Of all the ways to meet the world’s expanding energy needs, efficiency and conservation are the cheapest and most beneficial to the environment. Using energy more efficiently helps preserve our finite natural resources, lower energy costs and reduce carbon emissions.
using energy more efficiently
Chevron continues to find new ways to use energy more efficiently in its own operations. From 1992 through 2012, we used our Chevron Energy Index (CEI) to track energy use performance across all operations and measured a 34 percent improvement. The CEI measured our operational energy intensity based on estimated technological improvements and operational performance. As our assets have grown in size, complexity, and diversity, we recognized that energy efficiency could be measured better and ultimately improved.
We achieve energy savings in big and small ways. Chevron employees and contractors make energy efficiency a constant priority through everyday acts such as maintaining our equipment so that it runs smoothly, and through complex projects, such as building high-efficiency power plants. For example, our Power and Energy Management unit collaborates with other Chevron groups to help oil fields, refineries and other facilities trim energy costs, test new technologies, achieve efficiency gains, manage emissions and improve power reliability.
We have five metrics to track energy performance:
- Upstream Energy Intensity
- Manufacturing Energy Index (Refining)
- Non-Manufacturing Energy Index (Oronite, Lubricants, etc.)
- Pipeline Energy Intensity
- Shipping Energy Intensity
The metrics are not only easier to understand than the CEI, but their segment-specific nature of these new metrics also helps drive energy performance improvements.
generating electricity more efficiently
Chevron operates cogeneration units at refineries, production facilities and other sites worldwide. In 2016, these unites operated with a combined electrical generating capacity of 1,966 megawatts. Cogeneration is a fuel-efficient and environment-friendly process that produces steam and electric power simultaneously. These units, also referred to as combined heat and power units, generate electricity about twice as efficiently as the average power supplied by a local utility company.
We built and serve as the owner-operator of the Chevron Power Holding Co. facility in California, formerly Kern River Cogeneration Co. This facility was the first large cogeneration facility in California.
We built an $80 million cogeneration facility in El Segundo, California, to provide electrical and steam power for our refinery there. In addition, we’re using cogeneration at several of our other refineries to produce additional electricity from energy that would otherwise go unused.
Chevron has developed ways to deliver significant energy savings to our operations. In some of our Upstream operations, we are making sustained improvements in energy efficiency through implementation of the Surface Facilities Optimization Process. This process facilitates the identification, evaluation and implementation of projects that will conserve energy resources. Fuel gas optimization dashboards and systematic facility surveys are routinely used in the offshore Gulf of Mexico to monitor and sustain energy efficiency. In the Partitioned Zone, an area between Kuwait and Saudi Arabia, more than 150 wells were tied in to the local power grid, eliminating the need for numerous low-efficiency diesel-fired generators. In our San Joaquin Valley business unit, energy management projects to optimize steam generation and distribution, along with rotating equipment, resulted in a mitigation of approximately 180,000 metric tons of greenhouse gases (GHGs) since 2014 through reduced fuel use and electricity consumption.
Due to the size and nature of the operations, managing energy consumption in our IndoAsia business unit (IBU) is a critical focus area. The IBU continues to make significant improvements in energy efficiency and has reduced its energy intensity by 27 percent from 2014 to 2016. This improvement was achieved in part through the establishment of Integrated Optimization Decision Support Center (IODSC) in the IBU’s Sumatra operations in Indonesia. The IODSC monitors the day-to-day energy performance of the surface facilities and provides recommendations for optimizing energy efficiency.
energy efficiency – green buildings
Chevron manages facilities throughout the world. We strive to reduce the environmental footprint and maximize the efficiency of these facilities through frameworks such as the Leadership in Energy and Environmental Design (LEED) certification process. Developed by the U.S. Green Building Council, LEED is an internationally recognized certification system that verifies a building or community was designed and built to be environmentally sustainable.
In Louisiana, Chevron’s Northpark building is part of a growing “green” movement in construction. The 300,000-square-foot (27,870-sq-m) office complex is the first building in Louisiana to earn gold certification in the LEED program.
In 2016, our Cape Town office building achieved a 4-Star energy efficiency rating in the Green Star South Africa rating system. This rating is equivalent to the U.S. LEED silver rating. Points were awarded in categories such as environmental management, GHG emissions, water efficiency, environmental impact and energy consumption.
In 2011, one of our downtown Houston facilities earned LEED gold certification in Commercial Interiors. Our other facility in downtown Houston earned silver-level certification in 2010.