The Biden administration announced a pause on pending decisions on liquefied natural gas (LNG) exports back in January.
And Chevron Corporation (NYSE:CVX) CEO Michael Wirth hasn't been happy about it.
What Happened: In a speech at the GasTech conference in Houston on Tuesday, Wirth predicted that the permitting halt will lead to higher energy costs, jeopardize supplies for America's European allies, and increase emissions by delaying the shift from coal to gas, reported Bloomberg.
Wirth further remarked that "AI's advancement will depend not just on the innovation hubs of Silicon Valley but also on the natural gas fields of the Permian Basin," per Reuters.
He also criticized the Biden administration for imposing a moratorium on LNG exports, advocating instead for an end to its criticism of natural gas. Additionally, Wirth proposed that moving from coal to gas could represent "the most significant carbon reduction effort ever."
Why It Matters: President Joe Biden said in a statement in January, "This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,"
There's also concern that the rise of artificial intelligence data centers have high power demands, which can undermine U.S. climate goals. The White House established a task force on AI Datacenter Infrastructure to align policies with economic and environmental objectives.
Last week, Chevron Shipping teamed up with Mitsui O.S.K. Lines (MOL) to install the Wind Challenger, a wind-assisted propulsion system, on a new LNG carrier.
Investors can gain exposure to the stock via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).
Also Read: Energy Giant Chevron Boosts Gulf Of Mexico Production With New Water Injection Projects
Price Action: Chevron shares are up 0.15% at $143.62 at the last check Wednesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.