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MOSCOW, July 31, 2014 – Honeywell (NYSE: HON) Process Solutions today announced it will upgrade process control and alarm management systems at the Molikpaq platform on the Sakhalin shelf, Russia, to improve safety, reliability and operational efficiency.

The Molikpaq platform, owned by Sakhalin Energy Investment Co. Ltd., celebrated its 15-year anniversary in September 2013. The platform produces 48,000 barrels of crude oil per day.

“Offshore production is associated with a number of risks to workers, the environment and efficient processes, and demands systems that meet the highest reliability, safety and durability standards,” said Frank Whitsura, vice president, Honeywell Process Solutions. “Our innovative solutions are designed to meet the requirements needed to operate in harsh environmental conditions and help our partners to improve their operational and cost efficiencies.”

The Molikpaq platform was installed northeast of Sakhalin, 16 kilometers offshore, at a depth of 30 meters. In the winter, the temperature, including the wind chill, can be as cold as 70 degrees below zero Fahrenheit.

To modernize the process control system and improve safety at the facility, Honeywell will implement the latest version of its Experion® Process Knowledge System (PKS), which will be extended by the new C300 controller including Foundation Fieldbus license. By enabling unified access to process control, production management and asset management, the distributed control system will help to improve efficiency and profitability, reduce total cost of ownership while helping the facility achieve optimum production of oil.

In addition, Honeywell will install its DynAMo™ Alarm Suite, which leverages more than 20 years of alarm management experience in the process industries, and can help users reduce overall alarm count by as much as 80 percent, identify maintenance issues, and increase visibility of critical alarms that require urgent attention.

Honeywell Process Solutions (www.honeywellprocess.com) is a pioneer in automation control, instrumentation and services for the oil and gas; refining; pulp and paper; industrial power generation; chemicals and petrochemicals; biofuels; life sciences; and metals, minerals and mining industries. Process Solutions is part of Honeywell’s Performance Materials and Technologies strategic business group, which also includes UOP, a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

Having evaluated the different options for Maersk Drilling, A.P. Moller – Maersk has concluded that listing Maersk Drilling as a standalone company presents the most optimal and long-term prospects for its shareholders, offering them the possibility to participate in the value creation opportunity of a globally leading pure play offshore drilling company with long-term development prospects.

The process has been initiated to ensure that Maersk Drilling is operationally and organisationally ready for a listing in 2019. As part of the preparation, debt financing of USD 1.5bn from a consortium of international banks has been secured for Maersk Drilling to ensure a strong capital structure after a listing. Further details for a listing will be announced at a later stage.

Separation of the oil & oil related businesses
The decision on the future of Maersk Drilling marks a milestone in the business transformation of A.P. Moller – Maersk towards becoming an integrated transport & logistics company as announced on 22 September 2016.

The target was set to find new viable solutions for the oil and oil related businesses within 24 months. During the past two years solutions for Maersk Oil and Maersk Tankers have been found and today the plan to list Maersk Drilling is announced.

For Maersk Supply Service, the pursuit of a solution will continue. However due to challenging markets, the timing for defining a solution is difficult to predict.

Chairman of the A.P. Moller – Maersk Board of Directors, Jim Hageman Snabe says:

“The Maersk Drilling team has done a remarkable job operating the business at a time of high uncertainty and is well positioned to become a successful company on Nasdaq Copenhagen. The announcement of the intention to list Maersk Drilling completes the decision process on the structural solutions for the major oil and oil related businesses. Yet another important step in delivering on the strategy.”

Capital structure and proceeds from the oil & oil related businesses
A.P. Moller – Maersk remains committed to maintaining its investment grade rating which is demonstrated by increased capital discipline over the last two years combined with maintaining a high financial flexibility.

Net cash proceeds to A.P. Moller-Maersk from separation of Maersk Oil, Maersk Tankers and now expected Maersk Drilling is around USD 5bn. Maersk Drilling’s separate financing is expected to release cash proceeds of around USD 1.2bn to A.P. Moller – Maersk.

In addition, A.P. Moller-Maersk sold Total S.A. shares for an aggregated amount of around USD 1.2bn during July 2018. This represents the increase in value since signing of the sale of Maersk Oil in August 2017. A.P. Moller – Maersk retains 78.3 million shares in Total S.A. with a current aggregated value of around USD 5bn.

Subject to maintaining investment grade rating it is now expected that:

Maersk Drilling will be demerged via a listing in 2019 with distribution of Maersk Drilling shares to A.P. Moller – Maersk’s shareholders
Following the demerger of Maersk Drilling a material part of the remaining Total S.A. shares will be distributed to A.P. Moller – Maersk’s shareholders in cash dividends, share buy-backs or as a distribution of the Total S.A shares directly
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Growing, digitizing and integrating across transport and logistics
The overall transport and logistics business has grown significantly over the last two years – both organically and inorganically through the acquisition of Hamburg Süd. A turnover close to USD 40bn is expected for 2018, equaling an increase of almost 50 percent since 2016. The non-Ocean business is as planned growing organically at a higher pace than the Ocean business.

Synergies are being realised as expected and the business is on track to deliver around USD 1bn by end 2019 from integration of Hamburg Süd and increased collaboration across the transport and logistics business.

“With the decision made on Maersk Drilling, A.P. Moller – Maersk can stay focused on transitioning into an integrated transport and logistics company and developing solutions to meet our customers end-to-end supply chain management needs. New value adding services as well as customer experience are improving continuously based on digital solutions. We will continue to grow revenue with a specific focus on non-Ocean revenue and at the same time improve our current unsatisfactory level of profitability,” says CEO of A.P. Moller – Maersk, Søren Skou.

Chairman of the A.P. Moller – Maersk Board of Directors, Jim Hageman Snabe continues:

“The Board initiated the fundamental business transformation of A.P. Moller – Maersk almost two years ago. This is a massive undertaking touching all parts of our company globally and I would like to thank the management for progressing on many strategic efforts in parallel.”

ABOUT
A.P. Moller – Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs roughly 76,000 people.

With simple end-to-end offering of products and digital services, seamless customer engagement and a superior end-to-end delivery network, Maersk enables its customers to trade and grow by transporting goods anywhere – all over the world.

Air BP today announced its agreement to purchase the aviation fuel business, Statoil Fuel & Retail Aviation AS (SFR Aviation), from Canadian company Alimentation Couche-Tard Inc. The deal will add around 73 new airports in the Nordic countries and Northern Europe to Air BP’s 600-strong global fuels network. The deal, which is subject to regulatory approvals, is expected to close by the end of 2014. On completion around 59 SFR Aviation employees, currently based in Norway, Sweden and Denmark are expected to join Air BP.

David Gilmour, chief executive of Air BP, said: “Bringing SFR Aviation’s business into our own strengthens our position in Scandinavia which is an attractive region for the aviation industry, especially in the general aviation market. This deal will grow BP’s airport coverage, as well as introduce us to new customers, and give us access to SFR Aviation’s quality infrastructure and operations. It complements our existing presence in the region and will allow us to expand where we see long term prospects.”

The acquisition gives Air BP presence in new locations, particularly in Norway, and a strong position in the general aviation customer segment.

“As a competitive, leading supplier in the region we’ll be offering our new commercial airline, general aviation and military customers Air BP’s full range of services including security of supply, product quality assurance, our technical services offer, and 24/7 customer support,” said Gilmour.

The acquisition brings Air BP a network of quality locations, high operating standards, new supply and sales agreements including some military contracts, a fleet of refuelling vehicles, and storage and distribution infrastructure.

SFR is selling its aviation fuel business, comprising supply at 79 airports across Norway, Sweden, Denmark, Faroe Islands, Greenland, Finland, Netherlands and Germany, plus interests at 3 airports in the UK & Belgium
Air BP, the aviation division of BP, is one of the world’s largest suppliers of aviation fuel products and services with over 1,100 employees. It currently supplies over seven and a half billion (US) gallons of jet kerosene and aviation gasoline to its customers across the globe each year.
Through its direct operations, Air BP fuels more than 6,400 flights every day – that’s one every 15 seconds. The company operates at more than 600 locations in over 45 countries serving customers including the private pilot, military aircraft, business and private aircraft owners, commercial airlines in addition to international airports and airfield operators.
General Aviation is the civil aviation industry other than commercial airlines – business jets, emergency services, flying schools, offshore industry helicopters, small airfields, private pilots, etc. It is a fast growing sector in all regions of the world.

NEW YORK & SÃO PAULO- Alcoa (NYSE: AA) today announced it will curtail 147,000 metric tons of smelting capacity at its São Luís (Alumar) and Poços de Caldas smelters in Brazil due to challenging global market conditions in primary aluminum and increased costs that have made the smelters uncompetitive. The curtailments are expected to be complete by the end of May 2014.

In 2013, the Company curtailed 34,000 metric tons at Poços and 97,000 metric tons at São Luís. The new curtailments will include the remaining 62,000 metric tons of capacity from the Poços smelter, resulting in a full curtailment of its three potlines. Another 85,000 metric tons will be curtailed at São Luís.

“Across the globe, we are taking measures to curtail high-cost smelting capacity that is not competitive and reshape our cost profile,” said Bob Wilt, President of Alcoa Global Primary Products. “These are difficult but necessary actions in support of Alcoa’s strategy to lower the cost base of our upstream businesses.”

As a result of the smelter curtailment, the Poços refinery will also reduce production accordingly. The mine, aluminum powder plant and casthouse at Poços will continue normal operations, as will the refinery at São Luís. Other Alcoa operations in Brazil are not affected.

“We know how deeply this decision affects our employees, our contractors and our communities,” said Aquilino Paolucci, President of Alcoa Latin America and the Caribbean. “While our teams have worked incredibly hard to make these facilities more competitive, we must take steps regarding our primary metal production in Brazil given the market conditions we are facing. We appreciate the support of governments at all levels, and will actively work in partnership with our employees, unions, and community stakeholders to manage through this transition and minimize the impact.”

In May 2013, Alcoa placed 460,000 metric tons of smelting capacity under review. Once all announced curtailments and closures are complete, Alcoa will have approximately 800,000 metric tons, or 21 percent, of smelting capacity offline.

Total restructuring-related charges associated with the Brazil curtailments in the first quarter are expected to be between $40 million and $50 million after-tax, or $0.04 to $0.05 per share, of which approximately 30 percent would be non-cash.

Alcoa’s review of its primary metals operations is consistent with the Company’s goal of lowering its position on the world aluminum production cost curve to the 38th percentile and the alumina cost curve to the 21st percentile, by 2016.

About Alcoa in Brazil
Alcoa operates in Brazil throughout the aluminum production chain, from bauxite mining to the production of transformed and value-add products. Alcoa has 5,700 employees and six production units and offices in the states of Maranhão, Minas Gerais, Pará, Pernambuco, Santa Catarina, São Paulo and Federal District. Alcoa owns 100% of the Poços smelter, and the São Luís smelter is owned 60% by Alcoa Alumínio and 40% by BHP Billiton. The Company also has shareholdings in Mineração Rio do Norte (MRN) and in four hydroelectric power plants: Machadinho, Barra Grande, Serra do Facão and Estreito. In 2013 it was considered the most sustainable company in its industry and in the category of Relationship with Suppliers of the Guia EXAME de Sustentabilidade [EXAME Magazine’s Sustainability Guide]. In the same year, it was recognized for the twelfth time as one of the Best Companies to Work and for the second consecutive year the Best Company for Women to Work in Brazil, by the Great Place to Work Institute.

About Alcoa
A global leader in lightweight metals engineering and manufacturing, Alcoa innovates multi-material solutions that advance our world. Our technologies enhance transportation, from automotive and commercial transport to air and space travel, and improve industrial and consumer electronics products. We enable smart buildings, sustainable food and beverage packaging, high-performance defense vehicles across air, land and sea, deeper oil and gas drilling and more efficient power generation. We pioneered the aluminum industry over 125 years ago, and today, our 60,000 people in 30 countries deliver value-add products made of titanium, nickel and aluminum, and produce best-in-class bauxite, alumina and primary aluminum products. For more information, visit www.alcoa.com,

This news is courtesy of www.alcoa.com

ROSSLYN, VA., A new study released today confirms the growing importance of the domestic aluminum industry to the U.S. economy. Research conducted by economic research firm John Dunham & Associates found that the U.S. aluminum industry directly employs more than 155,000 workers and generates $65 billion in economic output in all 50 states and the District of Columbia.

According to the study, for each aluminum industry job an additional 3.3 jobs are created elsewhere in the economy for a total of 672,000 jobs. When supplier and induced impacts are taken into account, the industry has an economic footprint of more than $152 billion – nearly 1% of Gross Domestic Product.

Other key findings from the report include:

Workers directly employed by U.S. aluminum industry earned more than $12 billion in wages and benefits in 2013.
Indirect employment by the industry creates another $29 billion in wages and benefits.
When all employment supported by the industry is taken into account, these jobs generate nearly $16 billion in federal, state and local taxes.
These workers earn average compensation of more than $60,000, far exceeding the national average of $43,000.
“As an integral part of the U.S. manufacturing base and overall economy, the aluminum industry supports hundreds of thousands of high quality manufacturing jobs in communities of all sizes,” said Layle “Kip” Smith, President and CEO of Noranda and Chairman of the Aluminum Association. “Aluminum is a vital material for the modern era and a bellwether for domestic manufacturing.”

The Aluminum Association last released an economic impact study based on 2009 data that reported 106,000 jobs directly supported by the aluminum industry. The new study uses an improved methodology in order to more fully capture the industry’s footprint. The new methodology is based on company specific microdata rather than aggregate data from the Bureau of the Census. Microdata captures the actual physical locations of all the firms in the different facets of the industry, whereas Census Data only captures the broad-based employment numbers, generally only from the largest firms. The new results show significant job growth in a number of key areas:

4X increase in secondary smelting and alloying jobs (4,500 vs. 16,800)
73% increase in sheet, plate, foil and extruded products jobs (32,500 vs. 56,200)
23% increase in foundries jobs (29,600 vs. 36,400 jobs)
“It’s encouraging to see that, as an industry, we’re growing,” said Heidi Brock, President of the Aluminum Association. “As the country recovers from the recession, we’re seeing demand for our product bouncing back – up 30 percent since 2009. Lightweight, durable and highly recyclable, aluminum is a metal uniquely suited to the 21st century.”

The study was completed by economic research firm John Dunham & Associates and is based on data provided by Dun & Bradstreet, Inc., the federal government and the Aluminum Association. The analysis uses the Minnesota IMPLAN Model to quantify the economic impact of the aluminum industry on the overall U.S. economy.

For the purposes of the report, the aluminum industry is defined to include alumina refining; primary aluminum processing; secondary aluminum smelting and alloying; manufacturing of aluminum sheet, plate, foil, extrusions, forgings, coatings, and powder; aluminum foundries; metals service centers, and wholesalers. The study measures the number of jobs in this industry, the wages paid to employees, total economic output, and federal and state business taxes generated.
Courtesy of The Aluminium Association

Today, the White House and the Department of Energy are hosting a Capstone Methane Stakeholder Roundtable. In addition, DOE is announcing a series of actions, partnerships, and stakeholder commitments to help modernize the nation’s natural gas transmission and distribution systems and reduce methane emissions.

The Capstone event is the culmination of four previous in-depth Roundtables at which leaders from industry, environmental organizations, state regulators, consumer groups, academia, and manufacturing and labor unions were asked to provide Administration and other representatives with their individual perspectives on opportunities to modernize natural gas infrastructure and reduce mid- and downstream methane emissions.

The fundamental lesson learned from the Roundtables: there is broad stakeholder support for taking action that reduces methane emissions from natural gas transmissions and distribution systems. The drivers for these actions, however, vary by the groups represented at the Roundtables and include: the potential for increasing jobs associated with transmission and distribution system maintenance and equipment upgrades; opportunities for enhancing cost recovery for infrastructure investments and expanding markets; concerns about providing reliable and affordable utility service; the commitment to improving safety; and addressing near term opportunities to address climate change. Roundtable participants identified a range of opportunities across these many fronts.

The path forward emerging from the Methane Roundtables — a key deliverable in the Climate Action Plan Strategy to Reduce Methane Emissions — also addresses several key Administration goals, including:

Enhancing job creation, affordable energy, infrastructure modernization, and the role of natural gas in a clean energy economy;
Reducing methane emissions from natural gas systems; and
Producing the first-ever Quadrennial Energy Review, focusing on America’s energy infrastructure.
Representatives from all of the participating sectors are coming together today to discuss lessons learned and actions that will be taken to modernize natural gas transmission and distribution infrastructure. It is not intended to be an end point for action, rather an inflection point for a range of actions to follow. DOE’s initiative — Investing in Gas T&D Infrastructure: Improving Safety, the Economy, the Environment, and Creating Jobs — incorporates many of the lessons learned from the Roundtables and, together with stakeholder commitments, establishes a path forward to address these critical issues.

INITIATIVE TO MODERNIZE NATURAL GAS TRANSMISSION AND DISTRIBUTION INFRASTRUCTURE
The Department of Energy is announcing several new initiatives and enhancing existing programs to modernize infrastructure and reduce methane emissions through common-sense standards, smart investments, and innovative research to advance the state of the art in natural gas system performance. These initiatives include:

Efficiency Standards for Natural Gas Compressors. Today, DOE will take the first step toward establishing energy efficiency standards for new natural gas compressor units by issuing a Request for Information. Gas compressor units are estimated to consume over 7 percent of natural gas end use in this country, and improved efficiency will provide meaningful energy savings and reductions in greenhouse gas emissions.

Incentives for Modernization of Natural Gas Transmission System Infrastructure. Following discussions with Chairwoman Cheryl LaFleur, the Secretary of Energy is recommending that the Federal Energy Regulatory Commission to explore efforts to provide greater certainty for cost recovery for new investment in modernization of natural gas transmission infrastructure, as part of FERC’s work to ensure just and reasonable natural gas pipeline transportation rates. These efforts may include additional consideration of a simplified cost recovery mechanism for gas transmission companies who replace old and inefficient compressors and leak-prone pipes and perform other infrastructure improvements and upgrades to enhance the safe and reliable operation of the pipeline.

Advanced Natural Gas System Manufacturing R&D Initiative. DOE is launching a collaborative effort with industry with the goal of establishing an Advanced Natural Gas System Manufacturing R&D initiative. The initiative will evaluate and scope high-impact manufacturing research and development to improve natural gas system efficiency and reduce leaks. This will include a formal Request for Information, public workshops, and technical analysis and will leverage technology development areas already in progress through the Administration’s Advanced Manufacturing Partnership (AMP 2.0), including Advanced Sensors, Control, and Platforms for Manufacturing; Advanced Materials Manufacturing; and Advanced Reciprocating Engine Systems.

Pipeline Efficiency Research, Development and Demonstration Program. DOE is proposing to establish a new “First Things First” natural gas infrastructure technology program, focusing on RDD&D to enhance pipeline and distribution system operational efficiency and reduce methane emissions. The goal of the program is to drive research and technology development to improve identification of methane leaks, for example, by developing smart sensor technologies that collect and communicate data on a variety of operational parameters such as operating pressure and flow rates.

