The appetite for oil and other energy sources is growing dramatically, with worldwide energy consumption projected to rise more than 50 percent by 2030.
The growing demand is fueled by a burgeoning population that will increase 25 percent in the next 20 years, with most of that growth in countries with emerging economies, such as China and India. Rising energy demand from economic output and improved standards of living will put added pressure on energy supplies. For example, in China alone increasingly prosperous citizens are projected to purchase more than 100 million new vehicles before 2020.
Meanwhile, in the industrialized world people are driving their cars more each year and living in bigger houses that are equipped with an increasing array of energy-demanding appliances, computers and other conveniences.
At Chevron, we recognize the world needs all the energy we can develop, in every potential form.
With our expertise and advanced technology, we are devising new and enhanced ways to deliver needed forms of energy – from conventional crude oil and natural gas to the emerging sources of the future.
That's why we're investing — $22.9 billion in 2008 alone — in a broad portfolio of energy resources.
- We're finding and developing conventional and new sources of oil and gas.
- We're using energy more efficiently.
- We're investing in renewables and the next generation of energy sources.
Finding More Oil and Gas
Even if the use of renewables doubles or triples over the next 25 years, the world is likely to still depend on fossil fuels for about 85 percent of its energy needs. That's why in 2007 we invested $20 billion in exploration and production to develop our portfolio of major capital projects.
New technologies are helping us to see more clearly beneath the earth's surface. These advances allow us to maximize the production of our existing fields and to drill deeper than ever before so we can locate and recover resources that were once considered too difficult to develop.
In September 2006, we ran a successful first test of "Jack," a well in the deepwater Gulf of Mexico. It is located more than 20,000 feet below the ocean's floor — at that time, it became the deepest well ever tested in the Gulf.
Using Energy Wisely
Energy efficiency is the cheapest and most plentiful form of new energy the world has. Energy saved is, quite literally, energy found.
One of our companies, Chevron Energy Solutions, is devoted to helping schools, government agencies and businesses use energy more efficiently and reduce energy use. We are also applying these solutions to our own business.
Since 1992, we've increased our energy efficiency at Chevron by 27 percent.
How did we do it?
We invested hundreds of millions of dollars in energy-efficiency efforts directed at reducing the amount of energy we use in our operations. Every day, energy savings are achieved by taking actions ranging from upgrading steam traps and installing more-efficient heat exchangers to constructing new, more-efficient power plants.
Developing Alternative Energy
Chevron is making global investments in renewable and alternative energy and in energy efficiency. We expect to spend $2.5 billion in this area between 2007 through 2009. Those efforts aim to modify our energy portfolio over the long term.
Renewables — such as geothermal and cellulosic biofuels, which do not undermine the food supply — will provide new raw materials for fuels, new sources for power and new benefits for the environment.
Meeting the Demand
Growing demand, geopolitical pressures, and more remote and challenging resources continue to change the global energy landscape.
The decisions we all make today — whether they involve investing in a multibillion-dollar oil project or purchasing the family car — have long-term energy implications.
It is important that we face the challenges and embrace the opportunities because energy — both its production and its use in an environmentally safe manner — is a platform for broader economic growth and improves the quality of life of people around the world.
Updated: May 2008