Chevron Corporation CVX CFO Pierre Breber recently stated at a Reuters conference that the firm has no intentions to downsize its oil and gas operations in favor of wind and solar energy. Breber said during the press meet that the firm will spend $3 billion over the next seven years on technology to eliminate hazardous emissions from its activities instead of investing in renewable energy sources, such as wind or solar power.
Notably, in May, almost 61% of the currently Zacks Rank #3 (Hold) Chevron’s shareholders voted in favor of a plan to decrease emissions. The company plans to invest $2 billion of its overall capital budget to reduce emissions from its operations and another $750 million to develop renewable fuels, such as renewable natural gas. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The majority of oil and gas supermajors including ExxonMobil XOM and Royal Dutch Shell RDS.A promised to become net-zero energy firms by 2050 and heavily invest in renewable and low-carbon energy alternatives.
However, Chevron’s strategy varies from that of the big oil companies, which plan to slash oil output in the future while increasing investment and renewable energy production. BP p.l.c. BP, for example, intends to curb oil and gas production by 40% within 2030.
In the beginning of this year, Chevron made a Series C investment in Blue Planet Systems Corporation. In addition, it signed a letter of intent with the latter regarding cooperation on pilot projects and other commercial opportunities in prime geographic locations with the purpose of jointly developing lower-carbon prospects. Later in March, management stated at the company’s annual investor conference that it will cut carbon footprint by 35% within 2028 and achieve zero regular flaring by 2030.
Brief on the Company
Chevron is one of the largest publicly-traded oil and gas companies in the world with operations spread to almost every corner of the globe. A component of the Dow Jones Industrial Average, this energy player is a fully-integrated company, participating in every energy-related process, ranging from oil production to refining and marketing.