US oil executives began a pushback against some of President Joe Biden's climate policies arguing that fossil fuels from US shale have a lower carbon footprint than imports.
From the first days in office, Biden has signed a batch of directives aimed at suspending the sale of oil and gas leases on federal land as well as canceling the Keystone XL pipeline and expanding the government's fleet of clean-energy vehicles. The US oil industry, already under pressure from low prices and investor pessimism, is particularly concerned about the limited access to resources on federal lands in New Mexico, Wyoming, Alaska, and the Gulf of Mexico.
"We don't think it's good policy to be overly restrictive on federal land," Chevron's Chief Financial Officer Pierre Breber said in an interview with Bloomberg TV. "That will just move energy production to other countries. We know that we can develop energy in this country responsibly," he pointed out.
America is the largest consumer of crude oil in the world and any restrictions on domestic production will mean that more will be shipped in from other countries. However, other countries may produce higher-carbon oil and have less stringent environmental laws. According to Rystad Energy, shale produced in the US emits less carbon per barrel than the global average for both onshore and offshore.
"Reducing domestic production will not only raise costs at the pump, but will also ensure international producers, operating with fewer environmental regulations, will meet the global demand for petroleum products," Pioneer Natural Resources Co.'s Chief Executive Officer Scott Sheffield said. "That scenario is inconsistent with the administration's choice to rejoin the Paris Accord."
All major shale companies, including Chevron and Pioneer, say they support Biden's plans to strengthen regulation of methane leaks, revising the policies of former President Donald Trump. Yet, they do not agree with the complete closure of this type of production in some regions of the country.
It is the Gulf of Mexico, where leases come up for sale infrequently and projects cost in the billions of dollars, where the largest impact of Biden's policies may be felt, according to Chevron CEO Mike Wirth.
