KEY POINTS
- Chevron CEO criticizes Biden’s natural gas policies at the Gastech conference.
- Wirth defends low-carbon gas as vital for powering the AI sector.
- LNG export pause could lead to higher energy costs and increased emissions
Chevron CEO Michael Wirth has slammed U.S. President Joe Biden’s natural gas policies, stating that they hinder progress and threaten energy security. Speaking at the Gastech conference in Houston, Wirth highlighted the essential role of natural gas in fueling the artificial intelligence (AI) sector.
He defended using low-carbon gas over coal to meet rising energy demands and criticized the Biden administration’s pause on liquefied natural gas (LNG) exports.
Wirth argued that a moratorium on LNG exports would increase energy costs and emissions, potentially slowing the shift from coal to natural gas.
He also emphasized the importance of political support for natural gas in achieving global carbon reduction goals, citing data from the International Energy Agency (IEA) that showed coal combustion as a significant contributor to greenhouse gas emissions.
Natural gas and AI’s future
During his keynote address, Wirth noted that the rapid advancement of AI would depend not only on the tech industry’s innovation but also on natural gas supplies from U.S. regions like the Permian Basin. According to Reuters, he stated that Chevron, as a leading player in the Permian, remains committed to supporting the growth of both sectors.
“AI’s advance will depend not only on the design labs of Silicon Valley but also on the gas fields of the Permian basin,” Wirth said. He argued that restricting LNG exports for political reasons could stifle progress in both energy and AI.
Wirth’s critique followed Biden’s announcement in January of a temporary pause on LNG export approvals, which was met with approval from climate activists but faced backlash from the energy sector.
The Chevron CEO insisted that halting LNG exports would undermine the administration’s environmental goals, as it could lead to greater dependence on coal, which is more harmful to the environment.
“Switching from coal to gas could be the single greatest carbon reduction initiative in history,” Wirth said. He urged policymakers to provide stable, long-term support for natural gas as a key pillar in global decarbonization efforts.
Three pillars for the energy transition
Wirth outlined a balanced approach to the future of energy, focusing on three key pillars: political backing for natural gas as a tool for reducing carbon emissions, recognition of the progress in deploying gas technologies, and innovation in energy solutions.
He emphasized the importance of collaboration across industries to ensure a stable and sustainable energy future.
Wirth’s comments underscored the challenges facing the Biden administration as it navigates the balance between ambitious climate goals and the country’s reliance on natural gas for both economic stability and technological progress.
