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23 January 2026 at 05:37 pm IST
U.S. Energy Secretary Chris Wright called for the world to more than double oil production, arguing that fossil fuels will remain central to the global energy system for decades, even as governments invest heavily in low-carbon alternatives. Speaking at the World Economic Forum in Davos alongside Occidental Petroleum CEO Vicki Hollub, Wright sharply criticized the European Union and California for what he described as costly and inefficient green energy policies. Wright said rising global energy demand cannot be met without a major expansion of oil and natural gas, positioning hydrocarbons as essential to economic growth and energy security. He highlighted the United States’ growing role as a supplier of natural gas to Europe, replacing Russian gas imports curtailed after the Ukraine conflict in 2022. However, he warned that EU environmental regulations—particularly methane monitoring and reporting requirements for imported oil and gas—could create legal and financial risks for U.S. producers exporting to Europe. While the EU recently narrowed its sustainability disclosure rules following industry pressure, investors have cautioned that reduced transparency may undermine efforts to identify genuine progress toward lower-carbon operations. Wright also took aim at California’s energy policies, comparing them to Europe’s regulatory approach and blaming them for higher consumer energy prices. Hollub said regulatory constraints were a key factor behind Occidental’s exit from California in 2014. The state now faces refinery closures that could remove roughly 17% of its gasoline production capacity, intensifying concerns over fuel prices. Despite legislative efforts to expand drilling, California’s oil output has fallen sharply over decades, underscoring the tension between climate policy ambitions and energy affordability. Wright’s remarks highlight a widening divide at Davos between advocates of rapid decarbonization and policymakers who argue that fossil fuels will remain indispensable to global energy systems well into the future.
