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Chevron's (CVX) Road Trip Showcases Renewable Gasoline Blend

Chevron Corporation CVX recently announced the beginning of a road trip across the U.S. Gulf Coast to demonstrate its innovative gasoline blend with more than 50% renewable content. The new fuel is expected to offer emissions savings similar to electric vehicles.

Renewable Gasoline Blend

As regulators across the world insist on electrification of road transportation, oil refiners and automakers like Toyota seek ways to decarbonize the internal combustion engine. According to Chevron executive Andy Walz, renewable gasoline blends will enable almost all drivers to play a role in lower carbon transportation without having to buy a new car.

The renewable gasoline blend is created by mixing traditional gasoline with renewable fuels, such as biofuels made from corn or soybeans. Chevron stated that this innovative fuel has more than 50% renewable content and is 40% less carbon intensive than traditional gasoline.

Lower Carbon Future Investment

CVX plans to accelerate its lower carbon ambitions by investing more than  $10 billion by 2028. This includes $2 billion to lower the carbon intensity of its operations. The current investment estimate is more than triple the company's previous guidance of $3 billion.

People from Chevron and Toyota will drive Toyota’s Tundra, RAV4 and Camry on this road trip to demonstrate the fuel’s efficiency and emissions savings capacity. Toyota has been a pioneer in developing hybrid and fuel-cell vehicles and is committed to reducing its carbon footprint.

Driver Empowerment

The transportation sector accounts for approximately one-third of global greenhouse gas emissions, making it a significant contributor to climate change. As mentioned above, Chevron’s renewable gasoline blend could empower almost all drivers to play an important in lower-carbon transportation without having to buy a new vehicle.

The company’s fuel innovation is a significant step toward reducing carbon emissions. CVX’s projected investment in renewable fuels, hydrogen and carbon capture technology will help customers lower their carbon footprint. It will also help the company in reducing the carbon intensity of its operations.

In a Nutshell

Chevron's innovative gasoline blend with more than 50% renewable content is a promising step toward a lower carbon future. As regulators around the world push for the electrification of road transportation, this innovation offers a way for virtually all drivers to reduce their carbon footprint without having to buy a new vehicle. CVX’s projected investment in renewable fuels, hydrogen and carbon capture technology will help customers achieve their carbon reduction goals.  It will also help the company in reducing its operations’ environmental impact.

Zacks Rank and Key Picks

Chevron, a leading integrated energy company with operations worldwide, generates approximately $95 billion in annual revenues and produces more than 3 million barrels of oil equivalent per day.

Currently, CVX carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like Par Pacific PARR and Marathon Petroleum MPC, each holding a Zacks Rank #1 (Strong Buy), and Ranger Energy Services RNGR, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Par Pacific: PARR is worth approximately $1.63 billion. Its shares have risen 82.1% in the past year.

Par Pacificmanages and maintains interests in energy and infrastructure businesses. Its operating segment consists of refining, retail and logistics.

Marathon Petroleum: MPC is valued at around $58.02 billion. It delivered an average earnings surprise of 20.91% for the last four quarters and its current dividend yield is 2.30%.

Marathon Petroleum currently has a forward P/E ratio of 6.36. In comparison, its industry has an average forward P/E of 9.10, which means MPC is trading at a discount to the group.

Ranger Energy Services: RNGR is valued at around $242.99 million. In the past year, its shares have gained 16.8%.

Ranger Energy Services currently has a forward P/E ratio of 5.30. In comparison, its industry has an average forward P/E of 11.60, which means RNGR is trading at a discount to the group.

 

 

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Ranger Energy Services, Inc. (RNGR) : Free Stock Analysis Report

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