By Julia Horowitz, CNN Business
Chevron, the $186 billon US oil giant, is taking steps to diversify its business away from fossil fuels as concerns about the climate crisis grow.
What’s happening: This week, the company announced that it will spend $10 billion through 2028 on low-carbon energy sources like renewable diesel fuel and hydrogen, more than triple prior guidance of $3 billion.
“We believe that these investments will advance a lower carbon future and be good for our shareholders,” CEO Michael Wirth said on a call with analysts.
So far, Chevron’s approach to the green transition has differed from its competitors. The company isn’t focusing on solar and wind power, for example. Wirth said that the technology and markets for these energy sources is already “relatively mature.” Instead, it’s investing in products like sustainable fuels that will be essential to helping the transportation sector go green.
“These business lines are earlier in life than renewable power, have value chains that will often connect with our traditional ones and are areas where we believe we can earn double-digit returns,” Wirth said.
Investors aren’t sure about the strategy. Shares fell 1.8% on Tuesday, though they’re still up almost 14% this year thanks to a strong rebound in energy prices.
Breaking it down: The problem may be that oil and gas companies like Chevron are trying to make changes to their business in an environment where there’s little consensus about what the future looks...
Read Full Story: https://ktvz.com/money/cnn-business-consumer/2021/09/15/chevrons-low-carbon-push-still-puts-it-behind-the-curve/
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