Chevron Corp. officially joined the energy transition movement on July 29 with the launch of Chevron New Energies, which will be led by Jeff Gustavson—the Chevron executive who previously oversaw the U.S. oil major’s shale operations.
“Chevron New Energies reflects our higher returns, lower-carbon strategy,” commented Chevron Chairman and CEO Michael Wirth in a company release.
Like other major oil and gas producers, Chevron has come under pressure to address climate change and reduce greenhouse-gas emissions. Recently, at the company’s annual shareholder meeting in May, Chevron shareholders voted overwhelmingly in favor of a proposal to cut emissions generated by the use of the company’s products, a move that underscores the growing push by investors at energy companies, in particular, to reduce their carbon footprint.
Chevron currently invests in technologies and new business solutions that have the potential to add efficiencies to Chevron’s core business in areas that include lower-carbon operations through its venture capital arm, Chevron Technology Ventures, which launched in 1999.
However, through its newly launched Chevron New Energies unit, the San Ramon, Calif.-based company will focus on building low-carbon business prospects that have the potential to scale. Initial targets of the new venture include commercialization opportunities in hydrogen, carbon capture, and offsets and support of ongoing growth in biofuels, according to the release.
“We believe the dedication of resources in a new organization will accelerate growth in multiple business lines that we expect to be part of a lower-carbon energy system,” Wirth added on July 29.
Effective Aug. 2, Gustavson, 49, will join the newly created unit as president of Chevron New Energies reporting directly to Wirth.
Since joining Chevron in 1999, Gustavson has held a variety of positions at the company. He most recently served as vice president of Chevron North America Exploration & Production Co. and oversaw its Mid-Continent Business Unit, which includes Chevron’s significant position in the Permian Basin.
Following Gustavson’s appointment, Ryder Booth, 52, will move into his former role of vice president of Chevron North America Exploration & Production Co., making Booth the new leader of Chevron’s Mid-Continent Business Unit. Booth previously served as vice president of capital projects.
Chevron plans to release additional details on its New Energies unit and low-carbon efforts during an “Energy Transition Spotlight” investor presentation scheduled for Sept. 14.
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