Chevron CEO on Geopolitical Shocks Reshaping the Global Market | WSJ Leadership Institute
What this covers
Mike Wirth, Chevron's CEO since 2018, discusses how energy companies navigate extreme market swings and geopolitical upheaval. The conversation, recorded at the WSJ CEO Council Summit in December 2025, centers on his core argument: that energy systems grow by layering new supply atop existing sources rather than replacing them, and that meeting rising global demand while maintaining capital discipline—not pledging to halt oil production—represents the responsible corporate course through volatility and political pressure. Wirth draws on his four-decade tenure at Chevron and his succession planning with the board to illustrate how long-cycle capital investments and durable culture outweigh reactive short-term moves.
The talk ranges across energy markets, corporate leadership, and geopolitical positioning. Wirth defends his company's continued oil production and its decision to maintain operations in Venezuela under sanctions, arguing that abandoning countries over political disagreements serves no one. He addresses Biden-era tensions, including the White House letter accusing Chevron of profiteering after the Ukraine war, and outlines Chevron's low-carbon bets—hydrogen, carbon capture, geothermal, biofuels—which he frames as extensions of existing capabilities rather than speculative ventures into wind and solar. On climate technology, he argues that subsidies may justify early adoption but should sunset, and that no single solution exists; nuclear deserves renewed support in an all-of-the-above approach. He also reflects on why culture—particularly one that tolerates disagreement and accountability—cannot be replicated by competitors, and why his company's 3% turnover reflects decades-long employee tenures rare in modern industry.
Mike Wirth argues that energy systems evolve by adding new supply rather than replacing old, so meeting growing demand with capital discipline—not pledging to stop producing oil—is the responsible path through political and commodity volatility.
- No form of energy has ever actually declined in absolute demand; the system adds layers rather than substitutes them
- Capital discipline and a strong balance sheet are how an inherently volatile commodity business survives geopolitical and price swings
- Low-carbon investments should leverage core capabilities and eventually compete without permanent subsidies
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In a commodity business, the top line (revenue) can swing far faster than costs, so a strong balance sheet plus cost and capital discipline are the means by which a company steers through geopolitical shocks and price volatility without overreacting to short-term forces.
“the the top line can swing very rapidly, much faster than our costs do. And so strong balance sheet and um and cost and capital discipline are how you you you steer through those things.”
Because energy investments have very long life cycles, a CEO should steer a steady course focused on the fundamentals of demand, technology, competition and policy, rather than overreacting to short-term volatility, since most geopolitical and price shocks do not last.
“you don't overreact in the moment to some of the volatility. It's an it's a commodity business. It's inherently volatile.”
Culture is a durable competitive differentiator because, unlike assets, technology, market entry, or strategies—all of which competitors can copy—culture is owned and cannot be copied.
“you can buy assets, you can license technology, you can enter countries... there are a lot of things that you can copy strategies. It's hard to copy culture you own”
A 'nice' culture can be a weakness because people avoid voicing disagreement for fear of offending others, and you don't reach better solutions without hearing different points of view, making decisions, and holding people accountable for results—so Chevron is deliberately adding a 'performance edge' to its culture.
“for fear of offending somebody, if I disagree with you, I might not really want to say that because I don't want to hurt your feelings. And you don't get to better uh solutions if you don't really hear different points of view”
The energy system has evolved over the last 150 years by adding new forms of energy supply rather than replacing old ones; no type of energy has ever actually declined in absolute demand—coal, oil, hydro, wind, solar, and even biomass are all at or near record highs.
“we've never seen a a supply of uh any type of energy actually decline. Uh the demand for coal is higher than it's ever been today. Demand for oil is higher than it's ever been.”
The oil industry lost capital discipline in the 2000s by overspending in response to high prices and a perceived looming shortage (peak oil), and because capital is allocated in tens of billions with very long life cycles, misallocations must be lived with for a long time—so restoring capital discipline became Wirth's first priority as CEO.
“our industry was overspending to try to respond to this perceived to the high prices and this perceived looming shortage. And we lost discipline on capital.”
Green hydrogen at scale faces fundamental thermodynamic limits making it very difficult, biofuels are the most well-established low-carbon option (anchored by the Bush-43-era Renewable Fuel Standard fusing agriculture and energy policy), and advanced geothermal offers real but early promise.