Providing Loan Guarantees for New Reduction Technologies: Advanced Fossil Energy Projects that Reduce Methane Emissions. DOE will conduct outreach to industries in the advanced fossil sector and other stakeholders to increase awareness of the $8 billion solicitation that DOE issued in December 2013 to provide loan guarantees to spur commercialization of innovative technologies that reduce methane emissions from gas transmission and distribution systems. This includes, but is not limited to, projects involving new wellhead drilling technology, flare reduction, methane capture and collection, or reducing methane leakage from pipelines and distribution networks.

Investing in Technologies for Leak Detection and Measurement. DOE’s efforts will build on the methane sensing initiative underway at ARPA-E, which on April 29, 2014, released a funding opportunity announcement for up to $30 million for the Methane Observation Networks with Innovative Technology to Obtain Reductions (MONITOR) program. This program seeks to fund disruptive technologies for low-cost, highly sensitive systems for the detection and measurement of methane associated with the production and transportation of oil and natural gas.

Quadrennial Energy Review. DOE will continue to conduct analysis and engage with stakeholders and the public through meetings for the Quadrennial Energy Review (QER). Two recent QER meetings in Pittsburgh and Denver focused in part on natural gas transmission and distribution systems and the need for modernization. These meetings are engaging stakeholders and the public in the development of the first installment of the QER, which focuses specifically on energy transmission, storage, and distribution infrastructure. This QER will include analysis to estimate the job creation from manufacturing, installing and maintaining equipment associated with reducing natural gas system leakage through a specific set of best practices.

PARTNERSHIPS & ENHANCED COORDINATION
Building on suggestions from Roundtable participants to enhance coordination within the Administration and with stakeholders, DOE is announcing the following new partnerships and collaborative efforts:

State Leadership for Efficient Natural Gas Distribution. DOE will join with the National Association of Regulatory Utility Commissioners (NARUC) in a technical partnership to enable investments in infrastructure modernization and repairs to natural gas distribution networks. The role for DOE will be to provide grant funding and technical assistance to help inform decision-making by state utility commissioners. Through research and technical workshops, NARUC and DOE will also work with other federal agencies to convene decision makers, including the Pipeline and Hazardous Materials Safety Administration (PHMSA), to help establish leak measurement protocols and to identify new technologies and cost-effective practices for enhancing pipeline safety, efficiency and deliverability.

Sharing Solutions on Methane Measurement and Reduction
​Establishing a Clearinghouse. In close consultation with stakeholders and other federal agencies, DOE will develop a public clearinghouse to share information on successful strategies for measuring and reducing methane emissions, such as information on methane measurement studies, technology R&D, job creation, policies, and incentives, among other quantifiable co-benefits or drivers of infrastructure development. The first steps will be to consult with individual roundtable participants and potential clearinghouse partners, conduct broader outreach, survey existing resources and identify gaps, and identify potential partners.

Convening Workshops. DOE will also host workshops on technical solutions, financial models and other best practices to stimulate public discussion and inform company investments and policy actions. This will include measurement technologies and their various applications, strengths and limitations as well as policy options that can drive the adoption of improved sensing technologies into the marketplace.
Follow-on Coordination and Collaboration. The Methane Capstone is an inflection point in our efforts to work with other agencies and stakeholders.

Intra-DOE collaboration. Several different DOE program offices are actively involved with implementing various aspects of the Administration’s Strategy to Cut Methane Emissions. DOE has initiated an internal methane working group to help coordinate these activities within DOE and to continue engagement with external stakeholders, and to ensure that technology and policy development activities are shared with other agencies.

Interagency collaboration. The White House is working with DOE, DOT (PHMSA), EPA, DOI and other agencies under the umbrella of the Quadrennial Energy Review and the Interagency Methane Strategy to share the lessons learned from the roundtables, collaborate on the range of new activities under this natural gas infrastructure initiative, and make it easier for stakeholders to engage on these issues.
Stakeholder collaboration. As discussed at the Roundtables, DOE will continue to work with stakeholders on these initiatives to modernize the nation’s natural gas transmission and distribution systems and reduce methane emissions.

COMMITMENTS FROM ROUNDTABLE PARTICIPANTS
SAVE ENERGY, STOP LEAKS, START WORK
Capstone participants have demonstrated leadership on methane leakage reductions and are making specific commitments going forward. For example:

A group of five unions, the United Association of Plumbers and Pipefitters, the International Brotherhood of Electrical Workers, the Utility Workers Union of America, the Laborers International Union of North America, and the United Steelworkers, are announcing an expansion of apprenticeship and training programs to meet the need for skilled construction and utility workers to meet the growing demand for employees to replace and repair existing distribution pipeline systems.

The Interstate Natural Gas Association of America’s membership has greatly reduced leaks over the last 30 years, as part of various safety improvements; they pledge to reduce methane releases even further by focusing on major leaks around key equipment, and developing guidelines for directed inspection and maintenance at those facilities.

Through initiatives outlined in the American Gas Association document “The LDC Story: A Focus on Safety Also Benefits the Environment,” the natural gas utility industry will continue its concerted effort to upgrade and modernize our nation’s pipeline network to enhance safety, which has also contributed significantly to a declining trend in emissions from the natural gas system while balancing costs with an eye towards providing clean natural gas to customers at affordable prices.

National Grid is investing more than $1 billion in its natural gas infrastructure this year and $6 billion over the next five years, to both grow the distribution network to meet customer demands and reduce methane emissions through main pipeline replacement and technology deployment. National Grid is committed to working with the Administration, federal and state regulators, other energy companies, local communities, and other stakeholders, to bring the nation’s energy network into the 21st century.

PSE&G recently reached a settlement on its Energy Strong proposal with the New Jersey Board of Public Utilities BPU that will allow them to proactively protect, strengthen, and modernize a portion of the gas systems against severe weather conditions. The result will be an increase in resiliency, safety, and a continuation of declining emissions reductions.

PG&E, the second largest gas utility in the country, is taking actions today that enhance safety, create jobs and protect the environment by deploying advanced leak detection technologies to efficiently find and fix leaks, accelerating pipe replacement and eliminating cast iron, improving the way employees do their work, and partnering with key stakeholders to more accurately measure and account for methane associated with the operation of the natural gas delivery system.

NW Natural is committed to completing its pipeline modernization program, with removal of cast iron pipes completed in 2000 and the last of their bare steel pipe scheduled for replacement in 2015. The company is also assessing new methods to further tighten the system through modifications of equipment and use of advanced emission reduction techniques during pipeline maintenance.

The National Association of Regulatory Utility Commissioners will join DOE in a technical partnership.
The BlueGreen Alliance (BGA), a national partnership of labor unions and environmental organizations, will launch a national public education campaign supporting accelerated repair and replacement of America’s natural gas distribution pipelines later this year. The BlueGreen Alliance recently published its report, Interconnected: The Economic and Climate Change Benefits of Accelerating Repair and Replacement of America’s Natural Gas Distribution Pipelines, that shows the U.S. can grow or sustain over 300,000 jobs by tripling the current rate of repair and replacement of pipes in the distribution system.

Environmental Defense Fund is collaborating with groups of industry, academics, and other experts, to conduct foundational science to improve understanding of the scale and sources of methane emissions across the natural gas supply chain, as well as conducting independent economic research to demonstrate where the most cost-effective reduction opportunities exist.

Participants in the Downstream Initiative (Consolidated Edison Company of New York, Inc., National Grid, Pacific Gas & Electric, Public Service Electric & Gas, and Xcel Energy) are committed to working with the Administration, federal and state regulators, and stakeholders to address technical, regulatory, and workforce challenges to modernize infrastructure and achieve additional methane emissions reductions from the distribution segment. While natural gas utility companies have made progress over the years reducing methane emissions, they are committed to taking a leadership role and doing more to modernize infrastructure going forward to realize the safety, economic, environmental, and health benefits that natural gas provides their customers.

Southwestern Energy Company believes that opportunities exist to cost-effectively reduce methane emissions from the natural gas sector, and is taking steps to pursue these opportunities through measurement R&D; implementing new technologies and practices to reduce methane emissions, including a company-wide leak detection and repair program; and collaborating with other companies across the natural gas supply chain to identify cost-effective solutions for reducing methane emissions and enhancing the energy delivery efficiency of the natural gas supply chain.

Peoples Gas is committed to reducing methane emissions through an accelerated investment in its natural gas distribution system in Chicago. More than 1,000 highly skilled workers across multiple trades are replacing the infrastructure to reduce methane emissions by 192,000 metric tons of carbon dioxide equivalent (CO2e), comparable to taking 38,000 cars off the road.

WASHINGTON, June 21, 2023 — The American Petroleum Institute (API) issued the following statement from Vice President of Downstream Policy Will Hupman in response to the Environmental Protection Agency’s (EPA) release of the final 2023 – 2025 biofuel blending obligations under the Renewable Fuel Standard (RFS):

“We share EPA’s goal of reducing emissions in the transportation sector and are supportive of efforts to improve the Renewable Fuel Standard (RFS) program to advance a lower carbon future. While we welcome EPA’s decision to omit the complex regulatory changes from eRINs, we are disappointed the agency did not do more to seize the opportunity to refocus the RFS to further incentivize lower carbon fuels. We look forward to continuing to work with EPA to build on this policy and ensure American consumers have access to the affordable and reliable fuels that they depend on every day while continuing to reduce emissions from transportation.”

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

WASHINGTON, August 24, 2023 – The American Petroleum Institute (API) today joined with the State of Louisiana and Chevron U.S.A. Inc. in filing a challenge to the Department of the Interior (DOI) Bureau of Ocean Management’s (BOEM) Final Notice of Sale for Lease Sale 261. Today’s challenge follows BOEM’s announcement yesterday to hold the final offshore lease sale mandated by the Inflation Reduction Act, but with significantly reduced acreage and severe restrictions on oil and natural gas vessel traffic.

“Today we’re taking steps to challenge the Department of the Interior’s unjustified actions to further restrict American energy access in the Gulf of Mexico,” said API Senior Vice President and General Counsel Ryan Meyers. “Despite Congress’ clear intention in the Inflation Reduction Act, the Biden administration has announced a ‘lease sale in name only’ that removes approximately 6 million acres of the Gulf of Mexico from the sale and adds new and unjustified restrictions on oil and natural gas vessels operating in this area, ignoring all other vessel traffic. Together with the State of Louisiana and Chevron U.S.A. Inc., we intend to use every legal tool at our disposal to challenge these actions.”

“Once again, Joe Biden is unlawfully attempting to kill both Louisiana jobs and affordable energy for all Americans,” said Louisiana Attorney General Jeff Landry. “We are yet again taking the President to court, where we trust the rule of law will be followed and Biden’s bureaucrats will be defeated.”

Background on the Five-Year Program for Federal Offshore Leasing:

For 45 years, the Interior Department has been required to prepare a five-year offshore leasing program that will best meet America’s energy needs for the ensuing five-year period, detailing a schedule for regular oil and natural gas lease sales, including in the Gulf of Mexico.

It has been more than one year since the Department of the Interior allowed the five-year program for federal offshore oil and natural gas leasing to lapse with no immediate replacement.

The U.S. Gulf of Mexico produces some of the lowest carbon intensity barrels in the world. Constrained production in this basin could be replaced by higher carbon intensity barrels from elsewhere in the world.

According to the U.S. EIA, Gulf of Mexico federal offshore oil production accounts for 15% of total U.S. crude oil production and federal offshore natural gas production in the Gulf accounts for 5% of total U.S. dry production.
Over 47% of total U.S. petroleum refining capacity is located along the Gulf coast, as well as 51% of total U.S. natural gas processing plant capacity.

An agreement announced last month proposed operating “recommendations” that would impose significant burdens on operators and increase emissions from vessels forced to operate at suboptimal speeds or idle outside the restriction areas.

Adopting the nighttime and low visibility restrictions could cut transit windows to approximately 50%– requiring industry to balance the government’s recommended practices against safely and efficiently servicing ongoing operations.

These restrictions would unfairly single out oil and gas traffic in an area that is one of the most used maritime areas in U.S. waters by a variety of industries. Thousands of vessels pass through this area every day.
API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

HOUSTON and LONDON – Baker Hughes (NASDAQ: BKR), an energy technology company, released its 2023 corporate sustainability report Wednesday, outlining progress in advancing sustainability through improved performance in its environmental, social and governance (ESG) metrics. Specifically, the Company reported a reduction of Scope 1 and 2 emissions by 28.3% from its baseline in absolute emissions.

“We are driving transformative and meaningful change to address the urgency and scale required for a sustainable energy development that balances the needs of today, with the needs of the future,” Baker Hughes Chairman and CEO Lorenzo Simonelli said. “That change starts with us, and I am proud of our progress in 2023. By leveraging sustainable practices, we have reduced carbon intensity of our operations, while enabling our customers and partners to meet their sustainability goals using our low-carbon and new energy solutions. Sustainability is a key differentiating capability for Baker Hughes and remains critical to our purpose of taking energy forward.”

“At Baker Hughes, sustainability is directly tied to our corporate strategy and creates long-term value through improved ESG performance and better resilience against climate risks. Through our sustainability strategy – executed across our corporate framework of people, planet, and principles – we have continued to operationalize sustainability, turning our net-zero ambitions into actions,” said Baker Hughes Chief Sustainability Officer Allyson Anderson Book. “Our people remain central contributors to taking energy forward, and I am particularly excited about our employee-driven initiatives like Carbon Out through which we are empowering our 58,000 employees to advance sustainability.”

Key highlights of Baker Hughes’ sustainability performance in 2023 include:
Absolute emissions reduction of 28.3% in Scope 1 and Scope 2 greenhouse gas emissions compared to 2019 baseline year: In 2023, Baker Hughes achieved Scope 1 and 2 emissions reductions through operational efficiency, energy efficiency initiatives, fleet electrification, and increased electricity from renewable and zero-carbon sources. Additionally, 29.8% of its electricity came from zero-carbon sources.

Quantified emissions footprint of its products: The Company advanced its emissions reductions journey by quantifying emissions throughout lifecycle stages of its products and incorporating the data into product development process. It reported completing over 300 life cycle assessments – over a 600% increase from last year – which allows for a transparent and granular view on carbon emissions of its products.

Scope 3 emissions roadmap: In 2023, Baker Hughes committed to an internal Scope 3 goal and created an emissions reductions roadmap to identify strategic levers to accelerate Scope 3 emissions reductions across all categories. Through its Carbon Out program – a unique, internal company-wide initiative to take carbon out of its operations – the Company has focused on categories with highest emissions footprints and is providing tools, training, and resources for employees to drive down Scope 3 emissions.

Improvement in Diversity, Equity, and Inclusion (DEI) performance: The Company has released its annual DEI report concurrently, which highlights progress in each of its five DEI strategic goals of diverse workforce, inclusive culture, supplier diversity, customer relationships, and community partnerships. In 2023, women employees increased by 0.4% (year on year) to 19.5%, women in STEM background increased by 2.1% to 14.2% and people of color in representation increased by 2.2% to 38.3%.

Increased community volunteerism: In 2023, our global employees volunteered in their communities across multiple geographies, resulting in a 43.7% increase in total volunteer service hours to 39,064. Our total community in-kind and cash contributions totaled $64 million.Employees’ health and safety are a top priority: Baker Hughes is committed to upholding the highest standards of health, safety, and environment (HSE). In 2023, the company reported a 34.5% increase in HSE observations compared to last year, with average hours of HSE training for employees increased by 16.2%.

As one of the first companies in its industry to make a public commitment to reduce our operational emissions by 50% by 2030 and achieve net-zero by 2050, Baker Hughes is on track to achieve its goals and remains transparent in its reporting with two separate reviews of its annual sustainability report – internal audit as well as an independent accounting firm.

Baker Hughes’ corporate sustainability report is prepared using the Global Reporting Initiative (GRI) standards and the Greenhouse Gas Protocol (GHG) as the foundation of our report. The Company also provides reporting indices for the Task Force on Climate-related Financial Disclosures (TCFD) and Sustainable Accounting Standards Board (SASB). Baker Hughes is also a participant of the UN Global Compact Initiative – a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices.

About Baker Hughes:
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner, and more efficient for people and the planet. Visit us at bakerhughes.com.

Shell’s CEO Ben van Beurden today updates on 2014 performance and his priorities for the company, in presentations to financial markets.
Van Beurden commented: “Shell has delivered where it counts in 2014. We are stepping up our drive for stronger capital efficiency, whilst being careful not to over-react to the recent fall in oil prices.

Successful delivery of 2014 programme. Improved financial and operating performance including $25 billion free cash flow: strengthening of the balance sheet; $15 billion of dividends and share buybacks; reduction of capital investment; early completion of $15 billion divestment target; and implementation of tighter performance management.

2015 to see continuation of 2014 drive to balance growth and returns. New restructuring programmes in world-wide resources plays and upstream engines, leveraging oil price downturn to capture multi-billion supply chain cost opportunities world-wide, and plans to reduce Shell’s operating costs in 2015.
Organic capital investment in 2015 is expected to be lower than 2014 levels, and we have curtailed over $15 billion of potential spending over the next three years. Shell has options to further reduce spending, but we are not over-reacting to current low oil prices and keeping our best opportunities on the table.
Shell’s strategy is founded on disciplined capital investment, integrated operations, technological expertise and large scale. This is underpinned by an unrelenting focus on safety. Investment in long term opportunities is balanced with short term delivery.

Van Beurden continued: “We set out an agenda in 2014 to balance growth and returns in Shell, and our results in 2014 show that this strategy is impactful where it matters: at the bottom line. By successfully delivering against our three key priorities of better financial performance, enhanced capital efficiency and continued strong project delivery, we are improving Shell’s competitive position in the oil & gas industry.”

Delivery in 2014 included:

Improved earnings and returns, including $25 billion of free cash flow, underpinning $15 billion of dividends and share buybacks.
Tighter performance management and accountability implemented across the company, including increased shareholding requirements for senior management to further align interests with shareholders.
Restructuring programmes and cost reduction in North America resources plays, where major portfolio changes are now complete; and in Oil Products, where substantial progress has been made and new cost programmes were launched at the end of 2014.
Increased asset sales – some $15 billion in 2014, completed before markets weakened across the end of the year, and reduced capital spending, as we make decisions on portfolio to improve Shell’s capital efficiency.
Successful delivery of new projects including deep water, and successful integration of the LNG portfolio purchased from Repsol, which delivered over $1 billion to CFFO in 2014.
A firm uptick in the 2014 exploration performance, with 10 material discoveries in frontier and heartland basins, and a further 41 near-field discoveries.
Van Beurden continued: “Our strategy is delivering, but we’re not complacent. Weaker oil prices underline that there’s a lot more to do. The three themes of financial performance, capital efficiency and project delivery will remain as Shell’s priorities in 2015.”

In 2015, these priorities will include a focus on the following:

Financial performance

This will include a continued drive to improve performance in Oil Products and North America resources plays, and new restructuring programmes in Upstream engines and International resources plays.
Cost competitiveness is integral to our tighter performance management drive. Our established programmes and new initiatives are expected to move operating costs down in 2015.
Capital efficiency

Given Shell’s rich portfolio funnel and today’s lower oil prices, investment levels are under severe pressure in the near term. Today’s lower prices are creating opportunities to reduce our own costs and to take costs out of the supply chain, where there is multi-billion dollar savings potential for Shell.
In addition, the company is deferring spending in many areas, without compromising on HSSE, exiting selective growth positions, and driving costs down in the supply chain. This should result in reduction of potential capital investment for 2015-17 of over $15 billion.
2015 organic capital investment is expected to be lower than 2014 levels. Shell is considering further reductions to capital spending should the evolving market outlook warrant that step, but is aiming to retain growth potential for the medium term.
Project delivery

2015 should see further ramp-up from the new fields brought on line in 2014. The company continues to invest in a competitive suite of new oil & gas fields and LNG, with the next wave of significant start-ups in the 2016-18 timeframe.
Van Beurden continued: “The agenda we set out in early 2014 to balance growth and returns has positioned us well for the current oil market downturn. However, lower oil prices and the impact of our 2014 divestments will likely reduce this year’s cash flow.”

