Chevron Chairman & CEO Mike Wirth Talks Lower Oil Prices, Venezuela

Summary

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

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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.

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Key Discussion Points & Insights

1. Impact of Lower Oil Prices on Chevron’s Strategy

• 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.”

• 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.”

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2. Global Oil Demand Outlook & Investment Decisions

• 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.”

• 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.”

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3. International Developments: Iraq & Venezuela

• 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.”

• 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.”

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4. Technological Innovation & Efficiency

• 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.”

• 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.”

• 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.”

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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.”

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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.”

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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.”

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Notable Quotes & Memorable Moments

• 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)

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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

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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.

Transcript

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[Host Lisa]

Bloomberg Audio Studios Podcasts, Radio news President Donald Trump touting lower prices.

[Donald Trump]

We're down lower than we've been in seven years in gasoline prices and oil prices, not just the three states that I talk about. With 199 a gallon, how would you like to have 199? Do you know that's.

That'S the equivalent of a very major tax cut? You know, when you get the energy prices is down.

[Host Lisa]

The national average for gas falling below $3 a gallon for the first time since 2021. Mike Wirth, the CEO of Chevron, joins us now for an exclusive interview. I am so glad that we're getting to speak with you, Mike. Thank you so much for being here with us.

[Mike Wirth]

You're welcome, Lisa.

[Host Lisa]

So let's start about that 199A gallon. It might be great for a lot of people in terms of filling up their gas tanks. A real question around drill baby, drill and how much you're incentivized to increase production given the lower cost of oil.

[Mike Wirth]

Well, you know, we make our investment plans on a long term basis. We look at supply and demand well out into the future. And so the price of oil today can affect short term financial performance of the company. But it really doesn't play as much into some of the longer term investment plans as we look down the road, not really out the window as we decide what the capital program looks like.

[Interviewer Anne Marie]

But how do you reconcile the two? You're doing a lot of exploration internationally and to Lisa's point, prices are low and potentially are going to even go lower.

[Mike Wirth]

Well, exploration is a long cycle business. We just brought a project online in the Gulf of America last year where the discovery was made 20 years prior. And so the timeline between when you actually make a discovery, when you appraise that and you ultimately develop and bring it to market can be years or even decades. And so we really have to take that long view on, on the business and you know, in the short term we'll keep costs tight. We've guided to know industry leading free cash flow over the next few years is bring costs down, capital spending down, increase the synergies on the Hess transaction. So we're going to deliver Strong financial performance through the cycle based on what.

[Interviewer Anne Marie]

The IEA has said recalibrated. Where they see oil demand growing, it was 2030, now it's 2050. OPEC says they had a rendezvous with reality seeing that the world needs a lot more of this, a lot more fossil fuels. If outlook is so strong, should Chevron, should all of these big oil companies, should they increasing more of that investment?

[Mike Wirth]

Well, on the iea, even a bloke 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. We are in that long cycle business. And you know, the capital spending, Anne Marie has become more efficient in our industry. A decade ago we were spending money on big projects. There was a lot of growth going on and shale at a relatively high cost structure. And the entire industry has found ways to standardize designs, simplify projects and actually get more for every capital dollar that we spend. So. So the size of our capital spending doesn't necessarily correlate to the growth the way that it would have in years.

[Interviewer Anne Marie]

Gone by when it comes to expansion. The US government is backing this plan. Iraq has to transfer Luke oil stakes to an American company. So it's really only your Exxon. How are those negotiations going?

[Mike Wirth]

Well, I can't comment on comm negotiations. What I will say is we've got a well established reputation as a good partner as a world class operator in international locations. We're sought out as a partner in countries around the world. We've got a long history working in the Middle east and we put a real premium on partnership and that goes to every country we work with and every company we work with.

[Interviewer Anne Marie]

Can you talk about those assets though? Do you think those would be good assets, the Chevron portfolio?

[Mike Wirth]

Well, we always look to strengthen our portfolio. Iraq is a country that is blessed with very substantial petroleum resources and some of the largest fields in the world. And so those are the kinds of things that we always look at.

[Host Lisa]

You've been talking about the capital profile and investments and how it's become a lot more efficient to make the same kinds of sort of investments and frankly the same kind of output. Where is this efficiency coming from? Is it coming from artificial intelligence? Is it becoming, is it coming from just better technology and getting oil and gas out of the ground?

[Mike Wirth]

Yeah. So in shale for instance, which is something the US has been a world leader in. A decade ago break evens were $70 or $80 a barrel. Today they're they're not even half of that. As we found ways to drill longer laterals, to optimize the spacing of wells, to complete wells at lower cost, with, with greater production coming out of them. So it's a series of things in the deep water. We've simplified and standardized designs and what used to take, you know, $30 a barrel or more in.

