Chevron has taken steps to minimize the oil and fuel large’s dependence on fossil fuels, laying a path to an energy system with a decreased carbon footprint, CEO Mike Wirth advised CNBC’s Jim Cramer Wednesday.
“We embrace a lower carbon future. We expect a lower carbon energy system,” Wirth stated in a “Mad Money” interview. “The energy system’s always been moving towards lower carbon.”
The feedback got here in response to a query about cash managers who worth environmental, social and company governance, or ESG, investing. ESG traders look to take a position in corporations which can be targeted on the way forward for energy, leaving little room in their portfolios for corporations dealing in conventional energy like fossil fuels or coal.
“The energy system’s always been in transition and we’re investing today,” stated Wirth, who defined that Chevron, a prime U.S. oil producer, is investing in tasks which can be “good for shareholders and good for the environment.”
“If we do just invest in things that are good for the shareholders and ignore the environment, that’s not sustainable,” he stated. “And if all we do is invest in things that have an environmental case and they don’t create value and returns for shareholders, that’s not sustainable either.”
Chevron is targeted on offering excessive returns for shareholders whereas reducing carbon emissions, he stated. Some of these initiatives, he added, embrace nuclear fusion, hydrogen and applied sciences to scale the tasks.
In September, Chevron introduced a three way partnership referred to as CalBioGas LLC, an effort in conjunction with California Bioenergy and native dairy farmers. California Bioenergy offers in changing biomass into clear energy.
The partnership launched renewable pure fuel manufacturing from dairy farms in Kern County, which is north of Los Angeles.
“We’re actually capturing the waste products from dairy farms now, fermenting those products to create the natural gas product, cleaning it up [and] moving it into a pipeline so it can displace fossil fuels,” Wirth defined. “We reduce methane emissions and we create a salable renewable product.”
Chevron shares fell 1.2% in Wednesday’s session to shut at $90.44 per share. The inventory is down 25% 12 months to this point.