Chevron will write down assets by at least $10 billion

Chevron Corporation said Tuesday it will book a charge of at least $10 billion because lower long-term prices for oil and natural gas will reduce the value of its assets.

More than half the write-down is related to gas drilling operations in Appalachia.

The huge fourth-quarter write-down — between $10 billion and $11 billion — underscores the challenge posed by rising production that has prevented energy prices from increasing sharply during a time of increasing global demand.

Chevron said it will reduce spending on some investments including Appalachian shale, a liquefied gas terminal in British Columbia, and other international projects. The company said it is evaluating options including selling those assets.

The San Ramon, California-based company disclosed the estimated charge as it announced that capital and exploration spending next year will be held flat at $20 billion. Chevron will focus on operations in the Permian Basin of west Texas and New Mexico, a big project in Kazakhstan, and deepwater drilling opportunities in the Gulf of Mexico.

 

Chevron will write down assets by at least $10 billion

Chevron Corporation said Tuesday it will book a charge of at least $10 billion because lower long-term prices for oil and natural gas will reduce the value of its assets. More than half the write-down is related to gas drilling operations in Appalachia. The huge fourth-quarter write-down between $10 billion and $11 billion underscores the challenge posed by rising production that has prevented energy prices from increasing sharply during a time of increasing global demand. Chevron said it will reduce spending on some investments including Appalachian shale, a liquefied gas terminal in British Columbia, and other international projects. The company said it is evaluating options including selling those assets. The San Ramon, California-based company disclosed the estimated charge as it announced that capital and exploration spending next year will be held flat at $20 billion. Chevron will focus on operations in the Permian Basin of west Texas and New Mexico, a big project in Kazakhstan, and deepwater drilling opportunities in the Gulf of Mexico.