The energy sector remains at the whims of politics—a condition creating more harm than good, even if current politics are favorable.

Chevron CEO Mike Wirth called for a steadier set of regulations to calm the waves the previous few presidential administrations have caused at CERAWeek by S&P Global on March 10.

A rapid transition is happening within the energy industry again, Wirth said. One of President Donald Trump’s first acts in his second term was an executive order to “unleash American energy.”

But while Trump’s declaration is beneficial to the industry now, so many changes are not conducive for long-term investment, Wirth argued. A reliable solution is needed.

“Swinging from one extreme to the other is not the right policy approach in the long investment segment,” Wirth said. “Capital is out there for decades, and so we really need consistency in our energy policy.”

The Trump administration’s Department of Energy already undid some of the Biden-era rules, such as the pause on LNG export permits, since switching leadership. Wirth hopes other bodies of government take the changes as a “signal,” he said.

But the changes could all be undone, again, if a future administration takes on a different point of view, he said.

“More durable policy will come through the legislative process,” Wirth said. “Some of the things we’ve talked about could improve the investment environment across the entire energy industry, not just in our sector.”

The results of a shifting regulatory environment should be seen as a lesson, Wirth said.

“Europe is waking up to the fact that they have hallowed out their industrial base,” he said. The results are an aging population that’s not growing, and a regulatory regime that is forcing businesses and investors to look to other locations for business.

And back at home, California’s regulatory environment is pushing out businesses as well, Wirth said.

Chevron moved its headquarters to Houston from San Ramon, California, in 2024. Wirth said the company still has several assets in California, but he thought the move to Texas, where the energy industry is “celebrated,” should have been made a little sooner.

The future may be difficult to plan for, but regional policies should be helpful, Wirth said.

Planning ahead

Chevron also has plans in motion to capitalize on growing demand for power as AI adoption takes hold.

Wirth discussed Chevron’s development of an on-site power solution geared toward supplying electricity for the burgeoning AI data center sector. Chevron has partnered with GE Vernova and Engine No. 1 to build gas-powered turbines capable of producing the megawatts of energy needed on site.

Chevron expects to have the systems ready for delivery in 2027.

In the 2010s, Chevron created a program in partnership with the Massachusetts Institute of Technology to keep its technical staff up-to-date on the developing AI sector.

“We’re seeing it help us, as we are beginning to integrate AI tools into our business,” Wirth said.  

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