American oil major Chevron has announced in a press release that it intends its capital expenditure to be between $18.5 billion and $19.5 billion, an 11% increase on this year’s figure, with $14 billion of this being spent on upstream projects.
Of the total value, around $3 billion will be spent on affiliate projects, such as $1.5 billion in Kazakhstan for offshore operations. Some $6.5 billion will be invested in developing US shale oil and gas prospects, mostly in the Permian Basin, while projects in the Gulf of Mexico will receive around a quarter of the total budget, such as the deep-water, high-pressure Anchor oil-development project that is forecast to start production next year.
Low-carbon opportunities will also be targeted according to the company:
“Included in the upstream and downstream budgets is approximately $2 billion in lower carbon capex to lower the carbon intensity of traditional operations and grow new energy business lines. Chevron’s Geismar renewable diesel expansion project is expected to start-up in 2024.”
Chevron is not just an upstream oil producer – it also produces petrochemicals, fuels, additives and lubricants like the Texaco Rando hydraulic oil. It’s capital expenditure in its downstream operations is expected to be $1.5 billion, with most of this being spent in the company’s home US market.
The company has also confirmed it will acquire Hess Corporation, with it expecting to close the deal next year subject to approval from regulators and shareholders. This will give it access to Guyana’s Stabroek Block, where ExxonMobil has discovered oil reserves totalling 11 billion barrels so far.