"Operating in a responsible and ethical manner lies at the heart of our value system and, combined with superior technology and world-class execution, underpins our success. This is critical today because we live in an era of global energy interdependence. All of us – producers, consumers and governments – must work together to produce and conserve the energy needed to sustain economic growth and advance human development."
An Interview With Our Vice Chairman
Peter J. Robertson is vice chairman of the board of Chevron Corporation. In addition to his responsibilities as a corporate officer, he is directly responsible for Strategic Planning; Policy, Government and Public Affairs; and Human Resources. He also chairs the Global Issues Committee. In this section, Mr. Robertson gives his views on several key issues.
- How do Chevron's responsible business practices help it meet the challenges of supplying energy to meet the world's rising demand?
- What is Chevron doing to help people in countries where it operates?
- Does Chevron believe that climate change is real and what is it doing about it?
- Chevron is primarily an oil and gas company. Is Chevron really committed to developing renewables and alternatives?
- Do governments have a role to play in meeting these energy challenges?
How do Chevron's responsible business practices help it meet the challenges of supplying energy to meet the world's rising demand?
PJR: Our practices help us both deliver on our business objectives and make sustainable contributions in the countries where we work. Operating in a responsible and ethical manner lies at the heart of our value system and, combined with superior technology and world-class execution, underpins our success. This is critical today because we live in an era of global energy interdependence. All of us – producers, consumers and governments – must work together to produce and conserve the energy needed to sustain economic growth and advance human development.
To meet the projected global demand for energy, we need to make full use of today's energy sources while simultaneously developing the next generation of resources. In the future, we'll need contributions from the entire energy portfolio. Many of our newer sources of hydrocarbons are located in technically challenging environments. Other new potential energy sources, such as second-generation biofuels and coal-to-liquids, require research and technology to secure commercial viability. We are confident that, guided by our vision, values and strategy, we will meet these challenges.
What is Chevron doing to help people in countries where it operates?
PJR: Chevron can be a constructive player, together with governments and civil society, in helping the economic benefits of energy flow to all stakeholders. However, we can't do this alone. The socioeconomic issues facing some energy-producing nations are staggering. The solutions are not easy. They require accountability and an integrated approach that brings together local, national and international institutions. At Chevron, we support initiatives such as the Extractive Industries Transparency Initiative, which promotes transparency through the public disclosure of payments made by companies and revenues received by countries. We support capacity building programs, such as the Politeknik Caltex Riau, a polytechnic university in Indonesia that helps students develop a range of engineering, business and vocational skills. We also develop partnerships with governments, communities and nongovernmental organizations to enhance local communities' ability to direct their own economic development. Investing in people – both our employees and communities – is one way we can make a sustainable contribution to our collective future.
Does Chevron believe that climate change is real, and what is it doing about it?
PJR: The Intergovernmental Panel on Climate Change, the leading scientific body with expertise in this area, believes our climate system is warming. The panel has concluded that atmospheric concentrations of greenhouse gases are rising, very likely due to human activities. While the use of fossil fuels contributes to these emissions, other factors are important too, including land use changes and agricultural activities.
In our own operations, we have initially focused on reducing our own emissions, principally by improving our energy efficiency. We are also progressing several flaring and venting reduction projects that will, when completed over the next few years, reduce our GHG emissions. Finally, we have developed a set of principles to guide flexible and economically sound policy actions on climate change. We are actively working with policy makers as they tackle this complex issue.
Chevron is primarily an oil and gas company. Is Chevron really committed to developing renewables and alternatives?
PJR: Absolutely. While our predominant line of business remains exploring for, producing and marketing products developed from crude oil and natural gas, we are making investments in renewable energy. From 2002 to 2006, we invested nearly $2 billion in renewable and alternative energy, including energy efficiency services, and expect to invest more than $2.5 billion from 2007 through 2009. To advance the development of renewable transportation fuels, we have developed research alliances with several prominent institutions and established a biofuels subsidiary.
In addition, energy efficiency and conservation cannot and should not be overlooked. They are currently the most plentiful form of "new" energy. We are the only integrated energy company with a business unit – Chevron Energy Solutions – dedicated to helping others become more energy efficient.
Do governments have a role to play in meeting these energy challenges?
PJR: Without a doubt, yes. Tomorrow's energy supplies must not only be affordable and reliable, but cleaner than ever before. Governments can play a role in stimulating the development and deployment of new energy technologies such as carbon sequestration, next-generation ethanol fuels, and advanced battery systems. In many cases, it is impossible to commercialize promising technologies without government support and partnership. As one of the largest energy consumers in the United States, the U.S. government can set an example by requiring agencies to use less energy, providing incentives to increase energy efficiency and promoting conservation efforts.
More fundamental, governments have a responsibility to lead open and honest debates on how to balance continued economic growth with our shared desire to reduce greenhouse gas emissions. After all, energy is more than mobility, light and heat. It is a fundamental driver of global economic growth and opportunity. Policy makers must articulate solutions that will enable both goals to be reached or be prepared to propose sensible trade-offs. Policies geared toward absolutes – economic growth regardless of environmental consequences or emissions reduction at any cost – are bound to be unsustainable. Ultimately, we must all be better informed and learn about these issues. On Chevron's part, I invite you to join in the dialogue on energy issues at www.willyoujoinus.com.