HOUSTON (Reuters) – Europe’s system to double down on renewable fuels in reaction to soaring fuel expenditures could have the unintended limited-term result of escalating rates and gradual down the vitality transition, Chevron Corp Chief Executive Michael Wirth stated on Tuesday.
“That can erode the general public assistance that will be required for the electricity changeover”,” Wirth stated. “There is a bit of a paradox that I observe.”
Gasoline prices have been soaring around the world amid declining investments in fossil fuel initiatives. Price ranges have accelerated due to the fact sanctions have been imposed this 12 months versus power exporter Russia subsequent its invasion of Ukraine.
Gasoline and diesel prices are a leading electoral topic in diverse international locations of the globe, which include U.S. Congressional elections and a Brazil presidential operate, each afterwards this yr.
A persistent time period of U.S. diesel at $6 for each gallon and purely natural fuel prices nearing $10 for each million British thermal unit could have political implications for plan makers, Wirth stated.
“1 of the factors I stress the most about is a period of significant price ranges that voters begin to detect with strength changeover ambitions,” Wirth stated.
The CEO known as for plan that would incentivize carbon emission reductions as an alternative of proscribing oil and gasoline source ahead of renewable fuels these as photo voltaic and wind ability have scale to swap standard fossil fuels. Wirth defended the have to have of a pricing system for carbon in the United States very similar to the one particular set in Europe.
“A price tag on carbon is a easy way to generate a cost sign that would make a small business design that would mobilize funds,” Wirth explained. “We have to have to uncover some kind of a professional framework. And it requirements to be enabled by policy.”
(Reporting by Sabrina Valle Modifying by Marguerita Choy)
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