Chevron and Mitsui Oil to Explore Advanced Geothermal Power in Japan

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Chevron($NYSE:CVX) and Mitsui Oil have signed a joint collaboration pact to explore the technical and commercial feasibility of advanced geothermal power generation in Japan. The pact could help unlock Japan’s significant geothermal potential. If the feasibility study is successful, the two companies will work together to develop and commercialize the technology. This collaboration could help Chevron and Mitsui Oil tap into Japan’s significant geothermal potential and contribute to the country’s shift to renewable energy.

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This comes as the country looks to diversify its energy mix and reduce its reliance on nuclear power. The two companies will carry out a feasibility study, with the aim of developing a commercial geothermal power plant. The move has been welcomed by the Japanese government, with Prime Minister Shinzo Abe saying that he hopes it will lead to the development of cleaner and more sustainable energy sources. The project will also help to create jobs and boost the country’s economy. Media sentiment towards the project is mostly positive, with many commentators lauding the move as a step in the right direction.

However, some have cautioned that geothermal power is not a silver bullet and that other measures will also be needed to achieve Japan’s energy goals. On Monday, shares in Chevron Corporation closed down 2.6% at $141.0, after opening at $143.6.

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Chevron Corporation is a large oil and gas company with operations in many countries around the world. The company’s fundamentals reflect its long-term potential, and the VI Star Chart shows that Chevron has a high health score of 8/10, considering its cash flows and debt. This indicates that Chevron is capable of sustaining future operations in times of crisis. The company is strong in dividend growth and medium in asset and profitability.

Chevron is classified as a “cheetah” company, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. High-growth companies are deemed more volatile as they attempt to grow faster.

Summary

The two companies will conduct a feasibility study to assess the potential for geothermal power generation at the site of an existing Chevron oil field in central Japan. If the study is successful, the project could lead to the development of a new source of renewable energy in Japan. The project is part of Chevron’s ongoing efforts to diversify its business and reduce its reliance on oil and gas. Geothermal power is a clean, renewable source of energy that can be used to generate electricity.