Chevron Cuts Its Long-Term Capital Spending Forecast by 25%
Chevron (NYSE: CVX) announced today that it has updated its long-term capital spending outlook. The oil giant expects to invest $14 billion into organic capital and exploratory projects in 2021. Meanwhile, it sees capital spending averaging between $14 billion to $16 billion per year through 2025. That's roughly 25% below its prior long-term guidance range of $19 billion to $22 billion, which excluded the recently acquired Noble Energy.
Chevron plans to prioritize investments that should grow its long-term value, deliver higher returns, and lower its carbon intensity. The oil company expects to invest more than $300 million in 2021 on investments that advance the global economy's transition to cleaner energy sources. Meanwhile, the bulk of its capital spending will be on its world-class position in the Permian Basin, other unconventional oil and gas basins, and the Gulf of Mexico.
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