Chevron CEO hits out at Biden’s natural gas policies, says fuel is crucial to AI By Reuters

By Sabrina Valle

HOUSTON (Reuters) – Chevron CEO Michael Wirth criticized U.S. President Joe Biden’s administration on Tuesday for what he described as “attacks on the natural gas industry” and pointed to the Permian’s crucial role in fueling the rapid growth of artificial intelligence ( AI).

The CEO’s remarks followed new government plans on policies to prevent power-hungry AI data centers from undercutting US climate goals. Last week, the White House launched an AI data center infrastructure task force to coordinate policies in line with the government’s economic and environmental goals.

Wirth advocated the use of low-carbon gases over coal to meet the growing energy demands of the AI ​​sector.

“The advance of AI will depend not only on the design labs of Silicon Valley, but also on the gas fields of the Permian Basin,” Wirth said at the Gastech conference in Houston.

Chevron (NYSE: ), the second-largest oil producer in the U.S., is one of the major players in the Permian Basin spanning Texas and New Mexico. The Permian is the largest oil field in the US and accounts for 15% of the nation’s gas production.

Wirth said the Biden administration’s approach to cutting off liquefied natural gas (LNG) exports “expresses politics at the expense of progress.”

In January, Biden announced a freeze on approvals for pending and future applications to export LNG from new projects, a move applauded by climate activists that could delay decisions on new plants until after the Nov. 5 election.

He argued that a moratorium on LNG exports would raise energy costs, threaten reliable supply and slow the shift away from coal to natural gas, leading to more emissions rather than fewer.

“Instead of imposing a moratorium on LNG exports, the administration should stop attacks on natural gas,” he added.

Wirth emphasized the role of gas in reducing global carbon emissions, citing data from the International Energy Agency (IEA) that attributes more than a third of total global greenhouse gas emissions in 2022 to the burning of coal.

The switch from coal to gas, he suggested, could be “the biggest carbon reduction initiative in history”.

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

Amid the global drive for decarbonisation, Wirth stressed the need for a stable and predictable political environment to ensure gas remains a reliable energy source.

He outlined three pillars for a balanced energy future: political support for gas as key to a low-carbon future; recognition of the progress made in the implementation of new technologies and gas solutions; and understanding that the energy transition requires unprecedented innovation and collaboration.