Shell announced dividends of $12 billion in 2014 and repurchased $3.3 billion of shares. We slowed our buyback program at the end of 2014 to conserve cash, and near-term oil prices will dictate the buyback pace.

Van Beurden concluded: “We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices. Shell is taking structured decisions to balance growth and returns.”

BHP Billiton notes the range of media reports and public commentary on the composition of the tailings released from the Samarco Fundão dam, in Minas Gerais, Brazil, on 5 November 2015.

The tailings that entered the Rio Doce were comprised of clay and silt material from the washing and processing of earth containing iron ore, which is naturally abundant in the region. Based on available data, the tailings are chemically stable. They will not change chemical composition in water and will behave in the environment like normal soils in the catchment.

The National Water Agency (ANA) and Brazilian Geological Service (CPRM) are continuing to collect, analyse and report water and sediment samples in the Rio Doce.

Results from these samples on 14 November 2015 indicate “that concentrations of metals obtained at these sites do not significantly differ from the results produced by CPRM in 2010”. The results, published on 20 November, can be found online.

In addition, Samarco has issued a statement today indicating that further tests carried out by SGS GEOSOL Laboratórios after the incident confirm the waste from the Fundão dam is not hazardous to human health.

Samarco statements can be found at www.samarco.com and in other online channels.

– Group production increased by 9% during the December 2014 half year with records achieved for eight operations and five commodities. Production guidance remains unchanged and we are on track to deliver Group production growth of 16% over the two years to the end of the 2015 financial year.

– Metallurgical coal production increased by 21% to 26 Mt in the December 2014 half year as Queensland Coal and Illawarra Coal both achieved record half year volumes.

– Western Australia Iron Ore production increased by 15% to a record of 124 Mt (100% basis) in the December 2014 half year as the ramp-up of Jimblebar continued and we improved the availability, utilisation and rate of our integrated supply chain.

– Petroleum production increased by 9% to a record 131 MMboe in the December 2014 half year supported by a 71% increase in Onshore US liquids volumes to 24.4 MMboe.

– Copper production(1) decreased by 2% to 813 kt as strong underlying operating performance across the business was offset by lower grades at Antamina.

– Record manganese ore and alumina production was underpinned by strong performances at both Hotazel and the Alumar refinery.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Our operational performance over the last six months has been strong. We are reducing costs and improving both operating and capital productivity across the Group faster than originally planned. These improvements will help mitigate some of the impact of lower commodity prices and we remain alert to opportunities to further increase free cash flow.

“In Petroleum, we have moved quickly in response to lower prices and will reduce the number of rigs we operate in our Onshore US business by approximately 40 per cent by the end of this financial year. The revised drilling program will benefit from significant improvements in drilling and completions efficiency. Our ongoing shale investment program will remain focused on our liquids-rich Black Hawk acreage. However, we will keep this activity under review and make further changes if we believe deferring development will create more value than near-term production.

“We continue to believe that our planned demerger will help support further improvements in operating performance in both the core BHP Billiton and South32 assets. Within BHP Billiton, it would allow us to identify and deploy best practice across our assets more quickly and simplify our organisation to reduce overheads. We are making good progress towards securing the approvals we require to put the proposal to a shareholder vote in May and remain on track to complete the process before the end of the financial year.”

Major development projects
The Escondida Oxide Leach Area Project was successfully completed during the December 2014 quarter and the BMA Hay Point Stage Three Expansion project loaded first coal on 12 January 2015, both on revised schedule and budget. The Escondida Oxide Leach Area Project will not be reported in future Operational Reviews. At the end of the December 2014 half year, BHP Billiton had seven major projects under development with a combined budget of US$13.5 billion.

Corporate update
On 8 December 2014, BHP Billiton announced that the new company it intends to create through its proposed demerger will be called South32. A final Board decision on the proposed demerger will be made once all necessary third party approvals are secured on satisfactory terms. On this basis, BHP Billiton expects to release all shareholder documentation with full details of the proposed demerger in mid-March 2015, with a shareholder vote taking place in early May 2015. The demerger remains on track to be completed in the first half of the 2015 calendar year.

BHP Billiton expects Underlying attributable profit in the December 2014 half year to include impairment charges in the range of approximately US$200 million to US$250 million recognised as a result of the divestment of conventional petroleum assets in North Louisiana and unconventional gas assets in the Pecos field in the Permian.

The Minerals Resource Rent Tax (MRRT) in Australia has been repealed and was applicable until 30 September 2014. As a result, the MRRT deferred tax asset carried by the Group was derecognised and an income tax charge of US$809 million will be reported as an exceptional item in the December 2014 half year. The Group’s adjusted effective tax rate(4) is expected to remain in the range of 30 per cent to 34 per cent in the December 2014 half year.

On 12 November 2014, BHP Billiton announced that the review of its Nickel West business was complete and the preferred option, the sale of the business, was not achieved on an acceptable basis. As a result of operational decisions made subsequent to the conclusion of this process, an impairment charge in the range of US$200 million to US$350 million (after tax expense) will be recognised as an exceptional item in the December 2014 half year. At this time, Nickel West remains in the BHP Billiton portfolio and the Company continues to operate the business to maximise production, reduce operating costs and increase free cash flow. This guidance will be updated should material information or events arise as the Company finalises its financial statements.

Marketing update
The average realised prices achieved for our major commodities are summarized in the table below. Iron ore shipments, on average, were linked to the index price for the month of shipment, with price differentials reflecting product quality. The majority of metallurgical coal and energy coal exports were linked to the index price for the month of shipment or sold on the spot market, with price differentials reflecting product quality.

At 31 December 2014, the Group had 322 kt of outstanding copper sales that were revalued at a weighted average price of US$2.87 per pound. The final price of these sales will be determined over the remainder of the 2015 financial year. In addition, 350 kt of copper sales from the 2014 financial year were subject to a finalization adjustment in the current period. The provisional pricing and finalization adjustments will decrease earnings before interest and tax by US$210 million in the December 2014 half year (December 2013 half year: US$196 million increase).

Total petroleum production – Total petroleum production increased by nine per cent in the December 2014 half year to a record 131.0 MMboe. Guidance for the 2015 financial year remains unchanged at 255 MMboe. Crude oil, condensate and natural gas liquids – Crude oil, condensate and natural gas liquids production increased by 24 per cent in the December 2014 half year to 62.1 MMboe.

Onshore US liquids volumes rose by 71 per cent in the December 2014 half year to a record 24.4 MMboe. This strong performance was underpinned by continued momentum in the Black Hawk and Permian where liquids production increased by 81 per cent and 107 per cent, respectively.

In our Conventional business, liquids production at Pyrenees and Atlantis increased by 34 per cent and 12 per cent, respectively, supported by strong uptime performance and the completion of new production wells in the second half of the 2014 financial year.

Natural gas – Natural gas production declined by two per cent in the December 2014 half year to 413 bcf. Strong uptime performance at North West Shelf and Macedon partially offset lower seasonal demand at Bass Strait and the divestment of Liverpool Bay which was completed in the 2014 financial year.

Onshore US development activity
Onshore US drilling and development expenditure totalled US$1.9 billion in the December 2014 half year. In response to weaker prices, the Company will reduce its operated rig count from 26 at period end to 16 by the end of the 2015 financial year. An update to the drilling and development expenditure budget for the 2015 financial year will be provided with the release of our interim results in February 2015.

The majority of the revised drilling program will be focused on our liquids-rich Black Hawk acreage with activity in the Permian and Hawkville limited to the retention of core acreage. The Company’s dry gas development program will be reduced to one operated rig in the Haynesville, with a focus on continued drilling and completions optimisation ahead of full field development.

The reduction in drilling activity will not impact 2015 financial year production guidance and we remain confident
that shale liquids volumes will rise by approximately 50 per cent in the period.

Petroleum exploration expenditure for the December 2014 half year was US$268 million, of which US$244 million was expensed. Total petroleum exploration expenditure for the 2015 financial year is now forecast to be US$600 million, a 20 per cent reduction from prior guidance. The program will remain focused on the Gulf of Mexico, Western Australia and Trinidad and Tobago.

The seismic acquisition program in Trinidad and Tobago was successfully completed for the seven deep water blocks accessed between 2012 and 2014. The acquisition for the two blocks awarded in the 2014 deep water bid round is progressing on schedule.
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After a comprehensive review and consideration of comments received from the public, stakeholders, and Federal and state partner agencies and tribes, the Bureau of Ocean Energy Management (BOEM) today conditionally approved Shell Gulf of Mexico, Inc.’s revised multi-year Exploration Plan (EP) for the Chukchi Sea.

Among the conditions of approval is the requirement that Shell obtain all necessary permits from other state and federal agencies, including permits to drill from the Bureau of Safety and Environmental Enforcement (BSEE) and appropriate authorizations under the Marine Mammal Protection Act. Another condition of approval prevents Shell from commencing drilling operations until all Biological Opinions under the Endangered Species Act have been issued and requires all operations under the plan comply with the terms and conditions included in those Biological Opinions.

“We have taken a thoughtful approach to carefully considering potential exploration in the Chukchi Sea, recognizing the significant environmental, social and ecological resources in the region and establishing high standards for the protection of this critical ecosystem, our Arctic communities, and the subsistence needs and cultural traditions of Alaska Natives,” said BOEM Director Abigail Ross Hopper. “As we move forward, any offshore exploratory activities will continue to be subject to rigorous safety standards.”

The EP describes all exploration activities planned by the operator, including the timing of these activities, information concerning drilling vessels, the location of each planned well, and actions to be taken to meet important safety and environmental standards and to protect workers, resources, wildlife and access to subsistence use areas. In accordance with the National Environmental Policy Act, the review of the EP included the preparation of an Environmental Assessment and a subsequent Finding of No Significant Impact.

“The review of this Exploration Plan was a team effort,” said James Kendall, BOEM Alaska Regional Director. “We’d like to thank the experts in our cooperating agencies, the tribal government representatives who took time out from their busy schedules to do government-to-government consultations and of course the many members of the public and stakeholder organizations who provided us with valuable comments during the review process.”

Shell’s revised EP proposes the drilling of up to six wells within the Burger Prospect, located in approximately 140 feet of water about 70 miles northwest of the village of Wainwright. Shell will conduct its operations using the drillship M/V Noble Discoverer and the semi-submersible drilling unit Transocean Polar Pioneer, with each vessel providing relief-well capability for the other. The two drilling units and their supporting vessels will depart the Chukchi Sea at the conclusion of each exploration drilling season.

The Department of the Interior is currently undertaking an ambitious reform agenda to strengthen, update and modernize Outer Continental Shelf (OCS) energy regulations. In April the Department announced proposed regulations to better protect human lives and the environment from oil spills. The proposed measures include more stringent design requirements and operational procedures for critical well control equipment used in OCS oil and gas operations.

The proposed well control rule, which is open for public comment, addresses the range of systems and equipment related to well control operations. The measures are designed to improve equipment reliability, building upon enhanced industry standards for blowout preventers and blowout prevention technologies. The rule also includes reforms in well design, well control, casing, cementing, real-time well monitoring and subsea containment.

Additionally, the Department released proposed Arctic standards in February that will ensure that exploration of the Alaska OCS is subject to strong standards specifically tailored to the region’s challenging and unforgiving conditions. The proposed rule, which is open to public comment until May 27, 2015, includes many required measures that have been adopted previously as conditions on Shell’s Arctic operations and which BOEM also adopted in its approval of this revised EP. Those standards build upon existing Arctic-specific standards as well as experience with previous operations offshore Alaska.

A copy of BOEM’s conditional approval letter, the approved EP, the Environmental Assessment and the Finding of No Significant Impact are available at: www.boem.gov/shell-chukchi/

The Bureau of Ocean Energy Management (BOEM) promotes energy independence, environmental protection and economic development through responsible, science-based management of offshore conventional and renewable energy resources.

BP Pulse, BP’s electric vehicle charging brand, has acquired the freehold of one of the largest truck stops in Europe, Ashford International Truckstop in Kent, as part of its drive to support HGV fleets as they electrify.

Strategically located off junction 10 and 10a of the M20, Ashford International Truckstop is close to Dover, the UK’s busiest ferry port, and LeShuttle Freight via the Eurotunnel terminal in Folkestone. Approximately 3.5 million heavy goods vehicles (HGVs) travel across the channel via the port of Dover and Eurotunnel each year. The acquisition presents bp with the opportunity to help meet the comprehensive needs of UK and European HGV operators transitioning to EVs.

The site has the capacity to host approximately 20 mega-watt chargers (MCS), 10 x 400kW and 125 x 100 kW chargers. This capacity is subject to power connection availability and the pace of electrification in the UK and European road freight sector. It could enable bp pulse to install a range of charging options suitable for both on-the-go and overnight HGVs.

“For fleet operators to consider going electric, they must be confident that the infrastructure is in place to support them. That is why we are thrilled to have secured the land to a crucial site near Dover as we strive to meet the evolving needs of HGV operators transitioning to EVs.”

Stefan von Dobschuetz, general manager, bp pulse Europer

The first mega-watt chargers are expected to be in place from 2026. A mega-watt charger has the potential to fully charge an HGV in up to 45 minutes, enabling an onward range of ~310 miles (500km) in a single charge1, depending on EV model, battery, the weather and driving conditions.

Stefan von Dobschuetz, general manager bp pulse Europe, said: “For fleet operators to consider going electric, they must be confident that the infrastructure is in place to support them. That is why we are thrilled to have secured the land to a crucial site near Dover as we strive to meet the evolving needs of HGV operators transitioning to EVs. The location of this truck stop aligns with our mission to provide accessible and strategically positioned charging infrastructure for our customers along the major truck corridors in Europe.

“Now we need to unlock the EV charging potential at this site. We look forward to working with national energy infrastructure partners to facilitate timely power connections for our ambitious project.”

Ashford International Truckstop is currently owned by the GSE Group. The 21-acre site already offers 660 secure parking bays and convenience services for HGV drivers. As part of the agreement, bp pulse will lease back the site to Ashford International Truckstop Ltd, part of GSE Group, to operate the existing site facilities and secure parking on a long-term lease. bp pulse will operate and manage the EV charging infrastructure.

Darrell Healey, chairman of GSE Group, said: “We know the industry, including many of our clients, want to go electric. They will need convenient and quick charging infrastructure in the right locations, which is why the combination of the truck stop at Ashford and bp pulse works so well.

“Our knowledge and experience of operating arguably the best truck stop in the UK, combined with bp pulse’s capabilities in building the EV-charging infrastructure required by our existing and future customers, is a perfect partnership. We’re looking forward to seeing our site evolve and serve such E-trucks and to continue to explore other potential truck stop projects in the UK.”

bp aims to create a network of mobility hubs along key logistics corridors across UK and Europe, providing freight operators with a range of energy options, including traditional fuels to support its fleet customers at every stage of their decarbonization journey.

Already in action, bp is supporting the decarbonization of road transportation.

“bp fleet solutions provide innovative energy and mobility solutions to help fleets of all shapes and sizes decarbonise, today, tomorrow, together. Across Europe, we support 1.8 million fleet drivers providing fuels, charging and convenience offers across key logistics routes. This acquisition will be a great addition to our offering,” said Alex Eftimiu, vice president Fleet Europe, bp.

In January 2023, bp launched Europe’s first truck-charging corridor along a 600km stretch of the Rhine-Alpine corridor across Germany. 21 Aral pulse (bp’s brand in Germany) EV truck stops are already operational in Germany enabling an electric truck to cover over 750km across multiple routes throughout Germany. Once the EV chargers are installed on the acquired site, bp pulse is set to establish a link between the UK and its German charging corridor to further encourage HGV operators to shift to electric.

The acquisition is a tangible illustration of bp’s strategy to increase investment in the transition to lower carbon energy while also keeping oil and gas flowing where it’s needed today. EV charging is just one of bp’s five ‘transition growth engines’, alongside convenience, bioenergy, hydrogen and renewables and power.

bp welcomes inquiries from property developers and landowners interested in collaborating to facilitate the growth of its EV charging network across Europe. For more information or to explore opportunities, please contact landenquiries@bp.com.

1 Mercedes-Benz Trucks celebrates world premiere of the battery electric long-haul truck eActros 600

About BP
BP’s purpose is to reimagine energy for people and our planet. It has set out an ambition ‎to be a net zero company by 2050, or sooner and help the world get to net zero, and a ‎strategy for delivering on that ambition. For more information visit bp.com.‎ 

We’re investing in today’s energy system, which is mainly oil and gas – and, not or – in our transition and the energy transition. And while we’re mostly in oil and gas today, we’ve increased global investment in our lower carbon, convenience stores and power trading businesses (what we call our ‘transition growth engines’) from around 3% in 2019 to around 30% in 2022. You can find out more at: Our transformation.

About BP Pulse
BP Pulse is bp’s electric vehicle (EV) charging business. It is one of the leading rapid and ultra-fast public EV charging networks in the UK and operates the largest number of sites with ultra-fast charging in Germany.

bp’s EV charging journey started in 2018 with the acquisition of Chargemaster Ltd in the UK. Rebranded to bp pulse, its presence has extended rapidly across the world to China, Germany, Netherlands and the US.

Focused on fast, reliable charging, bp pulse is rolling out charge points to consumers and commercial fleets wherever they need them – including at bp forecourts.

EV charging is one of the key growth engines driving bp’s transformation to an integrated energy company. The company aims to grow its network of public EV charging points by 2030 to over 100,000 worldwide.

BP and Woolworths Group (Woolworths) today announced that they have agreed to enter a strategic partnership that will include BP acquiring, rebranding and operating Woolworths’ existing 527 fuel and convenience sites across Australia, as well as an additional 16 sites currently under construction, for a total consideration of US$1.3 billion.

The partnership is an exciting prospect for Australian customers with BP and Woolworths set to deliver a fuel and convenience store and loyalty offer unlike any other in Australia. Key features of the offer are:

Reinventing convenience with a truly differentiated offer, to be branded Metro at BP, that includes a strong seasonal selection of high quality, ready-to-eat and take home fresh food products.
It is proposed that BP will become a cornerstone partner in Woolworths’ Everyday Rewards loyalty program, inviting customers to earn rewards points on both fuel and in-store purchases at any BP site in Australia.
For the first time, Woolworths’ Everyday Rewards cardholders would also be able to redeem points at the register as discounts on purchases at BP.
BP will maintain the Woolworths’ 4 cent per litre redemption offer in the 527 fuel and convenience sites acquired from Woolworths, and will expand this offer to additional BP sites, giving customers even more reasons to enjoy BP’s quality fuels.
Tufan Erginbilgic, Chief Executive, BP Downstream, commented, “The development of high-quality, differentiated fuel and convenience offers is a key part of BP’s strategy – allowing us to grow our marketing business in important global markets.

“We are excited to be establishing this strategic partnership with Woolworths, one of Australia’s largest supermarket retailers. Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the UK, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles. The combination of all aspects of this strategic partnership is expected to create significant value for BP.”

