NEW YORK (TheStreet) -- Shares of Chevron Corp. (CVX) are higher by 1.62% to $107.74 in pre-market trade after the company told Canadian regulators that it has "indefinitely" suspended plans to drill for oil in Arctic waters, due to uncertainty over the outlook for crude prices, the Wall Street Journal reports.
The move is the latest sign that a glut in crude oil is impacting major energy companies' exploration and production programs. The Arctic holds billions of barrels of untapped oil reserves, but offshore-drilling costs there are among the highest in the world due to its remote location and severe weather, the Journal said.
Chevron's Canadian unit has pursued a test well drilling program in the Beaufort Sea in recent years, but said in a letter to Canada's National Energy Board that it would put that project "on hold indefinitely" due to "the level of economic uncertainty in the industry."
Chevron confirmed the decision, according to the Journal, noting all of its projects "must be competitive in our global exploration portfolio."
Chevron holds an exploratory license to a Beaufort Seas lease 155 miles off the coast of Tuktoyaktuk, a town in the Northwest Territories. The company planned to start exploratory drilling by 2020, according to the NEB, Canada's chief energy regulator.
Separately, TheStreet Ratings team rates CHEVRON CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: