Chevron Corp.’s top executive called Tuesday for the United States to triple the amount of ethanol it uses for transportation in the next decade, a target short of President Bush’s own plan to boost use of the biofuel

HOUSTON, US; February 16, 2007.- Touting “policies of the pragmatic center,” Chevron CEO David O’Reilly also said the world has reached a point where some sort of greenhouse gas management is necessary and proposed that the US government authorize a modern seismic inventory of key areas in the Pacific, Atlantic and Gulf of Mexico regions.

O’Reilly called Bush’s target of increasing ethanol use to 35 billion gallons a year — a nearly fivefold increase — in that same period laudable. But he said that “a more pragmatic approach suggests setting a goal of E-10, or 10 percent ethanol, on average, per gallon of gasoline.”

Speaking at Cambridge Energy Research Associates’ CERA Week conference in Houston, he said that E-10 can be used in existing US vehicles.

Furthermore, he said that his target is both economically and technically feasible and could lower imports of petroleum products in the US more than 25 percent.

On the topic of climate change, O’Reilly said the industry needs to work with government and the scientific community to find a “rational, cost-effective and risk-adjusted” solution.

“Otherwise, we run the risk of actions at the state level — no matter how well-intentioned — creating a patchwork of regulations that will impose high costs with limited impacts,” O’Reilly said.

He said that climate change policy should be globally focused and involve all sectors of the economy.

Chevron’s top executive also said that the United States needs to update its knowledge abut what resources are available within its own borders. He said that the data for potential resources in the Pacific, Atlantic and Gulf is more than 25 years old.

He said that an effective, targeted 2D seismic survey of the regions could be completed for less than US$500 million.

“That appears to be an economic investment given the US$4 billion or more in new revenue that increased royalty rates will generate,” O’Reilly said.

Aside from the US Gulf Coast, the lion’s share of the US offshore is off-limits to oil and gas drilling due to a federal moratorium.

Exxon Mobil Corp.’s CEO Rex Tillerson said earlier Tuesday that an estimated 31 billion barrels of recoverable oil and 105 trillion cubic feet of natural gas are currently ruled off limits.

(Reuters)

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