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letter to President Biden from chevron CEO Mike Wirth – Chevron.com

letter to President Biden from chevron CEO Mike Wirth – Chevron.com
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Expensive Mr. President!

Thanks in your letter of June 14, 2022. As trade leaders, teachers, and lots of politicians level out, there aren’t any easy fixes or short-term responses to the worldwide imbalance of provide and demand that has been exacerbated by Russia’s invasion of Ukraine. Addressing this example requires considerate motion and a willingness to work collectively, not political rhetoric. I look ahead to assembly with Secretary Granholm and look ahead to a constructive dialog on motion to handle each the short-term challenges and the long-term stability of the vitality markets.

In 2021, Chevron extracted the very best quantity of oil and fuel in its 143-year historical past. Within the first quarter of 2022, our manufacturing in the US was 1.2 million barrels per day, which is 109,000 barrels per day greater than the identical quarter a yr earlier. Within the Permian Basin alone, we count on manufacturing to strategy 750,000 barrels per day by the tip of the yr, a rise of greater than 15 % in comparison with 2021. And Chevron refinery volumes rose by a mean of 915,000 barrels per day within the first quarter this yr from 881,000 in the identical quarter final yr.

Along with rising U.S. oil and fuel manufacturing, Chevron can be investing $ 10 billion in lowering greenhouse fuel emissions and scaling new superior vitality applied sciences similar to carbon and hydrogen seize, and rising renewable liquid manufacturing capability to 100,000 barrels per day. till 2030. America will lead in these important new areas by creating jobs at residence and exporting them to the world to fulfill vitality and local weather targets.

American oil and fuel provides are a number of the best, responsibly produced and lowest carbon provides on the earth. Roughly 15 kg of CO2-equivalent per barrel, the carbon depth in Chevron’s Permian Basin is about two-thirds decrease than the trade common on common. Manufacturing within the Gulf of Mexico within the US has a carbon depth that’s solely a fraction of the world common trade. The rise in manufacturing in America will offset barrels made in different elements of the world that will not help America’s vitality safety, financial competitiveness, or environmental targets.

I wish to make clear that Chevron shares your concern concerning the increased costs skilled by Individuals. And I guarantee you that Chevron is doing its half to assist remedy these issues by rising capital expenditures to $ 18 billion in 2022, which is greater than 50% increased than final yr.

Chevron and its 37,000 staff work daily to offer the world with the vitality it wants and to boost the lives of the billions of people that depend on these provides. Regardless of these efforts, your administration has largely sought to criticize and typically criticize our trade. These actions are of no use to handle the challenges we face, and never what the American individuals deserve.

Whereas in the present day’s geopolitical state of affairs is contributing to this vitality disaster, decrease costs and elevated provide would require a change of strategy. You known as on our trade to extend vitality manufacturing. We agree. Let’s work collectively. The U.S. vitality sector wants the cooperation and help of your administration to get our nation again on the trail to higher vitality safety, financial prosperity, and environmental safety.

We’d like readability and consistency on coverage points, from leases and permits to federal lands, to the power to permit and construct important infrastructure, to the right regulatory function that takes under consideration each prices and advantages. Many of those components are described in our trade’s just lately revealed 10-point plan. Most significantly, we want an trustworthy dialogue on how finest to stability vitality, financial and environmental targets – one which acknowledges that our trade is an important sector of the U.S. economic system and is crucial to our nationwide safety.

We will solely take care of these issues collectively. This week Chevron will attend a gathering with Secretary Granholm. I urge you additionally to ship your senior advisers to this assembly in order that they can also enter into a reputable dialog. Your philosophy of “the entire authorities” in fixing main issues ought to be utilized right here, as a result of an built-in strategy is finest to fulfill the vitality wants of our nation and our allies.

The American individuals rightly count on the leaders and trade of our nation to significantly and decisively handle the challenges they face. We’re a prepared accomplice on this matter and we imagine that your administration would be the similar.

Sincerely,
letter to President Biden from chevron CEO Mike Wirth – Chevron.com

Michael Ok. Wirth
Chairman of the Board and Chief Government Officer

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