The US oil and gas company Chevron has announced a 2018 capital and exploratory spending programme of US$18.3bn, of which US$15.8bn for its upstream subsidiaries (US$6.6bn in the United States and US$9.2bn overseas). This figure is 4% lower than in 2017 and lower for a fourth year in a row. The spendings have been shrinking after the 2015 oil price collapse and also coincide with long-term and costly projects in Australia.
In the upstream business, US$8.7bn will be allocated to sustain currently producing fields, of which US$3.3bn for Permian and US$1bn for shale and tight rock projects. US$5.5bn will be associated with major capital projects underway, of which US$3.7bn for the Tengiz Future Growth project in Kazakhstan. Global exploration funding is expected to amount US$1bn and the remainder will be spent for early stage projects.
The company will also dedicate US$2.2bn for its downstream business segment, which includes refining, marketing and fuel transportation activities, along with lubricants manufacturing and distribution. Most of this amount (US$1.4bn) will be invested in the United States.