Politics
Chevron CEO Dismisses Recession Concerns, Praises Trump’s Economic Policies
During an appearance on Fox News’ Sunday Morning Futures, Chevron CEO Mike Wirth praised President Donald Trump’s economic plan and dismissed recent concerns over the threat of a recession.
Fox News host Maria Bartiromo asked for Wirth’s take on the overall health of the economy after a first quarter GDP retraction of 0.3 percent. “Mike, what are you seeing in terms of the economy right now?” she asked.
“Well, we’re really not seeing in the data that we look at from our business signs that would signal a recession is imminent,” the Chevron CEO responded. “I think the first-quarter GDP numbers were distorted by some of the trading patterns that occurred relative to imports in the quarter and how those are treated in the calculation. We’re still seeing pretty robust demand through the first quarter.”
Bartiromo then asked if Wirth had any concerns over the company’s business interests in Venezuela as one of the last remaining major American companies that operates in the socialist nation. The Fox host noted that President Trump has taken a hardline stance against Venezuelan dictator Nicolas Maduro and has vowed additional sanctions before asking whether Wirth was concerned over the possibility.
“Well, there’s two real implications, I think, that are important for people to consider. One is on energy security,” Wirth answered.
“A good portion of Venezuelan oil has historically come to the United States. Refineries is on the Gulf Coast are designed to run that specific type of oil. And so it’s very important for energy security in the U.S. The changes in the rules mean that that oil won’t flow to the U.S. now, so making us less secure.”
He went on to express concern over China’s influence in the region, pointing out that Beijing is the largest buyer of Venezuelan oil today. “And I think the discussions that you reference, Venezuelan government officials have been in China very recently encouraging China to buy more. And so, as the largest buyer today, the policies could drive even more of that trade to China,” Wirth added.
Despite his concerns, Wirth expressed optimism that Trump will follow through on sanctions enforcement against additional hostile nations like Iran and Russia, a move that could have wide-reaching implications on the oil sector, he argued.
“The point you make, Maria, is, I think, a very important one, which is, sanctions are just words unless they’re truly enforced,” the CEO said in response to Trump’s aggressive stance against Iranian oil exports.
“And we have seen in the prior administration sanctions on Iran, sanctions on Russia, and then enforcement was not necessarily a priority. That oil continued to come into the market, and the mechanisms that were described to try to enforce the sanctions were not effective,” he continued.
“And so the oil continued to flow. The revenue continued to flow. And I think the current administration is signaling a different posture, that the sanctions are intended to bite.”
