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Price creates incentive, and energy will be developed if there's demand for it at the price you can develop it.

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.

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.

About 75% of the price of gas is really dictated by crude oil. At the heart of the issue is increasing demand over a period of many years around the world. World crude oil consumption now is close to 90 million barrels a day. Most of the growth in demand is coming from China and the developing world.

Chinese growth will either be strong or very strong. They have a voracious demand for energy that will only continue to grow. What they're doing... is looking at all forms of energy. They're going ahead very strongly with coal, nuclear, oil, natural gas.

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.

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.

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.

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

For most of the countries I visit, getting affordable energy in the hands of the people is a preoccupation.

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

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.

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.

Actually, I'm a strong supporter of comprehensive tax reform.

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.

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