Chevron’s Response

Chevron has issued five statements on how the corporation is responding to the current market downturn. Tighter economics in the supply chain and more efficiency in shale drilling lead the list. “Cost reductions, improved efficiency and increased recoveries have improved our development cost per barrel by around 35% relative to 2014 and make more than 3,000 well prospects economic at $50 per barrel WTI.” In future developments, Chevron’s Gordon and Wheatstone LNG facilities in Australia will go on line soon. Capital spending has been reduced by $5 billion relative to 2014, unfortunately that means terminating projects and layoffs. For investors Chevron guarantees that they will meet their 2017 dividend.