It sounds like a bad joke from late-night television: How bad is the credit crisis? It’s so bad that even billion-dollar oil companies can’t get credit.
But it’s no joke, and it’s affecting work in Colorado.
As reported Tuesday in The Daily Sentinel, Chevron Corp. has received additional time from Garfield County to rebuild a county road near De Beque so that it can produce a letter of credit for $25 million. Chevron had been planning to receive the letter from Wachovia bank, but that organization, which is facing its own economic problems, recently said it is no longer issuing letters of credit.
Chevron is now working to obtain the letter of credit from another institution, and the work is still expected to go forward.
But if the nation’s second largest oil company — with reported profits of $18.7 billion last year — is having credit difficulties, it’s little wonder that average families may have a tough time obtaining a loan.