Chevron Capex Down for Fourth Year

Chevron has announced a 2018 capital and exploratory spending program of $18.3bn, mostly upstream. Its total includes $5.5bn by affiliates.

“Our 2018 budget is down for the fourth consecutive year, reflecting project completions, improved efficiencies, and investment high-grading,” said CEO John Watson who steps down February 1 2018: “We’re fully funding our advantaged Permian Basin position and dedicating approximately three-quarters of our spend to projects that are expected to realize cash flow within two years.”

The US major said it would invest $15.8bn upstream, of which $9.2bn or about 60% internationally and $6.6bn in the US upstream.

In the upstream business, some $8.7bn is forecast to sustain producing assets, including $3.3bn for the US Permian shale and $1bn for other shale and tight rock investments. Some $5.5bn of the upstream program is planned for major capital projects underway, including $3.7bn associated with the Future Growth Project at the Tengiz field in Kazakhstan.

Global exploration funding is expected to be about $1.1bn. Remaining upstream spend will be for early stage projects supporting potential future developments.