Published by Global Banking & Finance Review®
Posted on January 22, 2026
3 min readLast updated: January 22, 2026
Add as preferred source on GoogleUS Energy Secretary Chris Wright calls for doubling global oil production, criticizing EU and California's energy policies. US aims to replace Russian gas in Europe.
DAVOS, Switzerland, Jan 22 (Reuters) - The world needs to more than double oil production, U.S. Energy Secretary Chris Wright said on Thursday, while criticising the European Union and the U.S. state of California for wasting money on what he described as inefficient green energy.
In recent years, the World Economic Forum's discussions on energy have centred on ways to boost lower-carbon policies. But during Wright's discussion with energy company Occidental's CEO Vicki Hollub in Davos, they emphasised that the world will depend on oil for decades to come.
Increased natural gas production and investment in LNG export terminals have put the U.S. in a position to replace Europe's imports of Russian gas that were slashed after the start of the conflict in Ukraine in 2022, Wright also said.
But he added that corporate environmental regulations in the European Union posed risks to energy cooperation with the United States.
"These regulations could threaten you (U.S. producers) liability-wise to send gas to Europe," Wright said. "We're working with our colleagues here in Europe to remove those barriers."
The EU requires importers of oil and gas into Europe to monitor and report methane emissions associated with those imports, in a bid to curb emissions of the planet-warming gas.
After months of pressure from companies and governments, the European Union agreed last month to reduce the scope of its sustainability disclosure rules. However, investors have said that less transparency will make it harder to identify which companies are genuinely moving toward low-carbon operations.
The European Union did not immediately respond to a request for comment.
CALIFORNIA CRITICISM
Wright also criticised California's energy policies, which he said resembled Europe's and had contributed to higher energy prices for residents, while Hollub cited regulations as the reason for Occidental's 2014 departure from the state.
Two refineries that make up around 17% of the state's gasoline production capacity are currently slated to close, which has put pressure on Democratic California Governor Gavin Newsom to stop fuel prices from surging.
California's crude production has also slumped to 300,000 barrels of crude a day in 2024, from a peak of 1.1 million bpd in 1985, according to U.S. Energy Information Administration data going back to the early 1980s.
California is isolated from refining centres along the U.S. Gulf Coast and in the Midwest and can experience swings in energy prices.
The state's lawmakers in September passed a bill that would allow the construction of thousands of new wells in a bid to make oil more affordable for refineries and keep fuel prices in check for consumers.
California's Energy Commission did not immediately respond to a request for comment.
Global oil supply stood at 107.4 million barrels per day last month, according to the International Energy Agency.
(Reporting by Stephanie Kelly, Shadia Nasralla, Dmitry Zhdannikov; Editing by Joe Bavier, Kirsten Donovan)
Oil production refers to the process of extracting crude oil from the ground, which is then refined into various petroleum products used for energy and fuel.
LNG export terminals are facilities where liquefied natural gas is processed and shipped to international markets, allowing countries to import natural gas efficiently.
Natural gas is a fossil fuel composed mainly of methane, used as an energy source for heating, electricity generation, and as a fuel for vehicles.
Environmental regulations are laws and guidelines designed to protect the environment by controlling pollution and managing natural resources.
The World Economic Forum is an international organization for public-private cooperation, known for its annual meetings in Davos, Switzerland, where global leaders discuss economic issues.
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