Chevron, GE form pact for oil and gas research
By Collin Eaton
HOUSTON – Two of the world’s biggest companies plan to come together to develop and commercialize oil and gas technology at a newly minted research center in Oklahoma City.
Oil and gas technology subsidiaries of both Chevron and General Electric will devote investment capital to advances in oil production and refining. The collaborative research and development umbrella is called the Chevron GE Technology Alliance, and it will serve to get early-stage technology off the ground, the companies said Monday.
It’s a partnership that has already seen some action. The oil-production giant and the industrial titan recently developed flow meter products that Chevron is now testing at its wells in the western U.S.
General Electric’s manufacturing capabilities and Chevron’s oil and gas legacy will help the partnership “bring impactful new technologies to the industry,” said Paul Siegele, president of Chevron’s energy technology subsidiary.
The companies haven’t estimated how much will be invested in the partnership’s research and development budget, said Lara Sweeney, a spokeswoman for Chevron.
The two Fortune 500 heavyweights signed a five-year agreement last July, and it can be extended by mutual agreement, Sweeney said.
In a separate announcement, General Electric said its oil and gas subsidiary rolled out a new downstream technology business in January that is headquartered in Houston.
The downstream business sells pumps, valves, steam turbines and other gear trained on natural gas processing and oil refining. It made its first move last month when it bought high-horsepower gas processing equipment from Cameron International for $550 million.
GE shares fell 2.4 percent to $24.51 and Chevron shares dipped by 4 cents to $111.59 in early trading Monday on the New York Stock Exchange.