1 00:00:02,800 --> 00:00:05,800 Speaker 1: About forty years ago, a young college graduate, Mike Worth, 2 00:00:06,080 --> 00:00:08,959 Speaker 1: joined Chevron then and now one of the largest energy 3 00:00:08,960 --> 00:00:11,799 Speaker 1: companies in the world. Today, Mike Worth is the CEO 4 00:00:11,880 --> 00:00:14,880 Speaker 1: of Chevron and dealing with the multiple issues that energy 5 00:00:14,880 --> 00:00:18,479 Speaker 1: companies have to deal with today, including renewable energy. I 6 00:00:18,520 --> 00:00:20,560 Speaker 1: sat down with Mike Worth to talk about what it's 7 00:00:20,600 --> 00:00:23,960 Speaker 1: like to run Chevron today in the current environment. So 8 00:00:24,079 --> 00:00:26,840 Speaker 1: tell me about the state of the oil world right now. 9 00:00:27,320 --> 00:00:30,200 Speaker 1: It seems as if the large oil companies or energy 10 00:00:30,240 --> 00:00:33,199 Speaker 1: carbon energy companies are doing quite well. They have record profits, 11 00:00:33,240 --> 00:00:36,320 Speaker 1: record revenues, and as a result of that, some people 12 00:00:36,760 --> 00:00:39,320 Speaker 1: in the White House and other places have suggested a 13 00:00:39,360 --> 00:00:42,920 Speaker 1: windfall profits tax. So is the industry in such great 14 00:00:42,920 --> 00:00:45,920 Speaker 1: shape that it can afford a windfall profits tax. Well, 15 00:00:46,000 --> 00:00:49,760 Speaker 1: it's a cyclical industry, David. We see prices go up, 16 00:00:49,800 --> 00:00:53,479 Speaker 1: we see prices go down. A windfall profits tax is 17 00:00:53,800 --> 00:00:56,800 Speaker 1: u is not going to encourage more supply. It's not 18 00:00:56,960 --> 00:00:59,440 Speaker 1: likely to reduce prices. In fact, it could do quite 19 00:00:59,440 --> 00:01:05,000 Speaker 1: the opposite. President Carter try to windfall profits tax in Uh. 20 00:01:05,040 --> 00:01:07,920 Speaker 1: It was rescinded several years later, had collected a lot 21 00:01:08,000 --> 00:01:12,280 Speaker 1: less revenue than was expected and didn't result in more investments. 22 00:01:12,440 --> 00:01:15,440 Speaker 1: It results in the less investment and less productions. So normally, 23 00:01:15,920 --> 00:01:17,560 Speaker 1: if you want less of something, you tend to put 24 00:01:17,600 --> 00:01:21,319 Speaker 1: more taxes on it, you know, ut less smoking tax cigarettes. Uh. 25 00:01:21,360 --> 00:01:24,720 Speaker 1: If we want more energy production, will more supply to 26 00:01:24,760 --> 00:01:29,360 Speaker 1: bring prices down, putting taxes on energy productions probably not 27 00:01:29,400 --> 00:01:31,399 Speaker 1: a good idea. In your current job, do you have 28 00:01:31,440 --> 00:01:34,240 Speaker 1: to go to Washington to talk to regulators and legislators 29 00:01:34,280 --> 00:01:36,720 Speaker 1: and do you find that an uplifting experience to do that, 30 00:01:37,319 --> 00:01:40,280 Speaker 1: I do have to go to Washington. UM uplifting is 31 00:01:40,280 --> 00:01:42,240 Speaker 1: probably not the first word that comes to mind. I mean, 32 00:01:42,280 --> 00:01:45,679 Speaker 1: their their detailed discussions and uh, and we need to 33 00:01:45,720 --> 00:01:49,600 Speaker 1: help regulators understand the potential consequences of some of the 34 00:01:49,600 --> 00:01:53,280 Speaker 1: things they consider. So would you say that Washington by 35 00:01:53,320 --> 00:01:55,960 Speaker 1: and large doesn't really understand the economics of the energy 36 00:01:56,000 --> 00:01:58,240 Speaker 1: industry or they could learn a little bit more than 37 00:01:58,240 --> 00:02:01,560 Speaker 1: they know now. Well. I have empathy for people that 38 00:02:01,640 --> 00:02:06,600 Speaker 1: sit in these roles. They have often broad responsibilities and 39 00:02:06,640 --> 00:02:10,520 Speaker 1: they may not have UM personal expertise in depth in 40 00:02:10,600 --> 00:02:12,280 Speaker 1: some of the areas that are responsible for So I 41 00:02:12,400 --> 00:02:14,440 Speaker 1: view my job is to come in and try to 42 00:02:14,480 --> 00:02:18,320 Speaker 1: provide objective input and help them understand the consequences of 43 00:02:18,400 --> 00:02:22,600 Speaker 1: things they're considering, to avoid unintended consequences, and help achieve 44 00:02:22,600 --> 00:02:25,080 Speaker 1: the goals that they're looking to achieve. So when the 45 00:02:25,120 --> 00:02:29,400 Speaker 1: President United States says energy companies are gouging American people, 46 00:02:30,280 --> 00:02:31,920 Speaker 1: you get to be used to this when you're an 47 00:02:32,000 --> 00:02:35,840 Speaker 1: energy executive. More or less. I assume, uh, you know, 48 00:02:35,919 --> 00:02:38,640 Speaker 1: I don't like it, but you probably are accepting. And 49 00:02:38,680 --> 00:02:44,399 Speaker 1: I disagree with that characterization. I don't think it's accurate. Um, 50 00:02:44,440 --> 00:02:46,680 Speaker 1: this is a you know, we're an industry at price takers, 51 00:02:46,840 --> 00:02:50,680 Speaker 1: not price makers. These are global commodity markets, and um, 52 00:02:50,760 --> 00:02:55,440 Speaker 1: and prices go up, prices come down. We allocate billions 53 00:02:55,440 --> 00:02:58,680 Speaker 1: of dollars of capital our company does every year. Just 54 00:02:58,720 --> 00:03:01,799 Speaker 1: two years ago, we were losing billions of dollars as 55 00:03:01,840 --> 00:03:05,640 Speaker 1: prices plummeted. Uh. And so through