Having unseated Exxon Mobil Corp. as the largest oil corporation in North America, Chevron Corp. has announced that it intends to fulfill a simple promise to investors: provide them with higher returns and lower carbon.
According to Chief Executive Officer Mike Wirth, Chevron has excelled in one area where many of its competitors have struggled, namely providing consistently higher returns while ensuring that its priorities remain the same. As he explained to Bloomberg News, “For us, it’s been a pretty simple promise of higher returns, lower carbon and you can count on us.”
Unlike many of its competitors, Chevron prefers not to create long-term commitments which it is uncertain to complete. While Chevron is committed to limiting its carbon emission in order to reduce methane leaks in return, Wirth confirmed that the company prefers to “favor action over pledges.”
While this year has been tough for most companies, Chevron stocks have significantly outperformed those of its competitors. While Chevron’s shares are down 24% this year, the company has managed to limit its expenditure while at the same time enjoying a major stock rally this month.
Chevron has dedicated $300 million to its energy transition investments in 2021, which is 2% of its $14 billion budget next year.
