For Chevron, Low Oil Prices Induce Declining Earnings & Spending, But Project Updates Offer Hope

Chevron is scheduled to announce its 2015 fourth-quarter earnings on January 29th.  We expect lower crude oil prices to weigh significantly on the company’s revenues and earnings. Benchmark crude oil prices were down sharply last year due to rising supplies coupled with slower demand growth. Brent crude oil spot price averaged less than $45 for the quarter in question and close to $52 for the full year 2015. Chevron has taken steps to maintain adequate cash flow in the wake of low earnings by...