Chevron Corporation announced a $26bn capital and exploratory spending program for 2011. Approximately 85% of the 2011 spending program is for upstream oil and gas exploration and production projects worldwide. Another 10% is associated with the company's downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals. Included in the 2011 program are $2.0bn of expenditures by affiliates, which do not require cash outlays by Chevron.
Spending of $22.6bn is planned for exploration and production activities, including major natural gas-related projects. Major capital investments include development of the vast natural gas resources in Western Australia and development opportunities in the deepwater U.S. Gulf of Mexico, Western Africa and the Gulf of Thailand.
Capital spending of $2.9bn in 2011 is budgeted for downstream operations. Outlays in 2011 include projects at the company's refineries in Mississippi and California which are geared towards improving returns. The company's 50%-owned GS Caltex affiliate is also expected to continue to upgrade the Yeosu refining complex in South Korea. Additional projects associated with the company's chemicals operations in Saudi Arabia and Qatar are managed through the 50%-owned Chevron Phillips Chemical Company LLC.
Expenditures of approximately $0.5bn in 2011 are budgeted for technology, power generation and other corporate activities.