Chevron sets $15 billion capital, exploratory budget for 2022

Dec. 2, 2021
Chevron Corp. has set a 2022 organic capital and exploratory spending program of $15 billion, at the low end of its $15-17 billion guidance range and up more than 20% from 2021 expected levels.

Chevron Corp. has set a 2022 organic capital and exploratory spending program of $15 billion, at the low end of its $15-17 billion guidance range and up more than 20% from 2021 expected levels.

This program supports the operator’s objective of higher returns and lower carbon, including about $800 million in lower carbon spending, the company said in a release Dec. 1

The program excludes expected inorganic capital of $600 million in anticipation of the formation of a renewable fuel feedstocks joint venture with Bunge.

In the upstream business, about $8 billion is allocated to currently producing assets, including about $3 billion for Permian basin unconventional development and about $1.5 billion for other shale and tight assets worldwide.

Additionally, $3 billion of the program is planned for major capital projects under way, of which about $2 billion is associated with the growth and wellhead pressure management project at Tengiz field in Kazakhstan.

Some $1.5 billion is allocated to exploration, early-stage development projects, midstream activities and carbon reduction opportunities.

About $2.3 billion of planned organic capital spending is associated with the company’s downstream businesses.