President Biden escalated a verbal war with Chevron CEO Michael Wirth on Tuesday after the country’s second-largest oil company rejected the president’s “political rhetoric” about high gas prices.
“He is a little sensitive. I didn’t know they would hurt their feelings so quickly, “Biden told the White House when a reporter asked about Wirth’s rebuttal.
“We need more refining capacity. “The idea that they don’t have oil to drill and extract is just not true,” Biden said. “We need to be able to work on something to increase refining capacity and still not give up on switching to renewable energy.”
Wirth wrote to Biden that tackling high gas prices “requires thoughtful action and a willingness to work together, not political rhetoric.”
Last week, Biden accused oil companies of contributing to high prices, arguing they didn’t refine enough oil after earlier claiming they weren’t breaking through existing federal leases and criticizing companies like ExxonMobil and Chevron for make huge profits with rising world prices.
Wirth rejected Biden’s portrayal of companies as responsible for soaring gas prices, which last week reached an all-time average of more than $ 5 a gallon.
President Biden has escalated tensions with Chevron CEO Michael Wirth after the oil company rejected the president’s “political rhetoric.” AP Photo / Susan Walsh
“In 2021, Chevron produced the largest volume of oil and gas in our 143-year history. In the first quarter of 2022, our production in the United States was 1.2 million barrels per day, an increase of 109,000 barrels per day compared to the same quarter a year earlier.
“In the Perm basin [centered in West Texas] We alone expect production to reach 750,000 barrels per day by the end of the year, an increase of over 15[%] from 2021 “, added Wirth.
“And the investment in the Chevron refinery in the United States rose to 915,000 barrels per day on average in the first quarter of this year from 881,000 in the same quarter last year.
Gas prices rose gradually in 2021 – from about $ 2.30 to $ 3.27 per gallon – before rising when Russia invaded Ukraine on February 24.
President Biden says gas companies are not refining enough oil. REUTERS / Lucy Nicholson / File Photo
Republicans say Biden contributed to the crisis by trying to impose a moratorium last year on new oil drilling in public lands and by increasing new pipeline projects, including Canada’s Keystone XL pipeline.
High gas prices have contributed to the worst inflation since 1981.
Chevron reported $ 6.5 billion in the first quarter of 2022, quadrupled its $ 1.7 billion in the first quarter of 2021.
But Wirth wrote to Biden that “Chevron shares your concerns about the higher prices Americans are experiencing.”
“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% more than last year,” he added.
“While today’s geopolitical situation is contributing to this energy crisis, lowering prices and increasing supply will require a change of approach. You have called on our industry to increase energy production. We agree. Let’s work together, “Wirth added.
“The US energy sector needs the cooperation and support of your administration so that our country can return to the path to greater energy security, economic prosperity and environmental protection.
Michael Wirth rejected Biden’s presentation of companies as responsible for rising gas prices, which last week reached an all-time average of more than $ 5 a gallon.REUTERS / Brendan McDermid / File Photo
Biden officials will meet with oil executives this week, but Biden told reporters Monday that he would not attend.
The president also said Monday that he plans to decide this week whether to ask Congress to temporarily abolish the federal gas tax of 18.3 cents a gallon. He had previously ordered the release of one million barrels a day from the Strategic Oil Reserve and allowed a higher share of ethanol in gas in the summer, but neither step lowered prices.
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