Chevron cuts annual E&P spend by 15%

Offshore staff

SAN RAMON, California -- Chevron has unveiled a $19.8-billion capital and exploratory investment program for 2017, around 15% down on its projected investments during 2016.

Chariman and CEO John Watson said: “Our spending for 2017 targets shorter-cycle time, high-return investments and completing major projects under construction. In fact, over 70% of our planned upstream investment program is expected to generate production within two years.

"This is the fourth consecutive year of spending reductions. Construction is nearing completion on several major capital projects, which are now online or expected to come online in the next few quarters. This combination of lower spending and growth in production revenues supports our overall objective of becoming cash balanced in 2017." 

Of next year’s planned upstream program, $7 billion is related to major projects under way, including around $2 billion toward completion of the Gorgon and Wheatstone LNG projects offshore Western Australia.

Global exploration accounts for roughly $1 billion of the total upstream budget.

12/9/2016

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