Reducing GHG Emissions
In 2006, our operations emitted 61.9 million metric tons of CO2 equivalent, well under our goal of 68.5 million metric tons of CO2 equivalent.1 For 2007, we are setting a preliminary goal of 63.5 million metric tons of CO2 equivalent. We intend to manage our emissions while growing our business. Chevron continues to execute energy efficiency improvements and to reduce flaring and venting emissions.
The primary sources of our GHG emissions are combustion, which occurs during operations, and flaring and venting of natural gas, a byproduct of crude oil production (see Capitalizing on Energy Efficiency). In 2006, these combined sources accounted for more than 90 percent of our GHG emissions.
Our products resulted in emissions from combustion of 395 million metric tons of CO2 in 2006.2
"Chevron's commitment to managing and reducing greenhouse gas emissions began in 2001, when we began executing our Fourfold Plan of Action on Climate Change. Under this plan, we established a systematic protocol for estimating GHG emissions, and we now require our major capital projects to include a review of these emissions, including the impact of carbon-associated costs. We have continued to improve our own energy efficiency as well as help our customers do the same. At the same time, we are investing in the development of advanced energy technologies and deploying commercially proven renewable energy technologies around the world."
Georgia Callahan, General Manager - Global Policy and Strategy, Chevron Health, Environment and Safety.
Chevron's international upstream organization adopted a flaring and venting standard in 2005 that aligns with the World Bank's voluntary standard. It requires all new capital projects be developed without continuous associated-gas flaring and venting, where feasible.
The international upstream standard also requires existing continuous associated-gas flares and vents to be eliminated by 2010 and 2008, respectively, wherever feasible. Our business units have identified eight important flaring and venting reduction projects in Angola, Kazakhstan and Nigeria that are expected to produce significant reductions to GHG emissions by 2010.
We require that capital projects evaluate GHG emissions profiles, opportunities for reduction and potential opportunities from carbon credits. All capital projects of more than $5 million must conduct an initial analysis to estimate emissions and their potential range of carbon costs and benefits. Analyses are integrated into the capital projects planning process. Projects of more than $50 million must submit results from the full assessment before they are funded.
- Chevron's GHG emissions data are reported on an equity basis for all businesses in which Chevron has an interest except where noted below. The following entities are not currently included in the Chevron corporate greenhouse gas inventory: Chevron Phillips Chemical Company, Dynegy Inc., the Caspian Pipeline Consortium, Azerbaijan International Operating Company, the Chad/Cameroon pipeline joint venture, Caltex Australia Limited'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 we do not have full operational control or which do not generally follow our corporate GHG inventory protocol or a compatible protocol.
- Product emissions are calculated based on total 2006 upstream liquids, gas and coal production figures from Chevron's 2006 Annual Report. The emission factors used are from the American Petroleum Institute's Compendium of Greenhouse Gas Emissions Estimations Methodologies for the Oil and Gas Industry, published in 2004.