Chevron plans capital spending of $15 bn for 2022

Chevron oil business

Chevron Corporation announced capital spending program of $15 billion for 2022.

The Capex of Chevron Corporation is at the low end of its $15 to $17 billion guidance range and up more than 20 percent from 2021 expected levels.

This capital program supports Chevron’s objective of higher returns and lower carbon, including $800 million in lower carbon spending. The program excludes inorganic capital of $600 million in anticipation of the formation of a renewable fuel feedstocks joint venture with Bunge.

“We’re sizing our capital program at a level consistent with plans to sustain and grow the company as the global economy continues to recover,” said Chevron Chairman and CEO Mike Wirth.

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

Additionally, $3 billion of the upstream program is planned for major capital projects underway, of which about $2 billion is associated with the Future Growth Project and Wellhead Pressure Management Project (FGP / WPMP) at the Tengiz field in Kazakhstan.

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

Approximately $2.3 billion of planned organic capital spending is associated with the company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives, and petrochemicals. This also includes capital to grow renewable fuels and products businesses.