San Ramon, Calif.-based Chevron said last week it plans to spend about $5 billion in Permian Basin this year with production growth of nearly 4 percent. Production in second half of 2024 is expected to compensate for small declines in 1Q and 2Q. Mike Wirth, chairman and CEO, said Chevron expects to exit 2024 with production in Permian of about 900,000 boed and grow to about 1 million in 2025. Chevron plans to build its inventory of DUC wells and add a fourth fracturing crew for its 12 rigs in the basin.
Wirth said Feb. 2, “In 2023 we returned more cash to shareholders and produced more oil and natural gas than any year in the company’s history.” Annual worldwide net oil-equivalent production increased to more than 3.1 million boed – led by 14 percent growth in the U.S. Production in 4Q was nearly 3.4 million boed. Production for fullyear 2024 is expected to grow by 4-to-7 percent. Total 2024 capital spending will be $15.5 billion to $16.5 billion compared to $15.8 billion in 2023.
Wirth said wells drilled recently by Chevron in New Mexico have been more productive than elsewhere in the basin.