USA: Big Business Plans Chevron Unveils 15 Billion Dollar Capital and Exploratory Budget for 2022

From Ahlam Rais

Chevron’s mammoth budget for next year includes spending 12.6 billion dollars in upstream operations including 6.4 billion dollars for its U.S. upstream operations and another 6.2 billion dollars for international operations. Another 2.3 billion dollars will be spent on its domestic and global downstream operations.

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The capital program supports Chevron’s objective of higher returns and lower carbon.
The capital program supports Chevron’s objective of higher returns and lower carbon.
(Source: Unsplash)

California/USA – Chevron Corporation has recently announced a 2022 organic capital and exploratory spending program of 15 billion dollars, at the low end of its 15-to-17-billion-dollar guidance range and up more than 20 % from 2021 expected levels. This capital program supports Chevron’s objective of higher returns and lower carbon, including approximately 800 million dollars in lower carbon spending. The program excludes expected inorganic capital of 600 million dollars in anticipation of the formation of a renewable fuel feedstocks joint venture with Bunge.

Details of the 2022 Organic Capital and Exploratory Investment Program include:

Chevron 2022 Organic Planned Capital & Exploratory Expenditures

Chevron 2022 Organic Planned Capital and Exploratory Expenditures
Chevron 2022 Organic Planned Capital and Exploratory Expenditures
(Source: Chevron)

Upstream

In the upstream business, approximately 8 billion dollars is allocated to currently producing assets, including about 3 billion dollars for Permian Basin unconventional development and approximately 1.5 billion dollars for other shale & tight assets worldwide. Additionally, 3 billion dollars of the upstream program is planned for major capital projects underway, of which about 2 billion dollars is associated with the Future Growth Project and Wellhead Pressure Management Project (FGP / WPMP) at the Tengiz field in Kazakhstan. Finally, approximately 1.5 billion dollars is allocated to exploration, early-stage development projects, midstream activities and carbon reduction opportunities.

Downstream

Approximately 2.3 billion dollars of planned organic capital spending is associated with the company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives, and petrochemicals. This also includes capital to grow renewable fuels and products businesses.

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