Chevron Corp., a leading LNG exporter and operator of liquefaction projects in Africa and Australia, has no plans to reduce its oil and gas business in favour of wind and solar power unlike several other energy companies.
Chief Financial Officer Pierre Breber gave his message on behalf of Chevron at a five-day virtual conference on the energy transition.
Chevron's shareholders had in May voted in favour of a non-binding resolution calling on the company to reduce emissions generated by the use of its products.
However, energy majors have already been cutting emissions at their own pace and without crashing profits that could lead to charges in many countries of corporate incompetence.
“Chevron will invest some $3 billion into lowering emissions between now and 2028, a figure it expected to grow,” Breber told the Web event.
Chevron is one of the world’s leading LNG operators from plants in Western Australia, Gorgon LNG and Wheatstone LNG, as well as being a leading Angola LNG shareholder in southwest Africa.
LNG is one of the main transition fuels and energy majors have also been at the forefront for many years of other climate-change mitigation methods such as carbon-capture and storage.
Chevron CFO Breber added at the energy transition conference that some $2 billion had already been allocated to address lowering carbon emissions in its own operations, while another $750 million will be allocated for renewable fuels such as renewable natural gas made from waste.
Analysts note that leaders of pressure groups want to ban oil and gas and to have zero emissions right now.
Companies like Chevron and Shell are investing billlions in emission-lowering technologies, which they will pass on to poorer nations developing their own hydrocarbon resources in Africa, Asia and elsewhere.
In May 2021 a Dutch court in The Hague ruled that Royal Dutch Shell should reduce greenhouse gas-emissions from burning oil and gas by 45 percent by 2030, significantly faster than its current plans.
The court challenge against Shell was launched by seven of the world’s leading environmental activist groups, including the Netherlands branches of “Greenpeace” and “Friends of the Earth”.
Shell Chief Executive Ben van Beurden said the company planned to appeal against the Dutch court ruling, though pointed out that the Anglo-Dutch company was taking measures already on reducing emission levels in its energy transition strategy for a lower-carbon future.
Chevron and other majors have also successfully defended lawsuits against them.
The United States Court of Appeals for the Second Circuit unanimously ruled in April 2021 that the City of New York’s climate-change lawsuit against Chevron and a group of other energy producers was without merit and must be dismissed.
The court upheld the federal district court’s decision that New York’s claims are barred, holding that municipalities cannot “utilize state tort law to hold multinational oil companies liable for the damages caused by global greenhouse-gas emissions.”
“However, global warming was one of the greatest challenges facing humanity,” said the court, while ruling that it was a “uniquely international problem of national concern” and therefore was not well-suited to the application of state law.