Chevron CEO: $100/barrel oil is the new $20 as labor costs rise

|About: Chevron Corporation (CVX)|By:, SA News Editor

Labor costs have more than doubled in the last 10 years, creating a “new reality” for energy producers and consumers who will pay more for fuel, Chevron (CVX +0.7%) CEO John Watson says at the CERAWeek conference.

Among the rising costs have been those for offshore development, which now reaches into waters that are deeper and more obscure than were possible a decade ago; costs for offshore rigs have climbed more than five-fold in the last 10 years, Watson says.

The CEO also praises today's court ruling that a $9.5B judgment against CVX made by courts in Ecuador was fraudulent, saying the judgment from a reputable court in the U.S. will help prevent enforcement actions elsewhere.