American oil giant Chevron, following Exxon Mobil , had to tighten its belt and – for the fall in oil prices in 2020, adjust long-term investment plans reports Bloomberg citing the company’s statement.
Chevron’s 2022-2025 capex and research spending will be $ 14-16 billion annually. It was previously planned that they will be at the level of 19-22 billion. Thus, the company does not expect oil prices to rise significantly in the near future.
At the beginning of the week, announced the main competitor of Chevron in the USA about similar plans – Exxon Mobil company. She is going to lower the bar on capital spending to $ 25 billion a year by the end of 2025. Before the pandemic, the company planned to spend about 35 billion annually in the next five years.
In November 2020, Exxon Mobil worsened the forecast on raw materials prices for the next seven years. The oil corporation believes that the impact of the coronavirus pandemic on the market will continue for many years to come.