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Chevron Says Energy Cost Inflation Isn’t a Concern Right Now -Breaking

by Mike Robinson

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© Bloomberg. Chevron Corp. Jack/St. The aerial photo of Malo, the deepwater oil platform located in the Gulf of Mexico is taken from the coast of Louisiana.

(Bloomberg). Chevron Corp. (NYSE:) doesn’t see cost inflation as a significant issue, at least not so far, despite widespread concerns about rising wages and raw materials costs.

“Our sector is operating below pre-Covid capacity,” Chief Financial Officer Pierre Breber said in an interview on Bloomberg TV. “There’s a lot of talk about costs going up but we’re not seeing it at this point in time.”

Breber acknowledged that the U.S. truck driver markets are tightening, but it is still affecting downstream operations. However, Chevron’s most valuable items such as drill rigs and other large-ticket products like oil rigs continue to experience excess capacity.

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Rival U.S. oil driller Hess Corp (NYSE: said this week it’s seen some cost inflation, but not enough to raise its $5.8 million per-well forecast for drilling and fracking costs this year.

Oilfield service companies, however, are experiencing the pain, due to global supply chain delays and greater wage inflation. “The industry will have to pay more to get back the expertise that it has lost,” Clay Williams, chief executive officer for NOV Inc., one of the world’s biggest suppliers of oil gear, said this week on a conference call.

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