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Chevron announces $32.7 billion budget for 2012

Chevron Corp. announced a $32.7 billion capital and exploratory budget for 2012 compared with an estimated $28 billion capex investment for 2011.

The 2012 budget includes anticipated upstream spending of $28.5 billion. US investments are expected to total nearly $9 billion, with substantial outlays in the Gulf of Texas Coast region, California, US Midcontinent, and Pennsylvania.

John Watson, Chevron chairman and chief executive officer, said the 2012 spending program covers numerous multiyear projects currently in the construction phase, including Australian LNG projects and multiple deepwater developments.

“By 2017, we expect our net crude oil and natural gas production to grow about 20% to 3.3 million b/d,” Watson said.

The estimated 2011 capital and exploratory expenditure total excluded the $3.2 billion Chevron paid for Atlas Energy Inc., an acquisition announced in late 2010. Chevron also assumed $1.1 billion in debt in that transaction.

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