John S. Watson

Every barrel of oil that we produce around the world benefits Americans because it keeps prices down. We can talk more later about American energy independence, but the facts are, every barrel we produce helps Americans because it keeps prices down.

The greatest advancements in living standards over the past century have been coincident with affordable energy.

Despite some struggles of our own, America's business and economic system remains the envy of much of the world.

I believe in free markets. I believe in free trade. I believe in creating the conditions that will allow that to happen. And if we do that, American companies are going to be pretty darn competitive.

First, the oil and gas business pays its fair share of taxes. Despite the current debate on energy taxes, few businesses pay more in taxes than oil and gas companies. The worldwide effective tax rate for our industry in 2010 was 40 percent. That's higher than the U.S. statutory rate of 35 percent and the rate for manufacturers of 26.5 percent.

Most of the well-developed world - Australia, Western Europe - they develop their resources base, they inventory it, they develop it, and they view it as a good source of jobs and revenue. We are a country that for too long has taken affordable energy for granted.

You know, Chevron - we don't do original research on climate change. It's the government's role to do that, and we accept the determinations that are there.

We're going to need oil and gas and coal for a long time if America wants to keep the lights on.

The United States must recognize that access to reliable and affordable energy is the basis for economic expansion - and global competitiveness. And the nation must move from discouraging fossil fuel development - which is largely our approach today - to enabling it. We need all forms of energy to keep our economy strong.

Natural gas will displace coal in power generation. Getting natural gas into the transportation fleet is harder. It works best for vehicles that work from centralized fueling facilities like trucking fleets or buses and cabs. That is happening. Before it can make big inroads beyond that, infrastructure is going to need to be developed.

If you look around the world, the countries with the best environmental practices are the wealthiest. There's a reason for that. If you're worried about where your next meal is going to come from or shelter over your head, your focus is on those things.

What I see are people who want affordable energy. They want strong environmental standards - they want a lot of things - but first and foremost they want affordable energy. And if you want affordable energy, you want oil, gas and coal.