Chevron is set to spend $20 billion next year on oil and gas projects in its first increase in spending in four years, the second largest US producer has announced.
Earlier this year, Chevron executives set its high end 2019 capital budget at between $18 billion to $20 billion through to 2020. It is expected to spend $19.8 billion this year.
A number of energy companies pledged to restrain spending following the oil price collapse earlier this decade as they were forced to borrow to cover the cost of long term projects.
According to its spending projection, spending will increase across its shale production with greater investments in refining and chemicals.
In a statement, Michael Wirth said two-thirds of the budget would go towards project that “realise cashflows within two years”, which includes $5.2 billion for shale production and $4.3 billion in investments on the giant Tengiz field in Kazakhstan.