the cycle. It's an 56 00:03:05,680 --> 00:03:12,040 Speaker 1: industry that generates kind of returns on capital employed, which 57 00:03:12,120 --> 00:03:15,120 Speaker 1: is I think, by the standards of many other industries, 58 00:03:15,760 --> 00:03:20,120 Speaker 1: pretty modest return. The war in Ukraine has driven oil 59 00:03:20,160 --> 00:03:22,400 Speaker 1: prices up. I think it's fair to say, Um, do 60 00:03:22,480 --> 00:03:25,280 Speaker 1: you think that that is a principal reason why the 61 00:03:25,520 --> 00:03:28,120 Speaker 1: major energy companies are going quite well because the supply 62 00:03:28,240 --> 00:03:31,880 Speaker 1: has been reduced because of the war in Ukraine. And 63 00:03:31,919 --> 00:03:33,920 Speaker 1: do you think that when that war does, and eventually 64 00:03:33,919 --> 00:03:36,360 Speaker 1: it will, I assume, uh, you know, have an impact 65 00:03:36,400 --> 00:03:40,880 Speaker 1: on reducing energy prices in carbon areas well. The war 66 00:03:40,920 --> 00:03:44,600 Speaker 1: and the associated actions have definitely had an impact on 67 00:03:44,760 --> 00:03:48,160 Speaker 1: energy markets. But if you step back and look at 68 00:03:48,200 --> 00:03:53,160 Speaker 1: the broader context, we saw demand collapse with the pandemic 69 00:03:53,200 --> 00:03:57,040 Speaker 1: when the world really locked down. In fact, companies in 70 00:03:57,040 --> 00:04:00,360 Speaker 1: our industry had to shut in wells and stop producing 71 00:04:00,400 --> 00:04:02,520 Speaker 1: because there was no place to store the oil that 72 00:04:02,640 --> 00:04:06,760 Speaker 1: wasn't needed by the market. So investment levels came down. 73 00:04:07,160 --> 00:04:09,080 Speaker 1: And then as the and nobody knew how long this 74 00:04:09,120 --> 00:04:12,320 Speaker 1: would last. Is the economy recovered post the pandemic, we 75 00:04:12,360 --> 00:04:18,039 Speaker 1: get vaccines, demand returned um, the industry has been struggling 76 00:04:18,040 --> 00:04:20,240 Speaker 1: to keep up with the rate of growth once again, 77 00:04:20,640 --> 00:04:22,640 Speaker 1: and so the market was already in a in a 78 00:04:22,680 --> 00:04:27,440 Speaker 1: pretty tight situation before this war began. I do think, uh, 79 00:04:27,480 --> 00:04:31,760 Speaker 1: when eventually it's resolved and all conflicts eventually are resolved, 80 00:04:32,080 --> 00:04:35,520 Speaker 1: I think that uncertainty and the risk to supply from 81 00:04:35,680 --> 00:04:38,919 Speaker 1: one of the world's largest suppliers will be reduced, and 82 00:04:38,960 --> 00:04:41,839 Speaker 1: I think we'll see markets reflect that a number of 83 00:04:41,880 --> 00:04:44,279 Speaker 1: years ago, oil prices went as low as I think 84 00:04:44,279 --> 00:04:48,119 Speaker 1: twenty a barrel. And when it was that low, major 85 00:04:48,160 --> 00:04:51,080 Speaker 1: oil companies like I think Chevron and others said we 86 00:04:51,120 --> 00:04:55,240 Speaker 1: can't afford to drill anymore in either let's say that Alaska, 87 00:04:55,279 --> 00:04:57,840 Speaker 1: the North Sea, other places, because we need to have 88 00:04:57,920 --> 00:05:01,400 Speaker 1: oil at seventy dollars a barrel to make drilling affordable 89 00:05:01,440 --> 00:05:04,679 Speaker 1: and profitable. Has that come back now that oil prices 90 00:05:04,680 --> 00:05:07,880 Speaker 1: are offer people now drilling in major projects around the world, 91 00:05:07,920 --> 00:05:09,840 Speaker 1: they kind of get oil that's gonna take four or 92 00:05:09,880 --> 00:05:12,440 Speaker 1: five or ten years to build and and drill. Or 93 00:05:12,600 --> 00:05:15,120 Speaker 1: is that not happening again? We're seeing some of that 94 00:05:15,200 --> 00:05:19,880 Speaker 1: happen again. Certainly. What has really changed in the last decade, David, 95 00:05:20,160 --> 00:05:22,320 Speaker 1: is the what we see in the US and the 96 00:05:22,360 --> 00:05:25,120 Speaker 1: Permian Basin, but also in some other parts of this 97 00:05:25,200 --> 00:05:28,839 Speaker 1: country and in other countries now is uh the ability 98 00:05:28,880 --> 00:05:33,320 Speaker 1: to produce oil and gas from rock that is very 99 00:05:33,400 --> 00:05:37,880 Speaker 1: very dense, very hard, and historically has not been very productive. 100 00:05:38,000 --> 00:05:41,080 Speaker 1: But with directional drilling and the ability to to fracture 101 00:05:41,160 --> 00:05:44,720 Speaker 1: these formations, now we're seeing the ability to produce from 102 00:05:44,800 --> 00:05:48,360 Speaker 1: areas that we couldn't before edit prices that are are 103 00:05:48,400 --> 00:05:51,800 Speaker 1: lower than some of these very complex, difficult projects, and 104 00:05:51,880 --> 00:05:55,799 Speaker 1: so the need for the ultra deep water the Arctic 105 00:05:56,760 --> 00:05:59,760 Speaker 1: has been reduced as we see these other resources come 106 00:05:59,800 --> 00:06:02,440 Speaker 1: in at at a lower cost. So how many employees 107 00:06:02,480 --> 00:06:06,159 Speaker 1: does Chevron have? About thirty six in about a hundred 108 00:06:06,160 --> 00:06:09,039 Speaker 1: different countries. And how much oil do you produce a day? 109 00:06:10,160 --> 00:06:12,880 Speaker 1: A little bit over three million barrels of oil equivalent 110 00:06:13,000 --> 00:06:16,520 Speaker 1: per day, so mostly oil, some gas, and we convert 111 00:06:16,560 --> 00:06:18,800 Speaker 1: the units on the gas to give you the energy equivalents. 