"Chevron Projects Up to $4 Billion Impact from California Regulations and Gulf Asset Shift"

Chevron Corp. is set to take a $3.5 to $4 billion writedown on assets, largely due to California's restrictive policies on fossil fuels and environmental liabilities in the Gulf of Mexico. The company's production in California has decreased and now represents a minor portion of its global output. Despite the writedowns, Chevron plans to continue operating in California, although it faces adversarial conditions and has reduced refinery investments. Additionally, Chevron anticipates charges for decommissioning costs in the Gulf of Mexico for old installations, some of which were sold but may still incur cleanup costs due to U.S. laws.