Climate Change:Carbon Capture

At Chevron, we recognize and share the concerns of governments and the public about climate change. The use of fossil fuels to meet the world's energy needs is a contributor to an increase in greenhouse gases (GHGs)—mainly carbon dioxide (CO₂) and methane—in the Earth's atmosphere. There is a widespread view that this increase is leading to climate change, with adverse effects on the environment.

Guided by our Seven Principles for Addressing Climate Change, Chevron is working internationally and at the U.S. federal and state levels to contribute to climate change policy discussions. Our stance reflects a balanced approach to addressing climate change through short- and long-term measures. As we work to reduce GHGs, our collective challenge is to create solutions that protect the environment without undermining the growth of the global economy. We believe that a successful climate policy will be one in which the reduction of GHGs is accomplished equitably by the top emitting countries of the world through long-term and coordinated national frameworks.

Reducing Emissions and Improving Efficiency

The two primary sources of our GHG emissions are combustion of fuels during our operations and, in some locations, flaring of the natural gas that is extracted along with crude oil. Chevron emitted 59.2 million metric tons of CO₂equivalent¹ in 2010, slightly above our goal of 59.0 million metric tons. A change in our GHG accounting methodology to align with best practices for accounting for electricity exports resulted in a 0.9 million metric ton increase in our reported emissions. Under the previous accounting methodology, which was in place when we established our 2010 goal, our 2010 emissions would have been 58.3 million metric tons.

Chevron has made a long-term commitment to improved energy efficiency in our day-to-day operations, which will diminish our own carbon emissions. Since 1992, we have improved our energy efficiency per unit of output by 33 percent.

In 2010, we completed enterprise-wide deployment of the Chevron GHG and Energy Reporting System, a state-of-the-art Web-based application that helps us manage our GHG footprint. Also in 2010, we engaged Ernst & Young to conduct a third-party verification of our operated assets' GHG emissions for 2007 through 2009. Independent review and verification of our emissions inventory process and results is a key component of our continuous improvement effort. Read Ernst & Young's report (2 MB).

To learn more about our GHG management efforts, read Additional Information on Chevron's Greenhouse Gas Management Activities (51 KB).

Reductions in Flaring

Chevron is working to minimize gas flaring and venting and the GHG emissions that result from this practice. As a member of the World Bank-led Global Gas Flaring Reduction Partnership, Chevron participated in regional workshops that developed country-specific plans to minimize gas flaring. We seek feasible opportunities to reduce flaring and venting in our global operations.

As of early 2010, in Kazakhstan, Tengizchevroil—in which Chevron is a 50 percent partner—no longer flares natural gas except when necessary for safety. Through the four-year, $258 million gas utilization project, gas that previously would have been flared or vented can now be processed for sale or used to support plant operations.²

For more than 15 years, Chevron has invested in a series of flare-reduction efforts in Nigeria, including projects that focus on capture and delivery of natural gas from existing flares and others that create the opportunity for previously flared gas to serve new gas markets throughout western Africa. Since 2009, our offshore Agbami facility has been operating with no routine flaring through reinjection of associated gas, demonstrating the ability to develop new oil production facilities without routine flaring. Chevron continues to work with its production partners in Nigeria on a series of additional projects to address the remaining flares. The third stage of the Escravos Gas Project started up in 2010, increasing our gas processing capability in Nigeria by almost 400 million cubic feet per day (mmcf/d).

In Angola, with completion of the Takula Gas Processing Platform and the Takula Flare and Relief Modifications projects in 2009, routine gas flaring was reduced in the Takula Field by approximately 50 mmcf/d. The Cabinda Gas Plant became fully operational in 2010 and reduced onshore flaring by 3 mmcf/d. The Angola Liquefied Natural Gas facility, which is expected to serve as a future commercial outlet for gas that is currently flared, is scheduled for start up in 2012.

To learn more about our GHG management efforts, read Additional Information on Chevron's Greenhouse Gas Management Activities (51 KB).

For an in-depth look at Chevron emissions data, refer to our Corporate Responsibility Report.

Carbon Sequestration

In 2010, Chevron Australia Pty Ltd broke ground on the Gorgon Liquefied Natural Gas Project on Barrow Island, off the northwest coast of Australia. Gorgon includes one of the largest carbon dioxide capture and storage projects in the world. The CO₂ present in the natural gas will be injected into a sandstone reservoir more than 1.5 miles (2.4 km) below Barrow Island. This CO₂ is extracted from the natural gas as a part of normal gas-processing operations and would otherwise have been vented to the atmosphere. Over the life of the project, approximately 120 million tons of CO₂ is expected to be safely injected.

Chevron participates in the Carbon Sequestration Leadership Forum, an international climate change initiative focused on development of improved cost-effective technologies for the separation and capture of carbon dioxide.

In the United States, Chevron is part of the West Coast Regional Carbon Sequestration Partnership, one of seven regional partnerships sponsored by the U.S. Department of Energy working to create a "carbon atlas" of sequestration potential across North America.

Efficiency Gains Through Cogeneration

Worldwide, Chevron operates cogeneration units at refineries, production facilities and other sites, with a combined electrical generating capacity of about 3,500 megawatts. These units, also referred to as combined heat and power units, generate electricity about twice as efficiently as the average local utility company.

Our Kern River Cogeneration Co. facility in California, a joint venture with Edison Mission Energy, was California's first large cogeneration facility. It has a generating capacity of 300 megawatts.

We also are delivering energy efficiency and renewable energy solutions to external clients through our subsidiary Chevron Energy Solutions.

Investing in Research, Development and Technology

Chevron also supports research to explore technologies that may reduce emissions or improve efficiency. Through our Chevron Technology Venturesbusiness unit (CTV), we identify, develop and commercialize emerging technologies that have the potential to transform energy production and use. CTV's portfolio includes biofuels, emerging energy and investments in startups designing technology valuable to Chevron.

To learn more about our GHG management efforts, read Additional Information on Chevron's Greenhouse Gas Management Activities (51 KB).

1. Chevron's GHG emissions data are reported on an equity basis for all businesses in which Chevron has an interest except as noted below. The following entities are not currently included in the Chevron corporate greenhouse gas inventory: Chevron Phillips Chemical Co., the Caspian Pipeline Consortium, the Chad/Cameroon pipeline joint venture, Caltex Australia Ltd.'s Lytton and Kurnell refineries, and other refineries in which Chevron has an equity interest of 16 percent or less. These are entities over which Chevron does not have full operational control or which do not generally follow Chevron's corporate GHG inventory protocol or a compatible protocol.

2. 2009 Corporate Responsibility Report, p. 8

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