Chevron CEO Urges australia to Mirror US, Middle East for Investment
sydney, Australia – August 19, 2025 – The chief executive of Chevron, Mike Wirth, has publicly expressed concerns regarding Australia’s attractiveness as a destination for fossil fuel investment. Wirth suggested the nation should adopt policies more akin to those found in the United States and the Middle East to bolster its energy sector. This assessment comes after Chevron reported $9 billion in earnings over the past six months.
Private Meeting and Public Critique
Wirth’s comments emerged following an exclusive interview with The Australian newspaper and a private meeting with australian Deputy Prime Minister richard Marles. During the meeting, Wirth reportedly outlined his views on the factors hindering investment in Australia’s energy resources. The interview featured a prominent image of Wirth, emphasizing the gravity of his message.
A notable aspect of the reporting was the disclosure that the journalist, Perry Williams, traveled to Melbourne as a guest of Chevron. The 950-word article presented Wirth’s outlook without including alternative viewpoints or addressing the climate crisis or Chevron’s environmental record.
The Allure of Deregulation: The US Model
Wirth’s preference for the US model appears to stem from the regulatory environment fostered under the Trump administration. The Environmental protection Agency (EPA) under Trump pursued notable deregulation, aiming to reduce burdens on companies like Chevron. EPA Administrator Lee Zeldin described these changes as a means to “drive a dagger straight into the heart of the climate change religion” and lower costs for American families.
did You Know? The Trump administration rescinded numerous environmental regulations, including efforts to limit greenhouse gas emissions and remove scientific data related to climate change from public access.
These actions included attempts to rescind the “endangerment finding”-a crucial ruling that grants the US government the authority to regulate greenhouse gas emissions-and the removal of an online portal containing two decades of climate assessments. A report commissioned by the US Department of Energy,featuring scientists with contrarian views on climate change,was found to contain over 100 false or misleading claims by self-reliant climate scientists.
Rising Costs and Regulatory Concerns in Australia
Wirth cited increasing costs in Australia as a deterrent to investment.These costs are attributed to legal challenges from environmental groups, regulations requiring equal pay for contractors performing similar work to employees, and changes to the Petroleum Resource Rent Tax (PRRT). Chevron, which had not previously paid the PRRT, is now expected to be liable for payments following recent legislative changes.
| Factor | Impact on Chevron (Australia) |
|---|---|
| Legal Challenges | Increased project costs |
| Contractor Pay Regulations | Increased labor expenses |
| Petroleum Resource Rent Tax | New tax liability |
Though, during a Senate inquiry last year, Chevron stated that the proposed changes to the PRRT were “proportionate and will not curtail future investment.”
The Broader Context: Carbon Majors and climate Impact
Analysts suggest Chevron’s challenges in Australia are not due to uncompetitiveness, but rather the growing headwinds facing the fossil fuel industry as renewable energy sources become increasingly cost-effective. Chevron’s LNG plant at Gorgon in Western Australia is the nation’s largest single source of industrial emissions and has received ample carbon credits under the government’s safeguard mechanism.
Chevron is identified as a “carbon major” – a company responsible for a significant portion of historical greenhouse gas emissions. According to data from the Carbon Majors database, Chevron ranks among the top emitters globally, surpassed only by Saudi Aramco, China, and the former Soviet Union.
Pro Tip: Understanding the concept of “emissions intensity” is crucial. Companies can reduce their emissions intensity while still increasing overall emissions if production levels rise.
While Chevron has set targets to reduce the emissions intensity of its operations,critics argue these targets do not adequately address the company’s overall contribution to climate change,notably its continued commitment to expanding oil and gas production. A report by oil Change International deemed Chevron “dangerously out of step with climate goals.”
What role should major energy companies play in the transition to a sustainable energy future? And how can governments balance economic growth with environmental responsibility?
“Our view on the proposed changes, as outlined in the bill, is that they are proportionate and will not curtail future investment.” – Chevron, Senate Inquiry submission (2024)
The debate surrounding energy investment and climate policy is a long-standing one, intensified by the urgency of addressing global warming. The shift towards renewable energy sources is gaining momentum worldwide, driven by technological advancements and growing public awareness. Though, the transition away from fossil fuels presents significant economic and political challenges, particularly for countries heavily reliant on oil and gas revenues. The future of energy will likely involve a combination of renewable sources, improved energy efficiency, and potentially carbon capture technologies, alongside ongoing discussions about the role of fossil fuels in a changing world.
Frequently Asked Questions about Chevron and Australian Energy Policy
- What is Chevron’s primary concern regarding investment in Australia? Chevron cites rising costs due to regulations and taxes as a key deterrent.
- what is the Petroleum Resource Rent Tax (PRRT)? It’s a tax on the profits made from the extraction of petroleum resources in Australia.
- What is a “carbon major”? A company with a significant historical contribution to greenhouse gas emissions.
- What is emissions intensity? A measure of emissions per unit of energy produced.
- What was the EPA’s role under the Trump administration? The EPA substantially reduced environmental regulations.
we hope this article provided valuable insight into the complex issues surrounding energy investment and climate policy. Please share this article with your network, leave a comment below, or subscribe to our newsletter for more in-depth coverage.
