Chevron plans $15 billion spending budget for 2022
U.S. oil major Chevron Corporation has revealed its 2022 organic capital and exploratory spending programme of $15 billion, at the low end of its $15 to $17 billion guidance range and up more than 20 per cent from 2021 expected levels. The company also expects to increase its share buyback programme.
As explained by Chevron on Monday, this capital programme supports its objective of higher returns and lower carbon, including approximately $800 million in lower carbon spending. The programme excludes expected inorganic capital of $600 million in anticipation of the formation of a renewable fuel feedstocks joint venture with Bunge.
It is worth reminding that, back in March 2021, Chevron reaffirmed its 2021-2025 guidance for organic capital and exploratory expenditures of $14 billion to $16 billion.
Commenting on the company’s plans, Chevron Chairman and CEO, Mike Wirth, said: “We’re sizing our capital programme at a level consistent with plans to sustain and grow the company as the global economy continues to recover.”
The company is raising its share buyback guidance range to $3 to $5 billion per year, versus prior guidance of $2 to $3 billion per year.
Meanwhile, Chevron’s rival ExxonMobil this week committed $15 billion on greenhouse gas emission-reduction projects over the next six years with plans to maintain capital investments in the range of $20-$25 billion per year through 2027.
Chevron’s total Upstream planned capital & exploratory expenditures will be about $12.6 billion with about $8 billion 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 programme 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.
Finally, 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.