Chevron Trims Production Forecast On Project Delays, Rising Costs
NEW YORK, March 11 (Reuters) - Chevron Corp, the second-largest U.S. oil company, lowered expectations for its 2017 production on Tuesday, citing lower natural gas prices, rising costs and project delays.
The company now expects to produce 3.1 million barrels of oil equivalent per day (boe/d) by 2017.
Chevron had previously forecast 2017 production of 3.3 million boe/d.
"Our growth strategy remains intact, though some things have changed," chief executive John Watson said at the company's analyst day in New York.
The company has slowed development of its holdings in the Marcellus shale formation in the eastern United States due in part to low natural gas prices.
Chevron plans to sell about $10 billion of assets in the next three years, an increase from the $7 billion in asset sales in the previous three years. Most of the new asset sales will be uncompetitive assets in the company's oil and natural gas exploration and production business.
Rising crude oil prices, paradoxically, have cut cost reimbursement in some contracts and increased costs, Watson said.
Chevron's stock rose 0.3 percent to $116.15 in Tuesday morning trading.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Tight Oil, Shale to Drive Majors' Output to New Highs (Oct 16)
- Saturno Brazil Pre-Salt Acreage Goes to Shell and Chevron (Sep 28)
- Canada Shale Drillers Feel Permian Pain as Prices Collapse (Sep 20)