Chevron CEO Mike Wirth has criticized the oil and gas policy of the Biden administration, claiming that it is jeopardizing energy security for US allies and threatening the country’s prosperity. Speaking at the Gastech conference in Houston, Wirth expressed concern over President Joe Biden’s stance on natural gas and his decision to freeze new export permits for liquefied natural gas (LNG) terminals. According to Wirth, these actions prioritize politics over progress and will have negative consequences for climate efforts.
Wirth argued that this policy will increase energy costs by reducing potential supply in the market. He also highlighted how it undermines energy security for US allies by threatening reliable supplies of LNG. Additionally, he pointed out that it slows down the transition from coal to natural gas, resulting in more emissions instead of less.
These comments come amidst a heated debate between Republicans and Democrats regarding energy policy ahead of the upcoming presidential election. Former President Donald Trump has pledged to reverse Biden’s climate agenda, which he believes is responsible for rising fuel costs. The freeze on new LNG exports has become a significant campaign issue in Pennsylvania, a swing state crucial for determining the next president.
Trump has garnered support from wealthy oil industry figures who fear that Democratic candidate Kamala Harris would harm their sector. During a recent presidential debate with Harris, Trump claimed that fossil fuels would be phased out in favor of windmills and solar power.
Harris had previously expressed support for banning fracking but later changed her position due to America’s increased oil and gas production output. Biden himself has taken a nuanced approach towards natural gas as an alternative to coal while also addressing climate change concerns through emission reductions and renewable energy initiatives.
Despite disagreements over policy, US oil and gas producers have thrived under the Biden administration with record output levels and profits. In fact, last year saw the US surpass Australia as the world’s largest exporter of LNG.
The industry argues that LNG helps reduce emissions by displacing coal in power generation; however, some climate scientists question this claim. Professor Robert Howarth from Cornell University suggests in an upcoming report that LNG production emits greenhouse gases equivalent to or even greater than those produced by coal due to its energy-intensive processes such as shale gas extraction, liquefaction, transportation via tankers which can result in increased methane emissions.
The oil and gas industry is actively lobbying against the pause on issuing licenses for new LNG plants imposed by federal authorities until an analysis on recent surging exports’ impact is completed by Department of Energy (DoE). While a federal court overturned this moratorium earlier this year, no new permits have been issued since then causing frustration within the industry.
Wirth concluded his remarks at Gastech by urging policymakers not to impose moratoriums on LNG exports but rather focus on supporting natural gas without attacking it.
