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Chevron CEO Reportedly Flags Shrinking Oil Market Buffers, Says Venezuela Expansion Will Self-Fund

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Chevron (CVX) Chief Executive Officer Mike Wirth said the company expects its $7 billion Venezuela expansion to rely on local oil profits as global crude markets lose supply buffers, according to multiple media reports on Friday.

Speaking at the University of Texas' Energy Symposium in Austin Friday, Wirth said Chevron plans to raise Venezuelan output above 600,000 barrels per day within five years.

"We'll live within the means of those ventures ability to generate cash, not bring in cash from the outside," Wirth said.

Wirth said Chevron would need clearer evidence of a stronger investment climate before committing funds from its central balance sheet, with elections among the key factors.

Meanwhile, global oil markets have drawn down commercial inventories that provided a cushion earlier this year, while China is increasing imports after relying on strategic reserves, Wirth said.

US crude prices topped $100 per barrel earlier this week before easing to about $98/bbl Friday, and Wirth said he sees little reason for prices to retreat quickly.

"Those have largely now played out," he said, referring to the market's supply buffers.

Chevron did not immediately reply to' request for comment.

Price: $213.82, Change: $+1.06, Percent Change: +0.50%

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Commodities

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Commodities

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