For years Big Oil producers chased U.S. shale profits with big spending hikes while seeking something even more elusive than the next big gusher: steady, sustained profitability. Now Chevron, long the industry’s No. 2 player, believes it hit upon a formula for just that.
Leaning on West Texas’ booming Permian Basin, Chevron says its combination of sheer scale and technology allows it to hop off the spending treadmill and finally pump the shale business for healthy profitability without the constant cry for “Drill, baby, drill.” While Exxon Mobil may remain larger, Chevron is aiming for No. 1 in the leery eyes of a Wall Street that previously soured on the oil sector.