Initially, BP and Woolworths will launch a Metro at BP pilot program across 16 BP fuel and convenience sites, allowing both companies to test the offer and generate customer feedback. A second phase will see a further expansion of the Metro at BP format across more than 200 sites.

Andy Holmes, President BP Australia, added, “Over the past three years BP has significantly invested in its fuel and convenience sites across Australia. The opportunity to grow our retail business and work alongside Woolworths, with their strength in grocery and food innovation, will further enhance our customers’ fuel and convenience retail experience.

“We enjoy strong, successful commercial partnerships with our many dealers, distributors and suppliers and we look forward to sharing the benefits this transaction brings to us all.

“While Woolworths fuel business has solid foundations, the future combination of BP’s international experience and expertise in fuel and convenience offers with Woolworths high quality food products and loyalty program means that BP expects to realise significant improvements in value.”

The acquisition of Woolworths’ fuel and convenience sites will add to BP’s existing network of 350 company-owned retail sites across Australia. BP also supplies fuel and branding to a further 1,000 sites owned by independent business partners.

Brad Banducci, Woolworths Group Chief Executive Officer, said, “For Woolworths customers our Strategic Partnership with BP will enable them to enjoy our leading Woolworths Reward program at BP fuel sites and ensure they continue to benefit from the 4cpl fuel discount. Longer term, it will also provide them with a compelling, new “food-on-the go” offering through the roll-out of the “Metro at BP” concept.”

The transaction, which is subject to approval from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB), is expected to complete over the next 12 months.

BP in Australia
There are currently 1,400 BP branded fuel and convenience retail sites across Australia, of which 350 are company-owned. The rest are branded BP but owned by independent business partners.
BP is one of the largest suppliers of fuel to Australia’s industrial and commercial sectors.
BP is one of Australia’s most significant investors, most visibly through our terminals, retail fuel sites and refinery, as founding participants in the North West Shelf and Browse joint ventures and operator of exploration permits in the Carnarvon Basin. We continue to invest in local economies, growing jobs and building infrastructure in metropolitan and regional Australia.
BP is engaged in the exploration and production of oil, natural gas and liquefied natural gas and the refining and marketing of petroleum and lubricant products.
For more information about BP in Australia please visit www.bp.com.au

Woolworths in Australia
Founded in 1924, Woolworths Group is Australia’s largest retailer with more than 3,500 stores across Australia and New Zealand that span food, drinks, petrol, general merchandise and hotels.
Woolworths Group manages some of Australia’s most recognised and trusted brands – including Woolworths, Countdown, Dan Murphy’s, BWS and BIG W – and endeavours to create a world class experience for customers across all of its stores and platforms.
In FY’16, Woolworths Group generated more than $58 billion in revenue.
The Woolworths Group is a proud, home-grown Australian business, an employer of more than 205,000 people, and a committed business partner of many thousands of local farmers, producers and manufacturers.

HOUSTON – BP today announced an oil discovery at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico.

The discovery well, on Keathley Canyon Block 10, was drilled by operator Chevron on behalf of the Guadalupe co-owners. The well encountered significant oil pay in Paleogene age Wilcox Sands.

Located approximately 180 miles off the Louisiana coast in 3,992 feet of water, the well was drilled to a total depth of 30,173 feet. More tests are being conducted on the well and additional appraisal activity will be needed to determine the extent of the resource.

The Guadalupe co-owners are: BP Exploration & Production Inc, with a 42.5 percent working interest; Chevron U.S.A. Inc. (operator), 42.5 percent; and Venari Resources LLC, 15 percent.

BP has previously made three discoveries in the emerging Paleogene trend in the deepwater U.S. Gulf of Mexico: Gila in 2013, Tiber in 2009 and Kaskida in 2006.

“BP is pleased to be a part of another discovery in the Paleogene trend, an area of increasing importance to the future of the Gulf of Mexico and to America’s energy security,” said Richard Morrison, regional president of BP’s Gulf of Mexico business. “This again highlights BP’s strength in exploration and our commitment to the deepwater U.S. Gulf of Mexico where we are the leading energy investor and leaseholder, and a top oil and natural gas producer.”

BP is a leading producer in the deepwater Gulf and has been the largest investor in the region over the last ten years. BP is also the leading leaseholder in the deepwater U.S. Gulf of Mexico. BP directly employs more than 2,300 people in its Gulf of Mexico business and supports tens of thousands of additional jobs in the region.

About BP:
Over the past five years, BP has invested nearly $50 billion in the U.S. – more than any other energy company. BP is a leading producer of oil and gas and provides enough energy annually to light the entire country for a year. Employing approximately 20,000 people in all 50 states, BP supports more than 260,000 jobs total through all of its business activities. For more information, go to www.bp.com/us.

WASHINGTON – BP’s business activities in the US helped generate close to $143 billion in economic impact in 2013 and currently support nearly 220,000 American jobs, according to the company’s US Economic Impact Report 2014.

Released today, BP’s new report provides a detailed, state-by-state look at the breadth and impact of the company’s activities in America. Since 2009, BP has invested nearly $50 billion, making it America’s largest energy investor. In 2013 alone, BP spent $22 billion with vendors across the country on products and services, ranging from offshore drilling rigs to gasoline-producing equipment for its refineries.

“No energy company has invested more in the US over the past five years than BP,” said John Mingé, BP America chairman and president. “Our investments not only provide the energy to power the nation, but they also support hundreds of thousands of jobs that fuel the economy.”

BP’s business investments in the US include oil and natural gas exploration and production, fuel and chemical refining, lubricants, shipping, trading, renewable energy production and cutting-edge technology research and development. The US also is home to a number of operations that serve BP’s global businesses, such as the Center for High-Performance Computing in Houston, which houses the world’s largest supercomputer for commercial research.

BP produces more than 628,000 barrels of oil equivalent a day – enough to light nearly the entire country. The company’s three northern-tier refineries in Indiana, Ohio, and Washington are together capable of processing more than 742,000 barrels of oil per day. Also, BP’s chemical and lubricant facilities supply materials necessary for modern life, including greases and engine oils marketed under the Castrol brand and chemicals used in fabrics and packaging.

In addition to physical assets and energy production, the US is home to nearly 40 percent of BP’s publicly traded shares and more BP employees than any other nation. The US also is a center for BP research and recruitment. The company will spend $60 million this year on academic research, educational initiatives, and recruitment activities at more than 50 US universities.

At the corporate level, BP contributes more than $30 million a year to charitable and nonprofit organizations such as United Way of America and the National Multiple Sclerosis Society. This includes contributions through BP’s unique Fabric of America program in which BP employees may annually designate $300 of corporate funds to a nonprofit organization of their choice within the United States. Since the fund’s 2007 inception, BP has given more than $26 million on behalf of our employees, helping to support roughly 19,000 organizations in all 50 states.

The investments and spending detailed in the report do not include costs associated with cleanup and restoration activities in the Gulf of Mexico, or claims payments related to the Deepwater Horizon accident.

To view or download BP’s full US Economic Impact Report 2014, please visit: www.bp.com/EIR.

BP in the US – By the Numbers:

Employees: More than 18,000 employees
Total Jobs Supported: Nearly 220,000 jobs
Employee Payroll and Benefits: $5 billion, including pensions and other post-employment costs
National Economic Impact Nearly: $143 billion in 2013
BP U.S. Investment since 2009: Nearly $50 billion – the most of any energy company
Money Spent with Vendors: More than $22 billion in 2013
Community Investment: $30 million in corporate contributions annually
About BP in the US:

Over the past five years, BP has invested nearly $50 billion in the US – more than any other energy company. BP is a leading producer of oil and gas and provides enough energy annually to light nearly the entire country for a year. Employing more than 18,000 people in all 50 states, BP supports around 200,000 additional jobs through all of its business activities. For more information, go to www.bp.com/EIR.

BP presents to investors its strategy and plans to the end of the decade and beyond for its Upstream oil and gas business.

The presentation, led by BP’s Upstream chief executive Lamar McKay, provides an in-depth and detailed account of how BP is managing its Upstream business and its distinctive strategy for the long term. The presentation also reviews the macro-environment and the context of recent developments in oil prices.

McKay and senior members of his upstream management team will share further insights into the depth and quality of the Group’s resource base and investment portfolio, which underpin BP’s long-term value proposition through the changes in the price environment.

“Although the current environment is challenging, BP is well-positioned to respond and manage our Upstream business for the long term,” said Lamar McKay. “We expect to see growth from our conventional and deepwater assets and an increasing contribution from gas. And we also have a quality pipeline of opportunities that we believe are capable of extending underlying growth well beyond 2020. Our focus throughout will remain firmly on safe operations, execution efficiency and greater plant reliability.”

BP also said today that, as part of its wider ongoing Group-wide programme to simplify across its Upstream and Downstream activities and corporate functions, it expects to incur non-operating restructuring charges of circa $1 billion in total over the next five quarters, including the current quarter. Details of these charges and further guidance on the programme are expected to be given with each quarter’s results.

Group Chief Executive Bob Dudley said: “We have already been working very hard over these past 18 months or so to right-size our organisation as a result of completing more than $43 billion of divestments. We are clearly a more focused business now and, without diverting our attention from safety and reliability, our goal is to make BP even stronger and more competitive.

“The simplification work we have already done is serving us well as we face the tougher external environment. We continue to seek opportunities to eliminate duplication and stop unnecessary activity that is not fully aligned with the group’s strategy.”

As an integrated group, not all BP’s businesses are equally exposed to the oil price. About one third of its Upstream projects around the world are operated under production sharing contracts and it is also investing in high quality gas projects which are typically less sensitive to oil price movements. Importantly, while BP approves projects at $80 a barrel, it also already tests each at $60 a barrel to understand the resilience of the portfolio at a range of prices. It will also continue to consider lower price sets as appropriate.

BP also has a strong balance sheet, with historically low gearing of 15% at the end of the third quarter of 2014, which provides time and flexibility to adjust to changes in the environment.

Across the Group, BP has said it will be looking to pare or re-phase capital expenditure without compromising safety or future growth. In October, BP told investors this could result in reductions of $1 billion to $2 billion in capital expenditure across the Group in 2015 against guidance of $24 billion to $26 billion laid out in March. This will be reviewed further as part of the 2015 plan, recognising the current outlook for oil prices.

When oil prices fall, there is typically deflation in the industry as a whole. Together with its already greater focus on streamlining activity, this would be expected to further help BP align its cost base with its smaller footprint and reduced activity levels.

The Upstream team will today detail the business’s track record of delivery as part of the Group’s 10-point plan. Amongst the milestones, over the last three years, the Upstream has improved safety and reliability of operations; doubled exploration drilling activity; and rebuilt Gulf of Mexico production. It has also increased the rate of reinvestment; made $32 billion of divestments in the Upstream business alone; and, by year end, also expects to have delivered 15 new upstream projects with average operating cash margins double 2011 average.

Between now and 2020, the Upstream team’s focus will be on delivery, through safe and reliable operations, strong execution in the existing base business, and the start-up of a suite of new projects which are expected to be capable of adding over 900,000 barrels of oil equivalent a day of net incremental production to BP’s portfolio by 2020. BP will also be progressing opportunities expected to continue to drive underlying growth into the next decade as it builds out its well-established conventional and deepwater oil positions and a distinctive and material portfolio of gas options.

The BP Statistical Review of World Energy 2014 – launched today at the World Petroleum Congress meeting in Moscow – reveals how the world of energy echoed broader global themes in 2013. Emerging differences in global economic performance, geopolitical uncertainty and ongoing debates about the proper roles of government and markets are all reflected in its data.

Global energy demand accelerated in 2013 but, reflecting the weakness of the global economy, growth of 2.3% remained slightly below the historical average. Within this global picture, however, shifts in energy consumption mirrored those in the world’s economic patterns.

Energy consumption in the emerging economies grew below their long-term average rate, rising by 3.1%, driven by slower growth in China. However, consumption in the mature economies of the OECD grew by a higher-than-average rate of 1.2% – entirely as a result of strong growth in the US. As a result the gap between growth in the OECD and non-OECD narrowed to levels not seen since 2000.

Nonetheless, the emerging economies continue to dominate the growth in global energy demand, accounting for 80% of growth last year and nearly 100% of growth over the past decade.

The Review – the publication’s 63rd annual edition – also illustrates how geopolitical events in a number of countries continued to impact oil production in 2013, with Libya suffering the largest single decline in the face of renewed civil unrest. Those disruptions, however, were offset by a big increase in oil production in the US – driven by the massive investment in production from shale and other ‘tight’ formations. As a net result, average oil prices remained unusually stable – albeit at levels exceeding $100 per barrel for a third consecutive year.

Speaking at today’s launch in Moscow, BP Group Chief Executive Bob Dudley said: “The Review again demonstrates the strength of the flexible global energy system in adapting to a changing world. The major disruptions to production seen throughout 2013 were balanced by continued rises in production elsewhere. This underlines the importance of continuing to secure these new supplies through continued access to new resources, policies to encourage markets and investment, and the application of new technologies worldwide.”

The developments also highlighted the critical importance of both policy and market forces in delivering new supplies. As BP Chief Economist Christof Rühl also noted, “The huge investments seen in the US have been encouraged and enabled by a favourable policy regime. And this has resulted in the US delivering the world’s largest increase in oil production last year. Indeed, the US increase in 2013 – up by 1.1 million barrels a day – was one of the biggest annual oil production increases the world has ever seen.”

Elsewhere, the impact of policy on energy was also seen in continued robust growth in renewable energy – albeit from a low base. Renewables now account for more than 5% of global power output and, including biofuels, for nearly 3% of primary energy consumption. However, the challenge of sustaining expensive subsidy regimes has become visible where penetration rates are highest, namely in the below-average growth of Europe’s leading renewable producers, who are grappling with weak economic growth and strained budgets.

Review highlights – energy developments
Global primary energy consumption increased by 2.3% in 2013, growing faster than in 2012 (+1.8%) but below the 10-year average of 2.5%.
All fuels except oil, nuclear power and renewables in power generation grew at below-average rates. Growth was below average for all regions except North America.
Oil remains the world’s leading fuel, with 32.9% of global energy consumption, but it lost market share for the 14th consecutive year and its current market share is once again the lowest in our data set, going back to 1965.
Emerging economies accounted for 80% of the global increase in energy consumption – even though growth in these countries was a below average 3.1%. OECD consumption rose by an above-average 1.2%.
Robust US growth (+2.9%) accounted for all of the net increase in the OECD and consumption in the EU and Japan fell by 0.3% and 0.6%, respectively.
Oil

Dated Brent averaged $108.66 per barrel in 2013, a decline of $3.01 per barrel from the 2012 level.
Global oil consumption grew by 1.4 million barrels per day (b/d), or 1.4% – just above the historical average.
Countries outside the OECD now account for the majority (51%) of global oil consumption and they once again accounted for all of the net growth in global consumption. OECD consumption declined by 0.4%, the seventh decrease in the past eight years.
The US (+400,000 b/d) recorded the largest increment to global oil consumption in 2013, outpacing Chinese growth (+390,000 b/d) for the first time since 1999.
Global oil production did not keep pace with the growth in global consumption, rising by just 560,000 b/d or 0.6%. The US (+1.1 million b/d) recorded the largest growth in the world and the largest annual increment in the country’s history for a second consecutive year.
The US accounted for nearly all (96%) of the non-OPEC output increase of 1.2 million b/d (the strongest since 2002) to reach a record 50 million b/d.
Global refinery crude runs increased by a below-average 390,000 b/d or 0.5%. Non-OECD countries accounted for all of the net increase, rising by 730,000 b/d.
OECD refinery throughputs declined by 340,000 b/d, the seventh decline in the past nine years despite an increase of 320,000 b/d in US refinery runs, as the US continued to ramp up net product exports.
Global oil trade in 2013 grew by 2.1% or 1.2 million b/d – among importers, growth in Europe and emerging economies more than offset declines in the US and Japan.
Global proved reserves of oil increased to 1687.9 billion barrels at the end of 2013, sufficient to meet 53.3 years of global production.
Natural gas

World natural gas consumption grew by 1.4%, below the historical average of 2.6%. As with primary energy, consumption growth was above average in the OECD countries (+1.8%) and below average outside the OECD (+1.1%).
Growth was below average in every region except North America. China (+10.8%) and the US (+2.4%) recorded the largest growth increments in the world, together accounting for 81% of global growth.
India (-12.2%) recorded the largest volumetric decline in the world, while EU gas consumption fell to the lowest level since 1999.
Globally, natural gas accounted for 23.7% of primary energy consumption.
Global natural gas production grew by 1.1%, which was well below the 10-year average of 2.6%.
Growth was below average in all regions except Europe and Eurasia. The US (+1.3%) remained the world’s leading producer, but both Russia (+2.4%) and China (+9.5%) recorded larger growth increments in 2013.
Global natural gas trade grew by 1.8% in 2013, well below the historical average of 5.2%. Pipeline shipments grew by 2.3%.
LNG’s share of global gas trade declined slightly to 31.4% – and international natural gas trade accounted for 30.9% of global consumption.
Global proved reserves of natural gas increased to 185.7 trillion cubic meters (tcm), sufficient to meet 54.8 years of global production.
Other fuels

Coal consumption grew by 3% in 2013, well below the 10-year average of 3.9% but it is still the fastest-growing fossil fuel.
Coal’s share of global primary energy consumption reached 30.1%, the highest since 1970. Consumption outside the OECD rose by a below-average 3.7%, but still accounted for 89% of global growth.
Global nuclear output grew by 0.9%, the first increase since 2010. Nuclear output accounted for 4.4% of global energy consumption, the smallest share since 1984.
Global hydroelectric output grew by a below average 2.9%, and accounted for 6.7% of global energy consumption.

Renewable energy sources – in power generation as well as transport – continued to increase in 2013, reaching a record 2.7% of global energy consumption, up from 0.8% a decade ago.
Globally, wind energy (+20.7%) once again accounted for more than half of renewable power generation growth and solar power generation grew even more rapidly (+33%), but from a smaller base.
Global biofuels production grew by a below-average 6.1% (80,000 b/doe), driven by increases in the two largest producers: Brazil and the US.

This is courtesy of www.bp.com

The project will feature the construction of a normally unmanned platform together with corresponding subsea infrastructure, a first for BP Trinidad and Tobago. Fabrication is proposed to begin in 4th quarter, 2014.

The Juniper facility will take gas from the Corallita and Lantana fields located 50 miles off the south east coast of Trinidad in water-depth of approximately 360 feet. The development will include five subsea wells and will have a production capacity of approximately 590 million standard cubic feet a day (mmscfd). Gas from Juniper will flow to the Mahogany B hub via a new ten kilometer flowline.

Juniper will become bpTT’s 14th offshore production facility. Drilling is due to commence in 2015 and first gas from the facility is expected in 2017.

BPTT Regional President Norman Christie said: “Juniper demonstrates bpTT’s commitment to Trinidad and Tobago over the long-term. This development is an important part of the future for bpTT because it will assist the company in meeting its natural gas commitments to the market. It is also an important step change for bpTT as it introduces subsea infrastructure to continue the development of its resources in the Columbus Basin.”

BPTT operates in 904,000 acres off Trinidad’s east coast. BPTT has 13 offshore platforms and two onshore processing facilities.

