Chevron's Risk-Taking Strategy Pays Off with 50% Production Boost

Chevron's CEO Mike Wirth has put his own spin on risk management in the oil and gas industry. In an exclusive interview, he stated that success comes from embracing risk, rather than trying to eliminate it. 'Reward follows risk,' he said.

Under Wirth's leadership, Chevron has increased its production by nearly 50% since 2018, reaching a record output of 4.07 million barrels of oil equivalent per day in the second quarter of this year. The company has also maintained an annual budget of less than half its peak spending from 2013.

While Wirth is confident in Chevron's approach to risk management, he notes that not all risks are equally rewarding. He believes that certain investments, such as those in LNG, do not provide sufficient returns to justify the risks involved.