Chevron swallows USD 10-11 billion in losses

The incessant oversupply of US shale oil and derived low prices prompt the oil and gas supermajor to roll back the throttle and consider major divestments.

Photo: Noah Berger/AP/Ritzau Scanpix

Over the last few years, the US' combined fossil fuel output has surged by a quarter – and Appalachia shale, where Chevron has been active since 2011, has multiplied 20-fold during the last decade. However, the US oil and gas supermajor is struggling with the basics of supply and demand.

The company is negatively impacted by the consequences of prices that seem to have frozen at a level around USD 2.5 per 1 million British Thermal Units (BTU), which sets Chevron into a costly retreat from its big gas boom.

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