Chevron Corp (CVX.N) on Thursday announced the creation of a new unit to manage the second largest U.S. oil producer's low-carbon investments, with an initial focus on alternative energy sources like hydrogen and technologies including carbon capture.
Company insider Jeff Gustavson will head the 'New Energies' unit from August 2. The company said it will provide more details on the unit in a presentation on Sept. 14.
The new unit is being set up as oil majors across the globe race to reposition themselves as leaders of a shift away from oil, thanks to mounting pressure from investors and environmentalists.
"We believe the dedication of resources in a new organization will accelerate growth in multiple business lines that we expect to be part of a lower carbon energy system," Chevron Chief Executive Officer Mike Wirth said.
Gustavson, 49, is currently vice president of North America upstream oil exploration business and oversees the mid-continent unit, the company said.