Chemical Energy: Chevron’s Domestic Investment Strategy

In the ongoing global race to harness AI and address surging energy needs, Chevron’s CEO, Mike Worth, is focusing heavily on U.S. resources. The company is channeling more funding into domestic energy sources than ever, emphasizing both new technology and fossil fuels, which currently account for about 80% of the economy.

This marks a significant shift—Chevron is now investing approximately double the $10 billion overseas in the U.S., a first in decades and in Worth’s extensive 43-year career with the company.

“We are fortunate to have abundant natural resources in this country,” he noted.

After finalizing a substantial $53 billion acquisition of Hess Corporation, based in New York, expansion efforts are set to ramp up even further. Worth humorously added that Hess’s iconic toy truck would still be part of the company.

Over the past year, Chevron has broadened its presence in the American Gulf and the Permian Basin, as well as enhancing its renewable diesel production capacity. Notably, one of the largest green hydrogen storage facilities in Utah is also expected to launch later this year.

However, exploiting the vast resources available in the U.S. is more complex than it might seem.

“Building things is much easier in China than it is here,” he remarked.

The unpredictable regulatory landscape in the U.S. complicates long-term investment plans.

“The review process can be quite laborious…it’s been tangled in judicial reviews for years,” he explained. “In a nation like this, known for its industrial strength, it can feel like a challenge to get things built.”

At 64, Worth doesn’t see himself as the CEO of a major global corporation. He reminisces about memorable lines from “The White Lotus” and is also in on the lighter side of Netflix series like “The Hunting Wives.” (He recently relocated to Houston from California—no, it’s not like that show, he assures.)

He displays a deep passion for what Chevron considers “eliminating energy poverty.”

The self-described former hippie, who grew up in Colorado, acknowledges the pushback against fossil fuels but has arrived at a different perspective.

“Reliable and affordable energy directly impacts the quality of life on this planet,” he stated.

Though he expresses some skepticism about the potential for cleaner energy sources to transform the industry, he recognizes that population growth and demand for AI are pressing realities. He stands by the idea that fossil fuels are fundamentally linked to prosperity, a point he continues to defend despite criticism.

“Eighty percent of global energy today relies on fossil fuels, and it’s crucial to keep operations running,” he explained. “The mix of energy sources may shift, but with a growing population, demand will remain high… Looking back, 20 years ago, fossil fuels made up 84% of our energy mix. If we rewind another decade, I suspect we’d still see numbers in the 70s.”

AI’s consumption of energy plays a pivotal role in Chevron’s new initiatives, including a partnership with Ge Vernova and Engine No. 1 to develop off-grid natural gas generators for data centers. This project aims to enhance data center capabilities without raising consumer electricity prices, a common issue for many facilities across the nation.

The company is exploring a variety of new energy technologies, including carbon capture, clean hydrogen, geothermal energy, and lithium extraction.

Worth acknowledges that although many of these ventures will take over a decade to bear fruit, they could still be commercially viable. Yet, he admits, they won’t serve as a major part of the current energy landscape.

“We’ve never seen a decline in energy demand,” he stated. “We’ve simply added categories such as coal, oil, gas, hydroelectric, nuclear, wind, and solar to meet increasing needs.”

While he concedes that fossil fuels negatively impact the environment, he believes that energy accessibility remains paramount.

“Economic growth enables people to prioritize environmental care,” he noted. “However, when basic needs like food, health, and education take precedence, it becomes difficult for individuals to invest in environmental issues.”

In developing nations like India and China, energy access is crucial for lifting individuals out of poverty.

“Equality in energy is foundational to true equality,” Worth emphasized. “A thriving energy sector is essential for all forms of prosperity.”