Oil and gas company Chevron responds to falling oil prices by cutting spending and costs

Energy Associated Press

Chevron plans to cut spending and lower costs as it deals with falling oil prices, the company said Tuesday.

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"We are well-positioned to manage through the recent drop in commodity prices," John Watson, Chevron's CEO and chairman, said in a statement.

Several energy companies, including Exxon Mobil, have announced plans to trim their spending and cut back on drilling. The oil prices have plunged as production continues to increase in the U.S., outweighing demand. On Monday, Houston-based oil and natural gas exploration company BPZ Resources filed for Chapter 11 bankruptcy protection, citing the oil price drop and difficulties securing financing.

Chevron, based in San Ramon, California, said it still expects production to grow 20 percent by 2017.

Shares of Chevron Corp. slipped 99 cents to $102.96 in morning trading Tuesday.