VIENNA, June 3 (Reuters) - Chevron Chief ExecutiveOfficer John Watson on Wednesday rejected calls by Europeanpeers to introduce a price for carbon emissions, saying theregion should instead focus on shale gas and nuclear power.
In a blunt speech to the OPEC seminar in Vienna, Watsonelaborated on why he opted not to join the heads of Europe's sixtop oil and gas companies including Royal Dutch Shell,BP and Total in a letter published earlier thisweek urging governments around the world to introduce a pricingsystem for carbon emissions.
"I understand the concerns but I don't think putting a priceon carbon is an answer... I don't think it is a policy that canbe effective," Watson said.
Instead, Europe should develop its gas resources, he said,alluding to the reluctance of European governments to developshale gas in a process known as fracking which has radicallytransformed the U.S. market.
"We need to make sure we develop the natural gas resourcesthat we have, here in Europe - although Europe is choosing notto develop its resources - but also elsewhere in the world."
Nuclear power, which fell out of favour around the world,particularly in Germany, was also key to reducing carbonemissions, Watson said.
"If we are serious about climate change - nuclear powerwould be on the agenda. We wouldn't be shutting down nuclearplants around the world," he said.
Chevron larger U.S. peer ExxonMobil also chose notto join the joint letter, revealing a rift between the Europeanand U.S. views on the debate over climate change.
Setting a price for each tonne of carbon that emittersproduce is meant to encourage companies to adopt cleanertechnologies and shift away from using fossil fuels, primarilycoal. (Reporting by Dmitry Zhdannikov, writing by Ron Bousso, editingby William Hardy)