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Chevron Corporate Responsibility Report 2009

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Climate Change<br />

The first two stages of the Escravos Gas<br />

Project (EGP) in Nigeria — EGP-1 and<br />

EGP-2 — were completed in 1997 and 2000,<br />

respectively. EGP-2 raised the company’s<br />

gas processing inlet capacity from 165<br />

mmcf/d to 285 mmcf/d. EGP-3, a follow-up<br />

to EGP-1 and EGP-2, is expected to begin<br />

operation in 2010. EGP-3 will process up to<br />

an additional 395 mmcf/d, part of which<br />

will be used as feedstock for the Escravos<br />

Gas-to-Liquids Project.<br />

The Escravos Gas-to-Liquids Project will<br />

upgrade approximately 325 mmcf/d of<br />

gas into almost 33,200 barrels per day of<br />

high-quality diesel, naphtha, and liquefied<br />

petroleum gas. Construction began in 2006,<br />

and first production is forecasted for 2012.<br />

The West African Gas Pipeline, a 421-mile<br />

(678-km) high-pressure natural gas<br />

pipeline, constructed and operated by the<br />

West African Gas Pipeline Co., of which<br />

<strong>Chevron</strong> is the largest shareholder, has an<br />

initial capacity to transport 170 mmcf/d of<br />

natural gas from Nigeria’s Niger Delta to<br />

Ghana, Togo and Benin. The West African<br />

Gas Pipeline transports gas that would<br />

have been flared to now fill energy supply<br />

gaps in western Africa. This will help<br />

us reduce emissions because it allows<br />

access to markets and provides the ability<br />

to deliver gas to end users. The pipeline<br />

began transporting gas in 2008 and will be<br />

complete in 2010.<br />

Manufacturing Our eight <strong>Chevron</strong>operated<br />

refineries created a formal<br />

network in <strong>2009</strong> to share best practices in<br />

flare reduction. The refineries are working<br />

to reduce flaring through flare gas<br />

recovery, source control, and maintenance<br />

practices and procedures, and they have<br />

shared their successes for several years.<br />

<strong>Chevron</strong>’s Pembroke, United Kingdom,<br />

refinery started using a sulfur oxide<br />

reduction catalyst in the cracking process<br />

after U.S.-based refineries found that the<br />

catalyst successfully reduced sulfur oxide.<br />

Other flare reduction techniques were<br />

found to improve energy efficiency and<br />

produce cost savings.<br />

Reducing Emissions —<br />

Carbon Dioxide Injection<br />

<strong>Chevron</strong> has several major natural gas<br />

investments off the western coast of<br />

Australia, including the Gorgon Project,<br />

which will include the world’s largest<br />

commercial-scale GHG storage site. The<br />

Gorgon Project will position Australia as a<br />

leader in the application of GHG storage,<br />

with up to approximately 3.4 million metric<br />

tons a year of CO 2 being injected and<br />

stored underground. Over the life of the<br />

project, it is anticipated that approximately<br />

120 million metric tons of GHG emissions<br />

will have been avoided because of the<br />

Gorgon CO 2 -injection project.<br />

The proposed injection location will be<br />

on the northeast coast of Barrow Island<br />

near the gas processing plant. This site<br />

was selected to maximize the migration<br />

distance from major geologic faults and to<br />

limit environmental impacts. The injection<br />

wells will be directionally drilled from<br />

discrete surface locations to minimize the<br />

area of land required for the well sites,<br />

surface facilities, pipelines and access<br />

roads. Extensive monitoring, including<br />

well- pressure measurement and seismic<br />

surveys, will provide information required<br />

to update the reservoir models and predict<br />

the behavior of the injected CO 2 . The<br />

Gorgon Project is the first project to be<br />

regulated under legislation dedicated to<br />

GHG storage and is the world’s first largescale<br />

storage project to have been subjected<br />

to an exhaustive, publicly available<br />

environmental impact assessment. Project<br />

construction has begun, and injection<br />

operations are anticipated to begin in 2014.<br />

<strong>Chevron</strong> and its partners are committed to<br />

sharing data from the project to aid in the<br />

Office Facility Fitness<br />

Six Principles of Sustainability<br />

More than 100 <strong>Chevron</strong> office facilities are managed by the <strong>Chevron</strong> Business<br />

and Real Estate Services team, which is guided by its Six Principles of Sustainability.<br />

To learn more, please see the video at <strong>Chevron</strong>.com/<strong>Chevron</strong>Efficiency.<br />

1<br />

2<br />

3<br />

4<br />

5<br />

6<br />

Improve<br />

Energy<br />

Efficiency<br />

Optimize<br />

Water<br />

Consumption<br />

Manage and<br />

Reduce Material<br />

Flows<br />

Manage and Improve<br />

Indoor Environmental<br />

Quality<br />

Involve<br />

Tenants in<br />

Sustainability<br />

Continually Improve<br />

Our Sustainability<br />

Program<br />

We improve our facilities’<br />

efficiency with the<br />

implementation of<br />

technology and operating<br />

procedures. Using the<br />

ENERGY STAR ® program<br />

of the U.S. Environmental<br />

Protection Agency, our<br />

goal is to achieve topquartile<br />

energy efficiency<br />

within five years.<br />

In addition to tracking<br />

our water use, we install<br />

water-saving fittings<br />

and fixtures. We also<br />

have a project to use<br />

local recycled water<br />

for cooling towers and<br />

for a large landscapeirrigation<br />

system at our<br />

headquarters in San<br />

Ramon, California.<br />

Our projects increasingly<br />

incorporate materials<br />

made from recycled<br />

or renewable content.<br />

We reuse our modular<br />

work spaces and furnishings.<br />

We implemented<br />

recycling programs<br />

at various office sites<br />

worldwide to divert our<br />

landfill-bound waste.<br />

Through guidance provided<br />

by the U.S. Green<br />

Building Council’s LEED<br />

program, we are identifying<br />

ways to improve<br />

our operations. Making<br />

use of natural light is<br />

one practice used at<br />

many of our sites.<br />

We partner with<br />

<strong>Chevron</strong> employees<br />

to promote conservation.<br />

Ride-sharing and<br />

Lug-a-Mug programs<br />

(to use nondisposable<br />

cups) are examples of<br />

how employees contribute<br />

to our success.<br />

We continue to<br />

identify efficiencies,<br />

learn from best practices<br />

and implement<br />

improvements.<br />

10

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