Capital to go into a project now has been been cut in half. And so it's not driven by AI yet. I do think over time we're going to see technologies like that continue this path that we're on.

[Host Lisa]

We're going to get to that in just a second. If that's the case. If you can get more, even at a break even cost, it's a lot lower. Why has the rig count gone down so much? Why aren't there more rigs coming online given the capacity here in the United States?

[Mike Wirth]

Because we can, we can drill more feet per day with a rig to today than we could in the past. And so we. Rig count is not nearly as interesting a metric as how many feet a day you can drill, how many wells you can complete in a period of time. And so we're getting more work done out of fewer pieces of equipment today.

[Host Lisa]

You talk about how AI isn't delivering those efficiencies yet, the indication being that maybe down the road it might be the case. Where specifically are you thinking, and I'm saying at a time when Chevron's cutting staff, so are other people. Is this a headcount issue? Is this something else? How are you seeing it being deployed?

[Mike Wirth]

Well, we're in, I think we're still in the very early days of applying AI at scale in our industry. 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. And so we've got decades and decades of geologic data, seismic data, operating data, all of which can be be used to feed these models, to optimize operations, to improve our exploration success, to squeeze more production out of existing assets. And so we see huge opportunities to run our business with smarter technology, get better decisions made faster. And so there's a, there's certainly a cost dimension to this, but I think the real opportunity is going to be about the productivity of our assets and our business.

[Interviewer Anne Marie]

You announced this project, the first of its kind, to provide natural gas fired power for data centers. Do you expect to do more of these projects? And what's the update on this one? In West Texas.

[Mike Wirth]

Well, certainly the demand for power has been talked about now for the last year or so as the constraint in the growth of AI data centers and the ambition for data centers at a scale we've never seen before has become a commonplace. The reality is we need large scale power. What we're working on is off the grid power because it's also becoming an issue with electricity prices. And we're seeing this show up in consumer sentiment, in elections. Our, our approach is to develop gigawatt scale power generation not through the grid, but dedicated to data centers. We've got a project in a couple of sites actually we're working on in West Texas where we've got a lot of natural gas, we've got large gas turbines, the largest in the world, being delivered starting next year. And we're deep into discussions with multiple customers that would like to cite data centers to use this power.

[Interviewer Anne Marie]

You're at the center of a lot of politically very important conversations. Not just when it comes to AI, not just when it comes to Luke oil assets. Also Venezuela, the only American company left. Can you give us an update on either Conversations with the administration, your team on the ground. What is the future of Chevron in this country? As the President sends. Maybe he's going to send troops there.

[Mike Wirth]

Yeah, I don't know what the President's intentions are. We've been in Venezuela for, for the last hundred years. Our presence there we believe is important for the local economy, the regional economy, the people of Venezuela. The Venezuelan oil is sought after by US refinery and we operate there in full compliance with all US law and sanctions. We're in discussions with the administration to ensure that we stay in compliance, that they understand the value that our presence brings to America. And so you know, that's.

[Interviewer Anne Marie]

And you plan on being there for the long term.

[Mike Wirth]

Venezuela actually has more oil and gas resource than Saudi Arabia. It's right here in our hemisphere, very close to the Gulf coast refining complex. And 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.

[Interviewer Anne Marie]

You talked about succession yesterday at this conference. How are you thinking about that as you talk to the board? Is there something you want to get done before you hand over the reins?

[Mike Wirth]

Well, succession discussions begin on day one. I think for most CEOs, it's, it's part of the board's responsibility to be thinking about the next generation of leadership. I have a long list of things, some of which have been accomplished. I mentioned the Hess transaction, which was a big one for us earlier this year. We have laid out a plan for the next several years to investors last month that grows free cash flow, that drives significant return of cash to shareholders. All of those are things that I want to make progress on. But when the time is right for someone to follow me in this job, the board will make that determination and I will happily hand over.

[Interviewer Anne Marie]

Will you go right for Landman?

[Host Lisa]

Just 30 seconds left. Do you think that in 10 years gas or oil is going to be more valuable?

[Mike Wirth]

Well, on an energy content basis, you know, oil's got about six times more energy content per unit of volume than gas does. And so, you know, they trade in sympathy with one another because energy is somewhat fungible. I think both of those commodities are going to be essential to the global economy. I think demand for both of those will be much higher than it is today. And I think you're going to see good companies in our industry still producing more of that and doing it in a way that keeps costs very affordable for the economy.

[Host Lisa]

Mike Worth, wonderful to see you. Thank you so much for being with us here this morning. Mike Worth, the CEO of Chevron.

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