Dive Brief:
- Chevron Corporation named its President of New Energies and longtime company veteran, Jeff Gustavson, as its next finance chief effective Jan. 1, 2027 as part of a series changes to its executive leadership team, according to a Monday securities filing and press release.
- Gustavson, who joined the Houston-based oil and gas company in 1999, will succeed Chevron CFO Eimear Bonner, according to the filing with the Securities and Exchange Commission. Bonner, meanwhile, will become president of oil, products and gas, Chevron said.
- Among other moves, Mark Nelson — another Chevon veteran currently serving as vice chair for oil, products and gas — will transition to a vice chairman role for strategy and business development. Brent Gros, meanwhile, will assume the role of president of new energies, which includes overseeing the company’s AI strategy, according to the press release. All moves are effective as of Jan. 1.
Dive Insight:
Gustavson’s more than two decades at the oil and gas company have spanned several roles. Most recently, he has served as president of new energies since August 2021, according to his LinkedIn profile. Previously, he served three years as VP for Chevron’s mid-continent business unit, as president of its Canada resources segment, and as general manager of investor relations.
Gustavson will receive an annual base salary of $1 million when he assumes the CFO seat, according to the filing. As of that date, his annual target bonus opportunity will also increase to 110% of his base pay, according to the SEC filing.
The executives “bring a combination of operational expertise, strategic perspective and a proven ability to deliver results across our business,” Mike Wirth, Chevron chairman and CEO, said in a statement included in the release. “Their experience, judgment and commitment to excellence will help position Chevron for continued success in an evolving energy landscape.”
The coming leadership changes coincide with Chevron’s expansion in Venezuela. The company, in an updated agreement, announced access to additional acreage in the country’s Orinoco Belt, according to a Sept. 2 press release.
That same day, the Trump administration announced in a press release a deal to expand U.S. oil reserves in the country in partnership with North American Blue Energy Partners.
The deal, which expands U.S. majority control to more than 65 billion barrels of proven oil reserves, “is virtually identical to the way that Chevron operates in Venezuela,” the White House said.
During his second term President Donald Trump has repeatedly clashed with top Chevron executives as his administration seeks to enlarge control over Venezuela’s oil reserves. Chevron, the second-largest U.S. oil producer, has largely operated unopposed in the country.
Last year, Trump revoked, then amended, the company’s license to operate within Venezuela, according to reports at the time.
The president has also lambasted both Chevron and ExxonMobil for “making too much money,” urging them to slash retail fuel prices as energy costs in the U.S. have soared, ABC News reported in August.
The September deal gives NABEP control over 17 oil fields in Venezuela, containing approximately one-fifth of the country’s oil reserves and marking it as a challenger to Chevron, the Wall Street Journal reported.
Under Chevron’s updated deal, the Petroindependencia S.A. joint venture — which is 49% owned by a subsidiary of Chevron — will develop two additional areas next to the Orinoco belt, the company said in the press release. The move will help underpin Chevron’s plan to invest more than $7 billion into the allotment in the next five years, doubling its production to approximately 600,000 barrels a day, according to the Sept. 2 press release.
Chevron logged record U.S. production for its most recent quarter, with worldwide oil production increasing by 20%, according to its most recent earnings report on July 31.
The company also achieved its previously stated structural cost reduction goals six months ahead of time, reporting $3 billion in annual run rate savings by the close of the quarter ended June 30, according to its earnings report.
Chevron previously announced its plans to slash costs and step up production in late 2025, increasing its planned cost reduction by $1 billion to a $3-billion-to-$4 billion range by the end of this year, Reuters reported in November 2025.
The cost reductions come as oil prices continue to spike, with the cost of a barrel of Brent crude having jumped by 54% during the past year, driven by the war in the Middle East as well as persistent inflation.
The volatility in oil prices has prompted efforts to ensure Chevron’s balance sheet is well structured for the future, CFO Bonner said during a recent discussion at a conference hosted by Barclays Bank.
At the moment, any excess cash Chevron has generated has been funneled back into its balance sheet with an eye toward the long-term, Bonner said at a Sept. 8 conference sponsored by Barclays Bank plc.
“We generally don't like to move the buyback rate during times of volatility,” Bonner said, referring to Chevron’s approach to bringing cash back to its shareholders, according to a transcript on Seeking Alpha. “We like to have a better view of what — where prices are trending and then we adjust.”