The Juniper project has been undertaking Front End Engineering and Design (FEED) activities since 2012.

www.bp.com

BP announced today that it is now operating the world’s first robotic coreflooding system. The Core Flood Robot is the most recent addition to BP’s programme of enhanced oil recovery (EOR) research facilities.

Coreflooding is one of the most important techniques used to identify and evaluate EOR technologies. It measures the effectiveness of water or gas injected into an oil-bearing rock sample to displace oil. This can be used to assess the potential for water flooding in an oil field.

“The EOR technologies being developed by BP are vitally important to help increase global oil supplies,” said Ahmed Hashmi, BP’s head of upstream technology. “We believe this step-change in our core-flooding capability will hugely improve the speed and efficiency with which we can deploy new technologies to recover more oil from reservoirs.”

BP has had a large-scale in-house coreflooding laboratory in the UK for many years, where reservoir samples can be tested at high pressure and temperature ‘reservoir conditions,’ and different reservoir types can be evaluated. The new robotic coreflood system operates for 24 hours a day, seven days a week.

The complete automation and work-flow optimisation in the new Core Flood Robot enables hundreds of coreflood tests to be performed each year, rather than dozens as in the past, and greatly enhances BP’s ability to evaluate a continuous stream of new EOR technologies. This should reduce the time spent developing new technologies by at least 50 per cent.

The Core Flood Robot is operated by the same team that developed LoSal® EOR, BP’s breakthrough reduced salinity waterflooding technology. More than 45 coreflood tests were performed in validating the LoSal EOR effect, before field trials in Alaska. BP and its partners are now deploying the technology at scale on the Clair Ridge project in the North Sea. BP was awarded the 2014 Offshore Technology Conference Distinguished Achievement Award for the Clair Ridge LoSal EOR project, recognising the company’s specialist EOR technologies.

SAN FRANCISCO/SAN RAMON, Calif. – Brightmark RNG Holdings LLC is positioned to expand renewable natural gas (RNG) production with five new anaerobic digestion dairy farm projects in western Michigan, designed to convert animal waste to renewable fuels.

Brightmark RNG Holdings LLC is a joint venture between Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), and Brightmark Fund Holdings LLC, a subsidiary of Brightmark LLC. The Chevron-Brightmark renewable natural gas joint venture operates a nationwide system of RNG joint venture projects.

The Castor Project, which processes manure from one large digester, is Brightmark and Chevron’s second-largest RNG project. Other Michigan projects in the joint venture include Meadow Rock, Red Arrow, Willow Point, and SunRyz.

“We’re excited to work with our partner Chevron and farmers in Michigan to progress the development of our RNG projects, which are designed to drive both lower carbon intensity outcomes for organic waste and investments in local farmers and their surrounding communities supporting lower carbon solutions,” said Bob Powell, founder and chief executive officer of Brightmark LLC. “We are growing our network of strategic relationships with farmers across the country in order to advance the reduction of the agricultural industry’s carbon intensity by seeking renewable fuels from new sources and considering circularity challenges at increasing scale.”

Anaerobic digestion is a circular technology that captures animal manure from partner sites and converts it into renewable natural gas, fertilizer, and water that can be recycled back into agricultural and energy systems for reuse. Including these Michigan projects, the Chevron-Brightmark RNG joint venture has a total of 20 RNG projects across the country.

“Transitioning to a lower carbon future is dependent, in part, on ambitious innovations and pragmatic solutions,” said Andy Walz, president of Chevron Americas Products. “Launching these anaerobic digestion projects with Brightmark can help us develop new solutions for transportation, industry, and customers who rely on our products.”

The net reduction of greenhouse gas emissions from the manure processed at the anaerobic digestion dairy farm projects in Michigan is equivalent to planting over 179,000 acres of forest each year. Additionally, these projects are expected to reduce land application of raw manure and improve odor, water quality, and nutrient management practices at farms.

“We have always strived to be stewards to our land, community, and industry. Brightmark is our valued partner in our efforts to advance a lower carbon energy business.” stated Greg Stahl, lead farmer of The Castor Project. “We look forward to working with Brightmark and Chevron on these renewable natural gas projects in our shared pursuit to create value from underutilized resources.”

For more information on Brightmark RNG Holding LLC’s renewable natural gas projects, please visit here.

About Brightmark
Brightmark LLC is a circular innovation company with a mission to Reimagine Waste, developing solutions that make a positive environmental impact on the world and communities where it operates. Brightmark’s established anaerobic digestion and proprietary plastics renewal technologies make the company a veteran in a burgeoning marketplace. The company works across sectors, including agriculture, healthcare, manufacturing, and transportation to decarbonize operations, displace reliance on virgin fossil fuels, and solve circularity challenges at scale.

Committed to systems change in waste, Brightmark works collaboratively to address gaps where traditional methods fall short through its innovative closed-loop approach to recycling and renewables. To date, Brightmark has repurposed more than four million pounds of landfill-bound plastics and reduced 500,000 tons of CO2eq from the atmosphere through anaerobic digestion. The company is also deeply committed to conservation, education, and sustainability career training by partnering with local and national organizations that help protect land and oceans. For more information, visit www.brightmark.com.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals, and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations, and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets, and other emerging technologies. More information about Chevron is available at www.chevron.com.

About The Castor Project
Three Western Michigan farms have each signed supply agreements indicating their intent to provide the company with dairy manure from their herds that will serve as feedstock for new anaerobic digesters to be built on Beaver Creek Farm. The digesters will capture, extract, and clean the methane in the manure, then convert it into renewable natural gas (RNG) and inject it into a nearby gas grid pipeline. The project is part of the recently announced joint venture Brightmark RNG Holdings LLC, between Brightmark Fund Holdings LLC and Chevron U.S.A. Inc.

Brightmark Media Contact:
Aunny De La Rosa-Bathe
abathe@apcoworldwide.com

Chevron Media Contact:
Ross Allen, Chevron
External Affairs
media@chevron.com

BHP Billiton is meeting the challenges of the global iron ore market through a focus on productivity and a “relentless pursuit of the basics” in its Western Australia Iron Ore (WAIO) operations.

In a key note address at this year’s Global Iron Ore and Steel Forecast Conference, Asset President WAIO, Edgar Basto, spoke to the global market dynamics affecting one of Australia’s most important exports.

“Following a decade of strong growth driven by fixed assets investments, the Chinese economy is transitioning to a more consumer and services based model, with future growth likely to be inherently less steel intensive,” he said.

“The Chinese Government’s steel industry restructure plans will take time to implement but it’s important to note a reduction in excess capacity will mean improved sustainability of the industry and our customers are likely to benefit from any consolidation.”

Mr Basto reiterated that the mining industry would need to continue to meet the challenges of a lower price environment through productivity.

“Our structured approach to safely increasing the availability, utilisation and rate of our existing infrastructure will support continued productivity improvements at WAIO,” he said.

“We continue to increase our productivity in Port and Rail as we approach our targeted run rate of approximately 270 million tonnes per annum.

“This has been achieved through a range of measures such as the optimisation of our pit-to-port scheduling strategy and alignment of maintenance shutdowns across our mines, port and track.”

Mr Basto said BHP Billiton’s new Operating Model would also support safe delivery of further productivity gains from WAIO’s Tier 1 asset base in the Pilbara.

“Our productivity drive has supported an EBITDA margin of over 50 per cent at WAIO despite the iron ore price halving since 2012,” he said.

“Through the new Operating Model we will deliver faster replication of leading practices and improved technologies across all of BHP Billiton’s global operations as well as a major reduction in the costs of our functions.”

Mr Basto reinforced the Company’s commitment to Western Australia and its local communities.

“WAIO remains a strong supporter of the communities in which we operate, having committed A$300 million over the past five years to health, education and Indigenous development programs and community infrastructure.

“We are proud of the contribution we have made, and continue to make in WA. Despite the challenging market conditions faced by the industry, BHP Billiton is unwavering in its commitment to the State and our local communities.”

St. Louis, MO/ SAN RAMON, Calif./ – March 4, 2024 – Bunge (NYSE:BG) and Chevron (NYSE: CVX) today announced approval of a final investment decision for their joint venture Bunge Chevron Ag Renewables LLC to build a new oilseed processing plant adjacent to its existing processing facility located on the Gulf Coast in Destrehan, LA. The announcement was celebrated with a groundbreaking event at the site.

The plant features a flexible design, intended to allow it to process soybeans as well as softseeds, including novel winter oilseed crops, such as winter canola and CoverCress, among others. Expected to be operational in 2026, the processing facility aims to add scale and efficiencies to Bunge Chevron Ag Renewables, that will allow the company to better meet the increased market demand for renewable fuel feedstocks. The plant is also intended to support the growing feed and protein markets through the production of meal products.

“This new facility is another step in our long-term strategy to improve our capabilities at scale for the renewable fuels market and to reduce the carbon intensity of our own and our customers’ value chains,” said Luciano Salvatierra, Bunge’s Senior Vice-President, Renewable Fuels.

The expansion is expected to create more than 150 construction jobs and add 30 new jobs when the plant is operational.

“Having greater ability to process softseeds, including novel winter oilseed crops, will help advance our innovation in the feedstock space and meet the growing demand for renewable fuels,” said Stacey Orlandi, director, Manufacturing, Chevron Renewable Energy Group. “Investments like this one help support farmers and consumers while reducing the lifecycle carbon intensity for transportation fuels.”

Bunge Chevron Ag Renewables is focused on developing renewable fuel feedstocks leveraging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in renewable fuels production and marketing. Under the joint venture agreement, Bunge operates the JV’s processing plants in Destrehan and Cairo, Ill.; Chevron has purchase rights for the oil to use as feedstock to manufacture transportation fuels with lower lifecycle carbon intensity.

About Bunge
At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to strengthen global food security, increase sustainability where we operate, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to develop tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company has its registered office in Geneva, Switzerland and its corporate headquarters in St. Louis, Missouri. We have approximately 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.

ST. LOUIS, MO and SAN RAMON, Calif., July 5, 2023 – Bunge (NYSE: BG) and Chevron’s Renewable Energy Group Inc., a subsidiary of Chevron Corporation (NYSE: CVX), acquired Chacraservicios S.r.l., based in Argentina from the Italian-based Adamant Group. This latest investment in novel seeds adds a new oil source in Bunge and Chevron’s global supply chains and will help both companies meet the growing demand for lower carbon renewable feedstocks. Terms of transaction were not disclosed.

“Across our business, our decision-making process includes a focus on carbon. Investing in this new oilseed crop is another step towards our goal of expanding lower carbon intensity feedstocks to help meet the growing demand for renewable fuels,” said Fernando Candia, Bunge’s Vice-President Carbon Solutions. “As a leader in oilseed processing, we are pleased to bring innovative crop solutions to farmers and process it into sustainable solutions for consumers.”

Founded in 2003, Chacraservicios was bought by Adamant Group, which invested through first-stage development of the company. Chacraservicios is focused on the cultivation of Camelina Sativa, a cover crop with high oil content, that benefits farmers, consumers and the environment. Bunge plans to provide Chacraservicios crush tolling and management services.

“Agricultural innovation is powering renewable fuels development around the world, and opportunities like this are helping Chevron expand our portfolio of affordable, reliable and lower carbon fuels,” said Natalie Merrill, senior vice president for business development with Chevron Renewable Energy Group. “Together with Bunge, Chevron’s Renewable Energy Group looks forward to working with the Chacraservicios team on meal and oil processing innovations.”

The companies expect to continue to explore opportunities to increase their participation in the development of next generation, renewable fuels and advance a lower carbon energy future.

About Bunge
At Bunge, our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to put quality food on the table, increase sustainability where we operate, strengthen global food security, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to improve the productivity and environmental efficiency of agriculture across our value chains and to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to create and reimagine the future of food, developing tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company is headquartered in St. Louis, Missouri, and we have more than 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

Ross Allen, Chevron External Affairs
media@chevron.com

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets and other emerging technologies. More information about Chevron is available at www.chevron.com.

TREVOSE, PA. —Federated Co-Operatives Limited’s Co-op Refinery Complex in Regina, Saskatchewan, was named Industrial Water Project of the Year at the annual Global Water Awards. The award recognizes the project, commissioned in 2016, that represents the most impressive technical or environmental achievement in the field of industrial water.

Using GE Water & Process Technologies’ advanced water recycling equipment, the Co-op Refinery Complex became the first refinery in North America to treat 100 percent of its wastewater on-site and then recycle the treated effluent for steam production. Steam is used for heating, hydrogen production, to power equipment and for cooling towers.

“We are honored that our Co-op Refinery Complex was named Industrial Water Project of the Year. Water is a precious resource and our wastewater improvement project allows us to be efficient and sustainable by recovering every drop of water—2 million gallons of wastewater daily. With GE’s technology, we now recycle all of our wastewater in a socially responsible and environmentally sound way to conserve water for Regina and the entire province of Saskatchewan,” said Gil Le Dressay, vice president, refinery operations, Federated Co-Operatives Limited.

Heiner Markhoff, president and CEO of GE Water & Process Technologies, accepted the award last week in Madrid during Global Water Intelligence’s Global Water Summit 2017.

“We are very proud that this project, which uses our advanced wastewater treatment technologies, has won this prestigious award,” said Markhoff. “Federated Co-Operatives Limited’s outstanding commitment to environmental sustainability should be an enduring example for the entire oil refining industry.”

Several years ago, the refinery expanded its operations to produce 30,000 more barrels of oil per day (BPD) taking it from 100,000 BPD to a 130,000-BPD facility, which increased its water usage. The refinery’s current water source is a blend of well water and city water, and restrictions on water use mandated that the Co-op Refinery Complex find a new source of water. Water & Process Technologies offered a solution combining ZeeWeed* membrane bioreactor technology and a high-efficiency reverse osmosis system to recycle and reuse 2 million gallons of wastewater a day. In addition to the water reuse solution, Water & Process Technologies provides the refinery with wastewater specialty chemicals and monitoring solutions to provide system optimization.

With a fully operational wastewater improvement project, the Co-op Refinery Complex’s reliance on raw water from the city of Regina aquifer will decrease by the equivalent of 3,100 households in Regina on an annual basis. By recycling 100 percent of its wastewater on-site, the Co-op Refinery Complex significantly decreases volatile organic compound emissions from its wastewater ponds and reduces the associated nuisance odors.

Established in 2006 by Global Water Intelligence magazine, the awards recognize the most important achievements in the international water industry within several categories and reward those initiatives in the water, wastewater and desalination sectors that are moving the industry forward through improved operating performance, innovative technology adoption and sustainable financial models.

About Water & Process Technologies
with operations in 130 countries and employing over 7,500 people worldwide, GE’s Water & Process Technologies applies its innovations, expertise and global capabilities to solve customers’ toughest water and process challenges. It offers a comprehensive set of chemical and equipment solutions, as well as predictive analytics, to enhance water, wastewater and process productivity. Water & Process Technologies strives to enable customers to meet increasing demands for clean water, overcome scarcity challenges, strengthen environmental stewardship and comply with regulatory requirements.

About GE
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the “GE Store,” through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

The Canpotex Board of Directors has approved a new methodology for determining the amount of increased productive capacity resulting from such completed major mine expansions as its producers may independently decide to undertake. The aggregate productive capacities of Canpotex producers are used in determining their respective export sales entitlements through Canpotex.

Until now, Canpotex producers have had to demonstrate increases in productive capacity of existing mines from completed major mine expansions through an independently audited sustained production run of 90 operating days, scheduled at the producer’s discretion. The new methodology will instead rely on an independent engineering firm and approved protocols to calculate productive capacity.

Audit protocols employed by the independent engineer will consider historical data and designed increases tested against a set of detailed parameters. Both conventional and solution mine audit protocols will also include a short 10- to 14-day production run scheduled at the producer’s discretion to validate audit results.

Although the new audit procedures are intended to replace the need for a more sustained production run to determine increased productive capacity resulting from a completed major mine expansion, a Canpotex producer which is dissatisfied with the engineering audit results will still be able to thereafter elect to revert to the audited 90-day run procedure and have those operating results used to calculate the increased productive capacity of its mine resulting from the major mine expansion. The new procedures also will not apply to such major mine expansions that have previously completed a 90-day production run to demonstrate the mine’s increased productive capacity, or which may be in the process of conducting a 90-day production run.

Canpotex, with its head office in Saskatoon, is Canada’s largest mineral exporter. With its extensive supply chain network and global reach, Canpotex markets Canadian potash to approximately 40 countries around the world.

Wellington, New Zealand, – Chevron New Zealand Exploration Ltd., a Chevron Corporation subsidiary, today announced it has been granted exploration rights to three blocks located offshore New Zealand, in a frontier basin with water depths ranging from 2,600 feet (800 m) to 9,800 feet (3,000 m).

“This award adds to Chevron’s range of potential long-term options in the Asia-Pacific region,” said Melody Meyer, president of Chevron Asia Pacific Exploration and Production Company. “Chevron’s approach to this project will be guided by our commitment to maintain the highest environmental and safety standards.”

The three petroleum exploration permits – 57083, 57085 and 57087 – in the offshore Pegasus and East Coast basins, cover more than 6.26 million acres (25,300 sq. km), and are located southeast of North Island. Chevron New Zealand Exploration Ltd. will be the operator of the blocks with a 50 percent working interest. Statoil will hold the remaining 50 percent interest.

Chevron has operated in the downstream sector of New Zealand for more than 90 years, and plans to continue to build on these relationships with communities and government.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, California. More information about Chevron is available at www.chevron.com.

NEW YORK, N.Y., – Chevron Corporation (NYSE: CVX) hosted its annual security analyst meeting in New York where executives reiterated priorities, expressed confidence in the company’s near term outlook and emphasized an advantaged position when markets rebound.

“We’re completing major projects that have been under construction for several years. This enables us to grow production and reduce spending at the same time, which should improve our net cash flow significantly,” said John Watson, Chevron’s chairman and chief executive officer. Watson reiterated the importance of dividend growth and maintaining a strong balance sheet in the company’s financial priorities, noting the company’s record of 28 consecutive years of dividend increases, and plans to limit debt increases beyond 2016.

“Industry conditions are tough right now, with low oil and natural gas prices. We believe markets will improve, and we’ll be well positioned when they do,” Watson continued. “We have an excellent upstream and downstream portfolio, and we are driving operating and administrative efficiencies across the company.”

Jay Johnson, executive vice president, upstream, highlighted key plans. “We’re focused on safe, reliable operations and effective project start-ups and ramp-ups. At Gorgon, we’re producing LNG and the first cargo is expected to ship next week. With an advantaged position in the Permian and a deep portfolio of operating assets, we’re transitioning our spending to more short-cycle, higher-return activity that utilizes existing infrastructure. We have a portfolio of assets that should allow production growth through the end of the decade, even at moderate prices.”

SAN RAMON, Calif., – Chevron Corporation (NYSE: CVX) today announced its Australian subsidiaries have signed a binding Sales and Purchase Agreement (SPA) with SK LNG Trading Pte Ltd (SK). Under the SPA, SK LNG Trading, which is part of a leading industrial conglomerate in South Korea, will receive 4.15 million tons of LNG over a five-year period starting in 2017.

During the time of this agreement, over 75 percent of Chevron’s equity LNG from Gorgon will be committed to customers in Asia.

“This agreement is an important step in the commercialization of Chevron’s significant natural gas holdings in Australia,” said Pierre Breber, president, Chevron Gas and Midstream. “As Chevron continues to grow into one of the world’s largest LNG suppliers, this SPA represents further progress and diversification of our sales portfolio.”

