Thank you for your letter of June 14, 2022. As industry leaders, academics, and many policymakers have pointed out, there are no easy solutions or short-term answers to the global supply and demand imbalances exacerbated by Russia. . Dealing with this situation requires thoughtful action and a willingness to cooperate, not political rhetoric. I look forward to meeting with Secretary Granholm and looking forward to a constructive discussion on actions to address both short-term issues and the long-term stability of energy markets. In 2021, Chevron produced the highest volume of oil and gas in our 143-year history. In the first quarter of 2022, our US production was 1.2 million barrels per day, up 109,000 barrels per day from the same quarter last year. In the Permia Basin alone, we expect production to approach 750,000 barrels per day by the end of the year, an increase of more than 15 percent from 2021. And the inflow of American Chevron refineries has increased to an average of 915,000 barrels per day in the first quarter of this year from 881,000 the same quarter last year. In addition to increasing U.S. oil and gas production, Chevron is also investing $ 10 billion in reducing greenhouse gas emissions and scaling up new energy-intensive technologies such as carbon and hydrogen capture while increasing production capacity. renewable liquid fuels at 100,000 barrels / day by 2030 America will lead these critical new industries, creating jobs domestically and exporting them to the world to meet energy and climate goals. US oil and gas supplies are among the most efficient, responsive and low-carbon in the world. At about 15 kilograms of CO2 equivalent per barrel, Chevron’s Permian Basin is about two-thirds lower than the global industry average. Gulf of Mexico production in the US has a carbon intensity of just a fraction of the global industry average. The increase in US production will offset the barrels produced in other parts of the world that may not support America’s energy security, economic competitiveness or environmental goals. I want to make it clear that Chevron shares your concerns about the higher prices Americans face. And I assure you that Chevron is helping to meet those challenges by raising capital spending to $ 18 billion in 2022, up 50% from last year. Chevron and its 37,000 employees work daily to help the world deliver the energy it needs and lift the lives of billions of people based on these supplies. Despite these efforts, your Government has largely sought to criticize and at times discredit our industry. These actions are not good for the challenges we face, and they are not what the American people deserve. While the current geopolitical situation is contributing to this energy crisis, lower prices and higher supply will require a change of approach. You have called on our industry to increase energy production. We agree. Let’s work together. The US energy sector needs the cooperation and support of your Government to return our country to a path to greater energy security, economic prosperity and environmental protection. We need clarity and consistency in policy matters ranging from leases and permits in federal territories, the ability to license and build critical infrastructure, to the right role of regulation that takes into account both costs and benefits. Many of these elements are described in our recently released 10-point plan for our industry. Most importantly, we need an honest dialogue on how to better balance energy, economic and environmental goals – one that recognizes that our industry is a vital part of the US economy and essential to our national security. We can meet these challenges only through cooperation. Chevron will attend this week’s meeting with Secretary Granholm. I encourage you to send your senior advisers to this meeting as well, so that they too can participate in a strong discussion. The “whole government” philosophy of tackling important issues should apply here as well, as an integrated approach is the best way to tackle the energy needs of our nation and our allies. The American people rightly expect our country’s leaders and industry to face the challenges they face in a serious and decisive manner. We are willing partners in this effort and we believe that your Management will be the same. Sincerely, Michael K. Wirth Chairman of the Board and Chief Executive Officer
