Chevron aspires to achieve net zero Upstream emissions (Scope 1 and 2) by 2050.

The company has identified nearly 100 GHG abatement projects to reduce the carbon intensity of their operations and expect them to deliver approximately 4 million tonnes of emissions reductions per year when completed.

In 2021, Chevron started 36 decarbonization projects and completed five. In 2022, they will more than double the number of projects to 75 and expect to spend approximately $2 billion total on similar projects through 2028.

Chevron uses carbon price as the primary policy tool. Carbon prices and derived carbon costs are used in their business planning, investment decisions, impairment reviews, reserves calculations, and assessment of carbon reduction and new energy opportunities.

Chevron is on track to meet their 2028 target to reduce enterprise methane emissions intensity by more than 50% from 2016 levels and eliminate routine flaring by 2030.

In the Permian, Chevron’s methane intensity is 85% lower than the basin average.

In early 2022, Chevron announced an agreement with Iwatani to co-develop and construct 30 hydrogen fueling sites in California by 2026.

In 2021, the company also announced an investment in Hydrogenious, a potential bulk hydrogen storage and transportation technology.

Their El Segundo Refinery was the first refinery in the U.S. to co-process biofeedstock to make transportation fuels with renewable content and a lower lifecycle carbon intensity. This capital-efficient project leveraged existing assets, enabled by patented, Chevron-developed technology.

In 2021 they formed Chevron New Energies to leverage Chevron’s unique capabilities, assets, and customers. They’re working to grow production of products such as renewable diesel, sustainable aviation fuel, renewable natural gas, biodiesel, and renewable base oil.

The company is growing their capabilities to produce lower carbon intensity fuels through agreements with Bunge, CalBio, Brightmark, Gevo and Renewable Energy Group.

In February 2022, Chevron announced a definitive agreement to acquire Renewable Energy Group, Inc. (REG): an international producer of lower carbon intensity fuels that utilizes a global integrated procurement, distribution and logistics network to operate 11 biorefineries.

Chevron is taking steps to address plastic waste and support a circular economy in which post-use plastic is recycled, reused, or repurposed.

The company’s most significant holdings in the Mid-Continent business unit (MCBU) are in the Permian Basin, where Chevron has been active since 1920. As such, they understand the importance of protecting the region’s resources – both the environment and the community.

In 2021, MCBU water demand in the Permian Basin was satisfied with 99% brackish or recycled sources, which included utilizing no fresh water for hydraulic fracturing.

100% of the MCBU drill rig fleet is equipped as of 2021 to utilize natural gas or the grid for primary power.

Through recycling efforts at Chevron’s El Segundo Refinery, the amount of fresh water that was saved is enough to meet the daily water needs of 80,000 to 90,000 people in the Los Angeles Basin.

Chevron invests in scientific research and develops and implements new technologies to manage biodiversity on and surrounding their assets.

As part of their Comprehensive Drilling Plan (CDP) in northern Colorado, installed pipelines now enable the elimination of storage tanks and emission control flare stacks, which reduces the potential for spills and avoids more than 152 million miles of truck traffic associated with hauling oil and water.

This also enabled the upgrade of sub-facilities and the installation of new high-line power to electrify engines used for drilling and production compression, which has reduced noise and nearly eliminated combustion-related air emissions.

The plan includes the reclamation of 1,471 legacy vertical wells, tank batteries and associated roads in the development area, which is expected to reduce Chevron’s surface footprint by 95% and will return thousands of acres to other uses such as agriculture, rangeland, and wildlife habitat.

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