UPDATED: US Big Oil Fires Back @ Slanderous White House

UPDATE:

On Tuesday, Chevron’s CEO, Michael Wirth, responded to President Biden's letter last week demanding that the energy industry ramp up oil production to help lower gas prices. Wirth answered that demand with the following letter:

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Dear Mr. President:

Thank you for your letter dated June 14, 2022. As industry leaders, academic experts and numerous policy makers have pointed out, there are no easy fixes nor any short-term answers to the global supply and demand imbalances aggravated by Russia’s invasion of Ukraine. Addressing this situation requires thoughtful action and a willingness to work together, not political rhetoric. I look forward to meeting with Secretary Granholm and am hopeful for a constructive conversation about actions to address both near-term issues and the longer-term stability of energy markets.

In 2021, Chevron produced the highest volume of oil and gas in our 143-year history. In the first quarter of 2022, our U.S. production was 1.2 million barrels per day, up 109,000 barrels per day from the same quarter a year earlier. In the Permian Basin alone, we expect production to approach 750,000 barrels per day by the end of the year, an increase of more than 15 percent from 2021. And Chevron’s U.S. refinery input grew to 915,000 barrels per day on average in the first quarter of this year from 881,000 in the same quarter last year.

In addition to increasing American oil and gas production, Chevron is also investing $10 billion to reduce greenhouse gas emissions and scale new advanced energy technologies, like carbon capture and hydrogen, along with growing our renewable liquid fuels production capacity to 100,000 barrels/day by 2030. America will lead in these critical new industries, creating jobs at home and exporting them to the world to meet energy and climate objectives.

American oil and gas supplies are among the most efficient, responsibly produced, and lowest carbon intensity supplies in the world. At roughly 15 kg of CO2-equivalent per barrel, Chevron’s Permian Basin carbon intensity is some two-thirds lower than the global industry average. U.S. Gulf of Mexico production has carbon intensity just a fraction of the global industry average. Increasing American production will offset barrels produced in other parts of the world that may not support America’s energy security, economic competitiveness, or environmental goals.

I want to be clear that Chevron shares your concerns over the higher prices that Americans are experiencing. And I assure you that Chevron is doing its part to help address these challenges by increasing capital expenditures to $18 billion in 2022, more than 50% higher than last year.

Chevron and its 37,000 employees work every day to help provide the world with the energy it demands and to lift up the lives of billions of people who rely on these supplies. Notwithstanding these efforts, your Administration has largely sought to criticize, and at times vilify, our industry. These actions are not beneficial to meeting the challenges we face and are not what the American people deserve.

While today’s geopolitical situation is contributing to this energy crisis, bringing prices down and increasing supply will require a change in approach. You have called on our industry to increase energy production. We agree. Let's work together. The U.S. energy sector needs cooperation and support from your Administration for our country to return to a path toward greater energy security, economic prosperity, and environmental protection.

We need clarity and consistency on policy matters ranging from leases and permits on federal lands, to the ability to permit and build critical infrastructure, to the proper role of regulation that considers both costs and benefits. Many of these elements are described in our industry’s recently released 10-point plan. Most importantly, we need an honest dialogue on how to best balance energy, economic, and environmental objectives – one that recognizes our industry is a vital sector of the U.S. economy and is essential to our national security.

We can only meet these challenges by working together. Chevron will engage in this week’s meeting with Secretary Granholm. I encourage you to also send your senior advisors to this meeting, so they too can engage in a robust conversation. Your “whole of government” philosophy in addressing major issues should apply here too, as a comprehensive approach is best to address the energy needs of our nation and of our allies.

The American people rightly expect our country’s leaders and industry to address the challenges they are facing in a serious and resolute manner. We are a willing partner in that endeavor and trust your Administration will be the same.

Sincerely,

Michael K. Wirth
Chairman of the Board and Chief Executive Officer

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Certainly seems like Chevron and Exxon have put out an olive branch to the Biden administration that they are more than willing to work together to aid the American people, despite the administration's egregious attacks against O&G to the press and the dozens of actions the administration has taken directly or indirectly signed off on harming the US O&G Companies. LINK

How did the Biden Administration respond you ask? LINK

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“He’s mildly sensitive,” Biden said. “I didn’t know they’d get their feelings hurt that quickly. Look, we need more refining capacity. This idea that they don’t have oil to drill and to bring up is simply not true.”

“We ought to be able to work something out whereby they’re able to increase refining capacity and still not give up on transitioning to renewable energy,” Biden continued. “They’re both within realm of possibility.”

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How exactly are the big bad greedy O&G companies going to increase their refining capacity when they are already at max capacity? Expand? Build a new facility? Why make a massive investment to bail you out - when this administration would turn around force it to be shut down 2 years from now?

