Chevron CEO Mike Wirth rejected fears of an imminent U.S. recession during a Tuesday appearance on CNBC’s “Squawk Box,” emphasizing long-term investment strategy over short-term economic jitters. While acknowledging a slowdown in economic growth, Wirth maintained there were no current indicators pointing to a recession.
“There’s no signs that we see at this point that we’re in or close to a recession,” Wirth said. “There are signs that growth may be slowing…but ours is a long-cycle business.” He emphasized that Chevron’s capital investments, often spanning decades, require a broader outlook beyond immediate market fluctuations.
Wirth also credited President Donald Trump’s energy policy decisions, particularly a recent move to impose secondary tariffs on Venezuelan oil. The strategy, designed to counter Chinese and Russian influence in the Western Hemisphere, has helped stabilize domestic energy prices and support American energy firms like Chevron.
The Chevron executive said the Trump-backed policy not only supports U.S. geopolitical interests but also ensures energy security at home by encouraging domestic energy production through major firms.
In the same interview, Wirth discussed Chevron’s recent production developments, including the launch of its Ballymore project in the Gulf of America. The offshore deepwater oil and gas initiative represents Chevron’s third major startup in eight months. Production in the region is expected to increase 50% between 2025 and 2026, reaching 200,000 to 300,000 barrels per day.
Wirth explained the distinction between long-term offshore investments and shorter-cycle onshore production like that in the Permian Basin. He noted that offshore projects, years in development, are less sensitive to short-term oil price fluctuations. However, onshore operations, which respond more quickly to market changes, could see reduced activity if prices fall to $60 per barrel or below.
He concluded by stating that while Chevron remains vigilant, its strategic planning and investment approach are structured to weather temporary downturns without major operational changes.
