Oil May Not Be the First Priority of Chevron in 2040
In its 141 year history, Chevron has been an oil first company. But the current CEO, Michael Wirth, says that his company may look different in 2040. After all, the company looks very different when compared to itself 20 years ago.
It’s no secret the global demand for oil has decreased significantly in response to Covid-19. While most experts agree that it is temporary, it is clear that the world is going to transition away from fossil fuels.
The question is not if it will, but when it will.
Solar and Wind is Not the Future of Chevron
Many of Chevron’s competitors, like Shell, BP, and just about every oil company in Europe are moving towards renewables like solar and wind. While Chevron does produce enough renewable energy to power 400,000 houses, this won’t be the companies focus.
For instance, the company is currently investing in Liquified Natural Gas (LNG). This is natural gas that has been cooled to -260°F, which brings it from the gaseous into a liquid state.
It takes up less room than its gas form, produces fewer emissions than coal and oil, and in the last three years, exports of LNG have increased dramatically.
However, even the CEO admits that the company may have to change to meet the times.
One such way the company may change its image and focus is hydrogen power. Hydrogen, which is now called Green Hydrogen, offers emission-free power and is currently the only solution available to airlines to reach zero emissions.
However, there is a lot of work involved to make hydrogen financially viable in comparison to existing energy sources.
Political and Investor Pressure
Around the world, governments and investors are urging companies to begin transitioning to renewables. For instance, the EU has been urging companies to transition to renewable sources, and they are.
Investors are changing the way individual companies are transitioning. Many are looking to switch their power to renewable energy, increase recycling efforts, and lower the impact on land usage.
As a result, the oil demand, in general, is decreasing.
On top of this natural shrinkage, oil prices sank during the 2020 pandemic causing billions in losses. While they will certainly recuperate once the pandemic is behind us, it illustrates that the oil industry is volatile.
And companies need to focus on other sources.
Where as clean renewable sources of energy like solar and wind, are gaining significant ground.
Carbon Capture Technolgy May Be A Deciding Factor
Climate change is caused by the release of greenhouse gases into the atmosphere, with the most prominent being carbon. Thus, the idea of carbon capture technology came into existence.
This is technology that can capture carbon in our atmosphere. As a result, the gas will not trap heat, causing the global temperature to rise.
Currently, the technology is too expensive for general use. But with more investment, which Chevron is doing, that could change. And it’s not just oil companies that are interested in it, even Microsoft is investing.
This technology would largely solve the emission problem if it was affordable and installation was easier. However, in its current state, it just can’t do it and the world can not afford to wait until it can.
Robert has been following and writing about environmental stories for years at GreenGeeks. He believes that highlighting environmentally friendly practices can help promote change in every household.
