Oil companies are already beginning to pare back their activity in the Permian, with cutbacks coming not just from smaller drillers, but also the oil majors . Chevron said on Tuesday that it would cut capex this year by 20 percent, or $4 billion, with half of that cut concentrated on its Permian operations. “Given the decline in commodity prices, we are taking actions expected to preserve cash, support our balance sheet strength, lower short-term production, and preserve long-term value,” Chevron CEO Michael Wirth said in a statement . Lower spending will translate into the major’s Permian output ending the year 120,000 barrels per day lower than previously expected. “The flexibility of our capital program allows us to respond to these unexpected market conditions by deferring short-cycle investments and pacing projects not yet under construction,” Jay Johnson, Executive Vice President of Upstream, said. Chevron also said that it would […]