US oil and gas giant Chevron said Tuesday it would slash its capital spending budget in the next two years to preserve cash in a low oil price environment.
Chevron informed in a statement it plans to spend between $17 billion to $22 billion per year in 2017 and 2018. The energy giant previously said it expected to spend about $20 billion-$24 billion annually in the mentioned period.
To remind, Chevron plans a 2016 capital spending budget of $26.6 billion, down 24 percent as compared to the company’s capital and exploratory investment in 2015.
“We’re completing major projects that have been under construction for several years. This enables us to grow production and reduce spending at the same time, which should improve our net cash flow significantly,” said John Watson, Chevron’s chairman and CEO.
“Industry conditions are tough right now, with low oil and natural gas prices. We believe markets will improve, and we’ll be well positioned when they do,” Watson added.
LNG World News Staff