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“California’s policies make investing in Chevron’s home state riskier than investing in other states,” Andy Walz, Chevron’s president of products for the Americas, wrote in a letter to state officials in November. It’s getting higher,” he said. Reuters reported that this was revealed to state officials in November.
“Last year, we canceled several projects due to permitting challenges.”
But Chevron said in its filing that it expects to continue operating the affected properties for years to come. Chevron produces approximately 75,000 barrels of oil and gas per day from its Central California fields.
The company benefited from soaring oil prices last year, with global profits in fiscal 2022 reaching $36 billion, more than double the previous year.
Profits for 2023, forecast in February, are expected to be significantly lower.
Chevron, which owns a 20% interest in the Clare oil field west of the Shetland Islands, one of Britain’s largest, is also facing problems over its former oil and gas platforms in the Gulf of Mexico.
The company sold them to another company, Fieldwood Energy, but the company subsequently filed for Chapter 11 bankruptcy and lacked the funds to decommission the wells, pipelines, and platforms.
This means the cost of decommissioning goes back to Chevron.
Chevron said in its filing: “A company that purchased previously sold oil and gas production assets in the U.S. Gulf of Mexico has filed for protection under Chapter 11 of the Act, resulting in the company recognizing losses related to the abandonment and decommissioning obligations of these assets. ” U.S. Bankruptcy Law.
“We currently believe that it is probable and estimable that some of these obligations will revert back to the company. We plan to undertake decommissioning activities for these assets over the next 10 years.”
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