The CEO’s remarks followed new government plans over policies to prevent power-hungry AI data centers from undercutting U.S. climate goals. Last week, the White House launched a task force on AI Datacenter Infrastructure to coordinate policies in line with the government's economic and environmental goals.
Wirth defended leveraging low-carbon gas over coal to meet the increasing energy demands of the AI sector.
"AI’s advance will depend not only on the design labs of Silicon Valley, but also on the gas fields of the Permian basin," Wirth said at Gastech conference in Houston.
Chevron, the No.2 U.S. oil producer, is one of the top players in the Permian basin that straddles Texas and New Mexico. The Permian is the biggest U.S. oilfield and accounts for 15% of the nation's gas output.
Wirth said the Biden administration's approach to pause liquefied natural gas (LNG) exports "elevates politics over progress."
In January, Biden announced the pause on approvals for pending and future applications to export LNG from new projects, a move cheered 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 increase energy costs, threaten reliable supplies, and slow the switch from coal to natural gas, leading to more emissions rather than less.
"The case for natural gas is so strong that only politics can get in the way," he said.
In the midst of the global desire to decarbonize, Wirth stressed the need for a stable and predictable policy environment to ensure gas remains a reliable energy source.
He outlined three pillars for a balanced energy future: political support for gas as a key to a lower carbon future; recognition of the progress made in deploying new technologies and gas solutions; and understanding that the energy transition requires unprecedented innovation and collaboration.
(Reuters, September 17, 2024)