Chevron urges ‘stable policies’ as US debt crisis drags on

29 July 2011 18:55  [Source: ICIS news]

HOUSTON (ICIS)--Chevron needs stable and predictable fiscal and regulatory policies for its investments in the US, chief financial officer Pat Yarrington said on Friday with reference to the unresolved debate to raise the US government debt ceiling.

“We want the opportunity to compete on a level playing field, both at home and around the globe,” Yarrington told analysts during Chevron’s second-quarter results conference call.

Chevron plans to invest more than $7.0bn (€4.9bn) in the US this year alone to expand energy supplies, which in turn are the basis to create jobs and generate federal, state and local revenues, she said.

In the US, the energy major directly employs nearly 25,000 people and indirectly supports another 150,000 jobs, she added.

In related news, Wolfgang Schaefer, chief financial officer of Germany-based international tyre producer Continental, told analysts his company has no specific crisis plan should the US default and markets collapse.

However, Continental, like other major industrial firms, would be able to react fast in case markets turn down, Schaefer said.

He also said the ongoing government debt crisis in southern Europe could eventually spill over to consumer confidence, thus hitting Continental’s markets, if no sustainable solution is found.

However, despite the uncertainties, Continental sees no reason why its business should slow down in the second half of the year, Schaefer said.

He went on to note that the company raised its full-year 2011 sales target by €1bn to €29.5bn.

Earlier this week, Kurt Bock, CEO of Germany-based chemicals major BASF, said his firm remains concerned about the debt situation in some European countries and the US.

($1 = €0.70)

By: Stefan Baumgarten
+1 713 525 2653

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