The second-largest U.S.-based oil
producer, slashed its 2016 capital budget by 25 percent and said it would lay
off roughly 10 percent of its workforce, one of the most-drastic reactions to
date to the plunge in crude prices.
The price drop has forced Chevron
and dozens of its peers to make tough decisions about what projects to fund or
not fund in order to offset natural declines at its existing fields.
The choices are that much starker at
large international oil giants like Chevron that rely heavily on their massive
budgets to fund exploration projects crucial to finding new energy sources.
Chevron said on Friday it plans to
spend between $25 billion to $28 billion next year and expects to further slash
spending in 2017 and 2018 as well, an acknowledgment that oil prices are not
expected to rise at all in the near future.
The San Ramon, California-based
company also said it would lay off 6,000 to 7,000 workers as part of the cuts. (Ernest Scheyder)
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