Chevron says energy cost inflation is not a concern right now
(Bloomberg) – Chevron Corp. (NYSE 🙂 doesn’t view cost inflation as a big issue, at least not so far, despite widespread concerns about rising wages and raw material costs.
âOur industry is operating below its pre-Covid capabilities,â CFO Pierre Breber said in an interview with Bloomberg TV. âThere’s a lot of talk about rising costs, but we’re not seeing it at the moment. “
While Breber said the oil company sees some strain in the U.S. truck driver market affecting its downstream operations, items very expensive for Chevron, like oil rigs, are still experiencing excess capacity.
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Rival American oil driller Hess Corp (NYSE :). said this week it saw some cost inflation, but not enough to increase its forecast of $ 5.8 million per well for drilling and fracking costs this year.
In contrast, oil service companies are suffering the backlash, amid an acceleration in the global supply chain and greater exposure to wage inflation. “The industry will have to pay more to reclaim the expertise it has lost,” Clay Williams, CEO of NOV Inc., one of the world’s largest suppliers of petroleum gears, said at a conference this week. telephone.
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