Chevron has outlined its 2026 capital‑expenditure program, capping organic spending at $18 billion to $19 billion— the lower end of its long‑term guidance of $18 billion to $21 billion through 2030. The plan allocates roughly $10.5 billion to U.S. upstream projects, $7 billion to offshore development—primarily Guyana, the Eastern Mediterranean and the Gulf of America—and about $1 billion to downstream activities. An additional $1 billion is earmarked for reducing carbon intensity and expanding new‑energy initiatives.
The allocation reflects a deliberate shift toward assets that deliver higher returns. U.S. shale and tight‑play projects are expected to produce more than two million barrels of oil equivalent per day, while Guyana’s low‑cost production is expected to add significant value as the company integrates the assets acquired in its $55 billion Hess acquisition. Offshore spending also supports emerging opportunities in the Eastern Mediterranean, where rising demand for natural gas is creating new revenue streams.
Beyond production, the plan signals a continued focus on cost discipline and margin improvement. Chevron’s 2024 capex totaled $16.4 billion, so the 2026 plan represents a modest increase that remains within the company’s long‑term guidance. The company also plans to achieve $3‑$4 billion in structural cost reductions by 2026, a target that dovetails with the disciplined spending approach outlined in the capex program.
Affiliate capital expenditure is expected to range from $1.3 billion to $1.7 billion, with Chevron Phillips Chemical Company LLC accounting for nearly half of that spend to support two new world‑scale facilities slated to start up in 2027. Tengizchevroil LLP will account for roughly one‑quarter of affiliate capex. Corporate and other capex is projected at about $0.6 billion, while capitalized interest on Guyana assets is estimated at $0.4 billion.
CEO Mike Wirth emphasized that the 2026 program focuses on the “highest‑return opportunities while maintaining discipline and improving efficiency.” He added that the company is positioned to grow cash flow and earnings while advancing investments that strengthen long‑term value. The plan’s emphasis on high‑return upstream projects, low‑cost offshore development, and new‑energy initiatives aligns with industry trends toward balancing traditional oil and gas production with lower‑carbon alternatives.
Overall, the capex plan underscores Chevron’s strategy to generate free cash flow, sustain shareholder returns, and capitalize on favorable commodity prices and low‑cost production assets. By concentrating on high‑margin upstream projects and disciplined downstream spending, the company aims to maintain profitability while investing in the future energy mix.
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