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Chevron Cuts Budget, Warns of Profit Pain in Worsening Rout

  • CEO Mike Wirth has aggressively cut spending to conserve cash
  • Explorers idling wells, canceling projects as crisis deepens
    
Photographer: Daniel Acker/Bloomberg
Updated on

Chevron Corp. is slashing capital spending for the second time in five weeks, accelerating supply curbs and warning that profits will suffer as the oil-industry spiral deepens.

Full-year spending will be as much as 13% lower than previously planned, the world’s No. 3 oil explorer by market value said in a statement Friday. Chevron also plans to shut down as much as 400,000 barrels of daily output and retire 60% of the drilling rigs it has under lease.