Occidental Petroleum Corporation CEO Vicki Hollub argues more oil is needed not less as we transition to clean energy.
Key Details
- Occidental CEO Hollub says that oil production will be needed for years to come as demand remains high and shutting oil out will do more bad than good.
- “A lot of models are showing that even by 2040, if you tried to do your best in terms of building renewables and other alternatives, the demand for oil would still be around 60 to 70 million barrels. We’re at 100 million today,” she tells Fortune’s Alan Murray.
- As the leader of this major petroleum producer, she is also investing heavily in clean-capture technology.
- To environmental critics who say the clean-capture investment is a cover, she says: “We would not be sending $1.2 billion for a greenwashing campaign.”
- She states that the world is facing a big climate issue, but instead of shutting down the oil industry in the U.S. investors need to put money into carbon capture technology to slow carbon emissions.
Why it’s news
Crude oil is used to make the petroleum that helps power cars and homes and other things that make life easier, but finding and producing the oil leaves a negative impact on the planet.
Although oil production is harmful to the environment, Occidental Petroleum Corporation CEO Vicki Hollub thinks it is needed to continue the effort to produce cleaner energy. She says if U.S. oil production stops it will make matters worse rather than make it better.
She says that regardless of building renewables and other alternatives the demand for oil will stay high. Forecasts show that by 2040 the oil demand will be around 60 to 70 barrels and right now it is at 100.
“Unfortunately, if you don’t invest in the oil industry, by then the supply would be 27. So when we talk about a just transition, we have to remember that there are places around the world that have tremendous oil and gas resources. But if they can’t develop those, they’re the ones that will get left behind, and they’re the ones that will suffer.” says Hollub.
She does believe that the world is in a severe climate problem and pushes the importance of carbon capture technology, a sector that her business invests around $1.2 billion in.
In all, Hollub believes that the U.S. needs to continue investing in both carbon capturing and oil.
