Chevron's $10B Hit Comes Amid Fossil Fuels Glut: San Ramon

SAN RAMON, CA — San Ramon-based Chevron Corporation announced Tuesday a 2020 capital and exploratory spending program of $20 billion, along with big news of a $10 billion to $11 billion charge in the current quarter that reflects its outlook on a changing global energy landscape.

The company is reducing funding to various gas-related opportunities, including in Appalachia and the Gulf of Mexico.

“We are positioning Chevron to win in any environment by ratably investing in the highest return, lowest risk projects in our portfolio,” said Chevron Chairman and CEO Michael Wirth.

“We believe the best use of our capital is investing in our most advantaged assets,” he continued. “With capital discipline and a conservative outlook comes the responsibility to make the tough choices necessary to deliver higher cash returns to our shareholders over the long term.”

America's shale oil and gas boom, and the nation's decreasing dependence on foreign energy, has resulted in a glut of fossil fuels, especially gas. The result is lower prices and pressure on energy producers.