Chevron to lay out $14.8B in 2006
Global oil major Chevron Corp. said Thursday that it set a $14.8 billion capital spending and exploration budget for 2006, a 35 percent increase over its planned spending for 2005.
Chevron (up $0.38 to $59.68) shares rose following the announcement.
The sharp boost in capital spending comes as oil companies face criticism over their record profits and calls from members of the U.S. Congress for those profits to be taxed. One proposal in the U.S. Senate would tax oil profits above a certain level unless those profits were reinvested in exploration and production.
“There is no question that the oil companies are being pushed by Washington to spend more money,” said Oppenheimer & Co. analyst Fadel Gheit. “What they should not do is listen to politicians.”
Source: CNN Money.
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