Dear President-Elect Obama,
Congratulations on being elected to the office of the President of the United States. The purpose of my letter is to provide input and recommendations on energy and the economy.
America faces significant challenges, but none are insurmountable. Stabilizing and strengthening our economy is clearly the top priority, and energy will play a central role in that process. Affordable, reliable energy is the backbone of a competitive, strong economy. America's oil and gas industry directly employs 1.8 million, and an additional 4 million are employed in energy-related jobs. Many of these jobs are high-paying jobs in operations, engineering and construction. The industry also provides billions of dollars of tax and royalty revenues to local, state and federal governments.
As the world's largest economy, America has an important role to play in how efficiently we use energy as well as how we produce the energy we consume. As President, your leadership in both of these areas can make a big impact on our future economic health.
So, I have two recommendations.
- Issue a call to action to consumers, businesses and government to use energy more wisely. America must become a nation of energy savers. Energy efficiency and conservation are the most immediate and cost-effective sources of new energy and have immediate environmental benefits, including less greenhouse gas emissions. Congress took important steps in 2007 by enacting legislation to increase efficiency standards for automobiles, trucks, buildings and appliances. It is important that this legislation be fully implemented.
- Announce a comprehensive plan to expand and diversify America's energy portfolio by enabling development of all domestic energy sources. It is a myth that the U.S. is an energy weakling. We are one of the top three producers of oil, gas, coal, nuclear, ethanol and wind in the world. We are an energy leader. Even with ambitious efficiency efforts, U.S. and global energy demand is expected to increase significantly between now and 2030. America needs to develop all of its energy sources — nuclear, coal, renewables and alternatives, as well as oil and gas — in an environmentally-friendly manner. America's greatest energy vulnerability rests in the billions of barrels of oil imports to meet our transportation fuel requirements. Congress has enacted legislation to significantly increase renewable biofuels over the next decade, but significant investment in conventional energy sources will also be needed. With the recent lifting of the moratoria, you have an exceptional opportunity to further reduce this vulnerability through a carefully planned and phased approach to develop the potentially available 18 billion barrels of offshore oil. Expanded development will create new jobs, increase revenues to state, local and federal treasuries, and improve the trade balance without the need for new incentives.
The scale of the U.S. energy system is enormous, and strengthening it for the future requires leaders who will make a long-term commitment to sound policies. I look forward to your leadership on this important issue and stand ready to provide any further input you and your cabinet require.
Thank you for your consideration of these recommendations. I wish you great success.
Sincerely,
Dave O'Reilly
Chevron Chairman and CEO
November 10, 2008