The U.S. Energy Information Administration projects the spot average West Texas Intermediate price at $53.42 per barrel for 2026, a decline from $65.40 per barrel in 2025 driven by rising inventories and weakening demand forecasts. This represents an approximate 18% year-over-year drop that could compress revenue for exploration and production segments.

Chevron’s upstream operations, including its major positions in the Permian basin and offshore Guyana, will see margins contract as breakeven costs in some fields approach the projected WTI price. Reduced cash flows from lower realized prices may pressure investment in new developments unless cost efficiencies offset the decline.

Chevron maintains a debt-to-capitalization ratio well below the industry average, providing access to favorable financing even if oil prices remain subdued. This strong financial position allows the company to sustain dividend payments and operational liquidity through price cycles.