Michael Wirth on exploration strategy
From Chevron Corp ($CVX) Q2 2025 Earnings Call · · Castify Earnings Call
“I'm not happy with the results out of exploration over the last few years. But I want to acknowledge our exploration team has been operating in a pretty narrow range. We've reduced our investment for the reasons you point out. We were seeing big resource and reserve adds from our shale business for many years and we were really serious about capital discipline and so as we're ramping up the spending on that we pulled back and focused into a pretty narrow range of activities.”
On , Michael Wirth, Chairman & Chief Executive Officer at Chevron Corp, spoke about exploration strategy during Chevron Corp ($CVX) Q2 2025 Earnings Call on Castify Earnings Call.
About Michael Wirth
In recent public appearances, Chevron CEO Michael Wirth has focused on the impact of the ongoing closure of the Strait of Hormuz on global energy markets. He stated that approximately 20% of the world's oil and liquefied natural gas supply transits through the strait, and that its disruption has placed the global energy system under "extreme stress." Wirth said that global inventories and strategic reserves are being drawn down, which he described as a concern, and that the U.S. cannot make up all of the lost supply. He noted that Chevron has slowed some production in Kuwait and Saudi Arabia due to an inability to evacuate crude and that storage is filling. Wirth warned of upward price pressure and the risk of supply outages in Europe and Asia, citing canceled flights in Europe due to tight jet fuel supplies. Wirth also discussed Chevron's operational performance and strategy. He said the company reported strong first-quarter 2026 earnings that exceeded analyst expectations, attributing the results to strong U.S. production and record refinery runs. He stated that Chevron plans to grow global production by 7 to 10% in 2026, a rate he said exceeds projected global demand growth of about 2%. On Venezuela, Wirth said Chevron is committed to the country but needs more policy clarity on taxes and royalties before committing new capital. He also criticized California's energy policies, saying that a decline in the state's refining capacity has constrained supply. In a podcast launched by Chevron, Wirth discussed the role of different energy technologies and said that markets are efficient at finding the best application for each technology.