Independent analysis gives Chevron highest environmental rating in Permian Basin
Chevron’s approach to being a lower carbon energy leader has earned the company the highest ratings from a third-party verifier. Project Canary, a data analytics company that provides environmental assessments within the energy sector, awarded Chevron with its highest possible rating.
The Denver-based tech company recently assessed five of Chevron’s upstream sites in the Midland Basin (part of the larger Permian Basin in Texas) and the DJ Basin’s Mustang Development Area in Colorado.
Eighty-five of Chevron’s wells were analyzed, resulting in 82 wells achieving platinum status and three wells achieving gold status.
Eighty-five of Chevron’s wells were analyzed, resulting in 82 wells achieving platinum status and three wells receiving gold status.
Project Canary’s TrustWell™ ratings are based on a rigorous lineup of factors, setting the bar high for recognition. They include risk condition assessments, engineering practices, operational impacts on the community, air and land and a review of technique throughout the management systems, including preventative controls, surveillance and response.
Why it matters
Project Canary’s assessment provides further evidence that the company is striving to be a leading lower carbon producer. It also validates Chevron’s approach to production and helps identify ways the company can improve.
Later this year, Chevron will market its newly certified assets as responsibly sourced gas (RSG). Consumers who buy RSG are supporting gas produced under the highest air, water, land and community standards as certified by a third party.
“Buyers of RSG certified by Project Canary can have confidence that each producing well has been reviewed and verified for aspects of Chevron’s environmental and social performance,” said Project Canary co-founder Chris Romer.
Reading the tea leaves
Companies that receive platinum designations are found to be more responsible than 90 percent of competitors, while gold status designations are given to those more responsible than 75 percent of other operators. Those in the silver category are more responsible than 50 percent of operators.
For the record
Chevron’s environmental accomplishments predate the Project Canary certification.
In 2020, the company’s U.S. onshore production methane intensity was 85 percent lower than the U.S. industry average. Chevron continues to design, construct and operate facilities with strategies to limit fugitive emissions. The company is also expanding its methane detection capabilities to identify the best opportunities to further lower emissions.
Chevron is on track to meet its target of reducing methane emissions intensity by more than 50 percent from 2016 levels by 2028.
“The certificates we received are a testament to our operational practices here in the DJ Basin,” said Jesse Sandlin, lead operational excellence management system specialist for Chevron’s Rockies Business Unit.
Sandlin led Chevron’s participation in the Project Canary evaluation.
“It’s a good benchmark for us to see how we compare with our peers and, as it turns out, we compare well,” he said.
Sandlin added, “To have a neutral third party come in and say our facilities are in great shape is exciting. It validates our work striving toward lower carbon intensity production.”