112 00:06:18,800 --> 00:06:22,000 Speaker 1: About three million barrels. The United States produces ten million 113 00:06:22,000 --> 00:06:25,440 Speaker 1: barrels a day or something like that, closer to twelve. Well, okay, 114 00:06:25,480 --> 00:06:29,400 Speaker 1: so you're producing about of the oil producing in the 115 00:06:29,440 --> 00:06:31,479 Speaker 1: United States more or less. As a company, you could 116 00:06:31,560 --> 00:06:35,039 Speaker 1: say that our US production is about one point two 117 00:06:35,080 --> 00:06:38,040 Speaker 1: million barrels a day, so we're less than ten percent 118 00:06:38,160 --> 00:06:41,960 Speaker 1: of US production. So right now the United States is 119 00:06:42,040 --> 00:06:44,599 Speaker 1: more or less energy sufficient compared to let's say the 120 00:06:44,640 --> 00:06:47,080 Speaker 1: nineteen sixties or seventies, when we import a lot of 121 00:06:47,080 --> 00:06:50,840 Speaker 1: oil I think we produce we probably consume ten to 122 00:06:51,160 --> 00:06:54,680 Speaker 1: twelve million barrels a day closer to wen. We consume 123 00:06:54,760 --> 00:06:57,600 Speaker 1: twenty million barllars a day and we produced roughly you're 124 00:06:57,600 --> 00:07:00,839 Speaker 1: saying twelve. So we're importing the equip about eight million 125 00:07:00,839 --> 00:07:03,000 Speaker 1: barrels a day, which is better than it used to be. 126 00:07:03,560 --> 00:07:05,800 Speaker 1: Where are we mostly importing that from? Is it from 127 00:07:05,880 --> 00:07:11,520 Speaker 1: OPEC countries? Canada, our neighbors are the are the largest, uh, 128 00:07:11,560 --> 00:07:13,560 Speaker 1: you know, suppliers of oil. I mean you know you 129 00:07:13,680 --> 00:07:16,280 Speaker 1: heard all remember all the countries around the Keystone Pipeline. 130 00:07:16,280 --> 00:07:20,400 Speaker 1: We're a big customer of Canada, who's a large resource 131 00:07:20,440 --> 00:07:22,840 Speaker 1: country right now. To get that oil down here. There 132 00:07:22,840 --> 00:07:26,400 Speaker 1: are other pipelines that have been built in years gone by, 133 00:07:26,440 --> 00:07:29,040 Speaker 1: and sometimes it flows by rail, uh, and so it 134 00:07:29,080 --> 00:07:31,920 Speaker 1: comes by ship. You can bring it down through pipelines 135 00:07:31,960 --> 00:07:34,200 Speaker 1: into ports along the West Coast, for instance, or into 136 00:07:34,240 --> 00:07:37,520 Speaker 1: the Atlantic based and bring it by ship. So Canada 137 00:07:37,600 --> 00:07:40,240 Speaker 1: is the largest supplier, and then other people in the region. 138 00:07:40,480 --> 00:07:43,160 Speaker 1: And we we still bring some oil to this country 139 00:07:43,160 --> 00:07:44,840 Speaker 1: from the Middle East, but much less than we did 140 00:07:44,840 --> 00:07:47,600 Speaker 1: back now. So I think there's much oil to be 141 00:07:47,680 --> 00:07:50,080 Speaker 1: found in the Lower forty eight at this point, or 142 00:07:50,080 --> 00:07:53,040 Speaker 1: even and let's say Alaska as well, or mostly we 143 00:07:53,120 --> 00:07:55,920 Speaker 1: know where all the oil is and there's no more 144 00:07:56,440 --> 00:08:00,400 Speaker 1: big permian basin kind of deposits anywhere. People said that 145 00:08:00,520 --> 00:08:04,400 Speaker 1: over time, and then we've always been surprised, and so 146 00:08:04,680 --> 00:08:06,880 Speaker 1: the US has been explored more than any other other 147 00:08:06,920 --> 00:08:09,000 Speaker 1: place in the world. I think the industry has a 148 00:08:09,040 --> 00:08:13,240 Speaker 1: good idea, but technology allows you sometimes to recover things 149 00:08:13,280 --> 00:08:15,480 Speaker 1: that you haven't been able to before. That's the story 150 00:08:15,520 --> 00:08:18,360 Speaker 1: of shale. Uh. The other one that continues to be 151 00:08:18,400 --> 00:08:21,520 Speaker 1: a positive story is deep water Gulf of Mexico, where 152 00:08:21,880 --> 00:08:24,760 Speaker 1: we'll go out and drill in a mile or more 153 00:08:24,880 --> 00:08:27,520 Speaker 1: of water depth and then go down several more miles 154 00:08:27,560 --> 00:08:31,120 Speaker 1: six seven, eight miles into the earth and UH and 155 00:08:31,160 --> 00:08:34,680 Speaker 1: find a large large fields. And the Gulf of Mexico 156 00:08:34,760 --> 00:08:37,920 Speaker 1: is still relatively under explored compared to the onshore, so 157 00:08:38,200 --> 00:08:40,680 Speaker 1: I think there's still room for for more discoveries. Let's 158 00:08:40,679 --> 00:08:43,320 Speaker 1: talk about Chevron itself. What are the roots of chevern? 159 00:08:43,320 --> 00:08:46,160 Speaker 1: When was Chevron created? One that is started founded in 160 00:08:46,280 --> 00:08:50,679 Speaker 1: eighteen seventy nine in southern California, began as a company 161 00:08:50,720 --> 00:08:55,320 Speaker 1: called Pacific Coast Oil Company, made the first commercial discovering 162 00:08:55,360 --> 00:08:59,680 Speaker 1: California in Pico Canyon in southern California. Became part of 163 00:08:59,720 --> 00:09:03,920 Speaker 1: the Rockefeller Standard Oil Trust UH in the latter part 164 00:09:03,960 --> 00:09:06,840 Speaker 1: of the eighteen hundreds and then became Standard d of 165 00:09:06,880 --> 00:09:10,319 Speaker 1: California when the Standard Oil Trust was broken up. Our 166 00:09:10,400 --> 00:09:13,600 Speaker 1: headquarters at home has always been in