Strategy: Differentiate performance through technology.
Meeting future energy demand will require the capabilities and technology to find, develop and deliver energy from many sources affordably and at scale. We are working on innovative technologies across the energy spectrum to do just that. We believe our approach to technology is a key differentiator and gives us a competitive edge. We not only develop, integrate and deploy technology from our proprietary research, but also through partnerships, joint ventures and venture capital investments.
Our technology investments enable us to deliver superior business results. In upstream, for example, we are making large investments to find and produce resources more effectively, extend the life of producing fields, and operate with a smaller environmental footprint. Our Tahiti 2 project in the U.S. Gulf of Mexico is a good example. To increase recovery from the deepwater Tahiti Field, we launched a pioneering $2.3 billion waterflood of the reservoir. At approximately 26,000 feet (7,925 meters) below the seafloor, it represents the industry's deepest water-injection project in history.
Water reuse has reduced fresh water consumption at our Marcellus Shale play in western Pennsylvania. Today only about 60 percent of the water we use to fracture wells is fresh water. We also are researching ways to further reduce our fresh water consumption, such as the possibility of using water that is nonpotable, or unsafe for drinking. We strive to reuse 100 percent of the Marcellus flowback water in addition to any water that is produced naturally from the formation during the life of the well. This reduces the need for water trucking, transfer and disposal. We also are researching technologies to further reduce our operating footprint and have begun field trials using temporary, modular steel tanks for onsite water storage.
In downstream, we are building on our legacy of pioneering technologies that enable us to process the most challenging feedstocks and turn them into high-value products. Hydroprocessing, which converts heavy oil into lighter products, is one of our core competencies and has put us at the forefront of the premium base oil market. A new lubricants facility at our Pascagoula, Mississippi, refinery is expected to position the company as the worldwide industry leader in premium base oil production. The project is scheduled for mechanical completion by year-end 2013.
Research Partnerships
A commitment to partnership is one of our core values and a major source of strength. The innovative partnerships that we have forged with leading research institutions give us access to some of the world's brightest minds and lead to next-generation energy technologies. Our partnership with the Los Alamos National Laboratory in New Mexico is a case in point.
The newly commercialized Inficomm™ communication system began as a project within Los Alamos for use in military communications. Today we are using it to gauge real-time pressure and temperature data from reservoir depths as great as 25,000 feet (7,620 meters). A companion product, TruDepth™, identifies oil and water levels in a pumping well. The accurate measurements both technologies provide enable engineers to evaluate the performance of all types of wells and identify potential problems.
The latest collaboration in our 50-year partnership with Rice University in Houston, Texas, is the new Chevron Visualization Laboratory. Completed in 2012, the lab includes a 200-inch (508-centimeter) 3-D visualization wall, which allows scientists and students to probe data in ways not possible before. The lab supports teaching and research in earth science and engineering, as well as other disciplines. The lab was funded by a joint donation from the National Science Foundation and Chevron's University Partnership Program.
Posted: April 2013