On Tuesday, Chevron’s CEO Michael Wirth sent a letter to President Biden with advice on how his administration can help combat record high gas prices and criticizing Biden’s attempts to “vilify” the oil industry.
“In 2021, Chevron produced the highest volume of oil and gas in our 143-year history. In the first quarter of 2022, our U.S. production was 1.2 million barrels per day, up 109,000 barrels per day from the same quarter a year earlier,” Wirth noted, adding that Chevron is “also investing $10 billion to reduce greenhouse gas emissions.”
Wirth then pointed out that “American oil and gas supplies are among the most efficient, responsibly produced, and lowest carbon intensity supplies in the world… Increasing American production will offset barrels produced in other parts of the world that may not support America’s energy security, economic competitiveness, or environmental goals.”
“I want to be clear that Chevron shares your concerns over the higher prices that Americans are experiencing. And I assure you that Chevron is doing its part to help address these challenges by increasing capital expenditures to $18 billion in 2022, more than 50% higher than last year,” Wirth added.
The Chevron CEO then slammed Biden’s attacks on the oil industry, saying, “Chevron and its 37,000 employees work every day to help provide the world with the energy it demands and to lift up the lives of billions of people who rely on these supplies. Notwithstanding these efforts, your Administration has largely sought to criticize, and at times vilify, our industry. These actions are not beneficial to meeting the challenges we face and are not what the American people deserve.”
“While today’s geopolitical situation is contributing to this energy crisis, bringing prices down and increasing supply will require a change in approach. You have called on our industry to increase energy production,” he continued. “We agree. Let’s work together. The U.S. energy sector needs cooperation and support from your Administration for our country to return to a path toward greater energy security, economic prosperity, and environmental protection.”
Wirth then stated that Chevron needs “clarity and consistency on policy matters ranging from leases and permits on federal lands, to the ability to permit and build critical infrastructure, to the proper role of regulation that considers both costs and benefits.” He pointed to the 10-point plan to bring down energy prices from the American Petroleum Institute (API) that was sent to Biden last week which described “many of these elements.”
“Most importantly, we need an honest dialogue on how to best balance energy, economic, and environmental objectives – one that recognizes our industry is a vital sector of the U.S. economy and is essential to our national security,” Wirth added. “We can only meet these challenges by working together. Chevron will engage in this week’s meeting with Secretary Granholm. I encourage you to also send your senior advisors to this meeting, so they too can engage in a robust conversation. Your ‘whole of government’ philosophy in addressing major issues should apply here too, as a comprehensive approach is best to address the energy needs of our nation and of our allies.”
