U.S. energy secretary calls for doubling global oil output during WEF in Davos
The world needs to more than double oil production, U.S. Energy Secretary Chris Wright said on Thursday, while criticizing the European Union and the U.S. state of California for wasting money on what he described as inefficient green energy.
In recent years, the World Economic Forum's discussions on energy have centered on ways to boost lower-carbon policies. But during Wright's discussion with energy company Occidental's Vicki Hollub in Davos, they emphasized that the world will depend on oil for decades to come.
Increased natural gas production and investment in LNG export terminals have put the U.S. in a position to replace Europe's imports of Russian gas that were slashed after the start of the conflict in Ukraine in 2022, Wright also said.
But he added that corporate environmental regulations in the European Union posed risks to energy cooperation with the United States.
"These regulations could threaten you (U.S. producers) liability-wise to send gas to Europe," Wright said. "We're working with our colleagues here in Europe to remove those barriers."
The EU requires importers of oil and gas into Europe to monitor and report methane emissions associated with those imports, in a bid to curb emissions of the planet-warming gas.
After months of pressure from companies and governments, the European Union agreed last month to reduce the scope of its sustainability disclosure rules. However, investors have said that less transparency will make it harder to identify which companies are genuinely moving toward low-carbon operations.
The European Union did not immediately respond to a request for comment.
California criticism. Wright also criticized California's energy policies, which he said resembled Europe's and had contributed to higher energy prices for residents, while Hollub cited regulations as the reason for Occidental's 2014 departure from the state.
Two refineries that make up around 17% of the state's gasoline production capacity are currently slated to close, which has put pressure on Democratic California Governor Gavin Newsom to stop fuel prices from surging.
California's crude production has also slumped to 300,000 barrels of crude a day in 2024, from a peak of 1.1 million bpd in 1985, according to U.S. Energy Information Administration data going back to the early 1980s.
California is isolated from refining centers along the U.S. Gulf Coast and in the Midwest and can experience swings in energy prices.
The state's lawmakers in September passed a bill that would allow the construction of thousands of new wells in a bid to make oil more affordable for refineries and keep fuel prices in check for consumers.
Global oil supply stood at 107.4 million barrels per day last month, according to the International Energy Agency.
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