Chevron

T Not long ago, all the talk was about the looming end of fossil fuels. But now it looks One of those who was steering Whenever you talk about energy, there are really three t Affordability, because energy that people can't afford doesn't change lives. Reliability, because reliability enables an economy to be built and then protecting the environment. And in policy discussions or in business strategy, and if we focus only one of those, we sub-optimize on the other two. Well, I t And I t Whenever you have balanced, there are some trade-offs. How do you minimize the damage to the climate w The first the best way to find new energy is not to use energy wastefully that we have today. And so efficiency industrial facilities, in transportation, in manufacturing, all really, really essential. The second t So hydrogen is one example. Renewable fuels is a second. Geothermal is a t Earlier t We're the second largest producer of renewable fuels in the United States. Later t And that will have the storage capacity equivalent to three times all the grid-installed batteries in the entire United States. As we talk right now, it looks Do you t Demand last year was the Demand t Again, not because of anyt There will come a time when the population on the planet plateaus, when development will have largely occurred for most of the less developed part of the world, and efficiency will have offset some of that growth. Development models give you different ass The big cons And so even as we find these new technologies becoming more competitive, we're going to have existing cons The global demand for oil is somet How long do you t Well, we're closer to 105 million barrels a day today. We'll probably be close to 110 million barrels a day by the end of t And then, Some would have it continuing to grow. OPEC has a growth out through 2050. The IEA shows a plateau beginning in 2030. Our view is probably somewhere in between those two, but that'still an enormous amount of demand in the world to be met. Chevron specifically has positioned itself recently to be in a position to supply some of that with your HES acquisition. Explain why that strategically was so important to Chevron and to you. Well, we've got a strong growth profile through the rest of the Permian Basin just We've had global records the last couple of quarters for production. HES brings with it a nice growth profile that extends beyond the next few years as we reach maturity on some of our big projects that have been starting up. HES has some very talented people in exploration who have been quite involved in the identification and appraisal of the resource in Guyana, w So we're going to bring their talent, their experience, their insights, and blend it with ours. And as we move forward, we've got acreage around the world, and we're going to have some, Can you get along with Exxon as a venture partner down in Guyana? We partner to share risk, to share costs. It's quite common, particularly on large scale developments. We put our people together and we get the best out of the people from organizations that bring different experiences together, and we've got great respect for all the companies that we work with. I would fully expect that our team will be good partners with Exxon and Vice Versa in Guyana. Many of the people that will be working on t Chevron is much more than an oil company, it's a gas company too. Let's talk about natural gas. There was a time that was such a sort of bridge energy, getting to solar and renewables. Is that still true? I actually t As you bring wind and solar into an electricity grid, they have great strengths. Once a capital has been invested, the marginal cost is very low, but they're not good at providing base load capacity because they're variable with the wind and the suns You can't really turn the sun up brighter or make the wind blow, it is what it is. And so you need other sources of supply to provide level loading for the grid. Natural gas is ideal for that, it's much lower emitting than coal. Give us a sense of how you the demand is coming, in fact it's already here. And we're talking to the biggest companies in the world that are investing in building these models. The two constraints that they have right now are c The US is in a race with C The challenge for us in the US is to mobilize our energy to support the growth in power demand. We've got a grid that is challenged in terms of putting all that power through the grid. So what we're looking at doing is building a large scale power generation off the grid where we can go fast, we can deliver large scale, we can take advantage of the abundant low cost gas resource in t So we're in deep discussions with several of the biggest companies working on t You have announced already a deal with Vernova and with Engine N Where is that project? When will it first be online somewhere? So t We've got a site identified, a primary site. We've got some other sites that we're working on as well. We've got seven of GE Vernova's largest turbines coming with delivery beginning next year. So it'll be over four gigawatts of power generation. When you talk about permitting, I do t When you talk about balance, how do you strike a balance between, let me pick names, Gavin Newsom on the one hand in California and Donald Tr They don't seem to see eye to eye on energy policy. They probably don't see eye to eye on a n Energy policy being one of them. And certainly we've got a long But the policies of the state have been designed to discourage investment in the traditional energy system and encourage investment into renewables in the next generation. We talked earlier about balance. My belief is California does not have the balance right. California is trying to convert the supply side too fast and the demand side hasn't adjusted yet. And that runs the risk of creating shortages. I think President Tr Certainly been an advocate for oil and gas. And I think his policy approach is more market oriented and Given since how you became CEO, what brought you to Chevron to begin with? I had a degree in chemical engineering and I got a s In the early 1980s, in my early 20s, I decided to go to California. I landed with Standard Oil of California, w And I found myself working with incredibly talented people on important projects around the world that blended engineering and technology with economics and business and then with t And 43 years later, I'm still doing it. Looking back on your career, was there a formative moment that you look back on and draw from as you deal with crises or difficult situations? I'll tell you the one, the most recent one that I learned a lot from is COVID. And we, I had some insights that t And I was able to use that to begin to mobilize a response that our company before the rest of the world really recognized what was going on. One of the first t And they had gone through wars, they had gone through terrorist attacks, financial crises, and they all had experience dealing with an unexpected black swan type of event. And they were incredibly generous with their reflections on what they would have done differently, their suggestions to me on what I should do in response to it. And it was nice to not have to figure it out all myself. You've been CEO for a what is there left for you to accomplish? Well, we've got immediate integration of an acquisition. We're going through a large corporate restructuring, we've got a contract to operate in Kazakhstan that runs out in the next few years. Those will be some t