Page 10 - NorthAmOil Week 33

NorthAmOil COMMENTARY NorthAmOil

Chevron will use
renewable energy
to power some of
its operations in the
Permian Basin and
elsewhere.

start-ups to reduce their carbon footprint. recent oil price volatility – as well as expectations
Zap is developing what Chevron described that crude prices will remain low for some time –
in a statement as a “next-generation modular are likely to have accelerated this shift.
nuclear reactor with an innovative approach to Meanwhile, the costs of wind and solar power
advancing cost-effective, flexible and commer- have come down, at the same time as renewable
cially scalable fusion”. The process is expected to technologies have advanced, also boosting their
release “substantial” amounts of energy with no appeal in comparison – or at least as part of a
greenhouse gas (GHG) emissions and limited more diversified portfolio.
long-lived radioactive waste. At the same time, though, Chevron’s new
This will be the tenth investment by Chev- oil and gas investments make it clear that the
ron’s Future Energy Fund, which was launched company will not be moving away from hydro-
in 2018 to explore breakthrough technologies carbons any time soon. Given Noble’s Eastern
and identify companies that could play a role in Mediterranean and African gas assets, that
the energy transition. transaction is expected to shift Chevron’s portfo-
“Chevron Technology Ventures’ invest- lio more towards gas. The company also contin-
ment in fusion is an opportunity to enhance ues to invest in oil, with the Wall Street Journal
the company’s focus on a diverse portfolio of reporting this week that it is set to sign a mem-
low-carbon energy resources with the capacity orandum of understanding (MoU) with Iraq’s Chevron’s new
to provide communities across the globe access Ministry of Oil (MoO) to develop the Nassiriya
to affordable, reliable, and ever-cleaner energy,” oilfield. oil and gas
the super-major stated. NewsBase understands that Nassiriya has a investments
“We see fusion technology as a promising production capacity of 90,000 barrels per day of
low-carbon future energy source,” added Chev- crude from an estimated 4.36bn barrels of recov- make it clear that
ron Technology Ventures’ president, Barbara erable reserves. However, output is thought to be
Burger. “Our Future Energy Fund investments around 15,000-20,000 bpd lower, and Chevron the company will
provide us with strategic insight into power is reported to be discussing further exploration
generation markets and potentially disruptive work on the asset. The MoO has previously spo- not be moving
impacts of innovative approaches, like fusion, ken of intentions for the field to produce above away from
geothermal, wind and solar, on the conventional 100,000 bpd and such a target will likely be
power value chain,” she added. included in any agreement. hydrocarbons any
Over the longer term, though, gas is likely to
Under pressure be favoured, given its role as a bridge fuel in the time soon.
The various moves Chevron is making are hap- energy transition, which is cleaner than coal and
pening as energy companies come under more oil. Chevron’s LNG footprint is further evidence
pressure than ever from investors to reduce of its long-term commitment to gas. And while
emissions and prioritise low-carbon energy. But its footprint in renewables and nuclear is still
investor-side pressure aside, other factors are limited, the company’s recent steps could be the
making diversification into low-carbon energy first of several moves aimed at more diversifica-
look like an increasingly attractive option. And tion in the face of the energy transition.™

P10 www. NEWSBASE .com Week 33 20•August•2020