Balancing energy security and transition priorities - Chevron’s view on the future of global energy

Mr. Magness, thank you for joining us. To begin, as we all know, Chevron is one of the world’s most established energy companies. What key milestones shaped the company we see today?

First, thank you for having me. It is a great pleasure to be here with you this morning. When I think about Chevron’s history, we have more than 140 years as a corporate entity, marked by resilience through many different periods. Throughout that time, we have continued to grow and expand our portfolio.

We have consistently focused on how to use technology and innovation, and how to apply them to energy systems. This has enabled us to evolve from what was primarily a fossil fuel, hydrocarbon-based company into what we now consider a broader energy company. Today, we ask how we can provide for people and power human progress into the future.

Chevron has invested about $55 billion in Kazakhstan. How do you assess the results of this partnership?

Chevron entered Kazakhstan shortly after independence, and we have built more than three decades of outstanding operational history in partnership with the Republic of Kazakhstan. We remain the largest private investor in the country.

That investment goes far beyond capital deployed in oil, gas, and energy systems. It includes working closely with the government, fostering strong partnerships, supporting industrial development, and driving technological innovation. Most importantly, it involves investing in people by developing capabilities and capacity to evolve energy systems from what they were to what they will be.

For us, this investment represents much more than capital and financial returns. It represents a significant and enduring partnership between Chevron and the people of the Republic of Kazakhstan.

How resilient is Tengiz in a world of volatility and decarbonization?

When we think about volatility in today’s world, we must consider geopolitical pressures, whether related to conflicts in the north, developments in the Strait of Hormuz, or broader global tensions, as well as the increasing focus on decarbonization.

Resilience in such an environment requires strong partnerships, particularly with governments, to ensure that we can sustain the energy systems the world depends on. The global economy needs energy that is affordable, reliable, and increasingly cleaner to support human progress. 

Chevron, working in partnership with the Republic of Kazakhstan, and particularly in relation to the Tengiz field, understands the importance of this energy system and its role in supporting global progress.

Energy is increasingly affected by geopolitics. How does Chevron operate under today’s unstable geopolitical environment? Considering the ongoing Ukrainian drone strikes on CPC facilities in Russia, through which Kazakhstan exports the majority of its oil to global markets.

Kazakhstan is a major global player in energy markets, so ensuring flow assurance to deliver critical energy supplies is one of our top priorities. First and foremost, we must operate safely and take care of our people, including everyone who works with and around us in these systems. We must also protect the environment, which is absolutely essential.

As we discussed earlier, decarbonization is important, but it must be balanced. All forms of energy remain necessary. These assets are not political, they are essential infrastructure that provides much-needed energy to the world.

Maintaining open dialogue and clear communication about the importance of these systems is critical. Through partnership between business, governments, and other stakeholders, we must ensure that energy continues to flow reliably, affordably, and in an increasingly cleaner way to support human progress.

Considering instability in the world are you confident Chevron will continue investing in Kazakhstan? What do you value most in Kazakhstan as an investment partner?

Over the past three decades, Chevron has made extensive investments in Kazakhstan, not only in the Tengiz field but also in Karachaganak, CPC, Chevron Munaigas, and projects such as the Atyrau polyethylene pipe plant.

Looking ahead, long-term energy investments require a stable environment. These projects often span decades, so stability in fiscal terms is essential. Investors need clarity on returns, and equally, the people of Kazakhstan need to understand what those investments represent and what benefits they bring.

At the same time, Kazakhstan offers strong dialogue with the government, allowing alignment between government priorities and industry capabilities. That is what defines true partnership, and that is what Kazakhstan represents.

How do you assess Chevron’s returns from Kazakhstan beyond financial performance?

I would highlight two main aspects beyond financial returns.

First, in the context of decarbonization, Kazakhstan has demonstrated leadership, including its 2060 ambitions. We see strong opportunities to work together on technology and innovation to improve efficiency across energy systems. We need all forms of energy, hydrocarbons, renewables, wind, solar, and nuclear. The key is balance and efficiency.

Energy systems are not about replacing one source with another, but about improving all sources and making them as efficient and reliable as possible. Every unit of energy, whether a barrel of oil or a million cubic feet of gas, should be used as efficiently as possible.

Second, there is the development of people and industrial capacity. Over the past three decades, Kazakhstan has built strong industrial capabilities. Expanding local manufacturing and services creates jobs and strengthens the economy.

