Chevron chief says Joe Biden’s policies ‘undermining’ energy security

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Chevron chief Mike Wirth criticized the Biden administration’s oil and gas policy, saying it “undermines energy security” for US allies and threatens the country’s prosperity.

Wirth, the chief executive of the second-largest US oil producer, said President Joe Biden’s “attacks on natural gas” and a freeze on new export permits for LNG terminals put “politics over progress” and would affect climate efforts.

“It raises energy costs by removing potential supply from the market. It threatens reliable LNG supplies, undermining the energy security of our allies. And it slows the transition from coal to natural gas, which means more emissions, not less,” Wirth said at the Gastech conference in Houston on Tuesday.

“When it comes to promoting economic prosperity, energy security and environmental protection, a pause allowing LNG fails all three,” he added.

Wirth’s comments come as Republicans and Democrats clash over energy policy ahead of November’s presidential election, with Donald Trump vowing to roll back the Biden administration’s climate agenda, which he blames for rising fuel costs.

The administration’s freeze on new LNG exports has become a major campaign issue in the swing state of Pennsylvania, which produces about 20 percent of US gas and could prove pivotal in electing the next president.

Trump wooed oil barons to finance his campaign, arguing that Democratic rival Kamala Harris would cripple their industry.

“Fossil fuel will be dead. We’re going to go back to windmills and we’re going to go back to solar,” Trump said in last week’s presidential debate with the vice president.

Harris has previously said he would ban fracking, the drilling technique that has helped the US become the world’s largest producer of oil and gas. But she has since reversed that position and promoted increased American manufacturing.

Biden has sought to walk a fine line on natural gas, which emits less carbon than coal when burned but still contributes to climate change. He encouraged US exports to Europe to avert an energy crisis after Russia’s full-scale invasion of Ukraine, but has clamped down on emissions and tried to lead a transition to renewable forms of energy.

But the oil and gas industry has launched a fierce lobbying effort to persuade the federal government to end the licensing freeze on new LNG plants. The pause is set to remain in place until the Department of Energy completes an analysis of the impact of the increase in exports in recent years.

A federal court lifted the moratorium in July, but no new permits have been issued for US export projects since then. The break caused an uproar in the industry.

“Instead of imposing a moratorium on LNG exports, the administration should stop the attacks on natural gas,” Wirth said Tuesday.

The DoE did not immediately respond to a request for comment on Wirth’s remarks.

Despite their political grievances, US oil and gas producers have flourished under the Biden administration, posting record production and profits. Also last year, the US overtook Australia to become the world’s largest LNG exporter.

The oil and gas industry claims that LNG helps reduce emissions by replacing coal in power generation. But some climate scientists have questioned this thesis.

Robert Howarth, a Cornell University professor and methane expert, argues in an upcoming report that LNG’s emissions footprint equals or exceeds that of coal.

“Shale gas production as well as liquefaction to make LNG and LNG transportation by tanker are energy intensive, which contribute significantly to LNG’s greenhouse gas footprint,” he wrote.

“The production and transportation of shale gas also emits a substantial amount of methane, and the liquefaction and transportation of LNG by tanker can further increase methane emissions.”