Addressing the South East Asia Australia Offshore and Onshore Conference, Chevron operations director Danny Woodall spoke of the role of natural gas in the energy transition.
Chevron currently operates the Gorgon and Wheatstone Natural Gas Projects in WA’s Pilbara region.
“Today, these world class assets are providing the reliable and affordable energy supply the world needs,” Woodall said.
“Over the coming months, the projects are forecast to achieve another milestone, delivering more than 2600 LNG cargoes since exports began in 2016.
“That’s natural gas for Western Australia, supporting the state’s economy and providing energy security, as well as for the country’s closest trading neighbours.”
Despite this success, Woodall said that the gas industry can often be taken for granted or dismissed.
“Mostly [this is the case] because we have been successful in developing our projects and providing reliable energy to the country and region, but haven’t been so good at articulating the benefits that our sector brings,” he said.
“To achieve our climate and energy goals and create a future of energy that works for all of us we must acknowledge and balance the three elements of the energy equation: economic prosperity, energy security and environmental protection.”
Woodall praised the Australian Government’s Future Gas Strategy, which cements the role of gas in the energy transition through to 2050 and beyond.
“The need for policy that encourages investment in developing Australia’s gas resources is clear. And the risks of policy that stifles investment are even clearer,” Woodall said.
“We’re holding up our end of the bargain. We’re making plans to invest in new gas supply.
“We’re working to produce that gas with lower emissions – in fact, last month we achieved 10 million tonnes of carbon dioxide injected at the Gorgon Carbon Capture and Storage system.
“And we’re continuing to invest in system optimisations that will increase our carbon dioxide injection rates over time.”
As Australian Energy Producers recently shared, the percentage of gas in Australia’s energy mix is higher today than any time in history at 27 per cent.
“Between 2012 and 2022, natural gas and renewables both increased their contribution to Australia’s primary energy consumption by exactly the same amount – 220 petajoules per year,” Woodall said.
“Over this same period, it’s no coincidence that Australia’s greenhouse gas emissions decreased by around 20 per cent.”
Woodall also highlighted the economic benefits of the company’s operations.
“In the last two years alone, Chevron’s income tax contributions have exceeded $7.7 billion, helping the Australian Government pay for things that matter, like healthcare, cost of living relief, among other things.
“We now look forward to government playing its part…not just by providing the policy and regulatory certainty we need to invest with confidence… but by having that balanced, pragmatic conversation about energy I spoke of a moment ago.
“Because addressing the complex energy issues that we face today can’t be done by one country, one company, or one industry alone. These challenges require partnerships with all stakeholders.”
Quotes have been taken from a longer speech and edited for brevity.
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