“hydrogen's proven to be very difficult. uh you're fighting the laws of thermodynamics uh in in a at a huge scale there.”
There is no single 'silver bullet' low-carbon technology; an effective energy policy must rule solutions in (all-of-the-above) rather than exclude options, and nuclear—including fusion and small modular reactors—is the ultimate low-carbon technology that now deserves more support.
“There's no silver bullets. Uh we we need it all... What we then got into an exclusionary policy were ruling out solutions and we need to rule solutions in. We need nuclear.”
Low-carbon technologies may justify subsidies to get established and move down the cost curve, but over time Chevron should invest only in those that can ultimately compete and deliver return on capital without relying on long-term subsidies.
“there there's certainly a case for subsidies or other forms of government policy to help technologies get established, bring them down the the cost curve, but over time uh we need to invest in things that can compete and deliver return on capital”
Leadership lessons drawn from coaching: you can outwork others to get ahead; a good coach can see and pull out capabilities a person doesn't believe they have; an important job does not make you an important person, so humility and surrounding yourself with people who tell the truth matter; and coaches don't win games, players do—so putting the right people in the right positions makes anything possible.
“I learned at a young age you can actually outwork the other guy.”
Chevron moved its headquarters from California (its home for 145 years) to Texas because Texas is the center of the oil industry—where the companies, service companies, and recruiting universities are concentrated.
“Texas is the center of the universe for uh for our industry. It's where the companies are, the service companies we work with, the universities we recruit from.”
Chevron maintains an American presence in Venezuela to preserve continuity through political cycles, operating under sanctions that prohibit paying taxes or royalties to the Venezuelan government, so its revenue from crude sales does not support the Maduro government—and Chevron does not abandon countries simply over disagreements with their governments.
“we're not allowed to pay taxes or royalties uh with uh with the revenue that we generate from crude sales to to our customers.”
When demand for a company's products is growing, the company should work to meet that demand rather than pledge to cap production, because failing to meet demand drives prices higher, which harms the economy and consumers.
“the demand for our products is going up not down. And we need to meet the demand. If we don't uh what happens is prices prices go higher and that's not good for the economy. It's not good for for consumers.”
President Biden's released letter to Wirth alleged profiteering and price gouging after the Ukraine war with no supporting evidence, and Wirth, having been in the White House the week prior without anyone mentioning it, responded with his own released letter to defend his employees and shareholders against inaccurate facts spread in mainstream media.
“it alleged uh profiteering and price gouging and all kinds of behavior. There was no evidence to support it.”
Chevron deliberately avoided wind, solar, and merchant power generation because those activities don't draw on its unique skills or add value, and instead invested in hydrogen, carbon capture and storage, geothermal, and biofuels—areas that extend its core capabilities, value chains, and customer relationships.
“we didn't go into wind or solar because we're not a a turbine manufacturer. Installing wind and and solar doesn't take unique skills. So we didn't bring any value to that.”
There is evidence that CEOs reach their best performance after year 10 in the role.
“there's a fair amount of evidence, by the way, that says CEOs reach their best performance after year 10.”
Chevron's roughly 3% employee turnover (versus 50% cited by another company) implies an average career length of about 33 years, with many employees whose parents and grandparents worked for the company, reflecting a culture built on multi-decade service, respect for individuals, and investment in people.
“I feel for Brian when he talks about 50% employee turnover. We have 3% employee turnover.”
Chevron has reduced greenhouse gas emissions from its oil and gas production by over 40% in less than a decade and operates carbon capture and storage facilities sequestering millions of tons of CO2 per year, while building one of the world's three largest green hydrogen facilities in Utah whose storage will hold two to three times the energy of all grid-connected batteries in the United States.
“We've reduced uh emissions on u uh both oil and gas production by over 40% in less than a decade.”
Land Man is a great show but a good show takes liberties with reality to create drama; the core activities of an oil operation depicted are fairly accurate, though a small West Texas company differs from a large company's realities.
“a good show needs to take some liberties with reality and um and create some drama... a lot of the core activities that are required are are pretty accurate.”
Wirth has spent 43 years with one company and become CEO in 2018.
“I've been in this business for a long time um 43 years with one company”