Chevron CEO Mike Wirth on US Energy, Gas Prices, and AI Power Demand

Current Energy Market Trends

• 📊 The White House is celebrating falling energy prices, with gasoline down nearly 10% and propane down 2.5% over the last year.
• 💡 Chevron CEO Mike Wirth notes it's an exciting time in the energy business due to growing global demand and increasing supply in the United States.
• 📈 He highlights that oil and gas remain crucial for the energy mix, including fueling the growth of AI.

Refinery Capacity and Price Outlook

• 🏭 No new refineries have been built in the U.S. for decades, but existing refineries are adding capacity and a system of imports and exports balances the market.
• ⛽ Mike Wirth believes gas prices could go below $3, as supply from North America, South America, and OPEC is growing faster than demand, weighing on prices.
• 🇺🇸 Chevron is investing heavily in the U.S., with two-thirds of its capital spending going into North America, achieving record production last year.

Government Policy and Investment

• ⚖️ The current administration is focused on protecting the environment while encouraging economic investment, reducing red tape and bureaucracy.
• 🌱 Chevron has invested in technologies for the future of energy, but the bulk of its investment supports the existing energy system that powers the economy today.
• 🤝 The company welcomes developments that encourage investment and legislative efforts to build things in the country again.

Global Operations and Geopolitics

• 🇻🇪 Chevron has maintained a presence in Venezuela for nearly 100 years, being the last American company with a foothold there.
• 🛢️ The Trump administration allowed Chevron to resume bringing Venezuelan oil to the U.S., which helps keep prices in check by providing economic feedstocks for refineries.
• 🌍 Chevron's strategy is to deal with governments as they exist, investing for the long-term good of the country rather than aligning with specific political regimes.

Energy for AI and Grid Stability

• ⚡ The insatiable appetite for energy from AI data centers will significantly increase power demand in the U.S.
• ⚠️ The U.S. power grid has seen insufficient investment and is becoming less stable due to reliance on intermittent sources like wind and solar.
• 💡 A proposed solution, supported by President Trump, is power generation behind the meter for data centers, funded by abundant American natural gas, to avoid raising consumer electricity bills.