Chevron CEO Critiques Biden’s Natural Gas Policies, Emphasizes Fuel’s Importance for AI – Reuters

By Sabrina Valle

HOUSTON – Chevron CEO Michael Wirth criticized the Biden administration on Tuesday, labeling its stance as “attacks on the natural gas” sector while highlighting the significance of the Permian Basin in supporting the growth of artificial intelligence (AI).

Wirth’s comments were in response to recent government initiatives aimed at regulating power-intensive AI data centers to align with the nation’s climate objectives. Recently, the White House established a task force focused on AI Datacenter Infrastructure to synchronize policies with broader economic and environmental aims.

The CEO advocated for the use of low-carbon natural gas instead of coal to accommodate the rising energy needs of the AI industry. “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 stated at the Gastech conference in Houston.

Chevron is one of the major players in the Permian Basin, which spans Texas and New Mexico and is recognized as the largest oilfield in the U.S., contributing to 15% of the nation’s gas production.

Wirth expressed concern over the Biden administration’s decision to pause approvals for liquefied natural gas (LNG) exports, arguing that it prioritizes politics over progress. In January, the Biden administration announced this pause on new LNG export applications, a move that received support from climate activists but could defer decisions on new projects until after the upcoming elections.

He argued that halting LNG exports could lead to increased energy costs, jeopardize reliable energy supplies, and hinder the transition from coal to natural gas, potentially resulting in higher emissions. “Instead of imposing a moratorium on LNG exports, the administration should stop the attacks on natural gas,” he said.

Wirth underscored the importance of natural gas in curbing global carbon emissions, referencing data from the International Energy Agency (IEA), which indicated that coal combustion was responsible for over a third of total global greenhouse gas emissions in 2022. He suggested that the transition from coal to gas could represent “the single greatest carbon reduction initiative in history.”

“The case for natural gas is so strong that only politics can get in the way,” he noted.

Amid global efforts to decarbonize, Wirth emphasized the necessity of a stable and predictable policy framework to ensure that gas remains a dependable energy resource. He outlined three key components for a balanced energy future: political backing for gas as essential for achieving a lower carbon future; recognition of advancements in new technologies and gas solutions; and an appreciation for the need for unprecedented innovation and collaboration during the energy transition.