Chevron projects $18.3 billion spending
HOUSTON: Chevron Corp, the second largest United States-based oil producer, is budgeting US$18.3 billion for capital projects next year, the company said on Wednesday, about 4 percent less than this year and lower for a fourth year in a row.
International energy company capital budgets, closely watched for indications of future oil and gas production, broadly have been shrinking after 2014’s oil-price collapse slashed earnings and left many with high debt loads.
In Chevron’s case, the sharp declines coincide with its spending winding down on several long-term and costly projects in Australia and elsewhere. Capital and exploratory spending in the first nine months of this year was about half that of three years ago, a company spokeswoman said.
The 2018 budget reflects “project completions, improved efficiencies and investment high-grading,” said chief executive John Watson in a statement. Spending on shale will rise to $4.3 billion overall this year, said Watson, who will retire early next year.
The San Ramon, California-based company expects expenditures this year to be less than $19 billion, down from the $19.8 billion it estimated a year ago. It has told investors that capital spending between 2018 and 2020 would range from $17 billion to $22 billion a year.
Next year, Chevron expects to spend $15.8 billion on oil and gas exploration, $2.2 billion on refining, marketing and petrochemicals, and about $300 million for its share of affiliated company spending. — Reuters