CEO of Chevron replies to Biden’s charges of price-gouging What causes oil volatility is explained by Mike Wirth.
On “The Claman Countdown,” Michael Wirth, chairman, and CEO of Chevron discusses the factors that influence the volatility of the oil price and the global energy market.
Mike Wirth, chairman, and CEO of Chevron keeps fighting back against Joe Biden’s frequent criticisms of American energy companies. The leader of the second-largest oil business in the United States reiterated his appeal for just a steady regulatory environment again for the sector on Thursday.
Liz Claman, the host of FOX Business’ “Your Claman Countdown,” asked Pawlenty to respond to Biden’s allegations that oil companies are sluggishly increasing production in order to maintain high prices.
On October 18, 2021, in Beverly Hills, California, Chevron Corporation Chairman and CEO Michael Wirth attended at Milken Institute Global Conference. (Image by Patrick T. Fallon/AFP used with permission from Getty Images / Getty Images)
In response, Wirth “No one is restricting supply. They are producing as much as they can in the refining system, not slow-walking anything.”
According to him, the upstream output is increasing because that is how the market operates. “The price signal in a commodity business, when it reaches this level — because look, we’re price sensitive, we see high prices say “consume less, produce more” — is exactly what’s happening at the moment. And I believe that it contributes to the decline in prices.”
The head of Chevron remarked, “Industry production has surged in response. We need to hear language and messages that show our nation encourages higher productivity.”
Richmond, California, home of the Chevron refinery (REUTERS/Robert Galbraith/File Picture / Reuters Photos)
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Although conflicting signals from the White House deter corporate boards from making long-term commitments, Wirth noted that Chevron has been in communication with the Biden administration to “attempt to develop a policy framework that really is stable and that supports additional investment.”
In a letter to Biden last month, Wirth urged the president to cease his animosity toward oil companies, arguing that rather than political rhetoric, “thoughtful action as well as a willingness to work together” are what will be needed to address the global supply side imbalances exacerbated by Russia’s invasion of Ukraine.
On March 6, 2021, President Biden delivered a speech in the State Dining Room of the White House. The AP/AP Newsroom
During a press conference, the president rejected Wirth’s request and referred to the oil industry executive as “mildly sensitive.”
Biden remarked, “I didn’t know they’d have their feelings wounded so quickly. “Look, we need extra capacity for refining. This claim that there is no oil to drill for or to mention is untrue.
Added him: “We should be able to come to an agreement where they can enhance refining capacity while continuing to move toward renewable energy. These two things are both conceivable.”
