Chevron Targets Ongoing Cost Reduction

 Chevron released comments by executives ahead of its annual security analyst meeting in New York 8am local time (1pm GMT) March 6.

“We intend to grow free cash flow in 2018 and thereafter,” said CEO Michael Wirth: “And we intend to maintain capital discipline, as evidenced by an $18bn investment programme this year and an $18bn-$20bn annual investment range projected through 2020."

Wirth also said Chevron plans to further lower its cost structure, get more value from existing assets and continue to high-grade its portfolio. 

Jay Johnson, upstream executive vice president, upstream, added: “Our objective is to ensure our upstream business provides competitive returns throughout the price cycle. We’re focused on operating safely and reliably, continuing to lower our costs, and delivering production growth from the Gorgon and Wheatstone LNG projects in Australia. In addition, we’re advancing development of our unconventional resources, particularly in the US Permian Basin, where we have a leading position. We’re seeing reserves grow, costs shrink, efficiencies expand and production rise.” He also said the company’s Tengiz growth oil project in Kazakhstan is on track to deliver first production in 2022 and discussed multiple deepwater assets and emphasized near-term opportunities.

The banner photo above shows the Gorgon venture (left) and Wheatstone (right) and is courtesy of Chevron