“We are pleased with the opportunity to supply LNG to SK and look forward to building lasting relationships with our customers in the region as the Gorgon and Wheatstone projects move into operations,” said Roy Krzywosinski, managing director, Chevron Australia. “SK joins our existing strong LNG customer base and demonstrates the Chevron-led Gorgon and Wheatstone projects are well-placed to meet the growing demand for natural gas in the Asia-Pacific region.”

The Chevron-operated Gorgon Project is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).

The Gorgon Project combines the development of the Gorgon Field and the nearby Jansz-Io Field. Facilities being built on Barrow Island include a liquefied natural gas (LNG) facility with three processing units capable of producing 15.6 million metric tons of LNG per year, a carbon dioxide injection project and a domestic gas plant.

Chevron is also developing the Wheatstone Project as an LNG and domestic gas operation near Onslow, in the Pilbara region of Western Australia. The project’s initial capacity is expected to be 8.9 million metric tons per year of LNG. The project also includes a domestic gas plant.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SAN RAMON, Calif., December 2, 2014 – Chevron Corporation (NYSE: CVX) announced that crude oil and natural gas production has begun at the Jack/St. Malo project in the Lower Tertiary trend, deepwater U.S. Gulf of Mexico. Jack/St. Malo is a key part of Chevron’s strong queue of upstream projects and was delivered on time and on budget.

The Jack and St. Malo fields are among the largest in the Gulf of Mexico. They were discovered in 2004 and 2003, respectively, and production from the first development stage is expected to ramp up over the next several years to a total daily rate of 94,000 barrels of crude oil and 21 million cubic feet of natural gas. With a planned production life of more than 30 years, current technologies are anticipated to recover in excess of 500 million oil-equivalent barrels. Successive development phases, which could employ enhanced recovery technologies, may enable substantially increased recovery at the fields.

“The Jack/St. Malo project delivers valuable new production and supports our plan to reach 3.1 million barrels per day by 2017,” said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corporation.

“This milestone demonstrates Chevron’s capital stewardship and technology capabilities, featuring a number of advances in technology that simply didn’t exist when the fields were discovered,” added Jay Johnson, senior vice president, Upstream, Chevron Corporation. “These learnings can now be transferred to other deepwater projects in our portfolio.”

The Jack and St. Malo fields are located within 25 miles (40 km) of each other in approximately 7,000 feet (2,100 m) of water in the Walker Ridge area, approximately 280 miles (450 km) south of New Orleans, Louisiana. The fields were co-developed with subsea completions flowing back to a single host, semi-submersible floating production unit located between the fields. The facility is the largest of its kind in the Gulf of Mexico and has a production capacity of 170,000 barrels of oil and 42 million cubic feet of natural gas per day, with the potential for future expansion.

“Jack/St. Malo is the result of the collaboration of hundreds of suppliers and contractors and many thousands of people across nine countries over a ten-year period,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. “This project highlights our long-term commitment to the U.S. Gulf of Mexico, where Chevron is among the top leaseholders. Moreover, we expect Jack/St. Malo will continue to deliver sustained economic and community benefits, including job creation, along the Gulf Coast.”

Crude oil from the facility will be transported approximately 140 miles to the Green Canyon 19 Platform via the Jack/St. Malo Oil Export Pipeline, and then onto refineries along the Gulf Coast. The pipeline is the first large-diameter, ultra-deepwater pipeline in the Walker Ridge area of the Lower Tertiary trend. The combination of extreme water depths, large diameter, high-pressure design, and pipeline structures have set new milestones for the Gulf of Mexico.

The project, which was sanctioned in 2010, has delivered new technology applications, including the industry’s largest seafloor boosting system and Chevron’s first application of deepwater ocean bottom node seismic technology in the Gulf of Mexico, providing images of subsurface layers nearly 30,000 feet below the ocean floor.

Chevron, through its subsidiary, Chevron U.S.A. Inc., has a working interest of 50 percent in the Jack field, with co-owners Statoil (25%) and Maersk Oil (25%). Chevron, through its subsidiaries, Chevron U.S.A. Inc. and Union Oil Company of California, also holds a 51 percent working interest in the St. Malo field, with co-owners Petrobras (25%), Statoil (21.5%), ExxonMobil (1.25%) and Eni (1.25%); and a 40.6 percent ownership interest in the host facility, with co-owners Statoil (27.9%), Petrobras (15%), Maersk Oil (5%), ExxonMobil (10.75%) and Eni (0.75%).

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SAN RAMON, Calif., – Chevron Corporation (NYSE: CVX) today announced that its indirect, wholly-owned subsidiary, Chevron Canada Limited, has reached agreement to sell a 30 percent interest in its Duvernay shale play to Kuwait Foreign Petroleum Exploration Company’s wholly-owned subsidiary, KUFPEC Canada Inc., for $1.5 billion. The total purchase price includes cash paid at closing as well as a carry of a portion of Chevron Canada’s share of the joint venture’s future capital costs. The Duvernay is located in west-central Alberta, and is believed to be among the most promising shale opportunities in North America.

The agreement creates a partnership for appraisal and development of liquids-rich shale resources in approximately 330,000 net acres in the Kaybob area of the Duvernay.

Kaybob area of the Duvernay playChevron Canada has drilled 16 wells since beginning its exploration program, with initial well production rates of up to 7.5 million cubic feet of natural gas and 1,300 barrels of condensate per day.

“This sale demonstrates our focus on strategically managing our portfolio to maximize the value of our global upstream businesses and is consistent with our partnership strategy,” said Jay Johnson, senior vice president, Upstream, Chevron Corporation. “The transaction provides us an expanded relationship with a valued partner. It also recognizes the outstanding asset base we have assembled.”

Following the closing of the transaction, Chevron Canada will hold a 70 percent interest in the joint venture Duvernay acreage and will remain the operator. The transaction is expected to close in November 2014.

“We remain encouraged by the early results of our exploration program and view the Kaybob Duvernay as an exciting growth opportunity for the company,” said Jeff Shellebarger, president of Chevron North America Exploration and Production Company.

Chevron Canada has drilled 16 wells since beginning its exploration program, with initial well production rates of up to 7.5 million cubic feet of natural gas and 1,300 barrels of condensate per day. A pad drilling program recently commenced which is intended to further evaluate and optimize reservoir performance as well as reduce execution costs and cycle time.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SAN RAMON, Calif.– Chevron Corporation’s (NYSE: CVX) wholly owned subsidiary Chevron Global Energy Inc. today announced that it has entered into an underwriting agreement for the sale of its 50 percent shareholding in Caltex Australia Limited (CAL).

It is expected that these shares will be sold to a broad range of Australian and global equity market institutional investors.

“This transaction reflects Chevron’s commitment to regularly review our portfolio and generate cash to support our long-term priorities. It is aligned with our previously announced asset sales commitment,” said Michael Wirth, executive vice president, Downstream and Chemicals. “We appreciate the strong performance of Caltex Australia over the many years we’ve been a shareholder, and look forward to a mutually beneficial supply and brand relationship for many years to come.”

Mark Nelson, president, International Products, Downstream and Chemicals, Chevron, said: “Asia-Pacific is a core strategic focus for Chevron’s Downstream business and we remain focused on ensuring our operations, portfolio and investments are well-positioned to meet the region’s growing demand for energy.”

Today’s announcement does not alter Chevron’s focus on moving the Gorgon and Wheatstone liquefied natural gas (LNG) projects towards start-up. Chevron is one of Australia’s largest foreign investors and is the largest holder of natural gas resources in the country.

Caltex is a prominent brand in the Australian petroleum market. The current trademark licensing agreement between Chevron and CAL will remain in effect following the transaction. Chevron will continue to ensure a reliable, high-quality supply of product is available to CAL to supply to its retail and reseller franchise network. Chevron is also committed to seeking long-term relationship opportunities with CAL.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com

SAN RAMON, Calif., – Chevron Corporation (NYSE: CVX) announced today that the Hess Corporation-operated Tubular Bells deepwater project, located in the U.S. Gulf of Mexico, has started crude oil and natural gas production. The field is located 135 miles (217 km) southeast of New Orleans, in approximately 4,300 feet (1,310 m) of water in the Mississippi Canyon area. The discovery well was drilled in 2003, and project construction began in October 2011.

Tubular Bells is expected to deliver total production of approximately 50,000 barrels of oil- equivalent per day producing from three wells.

“The deepwater Gulf of Mexico plays a significant part in our earnings and production growth. Achieving first oil at Tubular Bells is an important step towards Chevron achieving its production goal of 3.1 million barrels per day by 2017”, said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corporation.

“Tubular Bells and the Chevron-operated Jack/St. Malo project further strengthens Chevron’s deepwater portfolio,” said Jay Johnson, senior vice president, Upstream, Chevron Corporation. Jack/St. Malo, a large lower Tertiary development, is scheduled to be brought online later this year.

“This project’s success is the result of our strong business relationship with Hess, reinforcing our commitment to achieve results with excellence, and enabling new opportunities in this strategic area,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Company.

The Tubular Bells production facility is producing from the Miocene trend, where, for many years, Chevron subsidiaries have had multiple producing assets and a leading leaseholder position.The floating production facility is a classic spar hull with traditional three-level topsides. The field has an estimated production life of 25 years.

Chevron subsidiary Chevron U.S.A. Inc. has a 42.86 percent working interest in the Tubular Bells development and Hess is the operator with a 57.14 percent working interest in the field.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SAN RAMON, Calif., – Chevron Corporation (NYSE: CVX) today announced that its subsidiary, Chevron Global Energy Inc., has sold its 25 percent non-operated interest in a producing oil concession in southern Chad and the related export pipeline interests to the Republic of Chad for approximately $1.3 billion. The sale closed June 13.

“This sale demonstrates our focus on strategically managing our portfolio to maximize the value of our global upstream businesses,” said George Kirkland, vice chairman of Chevron Corporation.

“These assets have played a significant role for Chevron in Africa for the past 14 years,” said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company. “They have been a profitable part of our portfolio for many years. The combination of current market conditions and the size of the assets relative to our portfolio make this an ideal time for a divestiture.”

The transaction includes the sale of the Chevron subsidiary’s interests in seven fields in Chad’s Doba Basin, which in 2013 had an average net daily crude oil production of about 18,000 barrels. The sale also includes the Chevron subsidiary’s approximate 21 percent non-operated interest in a pipeline system that transports crude oil to the coast of Cameroon as well as associated marine facilities.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SAN RAMON, Calif. Chevron Corporation (NYSE: CVX) today provided an overview of the company’s work to respond to the COVID-19 pandemic at its 2020 annual meeting of stockholders. This year’s meeting was virtual in place of an in-person event due to safety concerns related to the pandemic.

“Our thoughts are with those affected by COVID-19 and the healthcare workers on the front lines battling to contain the outbreak,” said Michael Wirth, Chevron’s chairman and CEO.

The energy industry’s continued operations are necessary to ensure the security, safety, and health of all communities and critical to efforts to respond to the pandemic. The company’s biggest challenges are to ensure safe access to its facilities and continuity of operations. Chevron is successfully running essential facilities at operational levels necessary to meet current demand. The company is taking strong precautionary measures to reduce the risk of exposure, including screening workers and visitors at these locations.

“We activated our pandemic response plan in January, and have continued to adapt as events have unfolded,” Wirth said. “I am proud of our workers who show up every day to keep energy flowing into the economy.”

Commodity prices have fallen significantly due to the destruction of demand resulting from the COVID-19 pandemic and the over-supply of crude oil. The company expects its financial results will be depressed as long as current market conditions persist.

“Chevron is responding to these unprecedented challenges by making changes to what we can control,” Wirth said. “It’s always good to hear from our stockholders. We hope the meeting today left them with a deeper understanding of how we’ve advanced the business over the past year and our plans for the year ahead.”

The preliminary results from the meeting can be accessed via chevron.com here. Final voting results will be posted in the same location after they have been reported on a Form 8-K, which will be filed with the U.S. Securities and Exchange Commission. Specific information about the proposals before Chevron stockholders this year may be found in the “Investors” section of the company’s website under “Stockholder Services – Annual Meeting Materials.”

Chevron Corporation is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SAN RAMON, Calif., – Chevron Corporation (NYSE: CVX) announced today that its U.K. subsidiary, Chevron North Sea Limited, has reached a final investment decision and received approval from the U.K. government to proceed with the development of the Alder Field in the Central North Sea. The project has a planned design capacity of 110 million cubic feet of natural gas and 14,000 barrels of condensate per day. First production is expected in 2016.

“The Alder Field development is an important milestone in support of our strategic plan to profitably grow production and is among our solid queue of major capital projects that will deliver value to shareholders,” said Chevron vice chairman George Kirkland.

“The Alder project builds on Chevron’s already well-established presence in the U.K. energy development sector,” said Todd Levy, president of Chevron Europe, Eurasia and Middle East Exploration and Production. “For more than 50 years Chevron has been active in the U.K.’s oil and gas industry, and we will continue to play a role in developing the region’s natural resources.”

Discovered in 1975, development has recently been enabled by innovative technologies to manage the high-pressure high-temperature gas condensate field located in Block 15/29a, in a water depth of 492 feet (150 meters) approximately 100 miles (160 kilometers) from the Scottish coastline and 37 miles (60 kilometers) from the U.K./Norway median line.

The field will be developed via a single subsea well tied back to the existing Britannia Platform, a distance of 17 miles (28 kilometers).

Chevron North Sea Limited operates the project and has a 73.684 percent interest, with co-venturer ConocoPhillips (U.K.) Limited (26.316 percent).

This Press Release is courtesy of www.chevron.com

Houston, TX – Chevron Pipe Line Company (CPL), a subsidiary of Chevron Corporation, and American Aerospace Technologies, Inc. (AATI) received a first-of-its-kind waiver from the U.S. Federal Aviation Administration (FAA) to conduct unmanned aircraft surveillance in the San Joaquin Valley. The AiRanger Unmanned Aircraft System (UAS) was designed by AATI a leader in intelligent airborne sensing and surveillance services for energy and other critical infrastructure to support Beyond Visual Line of Sight (BVLOS) aerial surveillance for Chevron’s pipeline and production facilities.

The Detect and Avoid (DAA) system’s capabilities were demonstrated during flight operations in Buttonwillow, California, in October 2023. Following the demonstration and FAA observed testing, the Agency issued a 91.113 Waiver and granted a 44807 Exemption (“Waiver and Exemption”). The Waiver and Exemption authorizes AATI to utilize the onboard detect and avoid system to comply with aircraft right of way rules when operating BVLOS. The AiRanger is the first UAS to demonstrate compliance with industry consensus standards for the DAA system and reach this milestone.

“CPL and AATI have been on a journey since 2019 to develop an aerial patrol solution with technology that advances safe, reliable, and cost-effective routine facility inspections and pipeline system surveillance,” said Stephanie Beveridge, president of CPL. “Through collaboration with the FAA, we are working to do just that in the San Joaquin Valley.”

The AiRanger UAS is a fixed-wing, unmanned aircraft system capable of long-range operations beyond visual line of sight. The aircraft weighs 220 pounds with a wingspan of about 18 feet and can fly over 700 miles and up to 17 hours at up to 17,000 feet.

“For the first time, an unmanned aircraft weighing more than 55 pounds that flies above 400 feet and beyond visual line of sight has been approved for commercial operations in the U.S. This initial Waiver and Exemption spans over 4,000 square miles at up to 8,000 feet MSL, opening a new era in unmanned aviation in the National Airspace System,” said David Yoel, CEO of American Aerospace Technology, Inc. “The AiRanger is a new type of platform due to its large scale and the range of operations it enables. Its intelligent sensors and real-time communications deliver actionable data at a scale that was previously unimaginable. With safety as our guiding principle, we look forward to expanding AiRanger operations across the country.”

“CPL operates approximately 3,000 miles of regulated pipelines nationwide. The AiRanger UAS beyond visual line of sight operations will help transform routine oil and gas pipeline surveillance and inspections required by the Department of Transportation’s Pipeline and Hazardous Materials Safety Agency (PHMSA) using automated intelligence solutions,” said Roy Martinez, project manager for the UAS initiative and digital advisor for operations in CPL. “CPL’s coordinated efforts with the FAA and AATI to deploy this program is just one example of how Chevron continues to work with federal agencies to explore and implement emerging technologies to further Chevron’s purpose of developing the affordable, reliable, ever-cleaner energy that enables human progress.”

CPL and AATI have been supported by End State Solutions, LLC, to build collaborative solutions with key regulatory agencies that enable safe operations for emerging technology and new uses for autonomous aerospace technology.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.

About American Aerospace Technologies, Inc.
Founded in 2002, AATI is a leader in intelligent airborne sensing and surveillance services for energy and other critical infrastructure. We deliver services with conventional aircraft, drones, and medium-altitude, long-endurance unmanned aircraft. AATI has been flying long-endurance UAS Beyond Visual Line of Sight (BVLOS) in the national airspace system since 2010.

About End State Solutions, LLC
End State Solutions LLC is focused on civil certification and approvals with deep expertise in aerospace certification and operations. The End State Solutions team has contributed to multiple industry achievements in autonomous aerospace and emerging aviation technology. As the pace of innovation in autonomy picks up, we continue to move the needle in meaningful ways for industry and regulators around the globe.

SAN RAMON, Calif. and DEERFIELD, Ill., – Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), and Caterpillar Inc. (NYSE: CAT) today announced a collaboration agreement to develop hydrogen demonstration projects in transportation and stationary power applications, including prime power.

The goal of the collaboration is to confirm the feasibility and performance of hydrogen for use as a commercially viable alternative to traditional fuels for line-haul rail and marine vessels. The collaboration also seeks to demonstrate hydrogen’s use in prime power. Linked to the collaboration, and facilitated by Progress Rail, a Caterpillar company, the parties also agreed to demonstrate a hydrogen-fueled locomotive and associated hydrogen-fueling infrastructure. Work on the rail demonstration will begin immediately at various locations across the United States.

“Through Chevron New Energies, Chevron is pursuing opportunities to create demand for hydrogen – and the technologies needed for its use – for the heavy-duty transportation and industrial sectors, in which carbon emissions are harder to abate,” said Jeff Gustavson, president of Chevron New Energies. “Our collaboration with Caterpillar is another important step toward advancing a commercially viable hydrogen economy.”

“As we work to provide customers with the capability to use their desired fuel type in their operations, collaborating with Chevron is a great opportunity to demonstrate the viability of hydrogen as a fuel source,” said Joe Creed, Caterpillar group president of Energy & Transportation. “This agreement supports our commitment to investing in new products, technologies and services to help our customers achieve their climate-related objectives as they build a better, more sustainable world.”

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. To advance a lower-carbon future, we are focused on cost efficiently lowering our carbon intensity, increasing renewables and offsets in support of our business, and investing in low-carbon technologies that enable commercial solutions. More information about Chevron is available at www.chevron.com.

About Caterpillar
With 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we’ve been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries, and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.

HOUSTON, Texas, – Chevron Energy Technology Company and GE Oil & Gas announced today the creation of the Chevron GE Technology Alliance, which will develop and commercialize valuable technologies to solve critical needs for the oil and gas industry.

The Alliance builds upon a current collaboration on flow analysis technology for oil and gas wells. It will leverage research and development from GE’s newest Global Research Center, the first dedicated to oil and gas technology.

