Chevron and Climate Change
Chevron shares the concerns of governments and the public about climate change risks and recognizes that the use of fossil fuels to meet the world’s energy needs is a contributor to rising greenhouse gases (GHGs) in the earth’s atmosphere. We believe that taking prudent, practical and cost effective action to address climate change risks is the right thing to do. Mitigation of GHG emissions, adaptation to climate change and continuation of scientific and technological research should all be considered.
GHGs come from a variety of sources - power generation, transportation, agriculture, land use, manufacturing, and other activities. Fossil fuels - coal, oil and natural gas - release carbon dioxide during production and consumption. Fossil fuels are also the primary source of energy for the global economy and a contributor to a rising quality of life in many parts of the world. Based on current projections of population and economic growth, the world’s demand for energy will increase substantially over the next 25 years. The majority of that energy will be provided by fossil fuels, even as lower-carbon alternatives continue to emerge.
Reducing GHG emissions in the face of rising energy demand presents a formidable challenge to our global society. As we work to address climate change risks, we must create solutions that achieve environmental objectives without undermining growth of the global economy and our aspirations for a better quality of life for all. Globally, Chevron is committed to greenhouse gas management.
Increasing the Global Supply of Natural Gas
The increased use of natural gas to displace conventional fuels such as coal is widely recognised as a low cost path to reducing the growth and potentially reducing the growth in global greenhouse gas emissions.
The Australian Petroleum Production and Exploration Association (APPEA), in its Climate Change Policy Principles notes:
"currently available natural gas technologies produce only 30 to 50 per cent of the emissions produced by current coal technologies in generating electricity. According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), current generation coal fired power stations produce between 0.8 and 1.2 tonnes of carbon dioxide equivalent greenhouse gas emissions (CO2-e) per megawatt hour (MWh) of generation while a combined cycle gas turbine power station produces only around 0.35 to 0.36 tonnes CO2-e/MWh.
"Natural gas is the lowest-cost means to reduce greenhouse gas emissions in electrical power generation, both through increased use of existing gas fired power plants and a 'coal to gas shift' (ensuring new power stations are gas fired). Figure 2 shows the cost of reducing emissions in electrical power generation. Increased use of natural gas also offers other environmental benefits, such as: reduced particulates emissions; reduced emissions of sulphur dioxide (an important contributor to smog and acid rain); and significantly lower demand for water for power station cooling".
Chevron is working to increase the supply of natural gas into Australian and international energy markets to help realise the objective of low costs greenhouse gas emissions reduction.
Reducing our Emissions Footprint in Australia
Chevron is working to reduce greenhouse gas emissions from our Australian operations with a particular focus on identifying and implementing emissions reduction opportunities at the early design stages of our major capital projects. This includes the use of the latest technologies in subsea production, natural gas processing, waste heat recovery and the underground injection of reservoir carbon dioxide at our Gorgon Project. The Gorgon Carbon Dioxide Injection Project represents a significant investment with the objective of reducing the greenhouse gas emissions from the Gorgon Project by between 3.6 and 4.0 million tonnes per year.