Chevron and Israel: Profits Above Human Rights

Big oil and gas company Chevron is deeply entwined with the Israeli state. Israel’s government relies on Chevron to extract the rich supply of gas off its coast, making money for a government actively perpetrating a genocide against the Palestinian people.¹ And Chevron relies on Israel – Israel will be Chevron’s third largest source of gas globally over the next twenty years.²

Over the next decades, Chevron is expected to remain the top extractor of Israel’s offshore gas.³ Chevron took this position in 2020, when it acquired the largest player in Israel’s gas fields at that time – Noble Energy.  This gave Chevron operational control of Israel’s biggest gas fields, the Leviathan and Tamar fields. By buying out Noble, Chevron has positioned itself as the leading gas producer in Israel. This makes the company a pivotal cog in Israel’s revenue stream, implicating Chevron in the financing of Israel’s objectives that are increasingly considered to be in violation of international law.

This alliance adds up to significant revenues for both Chevron and Israel. Over the next decades, Chevron is expected to make billions for itself and the state of Israel from gas. Between now and 2040, Chevron’s expected revenues from Israeli gas production are almost $20 billion USD. Over the same time, Chevron is also projected to transfer more than $26 billion USD to the state of Israel in royalties and taxes on its share of the gas it will produce.3 These growing numbers dwarf the $1.5 billion USD Chevron has already moved to Israel’s government since it began operating in Israel four years ago, and reflect the expected growth in gas production over the period.⁴

Chevron is also one of the key suppliers of crude oil imported by Israel. Chevron owns 28% of the oil production in Kazakhstan that feeds the Caspian Pipeline, which is a source of 22% of the crude imported by Israel since October 2023. Together with Chevron’s ownership of oil exported to Israel from Nigeria and Congo-Brazzaville, OCI estimates that Chevron is linked to 8% of the crude Israel has imported since the current escalation of the conflict began.⁵

In light of Israel’s ongoing invasion of Gaza and rulings by the International Court of Justice (ICJ) that Israel’s actions may have violated the terms of the Genocide Convention and the Israeli occupation of Gaza is unlawful,⁶ Chevron’s ongoing alliance with Israel shows the company values profits above human rights and a safe climate. It’s unthinkable to continue extraction when over half of existing reserves must stay underground to keep global warming below the internationally agreed limits.⁷ Big Oil companies like Chevron – the arsonists fueling climate chaos and atrocities against civilians – cannot be trusted to put out the fire. In the view of some legal experts, the company could face legal exposure for complicity in genocidal acts.

Chevron in Israel

Source: Rystad Energy Ucube (August 2024)

Footnotes

1. On January 26, 2024, the International Court of Justice ordered Israel to refrain from any acts that could fall under the Genocide Convention and to ensure its troops commit no genocidal acts in Gaza. The judges wrote, “At least some of the acts […] committed by Israel in Gaza appear to be capable of falling within the provisions of the (Genocide) Convention.” https://www.icj-cij.org/sites/default/files/case-related/192/192-20240126-sum-01-00-en.pdf
2. Projections from Rystad Energy Ucube (August 2024) Chevron is projected to produce over 6 trillion cubic feet (170 billion cubic meters) of gas from 2024-2040 in Israel.
3. Rystad Energy Ucube (August 2024) Chevron’s projected revenues are free cash flow from upstream operations in Israel 2024 to 2040.
4. Id. Chevron moved $1.5 billion USD to Israel’s government 2020-2023.
5. https://priceofoil.org/2024/08/19/behind-the-barrel-new-insights-into-the-countries-and-companies-behind-israels-fuel-supply/
6. On July 19, 2024, the International Court of Justice (ICJ) issued an advisory opinion stating that Israel’s continued presence in the Occupied Palestinian Territory is unlawful. The Court emphasized that Israel is under an obligation to bring to an end its unlawful presence in the Occupied Palestinian Territory as rapidly as possible, cease all new settlement activities, evacuate settlers, and make reparations for damages caused. https://www.icj-cij.org/sites/default/files/case-related/186/186-20240719-adv-01-00-en.pdf
7. https://priceofoil.org/2023/08/16/skys-limit-data-update-shut-down-60-of-existing-fossil-fuel-extraction-to-keep-1-5c-in-reach/