaring by 2030.
The corporation said it has surpassed its 2023 carbon intensity reduction targets three years earlier than planned.
Chevron said it also intends to boost its renewable energy and carbon offsets and invest in low-carbon technologies, such as hydrogen and carbon capture, utilization and storage. The corporation forecasts spending $2 billion in carbon-reduction projects and investing $750 million in renewables and offsets through 2028.
Chevron recently launched a $300 million Future Energy Fund II through its venture capital arm and struck a bioenergy partnership in California with Schlumberger Ltd. and Microsoft Corp.
Additionally, Chevron reaffirmed its 2021 to 2025 guidance for organic capital and exploratory expenditures of $14 billion to $16 billion. The corporation now expects synergies from its Noble Energy Inc. acquisition to hit $600 million, which is anticipated to result in a 10% drop in 2021 operating expenses from 2019.
For the next five years, Chevron will increase its investment in several assets, including in the Permian Basin, where the corporation plans to increase production. Meanwhile, the oil and gas major will dial down capital for its major expansion in Kazakhstan, where its Future Growth Project-Wellhead Pressure Management Project is 81% complete.
Chevron also said it expects to generate cash of more than $25 billion over the next five years, based on a Brent oil price average of $60/barrel.