Lashier outlines dual energy challenge: Bridging the gap between cost and carbon

The biggest challenge facing Phillips 66 and its energy peers is delivering affordable, reliable energy while providing for a lower-carbon future, President and CEO Mark Lashier said at Rice University’s Baker Institute for Public Policy.

“The world needs the energy that we provide,” said Lashier. “But the question is how do we provide it in a form that people can both afford to use and that’s less impactful on the environment? That’s what we’re focused on.”

Lashier spoke about the future of energy on Oct. 11 with former Harris County Judge Ed Emmett, a fellow in energy and transportation at the nonpartisan Baker think tank.

The world consumes about 102 million barrels of oil each day, and Lashier said meeting that demand with alternatives will not be easy. Building facilities to process all the renewable feedstocks available today would only supply 5% of the world’s energy needs, he added.

For its part, Phillips 66 is converting its Rodeo refinery in San Francisco from a conventional facility to one that produces renewable diesel and sustainable aviation fuel. And its Humber refinery in the UK is already supplying SAF to British Airways.

Lashier also highlighted the key role of petrochemicals and plastics in modern life, recognizing the importance of a circular economy in managing these materials. And Phillips 66 is taking advantage of this opportunity, expanding its wellhead-to-market natural gas liquids business to produce petrochemical feedstocks.

Because of the complex challenges that lie ahead, Lashier emphasized the need for the best and brightest to work in the energy industry and help create a sustainable future. Phillips 66 will play a role in that, he said.

“We’re going to contribute to the energy mix that ensures the world has the energy it needs to thrive,” said Lashier.

To watch the full conversation, visit the Baker Institute event page.