As energy systems evolve, including with growing demand from AI and computing, these skills will remain highly relevant. They are transferable and will support continued economic growth. Kazakhstan therefore represents a significant opportunity for government, industry, and society to work together and unlock long-term value.

How exposed is Chevron to geopolitical and transit risks related to sanctions and export routes?

Sanctions and export route challenges are certainly risks, particularly when it comes to ensuring that critical energy supplies reach global markets.

Addressing these risks requires close cooperation with governments and clear communication with all stakeholders. It is important that sanctions are implemented in a way that achieves their intended objectives while minimizing disruption to essential energy flows.

This process takes time and requires coordination across the entire value chain. Ultimately, it comes down to recognizing that human progress depends on energy, and demand will continue to grow significantly over time.

Between now and 2050, we expect at least a 10 percent increase in energy demand on an already strained system. Meeting this demand requires stability, resilience, and the ability to deliver energy to markets. That, in turn, requires collaboration among all participants to ensure that energy systems remain reliable even in a sanctions environment.

The Middle Corridor, also known as the Trans-Caspian International Transport Route, is gaining attention as an alternative East-West trade and transit route. How do you assess its potential, and could it strengthen Kazakhstan’s role as a regional energy, logistics and investment hub?

If we look back at events such as January 2022, the world saw how Kazakhstan responded and maintained stability. This has reinforced its position as a stable and reliable partner in Central Asia.

That stability, combined with proactive engagement with the global community, creates opportunities for increased trade flows. Kazakhstan can position itself as a hub for Central Asia, facilitating trade both into the region and outward to broader markets.

The growth of transport and logistics systems, whether in aviation, shipping, rail, or road, requires energy. Kazakhstan is well endowed with natural energy resources, which can serve as a foundation for economic growth.

As the Middle Corridor develops, Kazakhstan has a strong opportunity to leverage its resources, capabilities, and workforce to support this expansion and strengthen its role as a regional hub.

How do you justify major oil investments under net-zero and climate pressures?

As we move forward, there is growing recognition of the need for a balanced conversation in this space. A few years ago, there was a view that the transition to fully renewable energy could happen much faster. However, when you look at the reality of rising energy demand, especially in the coming years with the expansion of AI and the growing need for computing power, it is clear that demand will exceed the capacity of existing energy systems.

As a result, additional energy sources will need to be developed and brought to market. This requires balance. It also means making existing energy systems as efficient as possible. Everything we produce must be fully utilized, with minimal waste and maximum efficiency.

At the same time, we must continue developing new energy systems. This includes hydrogen, renewable fuels, geothermal energy, and nuclear, among others. The goal is to safely integrate all these sources to support future energy demand while remaining mindful of environmental protection for future generations.

What is the role of Kazakhstan as a regional energy leader?

Kazakhstan plays an important role as both a regional and global energy leader. It has demonstrated stability and acts as a stabilizing influence, while also supplying significant energy resources to global markets.

Through infrastructure such as CPC and its major oil and gas fields, Kazakhstan has substantial resources. 

Looking ahead, Kazakhstan’s contribution to global energy systems will remain significant. The oil transported through CPC and the potential expansion of gas exports, including to China and neighboring countries, are critical elements of this role.

Would you like to add anything we may not have covered?

I have been fortunate to live and work in Kazakhstan twice, and nearly 30 percent of my career has been spent here. Over the past 20 years, I have seen remarkable progress in industry, infrastructure, technology, and workforce capabilities.

Kazakhstan presents a strong investment opportunity, supported by a capable workforce and a government open to partnership. However, maintaining stability in fiscal and regulatory systems remains essential for sustaining this progress.

In today’s energy landscape, no single entity can succeed alone. Developing and operating energy systems require partnership. Kazakhstan offers a strong foundation for such collaboration, bringing together government, people, and industry to build long-term value.

I am grateful for the opportunity to be part of this journey, and Kazakhstan will always feel like home to me.

Earlier, Qazinform News Agency reported that on the sidelines of CERAWeek in Houston, Kazakhstan’s Energy Minister Yerlan Akkenzhenov met with Michael Wirth, Chairman and CEO of Chevron Corporation. The talks focused on major oil and gas projects involving U.S. investment, with Chevron remaining the country’s largest foreign investor for over three decades.