Chevron CEO Mike Wirth stated Wednesday that a potential ban on U.S. diesel exports would be an “unwise” policy, suggesting it could worsen global supply conditions. Wirth made the remarks during an interview with CNBC’s “Squawk Box Europe,” where he also addressed the United States’ role as an energy provider.
“The U.S. has been a reliable supplier to the world at a time when it needs it,” Wirth said. “And I think it would be unwise for the U.S. to create questions in the minds of our allies and our partners as to whether or not we will be there with reliable supply when times are difficult.”
The comments come as global energy markets navigate supply concerns. Recent developments include increased crude exports from the Middle East and a release of diesel and crude oil from emergency stockpiles by G7 nations. The source article noted these actions occurred amid disruptions to shipping through the Strait of Hormuz.
In the United States, President Donald Trump’s administration has taken separate measures related to fuel costs. On Monday, the president signed an executive order to temporarily permit wider use of red-dyed diesel through the end of the year. This type of diesel is typically restricted to off-road vehicles, such as farm and construction equipment, and is exempt from the 24.4-cent-per-gallon federal tax applied to highway fuel.
During the interview, Wirth also commented on the state of global energy inventories. He described current inventory levels as low, which he said “makes the system more vulnerable to disruption.”
“We came into this year with high inventories,” Wirth stated, referencing commercial stocks, government-held strategic reserves, and sanctioned oil barrels that were later released. “Those are all buffers in the system that have bought us time, but they’ve been drained.”
Separately, Saudi Aramco CEO Amin Nasser said earlier this week that it could take up to two years to rebuild global oil inventories.