Also, Biden said in this interview he himself will not be attending the sit down with the O&G executives this week, but will be sending his top advisors. LINK (starts @ 6:55 mark, runs to 8:26). He also took the opportunity to double down on on our "transition" to renewable energy:

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"My mother had an expression: out of everything lousy, something good will happen. We have a chance to make a fundamental turn toward renewable energy, electric vehicles, and across the board."

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I'm sure glad the "adults are back in charge". Cheaper gas prices are surely right around the corner.

Joe Biden's approval rating is directly tied to the price of product supplied by an industry that he openly hates and wants to eliminate.

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aint no way im reading all that shite to tell me Biden is incompetent

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no worries. just filling in all the gaps before Spleen, mmmbeer, dawgfan, and the usual crew show up to deflect, blame others, or outright lie that Biden's administration hasn't played a large part in the increases at the pump.

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You gonna compose a TulaneLSU'esque 1000 word opus on how water is wet?

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possibly. not today tho.

An energy coalition needs to start running a campaign showing those clips where Biden and other Dems discuss shutting down oil, while also showing the policies.

They need to be crucified for the disaster they have caused. Major inflationary spikes in the US have most often coincided with energy shocks. This one was self-induced.

So biden from day 1 shits on oil and gas and now wants them along with the Saudi's to bail him out? Sounds like a solid plan from the president.

Maybe they will have his attention now and force his hand. If what you posted is true, then it's time for a sit down and come to Jesus by both parties.

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So biden from day 1 shits on oil and gas and now wants them along with the Saudi's to bail him out? Sounds like a solid plan from the president.

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Yeah. The Saudi thing is another massive foreign policy failure by this administration. When he entered office, he swore them off as enemies. Now he is kissing their feet.

Here's a good WSJ article today on his flip flop. LINK

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The White House confirmed Tuesday that President Biden will travel to Saudi Arabia next month, though the left was already criticizing the trip before it was formally announced. While his trip makes strategic and economic sense, it would be less embarrassing now if Mr. Biden had been more realistic about the world from day one.

Mr. Biden came into office bowing to the left’s disdain for Riyadh without appreciating the strategic need for Arab allies in the Gulf. As a candidate hevowedto make Saudi Arabia “pay the price and make them, in fact, the pariah that they are.” He added that there was “very little social redeeming value in the present government.”

As President he rolled back support for the country’s war against Iran-backed rebels in Yemen and tried to isolate Crown Prince Mohammed bin Salman. Mr. Biden also courted Iran, as Barack Obama had done to no good effect, which further discomfited the Saudis.

It all backfired.

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Maybe they will have his attention now and force his hand.

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doubt. He's hosting a big Climate Change Forum today. whitehouse.gov

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President Biden today will reconvene leaders of the Major Economies Forum on Energy and Climate (MEF) to galvanize actions that will strengthen energy security, enhance the resilience of global food security, and tackle the climate crisis. These actions are all the more urgent following Russia’s further invasion of Ukraine, which has disrupted energy markets, strained economies with rising prices, and threatened vulnerable countries with severe food shortages.

At today’s meeting, President Biden’s third MEF convening since taking office, world leaders will raise ambitions and followed the United States leadership, joining new efforts and initiatives aimed at tackling the climate crisis while advancing energy-security and food-security, including:

Global Methane Pledge Energy Pathway: Tackling methane leaks from the oil and gas sector by capturing wasted gas and bringing it to market — bolstering our energy-security and climate goals;
Collective 2030 Zero-Emissions Vehicle Goal and Green Shipping Challenge: Putting more zero-emission vehicles on the road and decarbonizing ocean-based shipping — reducing emissions in the transport sector while breaking our dependence on volatile oil markets and prices;
Clean Energy Technologies Demonstration Challenge: Speeding the commercialization of new technologies — enabling us to break dependence on other unabated, volatile fossil fuels and advance the clean energy transition;

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If what you posted is true, then it's time for a sit down and come to Jesus by both parties.

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i'm not sure what the other party can do considering they don't have the House, the Senate, or the White House. ESG and Climate Change policies and regulations won't stop.

He'll just lash out more or write EO's worsening the problem. He's backed into a corner.

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Who would have thought - trying to end fossil fuels before we were ready would result in disaster

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It's not only that, before "we" can be ready, "we" would have to want to do such a thing. Before "we" want to do such a thing, it needs to be justified that "we" need to do such a thing.

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saying their profits have tripled during a time of war between Russia and Ukraine

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Maybe don’t block a major Russian pipeline and create a proxy war