Chevron is focused on delivering an efficient and lower-carbon energy future

In an exclusive interview with Energy Connects ahead of Gastech 2024 in Houston, Colin Parfitt, President, Midstream at Chevron, highlights the vital role of LNG as an enabler of the energy transition, how Chevron is adapting to global trends in demand and helping with the expansion of reliable energy access, and a lot more.

What role do you foresee LNG playing in the energy transition?

Delivering the energy the world needs while lowering carbon intensity is a complex challenge. At Chevron, we believe there are steps we can take today to deliver a lower carbon future.

Much of the world has been transitioning from higher carbon intensity coal to lower carbon intensity natural gas for decades, accelerating this process will hasten carbon reduction achievements.

Natural gas emits roughly 50% less carbon when producing electricity than coal. Electricity accounts for about 20% of the world’s total final energy consumption. The International Energy Agency estimates that up to 1,200 Mt CO2 could be abated worldwide by switching from coal to existing natural gas-fired power plants.

Chevron supports policies that incentivize the conversion of facilities to natural gas and the incorporation of lower carbon technologies to coal fired electric generation facilities.

What trends do you see in global demand for LNG? How is Chevron planning to adapt to meet this demand?

Global energy demand is projected to increase through 2050, fueled by population growth and increased standards of living. We are also seeing huge growth in Artificial Intelligence, which the World Economic Forum estimates could be using more power by 2028 than the entire country of Iceland used in 2021.

In all projection scenarios from the U.S. Energy Information Administration (EIA), natural gas will support 15-20% of global electricity generation in 2050. Natural gas is critical to a lower carbon future. Coal currently accounts for more than one-third of global electricity generation.

At Chevron we are bringing rich natural gas resources to market to meet global demand. Our business is growing. We are building on our strong, reliable global portfolio to meet these demands.

Different regions are employing different strategies to reach climate targets at varying paces. How does the energy transition differ for those in developing verses developed countries?

At Chevron, we believe everyone has a right to strive for a better standard of living. We will continue to play a significant role in this through expansion of reliable energy access.

Countries face unique challenges in meeting climate targets while striving for affordable, reliable energy access. For many, lower carbon natural gas is a viable option. In fact, COP28 recognized the importance of fuels, such as natural gas, to ensure energy security during the transition.

Expectations of a simple global transition have been shaken as climate goals coexist with priorities for energy security, access, and affordability. Size, scale, and speed play a significant role in the energy transition and play an outsized role in the developing world where greater challenges to energy access and affordability exist.

What role do regulation and policy play in advancing the global energy transition?

Regulation and permitting challenges exist globally for expansion of both traditional and new energy infrastructure. Chevron supports market-oriented policies and expedited permitting processes for energy projects that seek to reduce carbon emissions, including coal-to-gas switching, carbon capture and storage (CCS), and deployment renewable and new energy technology.

The industry is working hard to meet demand using responsible lower carbon technologies. To lead in the future, we need to lead in policy enablement. We believe that meaningful permitting reform should be viewed as an enabler of the energy transition.

The mainstream at large seems to have an opinion that the energy transition can happen swiftly.

How do you view the long game on energy transition?

We sit at the intersection of one of the greatest challenges in human history: delivering energy essential to modern life in efficient and sustainable ways. We live in a world where consumers expect when they flick a switch, the lights turn on. Currently, renewable energy has intermittency challenges and by itself lacks sufficient grid storage capacity to meet the world’s energy demands reliably.

LNG will play an essential role in reaching global carbon reduction goals. I am extremely optimistic, with professionals at Chevron and in the broader energy industry, we will find ways to supply energy both reliably and at a lower carbon intensity.