Chevron CEO Criticizes Biden Administration's Attacks on Natural Gas, Emphasizes Role of Permian in Powering AI Growth
Chevron CEO Michael Wirth slammed the Biden administration for its "attacks on the natural gas" industry, highlighting the importance of the Permian basin in fueling the rapid expansion of artificial intelligence (AI).
The CEO's comments came in response to new government initiatives aimed at preventing power-hungry AI data centers from undermining U.S. climate objectives. The White House recently established a task force on AI Datacenter Infrastructure to align policies with economic and environmental targets.
Wirth defended the use of low-carbon gas instead of coal to meet the growing energy needs of the AI sector. He stressed that the advancement of AI relies not only on Silicon Valley design labs but also on the gas fields of the Permian basin.
Chevron, a major player in the Permian basin, is a leading U.S. oil producer. The Permian basin, spanning Texas and New Mexico, is the largest oilfield in the U.S. and contributes 15% of the country's gas production.
Wirth criticized the Biden administration's decision to pause liquefied natural gas (LNG) exports, arguing that it prioritizes politics over progress. He warned that halting LNG exports could raise energy costs, jeopardize reliable supplies, and impede the transition from coal to natural gas, potentially increasing emissions.
The CEO highlighted the role of gas in reducing global carbon emissions, citing data from the International Energy Agency (IEA) indicating that over a third of global greenhouse gas emissions in 2022 stemmed from coal combustion. He suggested that switching from coal to gas could be the most significant carbon reduction initiative in history.
In the midst of global efforts to decarbonize, Wirth emphasized the importance of a stable and predictable policy environment to ensure gas remains a dependable energy source. He outlined three key pillars for a balanced energy future: political backing for gas as a crucial element in a lower carbon future, acknowledgment of advancements in new technologies and gas solutions, and recognition that the energy transition demands unprecedented innovation and collaboration.