Chevron’s CEO Michael Wirth has written President Joe Biden a letter, offering clear-as-day guidance for what the administration should be doing to assist Americans to get lower energy costs.
On June 15, President Biden wrote a letter to several large oil firms, demanding that the energy sector increase production and fight market disruption caused by Russia’s military action in Ukraine by lowering costs for Americans. On Tuesday, Chevron CEO John Watson replied to the president’s demand with his own lengthy letter, stating that the firm intends to have an “honest conversation” with President Biden.
In a recent letter, Wirth stated that in 2021, “Chevron produced the greatest quantity of oil and gas in our 143-year history” and is presently pouring $10 billion into green energy projects. Chevron then slammed Biden because of his anti-fossil fuel policies.
“Chevron shares your concerns regarding the upward costs that Americans are now experiencing,” Wirth assured them. “I want to make it clear that Chevron is doing everything possible to assist with these problems by increasing capital expenditures to $18 billion in 2022, more than double last year’s level.”
Gasoline costs in many locations reached new highs this spring. The cost of the typical gallon of gasoline in the United States was $4.968 on Tuesday.
“Your Administration, on the other hand, has largely sought to condemn and even vilify our industry,” Wirth added in his letter.
“These decisions are not helpful in dealing with the issues we face, and they aren’t what the American people deserve,” he concluded.
According to the energy expert, there is a simple solution for Biden to reduce expenses while also providing certainty in the sector.
“We need clarity and consistency in policy issues ranging from permits and leases on federal lands to the ability to permit and construct crucial infrastructure, as well as the right balance of regulation that considers both costs and benefits. Many of these aspects are addressed in our sector’s 10-point plan, which was issued recently.”
On Thursday, Mike Sommers, the president and CEO of the American Petroleum Institute (API), published a ten-point strategy for Biden to follow in order to halt the historic oil costs that have risen during his term.
Wirth also reminded Biden that, in order to reduce costs, it’s necessary to have a serious discussion — one that respects the energy sector.
“Most significantly, we need a genuine discussion on how to balance energy, economic, and environmental goals, one that acknowledges the importance of our industry to the US economy and national security.”