Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
Chevron Corp. is bullish on oil and gas prices, according to chief financial officer John Watson, who spoke recently to Wall Street oil analysts and investors. "Our plan going forward is based on $20 or so [oil]. That's the way we're doing our capital budgets." Watson calls the figure "moderate," yet it is higher than some other big oils' $12- to $15-per-barrel budgets. "There has always been a high correlation between economic activity, economic growth and demand for hydrocarbons," Watson says. "When people plug in their computers, they need power, and that's going to come from hydrocarbons or some other form of energy that we can participate in." The major, which hopes to merge with Texaco Inc. next year, reported third-quarter operating earnings of more than $1.6 billion. "There's a tendency to attribute all the improvement to commodity prices. Another way to look at it is that this is our reward," Watson says. "Chevron has been investing heavily in the upstream side of the business for the last five to 10 years. We were once more of a downstream company. We had the highest return on capital employed of all our competitors and that's because of our portfolio and where we're invested."
Recommended Reading
Light Oil Discovery Made Offshore Namibia
2024-01-11 - Galp Energia said a significant light oil discovery was made in the Orange Basin and a drill stem test will be performed to assess the discovery’s commercial viability
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-01-12 - The oil and gas rig count, an early indicator of future output, fell by two to 619 in the week to Jan. 12, the lowest since November.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-01-05 - The oil and gas rig count, an early indicator of future output, fell by one to 621 in the week to Jan. 5.
Prairie Operating Acquires More D-J Basin Assets for $94.5MM
2024-01-15 - Houston-based Prairie Operating Co. is scaling its D-J Basin footprint with a $94.5 million acquisition of Nickel Road Operating LLC.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.