greenhouse gas management
We are committed to managing our greenhouse gas (GHG) emissions by reducing flaring and venting and improving energy efficiency in our day-to-day operations. We compile inventories of our emissions, we undertake projects to manage operating emissions and we apply innovative technologies to continually improve the energy efficiency of our operations.
We also assess the GHG emissions of our capital projects. When developing and approving major capital projects, we estimate a project’s incremental emissions profile, assess the financial impact of GHG regulations, and describe the emissions reduction options considered and implemented. We have developed tools to identify, assess and rank emissions reduction methods; conduct economic analysis; and integrate GHG factors into decision making and overall project development and management.
For more information about Chevron’s position on climate change, see our Climate Change page.
what we’re doing
The primary sources of our GHG emissions are combustion of fuels for electricity and steam generation during our operations and, in some locations, flaring and venting of the natural gas that is extracted along with crude oil. In 2015, emissions were 57 million metric tons of CO2-equivalent, calculated on an equity basis.
Chevron consistently ranks among the best in our industry when it comes to leadership in disclosing information about climate change practices and GHG emissions by CDP (formerly the Carbon Disclosure Project). CDP is an international, not-for-profit organization providing a system for companies to measure, disclose, manage and share vital environmental information. In CDP's 2015 analysis, our score of 99 out of 100 points was the highest among all integrated oil and gas companies. This score reflects Chevron’s transparency in disclosing our GHG emissions and climate policies.
Recognizing the importance of independent review and verification of our emissions inventory process and results, we engaged Ernst & Young to conduct a third-party verification of our operated assets' GHG emissions for 2010 through 2012. In 2013, we began an annual independent review of one-third of our GHG emissions inventory. In 2015, Ernst & Young conducted an independent review of one-third of our GHG emissions inventory for 2014. Read Ernst & Young's report.
reductions in flaring and venting
Associated gas flaring is the burning of natural gas associated with oil production or condensate storage. Where pipelines, other gas transportation infrastructure and utilization alternatives do not exist, associated gas from operations around the world has historically been flared where there is either no viable gas market or alternative use for the gas. Gas is also flared for safety reasons.
Chevron is reducing natural gas flaring and venting and the GHG emissions that result from this practice. We are a member of the World Bank-led Global Gas Flaring Reduction Partnership, and we have developed internal country-specific plans to minimize gas flaring. Where feasible, we seek opportunities to reduce flaring and venting in our global operations.
In early 2010, Tengizchevroil in Kazakhstan—of which Chevron has a 50 percent interest—stopped flaring natural gas except when necessary for safety. Through the four-year, $258 million gas utilization project, Tengizchevroil has achieved a 94 percent reduction in the volume of gas flared when compared to 2000.
For more than 15 years, Chevron has invested in a series of flare-reduction efforts in western Africa. Since 2009, our Agbami facility off the shores of Nigeria has been operating with no routine flaring because the associated gas is reinjected, demonstrating the ability to develop new oil production facilities without routine flaring.
Building on past achievements, our upstream operations have continued to make significant progress in reducing routine flaring through the completion of various gas gathering and flare reduction projects over the past five years. In 2015, our Nigeria/Mid-Africa business unit commenced operation of the Escravos Gas Plant Phase 3B, which will reduce flaring from nine offshore production platforms. In addition, our Southern Africa strategic business unit completed the Nemba Enhanced Secondary Recovery Project, which will reduce our flaring volumes in Angola.
For an in-depth look at Chevron emissions data, refer to our Corporate Responsibility Report.
carbon dioxide injection
Chevron Australia commenced operation of the first train of the Gorgon liquefied natural gas (LNG) project on Barrow Island at the beginning of 2016. A train in this case refers to an LNG plant’s liquefaction and purification facility. Construction continues on the second and third trains, which will include execution of one of the largest carbon dioxide injection projects in the world. The carbon dioxide present in the natural gas will be injected into a sandstone reservoir more than 1.5 miles (2.4 km) below Barrow Island. This carbon dioxide is extracted from the natural gas as a part of normal gas-processing operations and would otherwise have been vented to the atmosphere. Over the life of the project, approximately 120 million tons of carbon dioxide is expected to be safely injected.
We also are participating in a similar project in Alberta, Canada, called Quest. This joint venture injects carbon dioxide from the Athabasca oil sands project.