US oil major Chevron has cut its capital and exploration spending program for a fifth consecutive year, putting aside US$18.3 billion for 2018.
In 2017, the budget was set at $19.8 billion, down 42% from 2015, and expected to be 15% lower than 2016. Chevron chairman and CEO John Watson said the reduction reflected project completions as well as improved efficiency and "investment high-grading."
Some $15.8 billion of the total is set aide for upstream, with $9.2 billion of that in Chevron's international business. Global exploration spend is expected to be about $1.1 billion.
About $5.5 billion of the upstream program is planned for major capital projects underway, including $3.7 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan.
A large focus for Chevron in terms of its US upstream spending will be on the onshore Permian Basin.