California. We've been 167 00:09:13,600 --> 00:09:15,960 Speaker 1: around for a hundred and forty three years and really 168 00:09:16,000 --> 00:09:19,040 Speaker 1: a part of the world's history. Made the first discovery 169 00:09:19,040 --> 00:09:21,640 Speaker 1: in the Middle East, first discovery of oil in Saudi Arabia, 170 00:09:22,240 --> 00:09:27,360 Speaker 1: among other milestones, and a long history of the world 171 00:09:27,480 --> 00:09:29,840 Speaker 1: really reflected in our company. So if I go to 172 00:09:29,840 --> 00:09:32,560 Speaker 1: a gasoline station and want to get gasoline from my car, 173 00:09:33,240 --> 00:09:36,040 Speaker 1: is there really a difference between the oil that Chevron 174 00:09:36,120 --> 00:09:38,840 Speaker 1: might be produced amazing the gasoline and one of your 175 00:09:38,840 --> 00:09:41,000 Speaker 1: competitors that that gasoline is pretty much all the same. 176 00:09:41,679 --> 00:09:45,040 Speaker 1: There are specifications, minimum standards that have to be met 177 00:09:45,120 --> 00:09:47,800 Speaker 1: for for the products UH, and then what you find 178 00:09:48,080 --> 00:09:51,360 Speaker 1: is that different companies UM either exceed those by more 179 00:09:51,480 --> 00:09:55,440 Speaker 1: or less than others. And also we have special additives. 180 00:09:55,480 --> 00:09:59,080 Speaker 1: So we have a wholly owned additive company that manufactures 181 00:09:59,080 --> 00:10:01,200 Speaker 1: an additive called tech Run that has a very special 182 00:10:01,320 --> 00:10:04,440 Speaker 1: chemistry to keep engine parts clean. And as engines get 183 00:10:04,440 --> 00:10:07,720 Speaker 1: more sophisticated, as the tolerances. Get thinner, you're gonna have 184 00:10:07,720 --> 00:10:11,679 Speaker 1: carbon deposits that can affect performance in your cylinders. Your 185 00:10:11,679 --> 00:10:15,720 Speaker 1: injectors tech run cleans that up better. If you're driving 186 00:10:15,720 --> 00:10:18,840 Speaker 1: along and you need gas, will you stop at an 187 00:10:18,840 --> 00:10:21,160 Speaker 1: Exxon station? Or you've got to keep going till you 188 00:10:21,200 --> 00:10:23,400 Speaker 1: can see a Chevron station. Keep going until I see 189 00:10:23,400 --> 00:10:26,319 Speaker 1: a Chevron station. Okay, let's talk about your own background. 190 00:10:26,400 --> 00:10:29,400 Speaker 1: So how does one become the CEO of Chevron? Tell us? 191 00:10:29,520 --> 00:10:32,480 Speaker 1: Where were you born? I was born in Los Alamos, 192 00:10:32,559 --> 00:10:35,520 Speaker 1: New Mexico. My dad worked at the National Lab UH 193 00:10:35,559 --> 00:10:38,760 Speaker 1: and uh and I grew up in Colorado, Golden Colorado. 194 00:10:39,240 --> 00:10:42,120 Speaker 1: And you went to college where University of Colorado and 195 00:10:42,160 --> 00:10:44,880 Speaker 1: Boulder studied chemical engineering. And you said, I want to 196 00:10:44,920 --> 00:10:49,040 Speaker 1: work in the energy world. I at the time, you know, 197 00:10:49,120 --> 00:10:52,520 Speaker 1: chemical engineers could work in a number of different industries. 198 00:10:52,640 --> 00:10:54,760 Speaker 1: I had a summer internship where I worked in a 199 00:10:54,800 --> 00:10:57,599 Speaker 1: refinery in the Denver area. Found the work interesting, I 200 00:10:57,640 --> 00:11:01,640 Speaker 1: found the people interesting, and and had an offer to 201 00:11:01,720 --> 00:11:05,120 Speaker 1: come to the West Coast and work for Standard of California. 202 00:11:05,280 --> 00:11:08,320 Speaker 1: And it looked like a fun place to live in 203 00:11:08,400 --> 00:11:11,720 Speaker 1: a place where I could do interesting work. So basically, 204 00:11:11,760 --> 00:11:14,360 Speaker 1: this is the only employer since you're gradua from college 205 00:11:14,400 --> 00:11:17,080 Speaker 1: more or less for forty years, the only employer. So 206 00:11:17,200 --> 00:11:19,360 Speaker 1: when you're starting there forty years ago, did you say 207 00:11:19,400 --> 00:11:21,560 Speaker 1: I might be the CEO someday or did you not 208 00:11:21,720 --> 00:11:24,080 Speaker 1: think that was realistic? No? I just hoped I would 209 00:11:24,160 --> 00:11:26,440 Speaker 1: last to the next two weeks to get my next paycheck. 210 00:11:26,640 --> 00:11:28,520 Speaker 1: That would never give a game plan. So what did 211 00:11:28,559 --> 00:11:31,240 Speaker 1: you do? Did you move around the world over the 212 00:11:31,280 --> 00:11:33,960 Speaker 1: course of your forty years at Chevron? What did you 213 00:11:33,960 --> 00:11:36,240 Speaker 1: do to kind of rise up where you are an 214 00:11:36,280 --> 00:11:41,120 Speaker 1: operations person or an expiration person administrative person? Started out 215 00:11:41,120 --> 00:11:44,520 Speaker 1: as a design engineer and worked on big projects. So 216 00:11:44,720 --> 00:11:46,920 Speaker 1: UM an oil shale project, not the type that we 217 00:11:47,240 --> 00:11:49,160 Speaker 1: developed today, but the other kind of oil shale you 218 00:11:49,240 --> 00:11:53,040 Speaker 1: used to hear about. UM built a plant that you 219 00:11:53,040 --> 00:11:57,319 Speaker 1: can't find any trace of today. Worked on a facility 220 00:11:57,360 --> 00:12:01,320 Speaker 1: in California to help bring in oil from offshore, sold 221 00:12:01,400 --> 00:12:04,320 Speaker 1: for pennies on the dollar. Eventually, UM a project in 222 00:12:04,360 --> 00:12:08,120 Speaker 1: Africa that never happened because of civil war. So I 223 00:12:08,160 --> 00:12:13,880 Speaker 1: began by specializing in spectacularly unsuccessful projects. Uh, And at 224 00:12:13,920 --> 00:12:16,000 Speaker 1: some point I said, this doesn't look like a great 225 00:12:16,040 --> 00:12:19,480 Speaker 1: career path. And so I moved into our marketing business, 226 00:12:19,480 --> 00:12:24,080 Speaker 1: where I built gas stations and replaced underground tanks that 227 00:12:24,120 --> 00:12:26,240 Speaker 1: were made of steel with ones that were made of fiberglass. 