When he appeared on CNBC’s “Squawk Box” on Tuesday, Chevron CEO Mike Worth downplayed the possibility of a recession.
However, he admitted that he was growing slower.
“Doesn’t that mean you don’t think you’re heading towards a recession in your plans at this point?” asked Becky Quick, co-host of “Squawk Box.”
“There’s no indication that you know we’re in a recession or that we’re near a recession. There are indications that growth can be slower, and we have to be prepared for it all the time. But our job was working in our business.
Worth also touted that recent trading president Donald Trump forced secondary tariffs on Venezuelan oil in response to pushing back China and Russia’s influence while keeping domestic energy prices low through US companies, including Chevron.
Later in the segment, Worth discussed his efforts to increase production in the US Gulf.
“Mike, let me ask you a little about some of the productions you’ve just announced national projects, because it was a huge driving force for the administration,” Quick asked. “I have doubts about how much sense we can get from lower energy prices. I had Dan Yazin yesterday. He said many of these investments don’t mean much to major oil companies.
“Yeah, you can think about our oil and gas production in two different categories,” Worth replied. “The third launch of the last eight months in the US Gulf, which is offshore like the project we announced yesterday. It will raise production by 50% between 2025 and 2026. 200-300,000 barrels a day. These projects are considering the Permian basin as they are other production areas in the US.
He said, “We’ve seen activity slower and production react more quickly. I think it’s likely that we’ll see activity pulling back in this sector, whether it’s at a price of $60 or even lower. I think we’ll see production responses for more than a few months.
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