Chevron CEO: Falling Oil Prices Won't Cause Spending Cuts
Wednesday November 12nd, 2008 / easybourse.com
NEW YORK -(Dow Jones)- Despite fluctuations in oil prices, Chevron Corp. (CVX) plans to maintain a high level of investments in oil exploration and production, Chief Executive David O'Reilly said Wednesday.
The company generally announces its capital spending for the coming year each December. O'Reilly wouldn't estimate the company's expected spending for 2009, but said falling oil prices wouldn't cause Chevron to scale back.
The executive spoke Wednesday to the Council of Foreign Relations.
"We're not swayed by the ups and downs at the market," he said. Oil has fallen from highs above $145 a barrel this summer. However, O'Reilly said the price remains inline with that seen several years ago, when Chevron first planned large projects like Blind Faith, in the Gulf of Mexico, which came online today.
"Generally, we're committed to trying to invest," he said. O'Reilly said the company approves only those projects that are viable even if oil prices drop precipitously.
O'Reilly didn't disclose a minimum price below which Chevron would cut projects.
Chevron, based in San Ramon, Calif., spent $22.9 billion on capital projects in 2008.
-By Jessica Resnick-Ault and Isabel Ordonez, Dow Jones Newswires; 201-938-4435; jessica.resnick-ault@dowjones.com |
