Chevron is stepping up investment in U.S. shale production, even as the second-largest U.S. oil and gas group prepares to cut its total capital spending for a fifth year in succession.
The company on Wednesday afternoon announced a budget for capital and exploration spending for 2018 of $18.3 billion, about 4% lower than the expected out-turn for 2017.
Within that, however, there will be a sharp acceleration in its planned investment in shale. The company intends to invest $2.5 billion in shale this year, most of it in the Permian Basin of Texas and New Mexico. For next year, it plans to increase that by about 70% to $4.3 billion, with $3.3 billion going to the Permian alone.