Chevron makes leadership changes in push for lower carbon strategy

U.S. oil major Chevron Corporation is making leadership changes as the company is progressing its lower carbon strategy amid an ongoing energy transition sweeping across the sector.

Chevron said on Thursday it had named Jeff Gustavson president, New Energies, effective 2 August 2021. Gustavson will serve as a corporate officer and report to Chevron Chairman and CEO, Michael Wirth.

Gustavson will lead a new, dedicated organization focused on low carbon business prospects that have the potential to scale. Chevron New Energies’ initial focus will include commercialization opportunities in hydrogen, carbon capture, and offsets and support of ongoing growth in biofuels.

The oil major is planning to hold its Energy Transition Spotlight investor presentation on 14 September when more details about these efforts will be released.

“Chevron New Energies reflects our higher returns, lower carbon strategy”, said Wirth. “We believe the dedication of resources in a new organization will accelerate growth in multiple business lines that we expect to be part of a lower-carbon energy system”.

Gustavson is currently vice president of Chevron North America Exploration & Production Company and oversees its Mid-Continent Business Unit. He previously served as president of Chevron Canada Limited and has held positions in Investor Relations, Corporate Strategic Planning, Finance, Mergers & Acquisitions, and Supply & Trading.

In a separate appointment, Ryder Booth has been named vice president of Chevron North America Exploration & Production Company, leading the Mid-Continent Business Unit and succeeding Gustavson. Booth, currently vice president, Capital Projects, will be responsible for a large resource base of oil and liquids-rich assets in the mid-continent United States, including the company’s Permian assets in Texas and New Mexico. His appointment is effective 2 August 2021.

Back in March 2021, Chevron reaffirmed its lower budget plans, doubled its savings estimate from the takeover of Noble Energy, and set new goals for reducing carbon emissions with expectations to invest about $3 billion in the coming years to further its energy transition efforts.