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Enjoyed chatting with @Chevron CEO Mike Wirth at today's @EI_Forum. My key takeaways:
1a. The shift in thinking around gas. $CVX is the most oil weighted major. Even its gas (LNG) is largely oil-linked. But the East Med expansion via Noble + Egypt bid rounds is a pivot.
(1/5)
1a. The shift in thinking around gas. $CVX is the most oil weighted major. Even its gas (LNG) is largely oil-linked. But the East Med expansion via Noble + Egypt bid rounds is a pivot.
(1/5)
1b. Chevron sees gas as one key to its goal to provide cleaner energy. $CVX has made clear it is not looking to develop renewables as a standalone business, so gas becomes more critical. I also wonder if it the long-term bull case for oil returns v gas has faded. (2/5)
2. $CVX's low-carbon investment push has taken a notable leap as it's made a number of market-ready investments. Wirth says its because these ops are "now competing economically ... and creating value.” A reminder that no net-zero plans is not the same as doing nothing. (3/5)
3. The industry has to create value to get investors back. Wirth says that means higher returns + lower carbon, and finding the balance between the two. $CVX is actively trying to find and integrate commercially viable renewables into its existing biz to achieve both.
4. Wirth couched CCS in an interesting way. To succeed, it needs to be thought of/treated as a standalone industry. That means it needs support from technology, policy, legal frameworks, + markets the same as any burgeoning industry would. He also stressed collaboration. (5/5)
