Chevron CEO explains why oil giant low-carbon investments look to past wind and solar power

Chevron chairman and CEO Mike Witt told CNBC on Wednesday that the oil company’s low-carbon investments are focused on areas such as renewable natural gas and hydrogen because of its potential potential value-added potential.

“Wind and sun are one of the things we choose not to go in,” Weiss said in an interview with Mad Money. “These are relatively advanced technologies. There is a lot of capital available. The returns in the wind and the sun are really being sold, and we conclude that the management in our company can’t go in the wind and create value for the shareholders. And the sun. ”

Instead of investing in those areas, Wert said, he has the right to “return to our shareholders to plant trees, to invest in wind and solar production, and to do so with a growing profit.” It comes out of our company.

Worth’s comments came after Chevron announced that it was one day more than just increasing her capital investment in a carbon energy business. The company will now invest more than $ 10 billion in 2028, up from $ 3 billion previously. For reference, Chevron earned $ 4.49 billion in net revenue in the first six months of 2021, according to the latest financial report.

The investments will help achieve the goals of their new energy businesses, including expanding production capacity for renewable natural gas and renewable fuels, Chevron said. It also plans to increase hydrogen production for industrial, energy and heavy transport customers and increase efforts on carbon retention and compensation.

“I believe that green hydrogen plays a big role in energy transfer,” Weiss told Kermer.

As the threat of climate change intensifies around the world, Chevron and its peers are being pressured to reduce their carbon emissions and move to sustainable energy sources.

“As we take care of shareholders today and take care of our traditional business, we have a major role to play in generating strong cash for future investment,” Wert said. “We have a record of disciplinary capital allocation in our traditional business, mergers and acquisitions, and we intend to implement that in our new energy work,” he added.

.

Leave a Comment