Chevron: Diversity is the mother of all future energy mix formulas

Does the global energy equation require multiple and diverse energy sources? Chevron certainly seems to think so, as the U.S.-headquartered energy giant is convinced that all energy sources – from fossil fuels to renewables and low-carbon variants – will be needed in the future to meet the growing demand and ensure that the global security of energy supply taps does not get compromised.

This was hammered home by Chris Powers, Chevron’s Vice President of CCUS for Chevron New Energies (CNE), at the annual Singapore International Energy Week conference, when he addressed an audience of industry leaders about the diverse balance of multiple energy sources needed in the energy equation.

For Powers, diversity is key when it comes to the planet’s energy future. He also identified three main, interconnected factors – solutions, scale, and speed – as requirements in the transition to lower carbon energy, since solutions and scale drive the speed of the energy transformation journey.

“We’re taking a big-tent approach to energy that focuses on both lowering the carbon intensity of our existing operations and growing new, third-party businesses that play to our historical strengths,” highlighted Powers.

Currently, Chevron is burning the midnight oil to curb the carbon intensity of its existing operations by slashing emissions from its hydrocarbon production, which is expected to be achieved by lowering Scope 1 direct emissions from the company’s operations and Scope 2 indirect emissions resulting from the energy the company purchases and uses.

Furthermore, the U.S. giant is utilizing its Chevron New Energies business to reach its emission reduction goals by building new businesses in areas that align with its legacy strengths, encompassing CCUS, hydrogen, carbon offsets, advanced geothermal, and renewable fuels.

As the oil major believes that collaboration is critical to achieving better results, the firm is pilot testing the carbon capture technology at its San Joaquin Valley operations in California, as part of a public-private partnership agreement with the U.S. Department of Energy’s National Energy Technology Laboratory.

Powers, who is adamant that innovation and collaboration across sectors and borders will be key to unlocking the full potential of lower carbon energy, underscored: “We believe all energy sources—from traditional hydrocarbons to wind, solar, geothermal and renewable energies such as hydrogen and carbon capture—are going to be part of the energy equation and the supply mix as we look ahead over the next several decades.”

Fossil fuels continued to reign supreme in 2023 by controlling the lion’s share, or 80%, of the global energy mix. Bearing this in mind, ExxonMobil’s Chairman and CEO, Darren Woods, said at the APEC Summit in San Francisco last year that the plan to tackle climate change and energy demands would need to go beyond expanding wind, solar, and EVs.

According to ExxonMobil’s CEO, the world needs to commit to solving its “energy and emissions challenges simultaneously” to bridge the global North-South divide. Woods stated that the problem was not oil and gas but emissions

This is an echo of the remarks made by Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, who underscored that “the climate enemy is emissions, not fossil fuels” while addressing a WA Energy Club luncheon in Perth, Western Australia.