CEOs of Exxon and Chevron Advocate for Clear Rules Regarding US Clean Energy Subsidies

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Top executives from Exxon Mobil and Chevron emphasized the need for clear rules on energy subsidies to drive rapid, large-scale investments required to combat climate change. They highlighted the challenges in transitioning to low-carbon technologies, including the uncertainty around regulations and incentives.

Exxon CEO Darren Woods expressed the importance of understanding the implications of investments and ensuring competitiveness in their portfolio amid evolving regulations. He noted that despite the incentives provided by the Inflation Reduction Act (IRA) for technologies like carbon capture and green hydrogen, there is still uncertainty surrounding their implementation.

Chevron CEO Mike Wirth echoed similar sentiments, stating that the world is not on track to decarbonize by 2050. He highlighted challenges in meeting rising energy demand in developing countries and criticized the restrictive nature of U.S. rules for hydrogen subsidies, which deter investment.

Both executives advocated for global, market-based systems such as a price on carbon to incentivize the advancement and deployment of climate-friendly energy technologies. They emphasized the importance of creating an environment conducive to investment and innovation in sustainable energy solutions.

Additionally, Woods mentioned that Exxon’s acquisition of Pioneer will lead to increased oil production at a lower cost, which he believes is beneficial for the economy. This statement underscores the ongoing tension between fossil fuel production and efforts to transition to renewable energy sources.