2023-07-24 12:57:55 ET
Chevron ( NYSE: CVX ) is considering opportunities to produce lithium that would be used in electric vehicle batteries, CEO Mike Wirth said Monday in a CNBC interview .
Extracting lithium fits with the "core capabilities" of a company like Chevron ( CVX ) that has deep experience producing oil and gas, Wirth said, without providing details of specific plans.
Wirth said he wants to have a lower carbon energy system for the world and is investing in carbon capture and renewable fuels, but Chevron ( CVX ) intends to grow oil and gas business while making these investments.
"80% of the energy system today globally are fossil fuels... 20 years ago, that number was about 84%. You can't move this number quickly, so we need to reinvest in the energy the world uses today," Wirth said.
After Chevron ( CVX ) reported its Permian Basin production set a quarterly record in Q2, rising 11% Y/Y to 772K boe/day, Wirth said Permian oil has not become too expensive, "it is the best place to be investing our dollars," and the company plans to grow production from the basin to more than 1M bbl/day and hold it flat until at least through 2040.
On the PDC Energy ( PDCE ) acquisition, Wirth said the move will add 10% to its Chevron's ( CVX ) worldwide reserve base at a cost of just 2% of the company's shares, adds $1B in free cash flow at $70/bbl Brent oil "and makes us a very strong producer in Colorado as well as Texas."
More on Chevron:
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- Analysis: Chevron: A Capital Return Record That Speaks For Itself
- Stock price return: Down 7.5% YTD, up 8% in the past 12 months
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Permian Basin is best place to invest, Chevron CEO says after record quarter