The Rising Influence of Rising Affluence

[DewDiligence]

CVX cuts multi-year cap-ex budget:

https://www.wsj.com/articles/chevron-slashes-spending-plans-as-coronavirus-hammers-oil-demand-11607002756

Chevron Corp. said it would cut its annual capital spending budget by 26% next year and sharply through the middle of the decade, as the coronavirus pandemic forces an industrywide reappraisal of fossil-fuel investment.

Chevron said it would spend $14 billion next year and no more than $16 billion a year through 2025. It previously said it would spend $19 billion to $22 billion a year through 2024 before the pandemic.

The cap-ex cut is actually steeper than the 26% figure above insofar as the original cap-ex guidance did not include Nobel Energy.

p.s. The following sentence from the same article is superfluous:

The sizable spending cuts by Exxon and Chevron this week mean that there will be even less work for the oil-field services companies that employ many of the industry’s ground-level workers, and that oil regions in many parts of the world will see reduced economic activity.

The WSJ of yore would not have insulted readers by saying this.