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Chevron unveils New Low-Carbon Division Chief

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Today, oil major Chevron Corp announced that Jeff Gustavson will become its new low-carbon unit president. In fact, Gustavson is currently vice president of the company’s North America exploration and production (E&P) business. Besides, he has experience overseeing Chevron’s operations in the Permian Basin; where indeed, the company is one of the biggest producers.

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Noteworthy, Ryder Booth will succeed Gustavson in those positions.

About the “Chevron New Energies” Division

In fact, Chevron Corp. is creating a new business division focused on scaling up new technologies. Particularly, the company aims to master carbon capture and hydrogen solution, thus reflecting how Big Oil is positioning for the energy transition.

Accordingly, “Chevron New Energies’ initial focus will include commercialization opportunities in hydrogen, carbon capture, and offsets. Besides, it will consider the support of ongoing growth in biofuels, the company said in a media release.

Similarly, Bloomberg Green noted that the new unit and the appointment of Gustavson signal a step change; specifically, in Chevron’s ambitions for lower carbon investments and biofuels.

In fact, the decision follows a similar move by rival Exxon Mobil Corp., which created its own low-carbon division in February.

A precedent for Big Oil in North America

Furthermore, and it is worth noting, unlike some of their European rivals, both U.S. supermajors have committed to oil and gas for the long term. Similarly, they have long declined to make net-zero emissions pledge; despite pressure from investors to improve their climate credentials.

However, the recent move by Chevron shows a slight but still important change in its strategy to address the energy transition effectively. Moreover, it could be a blueprint for future decisions in the U.S. oil and gas sector overall.

Lastly, Chevron said Gustavson will report directly to Chief Executive Officer Mike Wirth. Further, the company said it plans to provide further details on the new business unit in an investor presentation on Sept. 14.

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