Oil Price May Lead Chevron to Join Peers, Cut Capital Spending

摘要

Chevron has been resisting investors' growing push for international oil companies to reduce capital investment in favor of higher shareholder distributions (IOD May5'14). But sharply lower oil prices may lead the US major to join its peers in cutting spending after all. Chevron typically unveils its budget for the upcoming year in December. However, with crude oil prices down roughly 30% since Sep. 1 and holding below $70, the firm is expected to delay its announcement until January. The extra time could give Chevron's board a clearer sense of whether oil prices have found a floor or still have room to fall, and develop a plan accordingly.