“GE brings its leading manufacturing capabilities, worldwide marketing, distribution, and extensive R&D capabilities not only for oil and gas, but also other business sectors to this alliance,” said Paul Siegele, president of Chevron Energy Technology Company and chief technology officer. “Together, we hope to bring impactful new technologies to the industry.”

“Chevron’s deep understanding of the oil and gas industry, combined with GE’s long tradition of technology development and close collaboration with strategic partners, will uniquely position this new alliance to address the industry’s technology needs,” said Lorenzo Simonelli, president and CEO, GE Oil & Gas. “The solutions developed by this alliance will take on even more industry significance given Chevron’s proven leadership in being first to field-test and deploy new technology breakthroughs.”

This partnership builds upon an ongoing collaboration between Chevron and GE developing the GE Safire™ flow meter, now being tested and deployed on Chevron land-based well production lines in the western United States. In addition to the flow metering collaboration, which is being conducted with the Measurement & Control business within GE Oil & Gas, the Alliance is also managing a coatings project and will be taking on additional high-value projects in the near future.

The Alliance provides a mechanism for commercializing early stage technologies from Chevron, GE or other technology partnerships. For example, GE flow meter products will be developed incorporating the Swept Frequency Acoustic Interferometry metering technology incubated in an alliance between Chevron and Los Alamos National Laboratory.

“Los Alamos develops unique technologies and these can have powerful applications for U.S. industry,” said Duncan McBranch, chief technology officer for Los Alamos National Laboratory. “Strategic partnerships with industry allow us to accelerate breakthrough innovation in these areas. As the alliance demonstrates, national laboratories can serve an important role in connecting different industry partners to strengthen the U.S. innovation landscape.”

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif.

This Press Release is courtesy of www.chevron.com

SAN RAMON, Calif., April 10, 2014 – Chevron Corporation (NYSE: CVX) today confirmed that subsidiaries of the company have signed agreements with the Argentine oil company YPF S.A. to continue development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province in Argentina.

“This is a significant step in our subsidiaries’ joint efforts with YPF to develop one of the most exciting shale plays in the world today,” said George Kirkland, vice chairman of Chevron Corporation. “Vaca Muerta could become an important contributor to Chevron’s long term production growth.”

The agreements build off the progress made with the drilling program begun in 2013 and call for continued investment toward large-scale drilling and production in the 96,000-acre (388-sq. km) Loma Campana concession. The agreements also call for exploration of shale oil and gas resources in the 49,400-acre (200-sq. km) Narambuena area located about 70 miles (100 kilometers) north of Loma Campana in the Chihuido de la Sierra Negra concession, one of the main producing areas in the Neuquén Basin of west-central Argentina.

“YPF is a reliable partner and operator that is advancing the project in the right direction,” said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company. “We are pleased with the progress achieved so far and look forward to continuing to provide our technical expertise and investment to help Argentina achieve its goal of energy self-sufficiency.”

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

Nexen Energy ULC announces organizational changes in response to industry downturn

Calgary, Alberta (March 17, 2015) – Nexen Energy ULC (Nexen), a wholly-owned subsidiary of CNOOC Limited, has announced organizational changes that will reduce its North American workforce by approximately 340 employees. Nexen UK has also initiated a consultation process to adjust its staffing levels by approximately 60 employees.

“In response to the recent industry downturn that has affected all companies in the energy sector, a decision was made to conduct a thorough review of our organization to ensure our long-term viability and sustainability,” said Fang Zhi, Chief Executive Officer of Nexen. “While regrettable, these organizational changes are necessary to align the company with our reduced capital spending program. We take these decisions seriously, and all impacted employees have been treated fairly and with respect.”

“Nexen has enhanced its performance over the past two years. We have already demonstrated our ability to continuously improve as evidenced by our best-ever health, safety and environmental performance in 2014, our Oil Sands production rising by 40% since 2012 and our ability to bring on Golden Eagle, a major North Sea development, on-stream ahead of schedule and under budget.

“Our long-term perspective continues to be fundamental to how we make decisions for our organization. As one of the world’s largest oil and gas producers, CNOOC Limited is focused on driving long-term stability for the company. CNOOC Limited’s rationale for acquiring Nexen remains the same – it was not made with a short-term view, but rather to acquire, and responsibly develop long-term, quality resources.”

Nexen remains committed to the health and safety of its employees, contractors, the environment and the communities where it operates. The company is fully compliant with all of its Investment Canada undertakings.

Alpha Natural Resources, Inc. (Alpha), one of the nation’s largest coal companies, Alpha Appalachian Holdings (formerly Massey Energy), and 66 subsidiaries have agreed to spend an estimated $200 million to install and operate wastewater treatment systems and to implement comprehensive, system-wide upgrades to reduce discharges of pollution from coal mines in Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. Overall, the settlement covers approximately 79 active mines and 25 processing plants in these five states.

EPA estimates that the upgrades and advanced treatment required by the settlement will reduce discharges of total dissolved solids by over 36 million pounds each year, and will cut metals and other pollutants by approximately nine million pounds per year. The companies will also pay a civil penalty of $27.5 million for thousands of permit violations, which is the largest penalty in history under Section 402 of the Clean Water Act (CWA).

“The unprecedented size of the civil penalty in this settlement sends a strong deterrent message to others in this industry that such egregious violations of the nation’s Clean Water Act will not be tolerated,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s agreement is good news for communities across Appalachia, who have too often been vulnerable to polluters who disregard the law. It holds Alpha accountable and will bring increased compliance and transparency among Alpha and its many subsidiaries.”

“This settlement is the result of state and federal agencies working together to protect local communities from pollution by enforcing the law,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “By requiring reforms and a robust compliance program, we are helping to ensure coal mining in Appalachia follows environmental laws that protect public health.”

In addition to paying the penalty, the companies must build and operate treatment systems to eliminate violations of selenium and salinity limits, and also implement comprehensive, system-wide improvements to ensure future compliance with the CWA. These improvements, which apply to all of Alpha’s operations in Appalachia, include developing and implementing an environmental management system and periodic internal and third-party environmental compliance audits.

The companies must also maintain a database to track violations and compliance efforts at each outfall, significantly improve the timeliness of responding to violations, and consult with third party experts to solve problem discharges. In the event of future violations, the companies will be required to pay stipulated penalties, which may be increased and, in some cases, doubled for continuing violations.

The government complaint alleged that, between 2006 and 2013, Alpha and its subsidiaries routinely violated limits in 336 of its state-issued CWA permits, resulting in the discharge of excess amounts of pollutants into hundreds of rivers and streams in Kentucky, Pennsylvania, Tennessee, Virginia, and West Virginia. The violations also included discharge of pollutants without a permit.

In total, EPA documented at least 6,289 violations of permit limits for pollutants that include iron, pH, total suspended solids, aluminum, manganese, selenium, and salinity. These violations occurred at 794 different discharge points, or outfalls. Monitoring records also showed that multiple pollutants were discharged in amounts of more than twice the permitted limit on many occasions. Most violations stemmed from the company’s failure to properly operate existing treatment systems; install adequate treatment systems; and implement appropriate water handling and management plans.

Today’s settlement also resolves violations of a prior 2008 settlement with Massey Energy, and applies to the facilities and sites formerly owned by the company. Under the 2008 settlement, Massey paid a $20 million penalty to the federal government for similar CWA violations, in addition to over a million dollars in stipulated penalties over the course of the next two years. Alpha purchased Massey in June 2011 and, since taking over the company, has been working cooperatively with the government in developing the terms of today’s settlement.

CWA permits allow for the discharge of certain pollutants in limited amounts to rivers, streams, and other water bodies. Permit holders are required to monitor discharges regularly and report results to the respective state agencies.

Alpha, headquartered in Bristol, Va., is one of the largest coal companies in the nation. Alpha operates more than 79 active coal mines and 25 coal preparation plants located throughout Kentucky, Pennsylvania, Tennessee, Virginia, West Virginia, and Wyoming. The Wyoming operations are not included in today’s settlement.

The States of West Virginia, Pennsylvania, and Kentucky are co-plaintiffs in today’s settlement. The U.S. will receive half of the civil penalty and the other half will be divided between the co-plaintiffs based on the number of violations in each state, as follows: West Virginia ($8,937,500), Pennsylvania ($4,125,000), and Kentucky ($687,500).

The consent decree, lodged in the U.S. District Court for the Southern District of West Virginia, is subject to a 30-day public comment period and approval by the federal court.

This Press Release is courtesy of www.justice.gov

Underscoring President Obama’s Climate Action Plan to cut harmful emissions and double energy efficiency, the Energy Department is taking action to develop the next generation of combined heat and power (CHP) technology and help local communities and businesses make cost-effective investments that save money and energy. As part of this effort, the Department launched today seven new regional Combined Heat and Power Technical Assistance Partnerships across the country to help strengthen U.S. manufacturing competitiveness, lower energy consumption and reduce harmful emissions.

Last year, President Obama established a new national goal of 40 gigawatts of new CHP capacity by 2020 – a 50 percent increase from today. Meeting this goal would help American manufacturers and companies save as much as $100 billion in energy costs over the next decade and reduce emissions equivalent to taking 25 million cars off the road. View an Energy Department infographic on how CHP technology works and its environmental and economic benefits.

Launching Seven New CHP Technical Assistance Partnerships

Since 2003, the Energy Department has supported a set of regional centers to help organizations understand how CHP can improve their bottom lines and lower energy bills.

Today, the Department is launching seven regional CHP Technical Assistance Partnerships – the next generation of these centers – to help further grow America’s CHP market for commercial, institutional and industrial businesses, state agencies, utilities and trade associations. Located in California, Colorado, Illinois, New York, North Carolina, Pennsylvania and Washington state, these organizations will offer best practices for CHP project financing, management and state policies, market analysis tools and resources, and technical site evaluations.

Find more information on how the CHP Technical Assistance Partnerships are helping U.S. businesses and communities get the information they need to make smart, cost-effective investment decisions.

Strengthening Infrastructure Reliability and Resilience

Combined heat and power technologies can also help make our nation’s infrastructure smarter, stronger and better equipped to maintain power against increasingly severe weather events. During and after Hurricane Sandy, CHP helped hospitals, fire stations and multifamily housing in New York and New Jersey continue their operations when the electric grid went down.

The Energy Department, the Department of Housing and Urban Development and the Environmental Protection Agency recently issued a guide to help state and local officials determine if CHP is a good option for Sandy rebuilding efforts. The guide includes practical information on financial, site and technical decision-making as well as how to operate and maintain these systems.

The Energy Department is also helping critical facilities across the country invest in CHP – providing affordable, reliable power and heat and ensuring that life-saving operations keep running. For example, in 2010, Thermal Energy Corporation installed a new high-efficiency 48 megawatt CHP system to power and heat the University of Texas MD Anderson Cancer Center, Texas Children’s Hospital and 16 other institutions at the Texas Medical Center. The Energy Department invested about $10 million in this project, matched by $62 million in private funding. Last year, the Midwest Clean Energy Application Center helped Gundersen Health system complete installation of a CHP system at its medical campus in Onalaska, Wisconsin – completely offsetting its electricity and steam needs and saving about $100,000 each year.

Developing Innovation CHP Technologies

In addition to technical assistance efforts, the Energy Department is supporting research, development and demonstration projects to help grow the CHP market, including finding CHP solutions that fit small- and medium-sized facilities and accelerating new product commercialization.

Industries with high and continuous demand for both electrical and thermal energy – such as food processing, paper manufacturing and metals production – are well suited for CHP installations but often face market and technical barriers to deployment. With that in mind, the Department is supporting demonstration projects to test how these systems impact plants’ operations and energy use and help identify financing and maintenance best practices. For instance, the Department partnered with Frito-Lay to install and test a CHP system at its Killingly, Conn.-based food processing facility. In addition to providing reliable, efficient power, the gas-fired system reuses excess heat to warm Frito-Lay’s chip fryer oil – cutting costs and reduce harmful air pollution.

The Department is also supporting new CHP technologies that are cleaner, more efficient and can use a variety of fuel sources. The Gas Technology Institute is developing a new CHP burner technology that cuts greenhouse gas emissions while improving overall system efficiency. Capstone Turbine Corporation is designing a combined 65 kilowatt CHP system and biomass gasifier that can use stalks, grass and other material to generate gas and power a turbine. Capstone is also developing a 370 kilowatt CHP system that can save about 44 percent more energy over a traditional system while reducing carbon dioxide emissions by 60 percent and nitrogen oxide emissions by 95 percent.
Courtesy Department of Energy

SAN RAMON, Calif., – Chevron Corporation (NYSE: CVX) subsidiary Chevron U.S.A. Inc. announced that it has begun commercial production of premium base oils from a newly constructed manufacturing facility at the company’s Pascagoula refinery.

Base oils produced at Pascagoula will add to capacity from the company’s refinery in Richmond, California and a joint venture facility in Yeosu, Korea, approximately doubling Chevron’s production capacity and positioning it to be the world’s largest producer of premium base oil.

“Lubricants are a high growth business supporting economic development worldwide,” said Mike Wirth, executive vice president, Chevron Downstream & Chemicals. “The addition of the Pascagoula plant to Chevron’s base oil network enhances Chevron’s reputation as a reliable and flexible base oil supplier globally.”

Base oils from the new facility will supply customers in the U.S. East, Europe and Latin America, with Richmond continuing to supply the U.S. West, and both Richmond and Yeosu supplying Asia.

The facility is designed to manufacture 25,000 barrels per day of premium base oil, helping countries around the world meet increasingly strict regulatory requirements and higher performance standards for lubricants. Premium base oil is the main ingredient in the production of top-tier motor oils that help improve fuel economy, lower tail-pipe emissions and extend the time between oil changes. Base oils are used to make lubricants and greases for machinery and equipment in the commercial and industrial sectors.

The base oil facility uses Chevron’s proprietary ISODEWAXING® technology invented in 1993. The technology results in higher yields and enables a broader range of crude oil to be used in the manufacturing process. Over half of the world’s premium base oil is manufactured with this technology through licensing agreements with Chevron.

Chevron Corporation is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

HOUSTON – ConocoPhillips (NYSE: COP) and Marathon Oil Corporation (NYSE: MRO) announced today that they have entered into a definitive agreement pursuant to which ConocoPhillips will acquire Marathon Oil in an all-stock transaction with an enterprise value of $22.5 billion, inclusive of $5.4 billion of net debt. Under the terms of the agreement, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “Importantly, we share similar values and cultures with a focus on operating safely and responsibly to create long-term value for our shareholders. The transaction is immediately accretive to earnings, cash flows and distributions per share, and we see significant synergy potential.”

“This is a proud moment to look back on what we achieved at Marathon Oil. Powered by our dedicated employees and contractors, we built a top performing portfolio with a multi-year track record of peer-leading operational execution, strong financial results and compelling return of capital to our shareholders – all while holding true to our core values of safety and environmental excellence. ConocoPhillips is the right home to build on that legacy, offering a truly unique combination of added scale, resilience and long-term durability. With its premier global asset base, strong balance sheet and laser focus on operational excellence, ConocoPhillips’ track record of long-term investments, differentiated shareholder distributions and active portfolio management are unmatched. When combined with the global ConocoPhillips portfolio, I’m confident our assets and people will deliver significant shareholder value over the long term,” said Lee Tillman, Marathon Oil chairman, president and chief executive officer.

Transaction benefits
Immediately accretive: This acquisition is immediately accretive to ConocoPhillips on earnings, cash from operations, free cash flow and return of capital per share to shareholders.
Delivers significant cost and capital synergies: Given the adjacent nature of the acquired assets and a common operating philosophy, ConocoPhillips expects to achieve the full $500 million of cost and capital synergy run rate within the first full year following the closing of the transaction. The identified savings will come from reduced general and administrative costs, lower operating costs and improved capital efficiencies.
Further enhances premier Lower 48 portfolio: This acquisition will add highly complementary acreage to ConocoPhillips’ existing U.S. onshore portfolio, adding over 2 billion barrels of resource with an estimated average point forward cost of supply of less than $30 per barrel WTI.
Return of capital update

Independent of the transaction, ConocoPhillips expects to increase its ordinary base dividend by 34% to 78 cents per share starting in the fourth quarter of 2024. Upon closing of the transaction and assuming recent commodity prices, ConocoPhillips plans to:

Repurchase over $7 billion in shares in the first full year, up from over $5 billion standalone.
Repurchase over $20 billion in shares in the first three years.
“We remain committed to our differentiated cash from operations distribution framework of returning greater than 30% to our shareholders, with a track record of returning over 40% since our 2016 strategy reset,” added Lance. “We plan to raise our ordinary dividend by 34% in the fourth quarter and we will continue to target top-quartile dividend growth relative to the S&P 500 going forward. Additionally, we intend to prioritize share repurchases following the close of the transaction, with a plan to retire the equivalent amount of newly issued equity in the transaction in two to three years at recent commodity prices.”

— # # # —

About ConocoPhillips
ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $95 billion of total assets, and approximately 10,000 employees at March 31, 2024. Production averaged 1,902 MBOED for the three months ended March 31, 2024, and proved reserves were 6.8 BBOE as of Dec. 31, 2023. For more information, go to www.conocophillips.com.

About Marathon Oil
Marathon Oil (NYSE: MRO) is an independent oil and gas exploration and production (E&P) company focused on four of the most competitive resource plays in the U.S. – Eagle Ford, Texas; Bakken, North Dakota; Permian in New Mexico and Texas, and STACK and SCOOP in Oklahoma, complemented by a world-class integrated gas business in Equatorial Guinea. The Company’s Framework for Success is founded in a strong balance sheet, ESG excellence and the competitive advantages of a high-quality multi-basin portfolio. For more information, please visit www.marathonoil.com.

The Department has been considering the proposed acquisition by LetterOne of twelve producing North Sea oil and gas fields currently owned by RWE Dea. The Secretary of State for the Department of Energy and Climate Change Ed Davey is responsible for ensuring the continued and safe production of the UK’s petroleum resources. In the discharge of these regulatory responsibilities, the Secretary of State has raised concerns with the respective companies about the effect that possible future sanctions imposed on LetterOne may have on the continued operation of these twelve fields and the serious health and safety and environmental risks that may result.

The companies have made a proposal designed to alleviate those concerns. After careful consideration the Secretary of State has decided that the proposal does not adequately and surely alleviate those concerns and has notified the companies involved that if the proposed acquisition were to proceed in its current form, he would be minded to require the companies to arrange for a further sale to a suitable third party.

HOUSTON, — Diamond Offshore Drilling, Inc. (NYSE:DO) and GE Oil & Gas (NYSE:GE) today announced the offshore drilling industry’s first-of-its-kind contractual service agreement (CSA) that transfers full accountability for BOP performance to GE Oil & Gas. In this Pressure Control by the Hour™ model, Diamond Offshore will compensate GE Oil & Gas only when the BOP is available. This 10-year collaborative arrangement for GE’s engageDrilling™ Services showcases a new way of thinking to drive continuous improvement in deepwater drilling.

The arrangement will include GE purchasing the BOP systems aboard Diamond Offshore’s four drillships, currently located in the U.S. Gulf of Mexico, for a total of $210 million.

“Subsea equipment repair and maintenance is the single largest cause of nonproductive time across our industry, resulting in great expense to both drillers and operators,” said Marc Edwards, President and CEO of Diamond Offshore. “In today’s market, we have to make the economics of offshore drilling more competitive for our clients. The purpose of our new Pressure Control by the Hour service model is to incentivize all parties to prioritize equipment reliability and availability for the ultimate benefit of our customers.”

