Uncertain oil market prompts cost cuts

Article Excerpt

New technology has increased oil production from North American shale rock formations. Even so, oil prices have held up due to the improving global economy and lower output from conventional wells. However, the outlook for oil remains uncertain. The lifting of economic sanctions against Iran would increase world oil supplies and hurt prices. As well, the shale boom continues to depress natural gas prices. In response to this uncertainty, these four oil and gas producers are selling assets and spending less on new projects. That lowers their risk and frees up cash for dividends and share buybacks. CHEVRON CORP. $122 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $231.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www. chevron.com) is the second-largest integrated oil company in the U.S., after ExxonMobil. The company plans to spend $39.8 billion on exploration and upgrading its operations in 2014. That’s down 5.2% from the…