Chevron will write down assets by at least $10 billion

(Cropped Photo: halfuur / Wikipedia / CC BY 3.0)

(AP) -- Chevron says it will book a charge of at least $10 billion because lower long-term prices for oil and natural gas are making some projects less valuable.

The company said Tuesday it will take the after-tax write-down in the fourth quarter. More than half of it is related to gas drilling in Appalachia.

The huge write-down shows how higher production is keeping prices from rising sharply when global energy demand is growing.

Chevron says it will reduce spending on some investments including Appalachian shale and a liquefied gas terminal in British Columbia. The company says it might sell assets.