Friday, 28 December 2012

Chevron CEO: Governments everywhere find high energy prices much scarier than the threat of global warming

Greenpeace and the rest of the greenies will probably not like Chevron CEO John Watson's message, but who cares - Watson is only telling the truth:
Chevron CEO John Watson notices something important as he visits his company's operations around the globe: Governments everywhere find high energy prices much scarier than the threat of global warming.
And that means the world will need a lot more oil and gas in the years to come.
Here are a couple of extracts from the AP interview
 The day-to-day decisions being made (show) that concern about climate change is less than other concerns that they have. China is racing by the U.S. in greenhouse gas emissions. Germany is shutting down their nuclear power, the only energy source with zero carbon emissions that can be produced at scale. Japan, much the same way. Governments around the world are making the choice that the benefits of lifting people out of squalor are very important. And affordable energy is the way to get there. And that currently comes through oil, gas and coal.
That doesn't mean there's nothing we can do. First, we can do a lot more on energy efficiency in this country. There are a number of promising technologies to deliver lower carbon fuels. I would support (government funding) of pre-commercial activity to try to advance some of these breakthrough technologies, rather than putting big subsidies on technologies that we know are more expensive and won't necessarily solve the issue.
AP: Will fracking be curtailed in this country?
WATSON: I see very little obstacle to it, notwithstanding all the rhetoric. Now it's being done in some different areas. People aren't used to it, and there have been legitimate concerns expressed, like truck traffic at a simple level, but also concerns about water supplies. They're understandable anxieties. And so we have to work through those with the governments. I think in due course we'll do that because they'll see the advantages to it.
AP: Will natural gas become a bigger part of the energy mix?
WATSON: Natural gas will displace coal in power generation. Getting natural gas into the transportation fleet is harder. It works best for vehicles that work from centralized fueling facilities like trucking fleets or buses and cabs. That is happening. Before it can make big inroads beyond that, infrastructure is going to need to be developed. It will take some time.

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