Chevron unveils new leadership structure to strengthen execution of lower carbon goals
Taking note of the changing landscape within the industry, which is transitioning towards a cleaner energy mix, Chevron has revealed a simplified organisational structure and senior leadership changes in a bid to further bolster execution across its business.
Chevron informed on Thursday that the simplified organisational structure and senior leadership changes would strengthen execution and pace to deliver on the firm’s objectives of higher returns and lower carbon.
Mike Wirth, Chevron’s chairman and chief executive officer, remarked: “We’ve made significant progress over the last two years, and these changes position us to further enhance execution across all aspects of our business as the energy system evolves. It will also bring strategy, policy and business development into tighter alignment as we focus on leveraging our strengths to deliver lower carbon energy to a growing world.”
In line with this, the U.S.-headquartered company intends to consolidate its Upstream, Midstream and Downstream business segments under a new executive vice president, Oil, Products & Gas, who will oversee the full value chain, effective from 1 October 2022.
In addition, Chevron is consolidating into two Upstream regions – Americas Exploration & Production and International Exploration & Production – as part of this change, while organising its Strategy & Sustainability, Corporate Affairs and Business Development functions under a new executive vice president, Strategy, Policy & Development.
Furthermore, the new leadership structure is expected to enable a more integrated approach to capital allocation, asset class excellence and value chain optimization, and facilitate more effective external engagement and business development impact, based on the firm’s statement.
New appointments and personnel changes
Chevron made several personnel appointments, which will become effective on 1 October 2022. These include Mark Nelson, who was named executive vice president, Strategy, Policy & Development; Nigel Hearne as executive vice president, Oil, Products & Gas; Clay Neff as president, International Exploration & Production; Bruce Niemeyer as president, Americas Exploration & Production; and Balaji Krishnamurthy as vice president, Chevron Strategy & Sustainability. Nelson and Hearne will report to Wirth in their new roles.
Moreover, the energy major also made three other personnel-related announcements within its latest statement. The company named Jay Johnson, executive vice president of Upstream, who has more than 41 years of service, as executive vice president, senior advisor to become effective on 1 October 2022. Johnson is expected to support the transition until 31 January 2023.
The second of these announcements is about Jay Pryor, vice president, Chevron Business Development, who will retire after more than 43 years of service. Pryor’s retirement will be effective from 29 July 2022.
The last announcement is also about retirement and it concerns Steve Green, president, Chevron North America Exploration & Production, who will retire after more than 24 years of service, effective from 30 September 2022.
According to the energy giant, these changes build on its enterprise-wide transformation in 2020, which has produced improved operational and financial results. Back in July 2021, the company also made leadership changes to further empower its lower carbon strategy by naming Jeff Gustavson as the president of New Energies, the company’s new, dedicated organisation focused on low carbon.
In a separate statement on Thursday, Chevron announced that its independent directors had selected Dr Wanda M. Austin to succeed Dr Ronald D. Sugar as the board’s lead independent director, effective from 25 May 2022. Austin, who has served on the company’s board since December 2016, will continue to serve as chair of the Board Nominating and Governance Committee and member of the Management Compensation Committee.
When it comes to Chevron’s most recent activities, it is worth reminding that the U.S.-based player paid $50 million to Talos and Carbonvert this month to get a 50 per cent stake in the expanded Bayou Bend CCS joint venture.