Chevron's CEO Bets Big on Oil Prices Remaining High

Chevron's CEO Mike Wirth believes that the world has used up its spare oil capacity, and he is betting $7 billion on it. This view is based on his argument that emergency oil buffers put in place after the Iran conflict have been largely depleted.

The depletion of these cushions means that crude prices could be exposed to fresh shocks if another disruption occurs. Wirth pointed out that strategic reserve releases and eased restrictions on some sanctioned oil inventories helped balance the market, but those actions cannot be repeated indefinitely.

Chevron is planning to double its output in Venezuela by the early next decade, with a self-funding structure that will not divert capital from other projects. This expansion plan relies on Venezuelan cash already generated by existing joint ventures, which limits the risk of a policy reversal.