Chevron’s Wirth Warns US Diesel Curbs Could Send Prices Higher

(Bloomberg) -- A US ban on diesel exports could result in higher prices in some parts of the country as well as causing issues with other nations that rely on American supplies, Chevron Corp. Chief Executive Officer Mike Wirth said on Tuesday.

"You could see some upward pressure on prices in some parts of the country," Wirth said at the Energy Intelligence Forum in London. "And I think particularly for our allies, it would send a very bad signal where the US has been a reliable supplier in a time of need."

Late last week, President Donald Trump said he would't ban US diesel exports, after Group of Seven nations and their partners agreed to release some of their emergency fuel stockpiles in a bid to bring down soaring prices. The president's decision marked a retreat from his earlier consideration of possible diesel export curbs.

Wirth also told the audience that demand for oil and gas will continue to grow after the end of the Persian Gulf war, and that his company could join an Iraq-to Mediterranean oil pipeline consortium.

Amid technological advances, Chevron is drilling more wells with fewer rigs than ever before, Wirth said.