228 00:12:26,360 --> 00:12:29,640 Speaker 1: They with the leak and um you and I remember 229 00:12:29,679 --> 00:12:32,240 Speaker 1: the old clickitty clackity wheels that would spin around on 230 00:12:32,240 --> 00:12:35,120 Speaker 1: a gasoline pump. I used to put in the first 231 00:12:35,160 --> 00:12:39,400 Speaker 1: electronic pumps back in the day. So these were smaller projects, 232 00:12:39,679 --> 00:12:41,200 Speaker 1: but I could see the beginning of the end. I 233 00:12:41,200 --> 00:12:43,920 Speaker 1: start to understand the commerce and how the business worked, 234 00:12:44,360 --> 00:12:46,960 Speaker 1: and from there are a variety of roles, primarily operating 235 00:12:47,040 --> 00:12:50,959 Speaker 1: roles across different businesses and around the world. When did 236 00:12:50,960 --> 00:12:55,040 Speaker 1: you become the CEO five years ago? Some people might 237 00:12:55,040 --> 00:12:57,920 Speaker 1: say that God looks favorably upon the CEO of energy 238 00:12:57,960 --> 00:13:00,440 Speaker 1: companies because he lets them live a long time. And 239 00:13:00,520 --> 00:13:03,240 Speaker 1: a number of your predecessors have lived quite a while, 240 00:13:03,280 --> 00:13:05,600 Speaker 1: and some of them you're living in your same area 241 00:13:05,679 --> 00:13:07,600 Speaker 1: that you're living out is they call you with advice 242 00:13:07,640 --> 00:13:10,960 Speaker 1: all the time. Actually, I'm really fortunate, David. The three 243 00:13:10,960 --> 00:13:14,439 Speaker 1: people have done my job immediately preceding me, each for 244 00:13:14,600 --> 00:13:17,960 Speaker 1: roughly a decade the nineteen nineties, the two thousands in 245 00:13:18,000 --> 00:13:22,200 Speaker 1: the in the teens. Uh live within a few miles 246 00:13:22,240 --> 00:13:25,000 Speaker 1: of where I live. I see them regularly, we have 247 00:13:25,120 --> 00:13:28,880 Speaker 1: lunch together. And um, that's a plus. Other words, Uh, 248 00:13:29,040 --> 00:13:31,080 Speaker 1: don't they tell you you're doing this wrong or doing 249 00:13:31,120 --> 00:13:33,360 Speaker 1: that wrong? That doesn't come up? Well, I get a 250 00:13:33,400 --> 00:13:35,880 Speaker 1: lot of good advice and and and um you asked 251 00:13:35,880 --> 00:13:38,000 Speaker 1: earlier about advice. These are people who have actually done 252 00:13:38,000 --> 00:13:40,600 Speaker 1: my job, so I really I'm interested in their advice. 253 00:13:40,640 --> 00:13:44,800 Speaker 1: They've lived through UH wars, the fall of the Soviet Union, 254 00:13:44,960 --> 00:13:49,800 Speaker 1: terrorist attacks, financial crises, they've seen oil markets go through gyration, 255 00:13:49,840 --> 00:13:53,720 Speaker 1: as they've dealt with geopolitical surprises, and so their advice 256 00:13:53,920 --> 00:13:56,400 Speaker 1: is really valuable. During COVID, the first first thing I 257 00:13:56,440 --> 00:13:58,560 Speaker 1: did was call each one of them and say, what 258 00:13:58,640 --> 00:14:00,880 Speaker 1: lessons did you learn during the I see as you faced. 259 00:14:01,280 --> 00:14:03,679 Speaker 1: How do you think I should handle things as we 260 00:14:03,760 --> 00:14:06,840 Speaker 1: have this pandemic unfolding. Uh. So we have a great 261 00:14:06,840 --> 00:14:09,600 Speaker 1: relationship and I see them regularly. So you're still, by 262 00:14:09,600 --> 00:14:12,520 Speaker 1: my standards, very young. And you've been the CEO for 263 00:14:12,600 --> 00:14:14,880 Speaker 1: five years, so you could do it for quite a 264 00:14:14,880 --> 00:14:16,840 Speaker 1: while and still be young. But do you have any 265 00:14:16,840 --> 00:14:19,120 Speaker 1: ambition to go into the federal government as a cabinet 266 00:14:19,160 --> 00:14:23,000 Speaker 1: officer or anything like that, and to do anything other 267 00:14:23,040 --> 00:14:25,760 Speaker 1: than the energy industry. Would you have any other career 268 00:14:25,800 --> 00:14:27,640 Speaker 1: ambitions or this is what you want to do? You know, 269 00:14:27,680 --> 00:14:29,200 Speaker 1: I love what I do, I love the company I 270 00:14:29,240 --> 00:14:31,520 Speaker 1: work for, the people that I work with, and um, 271 00:14:31,680 --> 00:14:34,400 Speaker 1: I don't have any ambition to do anything other than 272 00:14:34,440 --> 00:14:37,240 Speaker 1: a good job. So what do you do for relaxation? 273 00:14:38,360 --> 00:14:41,600 Speaker 1: Generally anything that involves family? Uh So? I have four children. 