Investing.com -- Chevron Corp (NYSE:CVX) CEO Mike Wirth said Monday he sees no clear signs of a U.S. recession on the horizon, despite declining oil prices and broader economic uncertainty. In an interview with CNBC, Wirth emphasized that while growth may be slowing, leading indicators do not yet point to outright contraction.
Oil prices have fallen below $64 per barrel in recent weeks, raising questions about weakening demand. Wirth attributed the current market softness to a mix of modest demand expectations and faster-than-anticipated supply increases from OPEC+ and non-OPEC producers.
Wirth noted that the current pricing environment reflects sentiment more than data, suggesting market expectations may be outpacing actual evidence of economic weakness. Despite this, Chevron is maintaining capital discipline and expects $9–10 billion in incremental free cash flow over the next two years depending on oil prices.
Asked whether falling prices might affect Chevron’s capital spending, Wirth said the company’s plans are guided by long-term fundamentals, not short-term market movements. He added that Chevron’s balance sheet remains strong, and the firm reduced its capital expenditures ahead of 2025 as part of an efficiency drive.
Wirth said there are signs that growth is softening, but Chevron does not interpret recent market behavior as suggesting an imminent recession. He emphasized the company’s long-cycle investment model, noting that energy projects typically span decades and are not revised based on weekly price swings.
Chevron has also been navigating geopolitical challenges, including a recent U.S. order to halt crude sales from Venezuela by May. Wirth said the company is working closely with U.S. officials to understand policy objectives and is focused on maintaining a strategic presence in the country.
On U.S. energy policy, Wirth described recent government engagement as constructive and praised the administration’s support for domestic energy infrastructure. He indicated that U.S. natural gas will be critical in supporting sectors such as AI and data centers, and that energy policy currently supports growth, security, and emission reductions.
Asked whether global tariff tensions are directly affecting Chevron, Wirth said the energy sector has largely been exempt, though he acknowledged potential spillovers through slower global growth. He called the macroeconomic implications of trade policy more significant than any direct impact on Chevron’s operations or supply chains.
Wirth concluded that while political and economic cycles can introduce short-term volatility, Chevron’s strategy remains grounded in long-term investment and supply-demand fundamentals. The company, he noted, has weathered many such cycles in its history and remains positioned for resilience.
