Chevron Sees Clean Energy Making Just as Much Money as Oil Does

Chevron Corp. expects its $10 billion of investment on low carbon technologies through 2028 to offer double digit returns that are competitive with its main oil and gas business, Chief Executive Officer Mike Wirth said. 

“We haven’t lowered the bar for returns, that’s the bottom line,” he said in a presentation to investors Monday. 

With many of the new hydrogen, renewable natural gas and biofuel technologies in their early stages, some will “fall short” and there’s a high range of outcomes possible, he said. But they should be more financially attractive than established wind and solar, he said. 

Also See: Chevron Triples Low-Carbon Spending, Sees Path to Net Zero

Chevron may introduce wind and solar to support its operations but in general it’s a “crowded space” in which the oil major has little competitive advantage, Wirth said. 

©2021 Bloomberg L.P.

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