Page 9 - NorthAmOil Week 33

NorthAmOil COMMENTARY NorthAmOil

Chevron’s latest moves illustrate

diversification push

Chevron is engaging more in renewables and nuclear power at the same time as it

continues to pursue new oil and gas opportunities around the world

GLOBAL US-HEADQUARTERED super-major Chev- Chevron will purchase electricity from the
ron has been making headlines thanks to a projects through power purchase agreements
WHAT: wide range of new investments and initiatives (PPAs).
Chevron is diversifying in recent weeks. The moves illustrate that while Other super-majors have increasingly been
at the same time as the company continues to pursue new oil and gas making forays into renewables as they inte-
pursuing new oil and gas opportunities, it is also engaging more in other grate the energy transition into their long-term
opportunities globally. areas of the energy sector, including renewables strategy. For example, ExxonMobil also powers
and nuclear power. some of its Permian operations with renewables,
WHY: On July 20, Chevron’s takeover of Noble having agreed to buy 500 MW of wind and solar
The company recently Energy came as the largest acquisition to be power from Danish-based Orsted for this pur-
announced an investment announced for some time by an industry that pose over a 12-year period.
in a nuclear fusion had been hit hard by collapsing oil prices and the However, compared to their European
start-up and said it would impact on demand of the coronavirus (COVID- counterparts, the US-based super-majors have
use renewables to power 19). In the weeks since, other announcements had a limited presence in renewables to date,
some of its operations. have shown the variety of investments that the using renewable projects to support their core
super-major is pursuing. oil and gas businesses, which they believe will
WHAT NEXT: be in demand for years to come. And prior to
The super-major is Mix and match its partnership with Algonquin, Chevron had
reportedly in talks to On July 30, Chevron publicised a deal with done little in the renewable space. Nonetheless,
invest in an Iraqi oilfield, Algonquin Power & Utilities to co-develop the announcement has been welcomed by sup-
and continues to finalise renewable projects that would power operations porters of green energy as an indication of a new
its acquisition of Noble across the super-major’s global upstream port- level of engagement with renewables on Chev-
Energy. folio. Under the four-year deal, Chevron is plan- ron’s part.
ning to generate up to 500 MW from renewable And renewables is not the only industry
sources, which it will use to power operations in Chevron is diversifying into as the company
the US’ Permian Basin, Argentina, Kazakhstan begins to speak of the energy transition more fre-
and Western Australia. quently. Last week, the super-major announced
The partners will jointly own and co-de- that it was investing in nuclear fusion start-up
velop these projects, with Algonquin leading Zap Energy. Chevron joins Italy’s Eni and
their design, development and construction. Norway’s Equinor in backing nuclear fusion

Week 33 20•August•2020 www. NEWSBASE .com P9