Bloomberg Talks: Interview With Chevron CEO Mike Wirth
Episode Title: Chevron Chairman & CEO Mike Wirth Talks Lower Oil Prices, Venezuela
Date: December 10, 2025
Host: Lisa, with Anne Marie
Guest: Mike Wirth, Chairman & CEO of Chevron
Overview
This episode features an in-depth conversation with Chevron Chairman & CEO Mike Wirth, as he addresses the impact of lower oil prices, the company’s long-term investment strategy, technological advances in oil and gas extraction, Chevron’s position in Venezuela, and the future of energy in a rapidly changing world. The discussion offers perspectives on both the economic and geopolitical landscape shaping Chevron’s business and the broader energy sector.
Key Discussion Points & Insights
1. Impact of Lower Oil Prices on Chevron’s Strategy
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Long-term Planning Over Short-term Fluctuations
- Wirth stresses that while lower oil prices may affect short-term financials, Chevron’s investment strategy focuses on long-term demand projections.
- Quote (Mike Wirth, 01:28):
“We make our investment plans on a long term basis...the price of oil today can affect short term financial performance...but it really doesn't play as much into some of the longer term investment plans.”
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Capital Discipline and Efficiency
- Chevron is maintaining strong financial discipline, lowering operational costs, and pursuing industry-leading free cash flow, particularly after the Hess transaction.
- Wirth emphasizes maintaining performance “through the cycle”—not just when prices are high.
- Quote (Mike Wirth, 01:59):
“We’ve guided to industry leading free cash flow over the next few years—bring costs down, capital spending down, increase synergies on the Hess transaction.”
2. Global Oil Demand Outlook & Investment Decisions
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Demand Projections Extended
- The IEA (International Energy Agency) updated its forecasts, extending robust oil demand out to 2050—echoing long-held industry expectations.
- Quote (Mike Wirth, 02:59):
“Even a broken clock is right twice a day. So they have finally acknowledged what we've long known, which is that the world will continue using oil and gas for many decades into the future.”
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Efficiency Gains Altering Capital Needs
- Advances in technology and project design now enable the company to achieve more output for every dollar spent, decoupling spending size from growth potential.
- Quote (Mike Wirth, 02:59):
“The size of our capital spending doesn't necessarily correlate to the growth the way that it would have in years gone by.”
3. International Developments: Iraq & Venezuela
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Potential Expansion in Iraq
- Chevron is considered a reputable partner globally and is always evaluating quality assets, including Iraq’s significant petroleum resources.
- Wirth avoids specifics but highlights Chevron's approach to international partnerships.
- Quote (Mike Wirth, 03:54):
“We've got a well-established reputation as a good partner...We're sought out as a partner in countries around the world.”
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Chevron’s Unique Position in Venezuela
- Chevron remains the only American oil company with a presence in Venezuela and plans to maintain long-term operations there, emphasizing compliance and the strategic importance of Venezuelan oil to the US.
- Quote (Mike Wirth, 08:43):
“We've been in Venezuela for the last hundred years. Our presence there is important for the local economy...the Venezuelan oil is sought after by US refinery and we operate there in full compliance with all US law and sanctions.”
4. Technological Innovation & Efficiency
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Improvements in Shale and Deepwater Production
- Break-even costs in US shale have drastically fallen due to better drilling techniques, longer laterals, and standardized operations in deepwater projects.
- Quote (Mike Wirth, 04:56):
“A decade ago break evens were $70 or $80 a barrel. Today they're not even half of that...We've simplified and standardized designs and what used to take $30 a barrel or more...now has been cut in half.”
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Artificial Intelligence: Early Stages, Big Potential
- AI is not yet a primary driver of these efficiencies, but Wirth foresees significant future applications, leveraging Chevron’s vast data sets to optimize operations and increase productivity.
- Quote (Mike Wirth, 06:27):
“We're still in the very early days of applying AI at scale in our industry...We've got decades and decades of geologic data...to feed these models, to optimize operations, to improve our exploration success, to squeeze more production out of existing assets.”
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Industry Productivity Metrics Evolving
- Drilling efficiency—not rig counts—is now a more meaningful measure of activity. Chevron gets more drilling done per rig due to technological advances.
- Quote (Mike Wirth, 05:52):
“We can drill more feet per day with a rig today than we could in the past...We're getting more work done out of fewer pieces of equipment.”
5. Supplying Power for AI Data Centers
- Natural Gas Projects in West Texas
- Chevron is piloting gigawatt-scale, off-grid natural gas-fired power for data centers—critical for AI growth facing energy constraints.
- Wirth discusses active projects supplying power directly to large AI data centers using some of the world’s largest gas turbines.
- Quote (Mike Wirth, 07:24):
“We're working on...off the grid power because it's also becoming an issue with electricity prices...We've got a project in a couple of sites actually...delivering large gas turbines, the largest in the world.”
6. Succession Planning at Chevron
- Leadership Transition
- Wirth addresses ongoing succession planning, signposting major accomplishments during his tenure—like the Hess deal—and the roadmap for Chevron’s future leadership and strategy.
- Quote (Mike Wirth, 09:46):
“Succession discussions begin on day one...It’s part of the board's responsibility to be thinking about the next generation of leadership. I have a long list of things...I want to make progress on.”
7. The Future of Oil and Gas (Looking Ahead 10 Years)
- Both Commodities Essential and Growing
- Wirth reiterates the enduring value of oil and gas, arguing both will remain essential and more valuable in the near future.
- Quote (Mike Wirth, 10:32):
“I think both of those commodities are going to be essential to the global economy. I think demand for both...will be much higher than it is today...good companies in our industry [will] still [be] producing more...and doing it in a way that keeps costs very affordable for the economy.”
Notable Quotes & Memorable Moments
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On AI's Potential:
“One of the things that's undeniable about AI is it needs lots of data. A company like ours has as much data as just about any company in the world.”
— Mike Wirth, (06:27) -
On Oil’s Longevity:
“Even a broken clock is right twice a day. So [the IEA] have finally acknowledged what we've long known, which is that the world will continue using oil and gas for many decades into the future.”
— Mike Wirth, (02:59) -
On Operating in Challenging Environments:
“We've been there through ups and downs. And like many places in the world, we have to take a long view on our presence in countries like this.”
— Mike Wirth, (09:19)
Timestamps for Key Segments
- 01:13 — Discussion on low gas prices and Chevron’s long-term investment plans
- 01:50 — International exploration and the impact of current oil prices
- 02:39 — IEA demand outlook and capital efficiency
- 03:42 — Expansion, Iraq partnership, and global asset evaluation
- 04:56 — Efficiency gains in production and technology’s role
- 05:39 — Drilling productivity vs. traditional rig count
- 06:27 — AI’s emerging applications in the energy sector
- 07:15 — Chevron’s natural gas power projects for data centers
- 08:23 — Geopolitical context: Chevron in Venezuela
- 09:36 — Succession and Chevron’s future strategic goals
- 10:26 — Outlook for energy markets over the next decade
Conclusion
Mike Wirth positions Chevron as a forward-looking, disciplined, and technologically savvy energy leader that sees oil and gas as central to global prosperity for decades to come. The company’s approach to volatility, efficiency, and innovation—combined with its ability to navigate complex international terrains like Venezuela and Iraq—reflects Chevron’s commitment to long-term value, operational excellence, and energy security.