The appetite for oil, natural gas, and other energy sources is growing dramatically, with worldwide energy consumption projected to increase by more than 40 percent by 2035.
The growing demand is fueled by a population that is predicted to 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 likely put added pressure on energy supplies. For example, in China alone, demand is expected to increase by 75 percent by 2035.
At Chevron, we recognize the world needs all the energy we can develop, in many potential forms. That's why we're investing in a broad portfolio of energy resources, with $40 billion budgeted in 2014 for capital and exploratory projects.
- 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 triples over the next 25 years, the world is likely still to depend on fossil fuels for at least 50 percent of its energy needs. That's why in 2013 we invested $41.9 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 crude oil and natural gas fields and to drill deeper than ever before so we can locate and recover resources that were once considered too difficult to develop.
For example, our work at the Tahiti Field in the deepwater U.S. Gulf of Mexico demonstrates Chevron's capabilities. Tahiti's deepest producing well is more than 26,700 feet (8,140 m), a record for the Gulf of Mexico. Production began in May 2009.
Using Energy Wisely
Energy efficiency is the least costly and most plentiful form of new energy the world has.
We have invested hundreds of millions of dollars in energy-efficiency efforts directed at reducing the amount of energy we use in our operations. Every day, we achieve energy savings by taking actions ranging from upgrading steam traps and installing more efficient heat exchangers to constructing more efficient power plants.
Developing Alternative Energy
Chevron is making global investments in renewable and alternative energy and in energy efficiency. Those efforts aim to modify our energy portfolio over the long term.
Renewables—such as cellulosic biofuels, which do not undermine the food supply, geothermal energy, and solar—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—may have long-term energy implications.
It is important that we all 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.