274 00:14:41,840 --> 00:14:45,160 Speaker 1: Uh they're very active in outdoor activities. My wife is 275 00:14:45,360 --> 00:14:49,480 Speaker 1: uh a good golfer, good skier. Uh So you'll find 276 00:14:49,520 --> 00:14:52,800 Speaker 1: me on a golf course, skiing, scuba diving, fly fishing 277 00:14:53,480 --> 00:14:55,440 Speaker 1: with family when I'm not at work. And any of 278 00:14:55,440 --> 00:14:58,960 Speaker 1: your children in the energy world. No, not even close. Okay, 279 00:14:59,040 --> 00:15:01,040 Speaker 1: So are you a good for this? Of you that? 280 00:15:01,400 --> 00:15:03,440 Speaker 1: If you have a low handicap, that's not good for 281 00:15:03,480 --> 00:15:05,440 Speaker 1: being a CEO because it means you're spending too much 282 00:15:05,440 --> 00:15:08,080 Speaker 1: time on the golf course. But I don't know what 283 00:15:08,200 --> 00:15:11,360 Speaker 1: that's fair or not. But are you a scratch handicap golfer? 284 00:15:11,440 --> 00:15:14,840 Speaker 1: Far from it. My wife is almost a scratch handicap golfer. 285 00:15:15,360 --> 00:15:19,560 Speaker 1: I caddy for her in in big tournaments. Actually, sometimes 286 00:15:19,560 --> 00:15:21,600 Speaker 1: will take a couple of vacation days and carry her 287 00:15:21,600 --> 00:15:24,000 Speaker 1: golf bag. So that tells you who the better golfer 288 00:15:24,040 --> 00:15:25,880 Speaker 1: is in my house. What are you most proud of 289 00:15:25,920 --> 00:15:28,520 Speaker 1: having achieved so far? Other than being the CEO? What 290 00:15:28,560 --> 00:15:31,120 Speaker 1: do you think is that your your record of accomplishment 291 00:15:31,200 --> 00:15:33,880 Speaker 1: so far that you're most proud of. Well, the last 292 00:15:33,960 --> 00:15:36,520 Speaker 1: five years have been an interesting five years for people 293 00:15:36,560 --> 00:15:39,640 Speaker 1: in just about any business and UM and so you know, 294 00:15:39,720 --> 00:15:41,880 Speaker 1: when the pandemic hit, we have people in ships, we 295 00:15:41,920 --> 00:15:45,400 Speaker 1: have people on offshore platforms with people around the world, UH, 296 00:15:45,400 --> 00:15:49,800 Speaker 1: in developed countries and in developing countries. UH. Navigating that, 297 00:15:50,280 --> 00:15:53,320 Speaker 1: keeping people safe, keeping our business running, keeping the world 298 00:15:53,360 --> 00:15:56,720 Speaker 1: supplied with energy has been no small task. It's been 299 00:15:56,880 --> 00:16:00,800 Speaker 1: the most challenging things I've I've ever confronted. And during 300 00:16:00,840 --> 00:16:03,320 Speaker 1: that same time, we've done a massive restructuring of our business. 301 00:16:03,360 --> 00:16:05,760 Speaker 1: We've made a couple of acquisitions and integrated them to 302 00:16:05,800 --> 00:16:08,680 Speaker 1: make the company stronger or better companies today we were 303 00:16:08,680 --> 00:16:10,960 Speaker 1: a few years ago. And I'm proud of the progress 304 00:16:11,000 --> 00:16:15,200 Speaker 1: that our people have made during this challenging, in tumultuous time. 305 00:16:15,240 --> 00:16:17,440 Speaker 1: But it's just a career path you would recommend to 306 00:16:17,480 --> 00:16:20,160 Speaker 1: young people. Let's say, young people are watching and they say, well, 307 00:16:20,200 --> 00:16:22,200 Speaker 1: maybe I should go into the energy world. Would you 308 00:16:22,240 --> 00:16:24,800 Speaker 1: recommend this to young people? There's never been a better 309 00:16:24,880 --> 00:16:27,480 Speaker 1: time to come into the energy world. We're faced with 310 00:16:27,520 --> 00:16:31,200 Speaker 1: this incredible challenge of meeting the demands of the world 311 00:16:31,240 --> 00:16:34,640 Speaker 1: today in building a lower carbon energy system for tomorrow. 312 00:16:34,680 --> 00:16:37,760 Speaker 1: The technology that's available to us, the innovation that's available 313 00:16:37,800 --> 00:16:39,920 Speaker 1: to us, is greater than it's ever been, and the 314 00:16:40,040 --> 00:16:42,960 Speaker 1: chance to make a difference is enormous. If I were 315 00:16:43,400 --> 00:16:46,880 Speaker 1: my younger self looking for a job, I would absolutely 316 00:16:46,960 --> 00:16:50,560 Speaker 1: come into this industry. Large carbon energy companies seem to 317 00:16:50,600 --> 00:16:53,360 Speaker 1: me have a difficulty. Are they producing large amounts of 318 00:16:53,360 --> 00:16:56,000 Speaker 1: carbon energy which people like to consume, or are they 319 00:16:56,040 --> 00:16:59,560 Speaker 1: supposed to transition to being renewable energy companies? And what 320 00:16:59,600 --> 00:17:02,480 Speaker 1: are you going? For example, they're transitioning yourself a bit 321 00:17:02,520 --> 00:17:06,760 Speaker 1: to be unrenewable company. Well, we're we're focused on leveraging 322 00:17:06,760 --> 00:17:10,600 Speaker 1: our strength to deliver lower carbon energy to a growing world. 323 00:17:11,240 --> 00:17:13,800 Speaker 1: And what that means is in the near term, we 324 00:17:13,840 --> 00:17:16,200 Speaker 1: can find ways and we are finding ways to reduce 325 00:17:16,320 --> 00:17:20,359 Speaker 1: the greenhouse gas impact of the energy the world uses today. 326 00:17:20,400 --> 00:17:23,800 Speaker 1: So we're reducing the emissions associated with oil and gas 327 00:17:24,400 --> 00:17:28,119 Speaker 1: that the world needs today, needs very very desperately. And 328 00:17:28,160 --> 00:17:31,440 Speaker 1: at the same time, we're building new lower car inherently 329 00:17:31,480 --> 00:17:36,639 Speaker 1: lower carbon energy businesses for tomorrow. So things like renewable fuels, hydrogen, 330 00:17:37,119 --> 00:17:40,840 Speaker 1: carbon capturing storage, geothermal are all technologies were investing in, 331 00:17:41,280 --> 00:17:44,399 Speaker 1: businesses were growing that will play a bigger role tomorrow, 332 00:17:44,400 --> 00:17:46,640 Speaker 1: and we're gonna need many solutions. There is no one 333 00:17:46,760 --> 00:17:49,520 Speaker 1: there is no one solution for this. So in two 334 00:17:49,600 --> 00:17:53,119 Speaker 1: thousand twenty two, you bought a renewable energy company for 335 00:17:53,359 --> 00:17:55,920 Speaker 1: roughly I think three billion dollars. What was that about. 