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Energy

Chevron, Lower Prices, Lower Money (CVX, SLB)

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By Douglas A. McIntyre Updated Published
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Oil_well_image_2Chevron Corp. (NYSE: CVX) has just laid the second ground-breaking path in the oil sector today.  It lowered guidance "significantly."  We already noted pending layoffs at Schlumberger Limited (NYSE: LTD), but this is a different matter entirely.  As if you didn’t guess the outcome of far lower oil prices and the backside of demand destruction…

Chevron noted that its fourth quarter 2008 results are now expected tobe significantly lower than those of the third quarter, with most ofthe decline tied to lower prices for crude oil and natural gas thatnegatively affect earnings for the upstream business.

The company said that total U.S. oil-equivalent production during thefirst two months of the quarter was 39,000 barrels per day lower thanjust the quarter before.  U.S. crude oil realizations for the first twomonths of Q4 declined about $50 per barrel to $61.70. Internationalliquids unit realizations of $53.29 per barrel in the first two monthswere also approximately $50 per barrel lower.

It seems a safe bet that Chevron and others will start following the path of Schlumberger in layoffs.

Chevron closed up 0.4% at $74.24 in regular trading, and shares are down about 1.5% after the close.

Jon C. Ogg
January 8, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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