- Chevron CEO Mike Wirth spoke to the need for U.S. legislation in the oil industry weeks after President Donald Trump ordered to kill Chevron’s license to drill and export Venezuelan oil. Trump’s executive order punished Venezuela for not cooperating with an agreement to bring Venezuelan migrants living in the U.S. back to their home country. Wirth emphasized the importance for industry stability after administration changes and called for stronger oil legislation.
Chevron CEO Mike Wirth said U.S. oil legislation should be more “durable” and not be at “risk of being swung back in another direction by a future administration” after President Donald Trump’s executive order that to halt the company’s production in the country.
In February, Chevron was caught in diplomatic crossfire as Trump pulled a 2022 license administered by then-President Biden that allowed the company to operate and export Venezuelan oil.
Trump accused Venezuelan President Nicolás Maduro in a Truth Social post of not holding up his end of the bargain by not transporting enough migrants back to the country “at the pace they had agreed to,” referring to a prior arrangement where Venezuela would supply transportation for illegal Venezuelan immigrants living in the U.S.
The license termination to punish Venezuela for not abiding by Trump’s request is a common practice for the president, as Trump has used tariffs on Canada, Mexico, and China to challenge those countries to do more at inhibiting the illegal flow of fentanyl into the U.S.
“We are aware of the President’s directive and will abide by any direction given by the U.S. Treasury Department to implement that directive,” a Chevron spokesperson told Fortune. “Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by (the) U.S. government.”
When asked about the oil company as a whole, Wirth said the energy industry needs consistency within oil legislation.
“Swinging from one extreme to another is not the right policy approach,” Wirth said at the CERAWeek energy conference in Houston. “We have allocated capital that’s out there for decades, and so we really need consistent and durable policy.”
The CEO emphasized that permits are just an example of necessary consistency in the industry. “We need to see some of this in legislation so it’s more durable and not at risk of being swung back in another direction by a future administration,” he said.
Chevron’s most profitable oil and gas production disproportionately favors the U.S., Wirth said. Additionally, he said Chevron will increase its yield by 50% in the Gulf of America in the next few years to 300,000 barrels per day (bpd) in comparison to 200,000 in 2024.
The petroleum giant is coming up on 1 million bpd in the Permian basin, the most lucrative oilfield in the U.S. Once they do so, Chevron will table its growth in the patch and look towards creating free cash flow, Wirth said.
Wirth expects the industry to continue its investment into Asia, as European prosperity doesn’t seem promising.
