supply chains are part of the evolution in energy

The supply chain managers that successfully maneuvered through pandemic-related bottlenecks now face a new task in finding partners who can continue to do the heavy lifting but with lower carbon strategies in mind.

“By having a strong and agile supply chain, Chevron is able to adapt to the ever-changing energy landscape and focus on reaching its lower carbon goals,” said Alvaro Fernandez, supply chain manager for Chevron New Energies (CNE).

Lockdowns limited supplies during the pandemic. As vaccines became widely available and employment surged, businesses struggled to keep pace with increased demand. In 2022, the Federal Reserve Bank of Dallas said a return to normal was on the horizon.

Though some energy segments are still bogged down by supply chain issues, Fernandez is working to find suppliers and business partners ready to accelerate Chevron’s lower carbon goals.

“We’re always looking for partners and technologies to help us protect the environment and support Chevron’s lower carbon aspirations,” he said.

From a supply-chain perspective, Chevron’s new business lines use emerging technologies and often call for building entirely new logistics networks—in many cases, with new suppliers working with Chevron for the first time.

Working alongside sequestration company Svante, and in coordination with the Energy Department’s National Energy Technology Laboratory (project #DE-FE0031944), Chevron started work on a carbon storage test project at the Kern River oil field in California in late 2022.

The purpose of the pilot is to see how well Svante’s technology separates the CO₂ from flue gas before potentially moving to large-scale capture and storage.