336 00:17:55,960 --> 00:17:58,120 Speaker 1: Why did you want to do that? Well, we had 337 00:17:58,119 --> 00:18:02,200 Speaker 1: a we had a renewal renewable fuels business ourselves. Uh, 338 00:18:02,240 --> 00:18:05,200 Speaker 1: this company, Renewable Energy Group, was one of the leading 339 00:18:05,480 --> 00:18:09,240 Speaker 1: producers of biodiesel and soon to be renewable diesel in 340 00:18:09,280 --> 00:18:14,720 Speaker 1: the United States. And they have great capabilities in the 341 00:18:14,760 --> 00:18:19,760 Speaker 1: feedstock sourcing area, and so in any fuels business. Raw 342 00:18:19,840 --> 00:18:22,960 Speaker 1: materials are a very important part of the overall value 343 00:18:23,000 --> 00:18:27,800 Speaker 1: chain traditional petroleum products. We have deep expertise in the 344 00:18:27,880 --> 00:18:32,200 Speaker 1: raw materials sourcing for that. In these products, you're talking 345 00:18:32,200 --> 00:18:35,320 Speaker 1: about raw materials that are like used cooking oil, something 346 00:18:35,320 --> 00:18:38,760 Speaker 1: called distiller's corn oil, various bean oils from soybean and 347 00:18:38,840 --> 00:18:42,280 Speaker 1: other agricultural products. These are markets that we don't have 348 00:18:42,320 --> 00:18:47,400 Speaker 1: a lot of experience in. The quality, logistics, commercial dimensions 349 00:18:47,400 --> 00:18:49,720 Speaker 1: of those markets are things that Rural Energy Group is 350 00:18:49,800 --> 00:18:53,720 Speaker 1: very good at. They have manufacturing facilities and some marketing. 351 00:18:53,760 --> 00:18:56,760 Speaker 1: We have big market positions and brand positions, particularly in 352 00:18:56,800 --> 00:18:59,920 Speaker 1: states like California, that encourage this. So the combination of 353 00:19:00,080 --> 00:19:03,120 Speaker 1: TOO makes a more powerful renewal energy business, and today 354 00:19:03,400 --> 00:19:06,520 Speaker 1: UH in renewable area, which is obviously a growth area. 355 00:19:07,160 --> 00:19:08,960 Speaker 1: UM do you think that if you were going to 356 00:19:09,040 --> 00:19:12,920 Speaker 1: make more acquisitions without giving away inside information, you're likely 357 00:19:12,960 --> 00:19:15,919 Speaker 1: to do more in the renewable area or in the 358 00:19:15,960 --> 00:19:21,840 Speaker 1: carbon area. It's an active field of opportunity in both UH. 359 00:19:22,000 --> 00:19:26,360 Speaker 1: For US, it's really driven by strategy, asset quality, value, 360 00:19:26,400 --> 00:19:27,919 Speaker 1: I mean, the typical things you would look at when 361 00:19:28,000 --> 00:19:30,440 Speaker 1: when you do a deal. But as I said, over 362 00:19:30,440 --> 00:19:32,720 Speaker 1: the last two years, we've we've done a big traditional 363 00:19:32,840 --> 00:19:36,280 Speaker 1: energy deal, We've done a big renewal acquisition. I think 364 00:19:36,280 --> 00:19:38,600 Speaker 1: in the years ahead we'll probably do acquisitions in both 365 00:19:38,600 --> 00:19:42,080 Speaker 1: of those spaces. When President Nixon took office shortly thereafter, 366 00:19:42,119 --> 00:19:45,280 Speaker 1: there was an oil spill in Santa Barbara and then 367 00:19:45,400 --> 00:19:47,639 Speaker 1: under President Obama there was an oil spill in the 368 00:19:47,680 --> 00:19:51,720 Speaker 1: Gulf Horizon. It was I think of British petroleum right now, 369 00:19:51,800 --> 00:19:55,080 Speaker 1: when you're drilling off shore, how safe is it uh 370 00:19:55,119 --> 00:19:57,320 Speaker 1: to be able to avoid those kind of environmental damage? 371 00:19:57,320 --> 00:19:58,680 Speaker 1: Is it much better than it used to be or 372 00:19:58,800 --> 00:20:02,840 Speaker 1: greater precautions than there to be? Yeah? Absolutely? And um 373 00:20:02,880 --> 00:20:06,600 Speaker 1: and I think you know, the industry has continually improved 374 00:20:06,840 --> 00:20:11,720 Speaker 1: operating practices, equipment. Uh. Certainly the regulators in the US 375 00:20:11,800 --> 00:20:13,879 Speaker 1: have very high standards, who were very closely with the 376 00:20:13,920 --> 00:20:17,520 Speaker 1: regulators on that, and the advent of newer technologies have 377 00:20:17,960 --> 00:20:21,560 Speaker 1: continually made this safer. And so uh, these are these 378 00:20:21,560 --> 00:20:26,040 Speaker 1: are challenging, difficult operations in those kinds of pressures, water depths, 379 00:20:26,119 --> 00:20:30,119 Speaker 1: and environments. But the industry has a has a strong 380 00:20:30,320 --> 00:20:33,560 Speaker 1: track record today. Uh. And you know there have been 381 00:20:33,600 --> 00:20:36,480 Speaker 1: some notable incidents over time, but every company in this 382 00:20:36,520 --> 00:20:40,119 Speaker 1: industry works really hard to to prevent those. So, um, 383 00:20:40,160 --> 00:20:42,960 Speaker 1: today do you not worry about that kind of offshore 384 00:20:43,640 --> 00:20:46,600 Speaker 1: UH drilling problems anymore? Because of the safety is pretty 385 00:20:46,640 --> 00:20:48,399 Speaker 1: good compared to what it used to be. You know, 386 00:20:48,440 --> 00:20:50,520 Speaker 1: every day I get up and I worry about safety 387 00:20:50,640 --> 00:20:54,440 Speaker 1: and um, protecting the environment. Are people working at demanding 388 00:20:54,480 --> 00:20:58,199 Speaker 1: business and uh, it's a highly technical activity. We have 389 00:20:58,480 --> 00:21:02,200 Speaker 1: very talented people. We've got very strict protocols and standards 390 00:21:02,280 --> 00:21:04,399 Speaker 1: to keep people safe and keep the environment safe. But 391 00:21:04,440 --> 00:21:06,399 Speaker 1: you can never take it for granted. Why do you 392 00:21:06,440 --> 00:21:09,720 Speaker 1: think it is that people love energy but they don't 393 00:21:09,760 --> 00:21:12,520 Speaker 1: love energy companies? In other words, people in the United 394 00:21:12,560 --> 00:21:15,359 Speaker 1: States around the world consume enormous amounts of oil and gas, 395 00:21:15,760 --> 00:21:18,480 Speaker 1: and the people that provided, like Chevron, don't seem to 396 00:21:18,520 --> 00:21:22,520 Speaker 1: be so popular. Why is that? You know? Um, I 397 00:21:22,560 --> 00:21:25,480 Speaker 1: don't know exactly why it is. Uh. You know, we're 398 00:21:25,480 --> 00:21:30,040 Speaker 1: a big company. The numbers are big. Sometimes big isn't popular. 399 00:21:30,080 --> 00:21:35,639 Speaker 1: Are big energy, big government, big tech? Maybe big private 400 00:21:35,640 --> 00:21:40,119 Speaker 1: equities and exception to that. But you know that we're 401 00:21:40,119 --> 00:21:43,480 Speaker 1: a big company. We represent less than two percent of 402 00:21:43,600 --> 00:21:46,600 Speaker 1: global oil production and so in the scheme of things, 403 00:21:46,680 --> 00:21:50,320 Speaker 1: a very competitive market and we're a relatively small player. 404 00:21:50,920 --> 00:21:54,680 Speaker 1: And I think you know what's important, uh to remembers 405 00:21:54,720 --> 00:21:57,800 Speaker 1: we need to have a balanced approach to energy, and 406 00:21:57,840 --> 00:22:00,880 Speaker 1: that means we have to focus on affordability, because affordable 407 00:22:00,960 --> 00:22:05,760 Speaker 1: energy is really essential for economic prosperity, reliable supply for 408 00:22:05,960 --> 00:22:09,639 Speaker 1: national security because energy security and national security are linked. 409 00:22:10,240 --> 00:22:12,840 Speaker 1: And then protecting the environment, and I think its prices 410 00:22:12,840 --> 00:22:15,760 Speaker 1: get high and it gets less affordable, you find people 411 00:22:15,800 --> 00:22:19,160 Speaker 1: that are upset, and part of that is because we 412 00:22:19,359 --> 00:22:23,440 Speaker 1: really haven't necessarily been able to find the right balance 413 00:22:23,720 --> 00:22:27,320 Speaker 1: among those three and to improve the overall image of 414 00:22:27,359 --> 00:22:29,840 Speaker 1: the energy industry. Is there something you think that the 415 00:22:29,920 --> 00:22:32,520 Speaker 1: CEOs or the companies can do to improve the image 416 00:22:32,520 --> 00:22:34,840 Speaker 1: so that people when they walk down the streets say, wow, 417 00:22:35,080 --> 00:22:37,680 Speaker 1: Chevron has done a great job for America today. How 418 00:22:37,720 --> 00:22:40,520 Speaker 1: how is that possible? Or just energy companies just don't 419 00:22:40,520 --> 00:22:43,040 Speaker 1: have that kind of likely public image that's going to 420 00:22:43,080 --> 00:22:45,840 Speaker 1: be so good. Well, I think what would help David 421 00:22:45,920 --> 00:22:48,840 Speaker 1: is to engage in this more balanced conversation about the 422 00:22:48,840 --> 00:22:51,960 Speaker 1: benefits of energy. We are a lot of people that have, um, 423 00:22:52,000 --> 00:22:55,160 Speaker 1: you know, views on what some of the consequences are 424 00:22:55,320 --> 00:22:58,159 Speaker 1: of the use of energy. But as you say, they 425 00:22:58,280 --> 00:23:02,600 Speaker 1: they've had made rancements in the quality of life. Uh, 426 00:23:02,640 --> 00:23:06,080 Speaker 1: you know, possible that we wouldn't have imagined, uh you know, 427 00:23:06,080 --> 00:23:09,000 Speaker 1: two centuries ago, and um and I think as we 428 00:23:09,119 --> 00:23:12,960 Speaker 1: go forward, it's absolutely likely that we find ways to 429 00:23:13,280 --> 00:23:16,919 Speaker 1: meet the needs of a growing world and produce the 430 00:23:16,960 --> 00:23:20,520 Speaker 1: carbon Impat's supposed Tomorrow you decided to retire and become 431 00:23:20,560 --> 00:23:23,240 Speaker 1: a cabinet officer or something, or do something else. What 432 00:23:23,320 --> 00:23:27,080 Speaker 1: would you say you have achieved as the CEO of 433 00:23:27,200 --> 00:23:30,680 Speaker 1: Chevron that you're most proud of. Well, I would hope 434 00:23:30,720 --> 00:23:35,119 Speaker 1: that people would say he thought of others first. He 435 00:23:35,240 --> 00:23:38,200 Speaker 1: strengthened the culture of our company. He kept people safe, 436 00:23:38,640 --> 00:23:41,680 Speaker 1: and made the company a better company when he left 437 00:23:41,720 --> 00:23:45,199 Speaker 1: than it was when he founded. Thanks for listening to 438 00:23:45,280 --> 00:23:47,879 Speaker 1: hear more of my interviews. You can subscribe and download 439 00:23:47,920 --> 00:23:51,480 Speaker 1: my podcast on Spotify, Apple, or wherever you listen.