“Our current estimate is we may see a 1% impact on the cost of shale well.”

In context

“pact either CapEx or projects. What are some of the things you can do to adjust to tariffs in terms of controlling costs? Mike Wirth: Yes, Bob, we're watching this very closely and preparing and actually in the process of taking some actions to mitigate the impacts. Our direct exposure is relatively limited. Energy has been largely exempted from tariffs. And if you're looking at our cost structure of goods that we buy of our third party spend, roughly 80% of it is on services, not on goods. Of the 20% that is spent on goods, a lot of that tends to be sourced locally or regionally. And our U.S., for example, where our largest portion of our capital spend is we've got strong domestic sourcing on most of the goods that we use in our unconventional programs in DJ and the Permian for instance. Our current estimate is we may see a 1% impact on the cost of shale well. So it's a dynamic environment, and we'll watch how these things evolve. But we've got strong engagement with our suppliers. We've got sourcing from multiple locations. And we've been anticipating this and preparing for it. So the impact is not zero, but I think the impact is manageable and it's -- you've seen announcements in other industries where they're more directly exposed than we are. Jake Spiering: Thank you, Bob. I would like to thank everyone for your time today. We appreciate your interest in Chevron and your participation on today's call. Please stay safe and healthy. Katie, back to you. Operator: Thank you. This concludes Chevron's first quarter 2025 earnings conference call. You may now disconnect.”