Chevron CEO criticizes Biden's natural-gas policies and says fuel is essential for AI

Michael Wirth, CEO of Chevron, criticized U.S. president Joe Biden on Tuesday for "attacks" on the natural-gas industry. He also emphasized the critical role that Permian gas plays in accelerating the growth of artificial intelligence.

The CEO's comments followed new plans by the government to ensure that power-hungry AI centers do not undermine U.S. Climate Goals. The White House created a taskforce on AI Datacenter Infrastructure last week to coordinate policies that align with government economic and environmental goals.

Wirth said that the AI industry's energy needs are increasing and it is better to use low-carbon gas than coal.

Wirth, at the Gastech conference in Houston, said that the advancement of AI will not be dependent only on the design laboratories of Silicon Valley but also the Permian Basin gas fields.

Chevron is the second largest oil producer in the United States.

Permian basin

This region straddles Texas with New Mexico. Permian oilfield is the largest in the United States and accounts for 15 percent of the country's gas production.

Wirth stated that the Biden administration’s decision to stop LNG exports is "politics over progress".

Climate activists applauded Biden's announcement in January that he would halt approvals of pending and future LNG export applications from new projects. This could mean that decisions about new plants are delayed until after the November 5th election.

He claimed that a ban on LNG exports could increase energy prices, undermine reliable supplies and slow down the transition from coal to gas, resulting in more emissions than less.

He added, "Instead imposing a ban on LNG exports the administration should stop attacking natural gas."

Wirth emphasized the role of gas as a means to reduce global carbon emissions. He cited data from the International Energy Agency, which showed that over a third (33%) of global greenhouse gas emissions will be due to coal combustion in 2022.

He suggested that switching from coal to natural gas could be the "single greatest carbon reduction initiative" in history.

He said that "the case for natural gases is so strong, only politics can stand in its way."

Wirth emphasized the need for a stable, predictable policy environment in the face of the global push to decarbonize. This will ensure that gas is a reliable source of energy.

He identified three pillars of a balanced future in energy: support for gas, as the key to a future with lower carbon emissions; acknowledgement of the progress that has been made on the deployment and use new technologies; and the understanding that innovation and collaboration are essential for the energy transformation. (Reporting and Editing by Marguerita choy)

(source: Reuters)