San Ramon-based oil and gas major Chevron said last week it will reduce spending for Permian Basin in 2025. The company’s announcement said, “The Permian Basin spend ($4.5 to $5 billion for 2025) is lower than the 2024 budget … as production growth is reduced in favor of free cash flow.” Mike Wirth, chairman and CEO, added Dec. 5, “The 2025 capital budget along with our announced structural cost reductions demonstrate our commitment to cost and capital discipline. We continue to invest in high-return, lower-carbon projects that position the company to deliver free cash flow growth.”
Chevron expects $13 billion in upstream spending for 2025, including two-thirds for its U.S. portfolio. Its other U.S. investment is split between the DJ Basin and Gulf of Mexico. And downstream spending is forecast at $1.2 billion, also with two-thirds allocated to U.S.
Chevron’s Permian Basin production guidance for 2025 has not been announced.