“To deliver a solution that improves drilling efficiency now and in the future, collaboration is essential,” said Lorenzo Simonelli, President and CEO, GE Oil & Gas. “We are changing the game by building the new blowout preventer service model for the industry. With improved control, maintenance and servicing of our equipment, we are putting skin in the game and guaranteeing performance.”

The GE Oil & Gas engageDrilling™ Services offering enhances BOP system availability by transferring the maintenance and service of pressure control equipment to GE Oil & Gas. This includes on-rig GE Oil & Gas personnel, management of parts, overhaul and repair, continuous certification, data monitoring, and management of change. This new arrangement is a performance-based alliance that leverages the scale of GE data, predictive analytics, insights and continuous certification, positioning GE as a long-term commercial, operational and technical partner.

Under the new service model, Diamond Offshore will begin capturing data through GE’s monitoring and analytics solutions. Over time, this will enable condition-based monitoring and maintenance, which will drive proactive decision-making and planning to address the requirements of industry standards for drilling systems. By transferring the maintenance and service of well control equipment to GE Oil & Gas, Diamond Offshore is simplifying operations and optimizing between well maintenance to reduce the frequency and duration of downtime.

“This is a key part of GE’s business strategy to collaborate with drilling contractors and operators to push the boundaries of our industry,” said Simonelli. “Our new CSA model addresses the current needs of drilling companies, and establishes the roadmap for smart, predictive, condition-based services and maintenance in our digital-industrial future.”

“We look forward to partnering with GE Oil & Gas to lead the way forward in our industry,” said Edwards. “By combining Diamond Offshore’s operational excellence with the guaranteed performance of GE’s BOPs, we are increasing our competitiveness in the market.”

Riyadh, Saudi Arabia : The Saudi Arabian Mining Company (Ma’aden) and GE today signed a strategic Memorandum of Understanding to explore opportunities to deploy GE’s industry leading digital solutions across Ma’aden’s diverse mining operations, including sites focused on gold, copper, aluminum, and phosphate. GE will provide Ma’aden with digital transformation advisory and applications, as well as leadership and training opportunities for Ma’aden’s employees across the Kingdom.

To maintain its world leading competitive position across a number of commodities, Ma’aden is pursuing a number of partnerships in order to capture the opportunities found in digitization and innovation, and will invest in the application of pioneering technologies in its operations in the Kingdom in order to remain ahead of the competition and reinforce the company as a global mining leader. GE’s digital mining solutions will look at specific areas within Ma’aden including solutions that make adaptations for improving ore grades; reduce fuel and energy costs and usage; improve equipment reliability and availability; reduce maintenance costs; and increase productivity and efficiency across operations.

Darren Davis, Ma’aden Acting President & CEO, said of the partnership, “The Kingdom of Saudi Arabia has high aspirations for the deployment of new technology and the digitization of industrial landscape in the country. Ma’aden is committed to championing the responsible development of the mining sector as a major pillar of the Saudi economy and digitalization, as part of the fourth industrial revolution, will be key to ensuring we achieve our goal of becoming a ‘sustainable mining champion’. This initiative will unlock the next wave of significant value creation and increase our competitiveness and sustainability. Our partnership with GE is an important step and we look forward to working together to develop and utilize new digital solutions for our industry.”

Bill Ruh, President & CEO, GE Digital continued, saying, “We are partnering with organizations across heavy industries around the world to bring digital solutions to their operations. The scale and impact of organizations such as Ma’aden is enormous, and we know that the optimization and increases in efficiency will have a major impact on the company and the country. By working together to develop solutions that are tailored for the sector and environment in which they will operate, we can ensure truly positive outcomes.”

BHP Billiton today released its Climate Change Portfolio Analysis report which explains how it could continue to create shareholder value in a carbon constrained world.

Chief Commercial Officer Dean Dalla Valle said the Company had published details of its scenario analysis as part of its ongoing program of engagement with investors.

“With the release of this document, we are providing more information than ever before about how we are responding to climate change and how climate risk might affect the portfolio. The opportunities and risks associated with climate change will not be spread evenly between businesses or sectors. More disclosure will allow investors, policy makers and regulators to make more informed decisions. By sharing our analysis of BHP Billiton’s portfolio in a 2°C world, we believe investors will be able to decide how well BHP Billiton is equipped to manage climate risk.”

Helen Wildsmith, Stewardship Director – Climate Change, at charity specialist CCLA, said: “As long-term investors the ‘Aiming for A’ coalition supports diversified miners, oil and gas majors, and electrical utilities as they face the challenge of demonstrating their strategic resilience through the low carbon transition. Today we applaud BHP Billiton for proactively improving their disclosure. In co-ordination with the global Carbon Asset Risk investor initiative, representing over US$3.5 trillion of collective assets, we will be proposing further shareholder resolutions at some of the largest companies in these sectors in 2016 to promote similar stress testing.

“Like BHP Billiton, the ‘Aiming for A’ coalition believes key stakeholders need to work together through periods of systemic change. We encourage BHP Billiton to play an active role in building a cross-sectoral coalition of the willing to accelerate CCS and other low emissions technologies becoming commercially viable at scale.”

“BHP Billiton has shown real leadership by publishing its climate change portfolio analysis ahead of COP21 in Paris. This provides an excellent starting point for more detailed dialogue with investors on portfolio stress testing and future cap-ex decisions in a carbon efficient manner.” said Stephanie Maier, Head of Responsible Investment Strategy & Research at Aviva Investors, and Chair of the Institutional Investors Group on Climate Change’s member-led corporate engagement group.

BHP Billiton’s portfolio in a 2°C world
Speaking in London, Mr Dalla Valle said: “The world faces two critical challenges. As the global population steadily grows, the continued development of emerging economies depends on access to affordable energy and resources. At the same time, responding to climate change requires the global average temperature increase to remain below 2°C relative to pre-industrial levels.

“Achieving these goals would entail substantial changes to the global economy. Companies in all sectors will have new market opportunities, face new competitors and all will need to find new ways of working. In a well-managed transition, the most efficient producers in growth markets will do best.

“In our scenario analysis we consider a range of potential pathways and outcomes. This provides deeper, more valuable insights into the potential impacts on our portfolio and improves our ability to respond and adapt our portfolio where we see key signposts and triggers.

“In a 2°C scenario, we expect the demand for most of BHP Billiton’s products will continue to rise in absolute terms. As the energy mix changes, copper, gas and uranium could see stronger demand than otherwise would have been the case. Measures to reduce emissions in steel manufacturing could also increase prices for the Company’s higher-quality iron ore.

“Together these factors would help offset weaker demand, lower prices or higher costs in other areas of our portfolio such as energy coal. Group margins would remain strong, reflecting BHP Billiton’s focus on low cost production. The average rate of return on investment in our growth projects would fall slightly but remain at approximately 20 per cent. The Company could create value by bringing on production into growing markets.

“This helps ensure the value of BHP Billiton’s portfolio would remain robust if emissions decline to levels consistent with a 2°C world after 2030, as well as in a stress test that models the implications of more rapid change. In both cases, Group EBITDA would continue to grow over the next fifteen years and BHP Billiton’s commodity diversification, competitive production, high quality resource base, and the rapid payback periods of growth projects minimise the risk of stranded assets.”

BHP Billiton has also joined a growing number of leading businesses in disclosing the Company’s assumptions on global carbon price ranges which it applies to its investments and portfolio evaluation to inform decision making.

Our action on climate change
Mr Dalla Valle described how BHP Billiton is supporting the move to limit global temperature increases to 2°C.

“We are investing in the development of low-emissions technologies and supporting market mechanisms that provide financial incentives for emissions reductions and sustainable development.”

“We believe that a range of measures are needed to address climate change. First and foremost we are reducing our own emissions and improving our energy efficiency, with a target of keeping greenhouse gas emissions below our 2006 baseline.

“We also seek to enhance the global response to climate change by actively engaging with governments to provide our perspective while recognising that each government will formulate its own policy to reduce emissions in line with its own circumstances and the need for meaningful action.

Mr Dalla Valle concluded: “As climate change continues to evolve, so too will our approach and we will continue to engage with our investors and other stakeholders to keep improving our disclosure.

About ‘Aiming for A’ in the UK: ‘Aiming for A’ was launched by CCLA in 2012. The Church Investor Group members currently involved are: the three Church of England National Investing Bodies (the Church Commissioners, the Church of England Pensions Board and the CBF Church of England Funds) and the Central Finance Board of the Methodist Church. The other five partners in this £230bn UK initiative are the Local Authority Pension Fund Forum, Rathbone Greenbank Investments, Sarasin & Partners, Hermes Investment Management, and the Pensions Trust. The last three joined the initiative after supporting the ‘Aiming for A’ BP and Shell strategic resilience resolutions, which achieved >98% of the vote at the companies’ AGMs earlier this year. The ‘A’ within ‘Aiming for A’ refers to the best A-E CDP performance band. Within the scoring methodology considerable weight is given to operational emissions management, alongside the strategic and governance issues covered in the ‘Aiming for A’ 2015 shareholder resolutions.

CALGARY, Alberta and HOUSTON, Texas – September 6, 2016 – Enbridge Inc. (TSX, NYSE:ENB) (Enbridge) and Spectra Energy Corp (NYSE:SE) (Spectra Energy) today announced that they have entered into a definitive merger agreement under which Enbridge and Spectra Energy will combine in a stock-for-stock merger transaction (the “Transaction”), which values Spectra Energy common stock at approximately C$37 billion (US$28 billion), based on the closing price of Enbridge’s common shares on September 2, 2016. The combination will create the largest energy infrastructure company in North America and one of the largest globally based on a pro-forma enterprise value of approximately C$165 billion (US$127 billion). The Transaction was unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2017, subject to shareholder and certain regulatory approvals, and other customary conditions.

Under the terms of the Transaction, Spectra Energy shareholders will receive 0.984 shares of the combined company for each share of Spectra Energy common stock they own. The consideration to be received by Spectra Energy shareholders is valued at US$40.33 per Spectra Energy share, based on the closing price of Enbridge common shares on September 2, 2016, representing an approximate 11.5 percent premium to the closing price of Spectra Energy common stock on September 2, 2016. Upon completion of the Transaction, Enbridge shareholders are expected to own approximately 57 percent of the combined company and Spectra Energy shareholders are expected to own approximately 43 percent. The combined company will be called Enbridge Inc.

This combination brings together two highly complementary platforms to create North America’s largest energy infrastructure company and meaningfully enhances customer optionality. With an asset base that includes a diverse set of best-in-class assets comprised of crude oil, liquids and natural gas pipelines, terminal and midstream operations, a regulated utility portfolio and renewable power generation, the combined company will be positioned to provide integrated services and first and last mile connectivity to key supply basins and demand markets. On a combined basis for the 12 months ended June 30, 2016, the company would have generated combined revenues in excess of C$40 billion (US$31 billion) and combined Earnings before Interest and Taxes (EBIT) of C$5.8 billion (US$4.4 billion), and will have the scale, balance sheet strength, financial flexibility and free cash flow to comfortably fund future growth.

“Over the last two years, we’ve been focused on identifying opportunities that would extend and diversify our asset base and sources of growth beyond 2019,” said Al Monaco, President and Chief Executive Officer, Enbridge Inc. “We are accomplishing that goal by combining with the premier natural gas infrastructure company to create a true North American and global energy infrastructure leader. This Transaction is transformational for both companies and results in unmatched scale, diversity and financial flexibility with multiple platforms for organic growth.”

Greg Ebel, President and Chief Executive Officer of Spectra Energy, who will become chairman of Enbridge following the closing of the Transaction, said, “The combination of Enbridge and Spectra Energy creates what we believe will be the best, most diversified energy infrastructure company in North America, if not the world. This is an incredible opportunity for both companies and we at Spectra Energy could not be more excited about what it means going forward. Together, the merged company will have what we believe is the finest platform for serving customers in every region of North America and providing investors with the opportunity for superior shareholder returns.”

Mr. Monaco added, “Bringing Enbridge and Spectra Energy together makes strong strategic and financial sense, and the all-stock nature of the Transaction provides shareholders of both companies with the opportunity to participate in the significant upside potential of the combined company. With combined secured projects in execution of C$26 billion (US$20 billion) and another C$48 billion (US$37 billion) of projects under development, the Transaction allows us to extend our anticipated 10-12 percent annual dividend growth through 2024. We believe our combination of best-in-class assets, superior growth and strong commercial underpinning of our business will be unrivaled in our sector. Importantly, we will preserve and enhance our shareholder value proposition, which centers on delivering consistent growth with a low-risk business model.

“This is also a combination of two companies, management and staff that have a shared vision and talented teams that are dedicated to serving customers and providing the energy that people want and need, safely and reliably every day. We look forward to welcoming Spectra Energy employees to Enbridge as we move forward as one company. In building on our existing strengths by joining with Spectra Energy, Enbridge will be very well positioned for future growth and continued value creation.”

Mr. Ebel added, “The strength of the combined company will support a large capital program to fund the continued development of Spectra Energy’s existing, preeminent project inventory in addition to allowing the combined company to compete for and win the most attractive new growth projects – all while maintaining expected strong dividend growth with exceptional coverage. The transaction premium recognizes the strength of Spectra Energy’s world-class natural gas pipeline system and significant expansion program, while providing shareholders the opportunity to participate in the unparalleled value creation potential of the combined company. While our assets are largely complementary, our values are shared, and together we will create a best-in-class company for shareholders, employees, customers, and communities alike.”

Compelling Value Proposition
Six leading strategic growth platforms: The combined company brings together many of the highest quality energy infrastructure assets in North America: liquids and gas pipelines; US and Canadian midstream businesses; a top tier regulated utility portfolio; and a growing renewable power generation business. A map of the assets of the combined entity is available at www.enbridge.com and www.spectraenergy.com.

Secure, low-risk commercial structure with stable long-term cash flow visibility: 96 percent of pro-forma free cash flow is underpinned by long-term commercial agreements (cost-of-service, take-or-pay, of fixed fee); 93 percent of customers are strong, investment grade or equivalent counterparties; less than 5 percent of combined pro-forma cash flow will have direct exposure to commodity price risk.

Largest and most secure program of diversified organic growth projects in the industry: Together, Enbridge and Spectra Energy bring C$26 billion (US$20 billion) in secured capital and a C$48 billion (US$37 billion) inventory of probability weighted projects in development.

Strong balance sheet, growing cash flow and access to capital markets to fund large capital program: The combination is expected to result in sufficient internally generated cash flow to fund growth and improve balance sheet strength. Enbridge will have multiple, cost-effective funding sources and be even more competitive in capturing opportunities.

Attractive dividend yield with visible organic dividend growth: The combined company’s C$74 billion (US$57 billion) organic growth platform is expected to support a highly visible dividend growth rate of 10-12 percent through 2024, including an anticipated aggregate increase of 15 percent in 2017 post closing, while maintaining a conservative payout of 50-60 percent of available cash flow from operations (ACFFO). This provides an industry leading total return driven by a strong, low-risk dividend yield.

Achievable cost synergies: The combination is expected to achieve annual run-rate synergies of C$540 million (US$415 million), the majority of which should be achieved in the latter part of 2018. In addition, approximately C$260 million (US$200 million) of tax savings can be achieved through utilization of tax losses commencing in 2019.

Complementary businesses, shared culture and values support smooth integration: Enbridge and Spectra Energy have similar business and operational models, talented teams, common cultures and values, including shared commitment to safety, stewardship of the environment, meaningful stakeholder engagement and investing in communities.
Leadership, Governance and Structure

Upon closing of the Transaction, Al Monaco will continue to serve as President and Chief Executive Officer of the combined company. Greg Ebel will serve as non-executive Chairman of Enbridge’s Board of Directors.

Enbridge’s Board of Directors is expected to have a total of 13 directors consisting of 8 members designated by Enbridge, including Mr. Monaco, and 5 members designated by Spectra Energy, including Mr. Ebel.

The senior management team of the combined entity will be communicated in due course. On closing, the following appointments will take effect:

Guy Jarvis, President, Liquids Pipelines & Major Projects

Bill Yardley, President, Gas Transmission & Midstream

John Whelen, Executive Vice President & Chief Financial Officer

The headquarters of the combined company will be in Calgary, Alberta. Houston, Texas will be the combined company’s gas pipelines business unit center; Edmonton, Alberta will remain the business unit center for liquids pipelines, with gas distribution continuing to be based in Ontario.

Enbridge and Spectra Energy will immediately establish an integration planning team composed of leaders from both management teams to prepare for and oversee the effective and timely integration of the businesses. The approach to integration planning will be collaborative, drawing on strong participation from both companies, and ensuring continuity for customers and other stakeholders.

On closing the Enbridge common shares to be issued in connection with the Transaction will be listed on the TSX and NYSE. Spectra Energy common stock will be delisted from the NYSE.

Financial Considerations
Enbridge expects the Transaction to be neutral to its 12 percent to 14 percent secured ACFFO per share CAGR guidance through the 2014-2019 time period, and strongly additive to its growth beyond that timeframe. Enbridge is committed to maintaining the financial strength of the combined company. The funding program is designed to ensure strengthening of the balance sheet with the objective of maintaining strong investment grade credit ratings. Enbridge expects it will divest of approximately $2 billion of non-core assets over the next 12 months to provide additional financial flexibility.

At closing, Enbridge Energy Partners, LP and Spectra Energy Partners, LP are expected to continue to be publicly traded partnerships headquartered in Houston, Texas. Enbridge Income Fund Holdings will remain a publicly traded corporation headquartered in Calgary, Alberta.

Timing and Approvals
The Transaction is expected to close in the first quarter of 2017 subject to the receipt of both companies’ shareholder approvals, along with certain regulatory and government approvals, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and approval under Canada Competition Act, and the satisfaction of other customary closing conditions.

Analysts, members of the media and other interested parties can access the call toll-free at 1-866-610-1072 or within and outside North America at 1-973-935-2840 using the access code of 77468882. The call will be audio webcast live here (http://event.on24.com/r.htm?e=1261390&s=1&k=27BFA58D1E6D82F42F35E52AF74D0395). A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available at toll-free 1-800-585-8367 or within and outside North America at 1-404-537-3406 (access code 77468882) for seven days after the call.

ABOUT ENBRIDGE INC.
Enbridge Inc., a Canadian company, exists to fuel people’s quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past seven years. Enbridge operates the world’s longest crude oil and liquids transportation system across Canada and the U.S., and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada’s largest natural gas distribution company, serving residential, commercial, and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in nearly 2,000 megawatts of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs nearly 11,000 people, primarily in Canada and the U.S., and is ranked as one of Canada’s Top Employers for 2016.

Enbridge’s common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

ABOUT SPECTRA ENERGY CORP
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America’s leading pipeline and midstream companies. Based in Houston, Texas, the company’s operations in the United States and Canada include approximately 21,000 miles of natural gas and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. Spectra Energy is the general partner of Spectra Energy Partners (NYSE: SEP), one of the largest pipeline master limited partnerships in the United States and owner of the natural gas and crude oil assets in Spectra Energy’s U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, the largest producer of natural gas liquids and the largest natural gas processor in the United States. Spectra Energy has served North American customers and communities for more than a century. For more information, visit www.spectraenergy.com.