Petrochemical Industry Chevron Invests 26 Billion Dollar –2.2 Billion Budget for Downstream
Oil and petrochemicals giant Chevron announces a US $ 26.6 billion budget for investments in 2016. This budget is nevertheless significantly (24 %) lower than the total expected investments for 2015.
San Ramon/ California – “Our capital budget will enable us to complete and ramp-up projects under construction, fund high return, short-cycle investments, preserve options for viable long-cycle projects, and ensure safe, reliable operations,” said Chairman and CEO John Watson.
“We gain significant flexibility in our capital program as we complete projects under construction,” Watson continued. “Given the near-term price outlook, we are exercising discretion in pacing projects that have not reached final investment decision.”
The majority of this budget shall be spend on domestic and international upstream operations. Yet a sum of US $ 2.2 billion is reserved for downstream projects worldwide.
In detail Chevron’s investment program and planned expenditures for 2016 look like this:
- US Upstream: US $ 5.4 billion
- International Upstream US $ 18.6 billion
- Total Upstream US $ 24.0 billion
- US Downstream US $ 1.6 billion
- International Downstream US $ 0.6 billion
- Total Downstream US $ 2.2 billion
- Other US $ 0.4 billion
- TOTAL (Including Chevron’s Share of Expenditures by Affiliated Companies) US $ 26.6 billion
- Expenditures by Affiliated Companies US $ 4.5 billion
- Cash Expenditures by Chevron Consolidated Companies US $ 22.1 billion
For Upstream, approximately US $ 29 billion of planned capital spending is for existing base producing assets, which includes shale and tight resource investments. Roughly US $ 211 billion is related to major capital projects currently underway, and approximately US $ 3 billion relates to projects yet to be sanctioned. Global exploration funding accounts for approximately US $ 21 billion.
Approximately 80 percent of affiliate expenditures are associated with investments by Tengizchevroil LLP in Kazakhstan and Chevron Phillips Chemical Company (CPChem) in the United States.