United States and Mexico

Chevron wary of 'restrictive' US policies as new opportunities beckon

Bnamericas Published: Friday, January 29, 2021
Chevron wary of 'restrictive' US policies as new opportunities beckon

Chevron could sharpen its focus on a raft of international projects if conditions for new investments in the US become untenable, CEO Mike Wirth said on Friday. 

The comments came after Chevron reported a 2020 full-year loss of US$5.5bn – compared to a US$2.9bn profit in 2019 – as the coronavirus pandemic crippled global energy demand.

The oil sector slump coincides with growing industry concern about the policies of new US President Joe Biden. On Wednesday, Biden issued an executive order that suspends new oil and gas leases on federal land, a move some observers believe points to a less favorable investment climate.

"We've got options out of the US," Wirth said during an earnings call on Friday. "If conditions in the US become so onerous that it really creates a disincentive [for investment] we can look [elsewhere]."

Chief financial officer Pierre Breber added: “We don’t agree that it’s good policy to be overly restrictive on federal lands. If it continues we think that will push energy production outside the country.”

Chevron's Latin American asset portfolio includes upstream projects in Venezuela, Argentina, Brazil, Mexico and Suriname. The California-based company also secured operating stakes in the Colombia-3 and Guajira Off-3 blocks off Colombia's Caribbean coast as part of its US$5bn acquisition of Noble Energy last year.

Wirth said that despite political and economic uncertainty, Chevron is well-positioned to emerge from the downturn "even stronger" than before, citing the company's ability to remain profitable with oil at US$40/b. 

And he said the firm is committed to reducing its carbon footprint by prioritizing natural gas while exploring new carbon capture and hydrogen opportunities. 

“The current energy system is not the enemy,” Wirth said. “Emissions are what we should focus on.” 

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Oil & Gas

Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.

  • Project: Block 58
  • Current stage: Blurred
  • Updated: 1 week ago
  • Project: Block 133
  • Current stage: Blurred
  • Updated: 2 weeks ago
  • Project: Block Z-68
  • Current stage: Blurred
  • Updated: 2 weeks ago
  • Project: Block Z-2B
  • Current stage: Blurred
  • Updated: 2 weeks ago
  • Project: Block XV
  • Current stage: Blurred
  • Updated: 2 weeks ago

Other companies in: Oil & Gas (United States)

Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Victaulic Company  (Victaulic)
  • Victaulic is an American manufacturer of mechanical pipe joints, flow control systems and fire protection founded in 1919. The company owns 14 manufacturing plants and 29 branch...
  • Company: United States Department of Energy  (U.S. DOE)
  • Established in 1977, the DOE is a Cabinet-Level Executive Branch Agency from the United States government tasked with developing science and technology solutions that address th...
  • Company: B&W Energy Services
  • B&W Energy Services is a provider of specialty cleaning and commissioning Services including engineering and field execution for capital projects. . The company is based in Texas.
  • Company: Flowserve Corporation
  • Flowserve Corporation is a manufacturer and provider of flow management equipment, such as pumps, valves, seals, steam traps and systems, energy recovery systems and hydraulic c...
  • Company: Cheniere Energy Inc.  (Cheniere Energy)
  • Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses. The company is the owner of a liquefaction project at Sabine Pass in Louisia...
  • Company: Cargill Incorporated  (Cargill)
  • The American company Cargill Incorporated provides food, agricultural, financial and industrial products and services worldwide. Cargill is engaged in brokerage, processing, mar...
  • Company: Enverus
  • Enverus, formerly known as Drilling Info, Inc., is a US-based data analytics firm that serves companies operating in the hydrocarbon industry, especially those focused on explor...
  • Company: Morgan, Lewis & Bockius, LLP  (Morgan Lewis)
  • US-based Morgan, Lewis & Bockius, LLP is a legal consulting firm that provides services on litigation, regulation & investigations; corporate, finance & investments management; ...
  • Company: McDermott International, Inc.  (McDermott)
  • McDermott International, Inc. (McDermott), incorporated in 1923 in Houston, is an American company specialized on engineering, acquisition, construction, installation, design, a...