• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 7 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 3 hours Let’s Try This....
  • 3 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 13 mins New Aussie "big batteries"
  • 13 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 1 hour China to Impose Dictatorship on Hong Kong
  • 35 mins Would bashing China solve all the problems of the United States
  • 1 hour Monetary and Fiscal Policies in Times of Large Debt:
  • 15 mins 60 mph electric mopeds
  • 23 hours Iran's first oil tanker has arrived near Venezuela
  • 1 day Nothing can shake AMLO’s fossil-fuel fixation
  • 1 day US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
Why The Covid Crisis Is A Pivotal Moment For Renewables

Why The Covid Crisis Is A Pivotal Moment For Renewables

Widespread lockdowns have resulted in…

$30 Oil Isn’t Good Enough For U.S. Shale

$30 Oil Isn’t Good Enough For U.S. Shale

Oil prices and energy stocks…

Chevron To Invest $4B In Permian Production

Chevron will invest some US$4 billion in 2018 to increase its crude oil output in the Permian, a senior Chevron manager said at a conference on Monday, in a sign that the U.S. supermajor will continue to bet big on the most prolific U.S. shale play.

“We will be investing roughly $4 billion, next year, of capital in the Permian Basin, and we plan to grow production over the next several years to well in excess of 400,000 bpd,” Ryan Krogmeier, Chevron’s vice president of crude supply and trading, said at the S&P Global Platts APPEC conference in Singapore, as quoted by Reuters.

“The Permian is the powerhouse [of U.S. oil production growth]”, Krogmeier noted.

According to Reuters, Chevron expects total Permian output from all producers operating in the shale play to increase by 1.4 million bpd by 2020, from 2.4 million bpd now.

The Permian oil production will average 2.580 million bpd in September 2017, and will rise by another 55,000 bpd to 2.635 million bpd in October, the EIA said in its latest drilling productivity report.   

As early as in April this year, Chevron’s chief executive John Watson said that the U.S. supermajor would be betting big on the Permian. Chevron’s production in the Permian was 90,000 net barrels of crude oil per day in 2016. Watson expects the company’s output in the shale play to increase eight times over the next decade and reach 700,000 bpd.

Related: OPEC’s Premature Victory Lap

Unlike some other producers who have just recently rushed to secure holdings in the shale play, Chevron is not a newcomer to the Permian – the group and its legacy companies have held acreage in the area since the early 1920s. Chevron’s acreage in the shale play amounts to 2 million net acres, of which 85 percent is free of royalties to landowners or have low royalties.

Chevron planned to spend around US$2.5 billion on shale and tight investments in 2017, the majority of which was slated for the Permian Basin, a 67-percent increase over last year. In the upstream investments for 2017, the funds for the Permian were second only to the US$3-billion investment in the expansion of the Tengiz field in Kazakhstan.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Brandon on September 25 2017 said:
    What a huge mistake to invest in shale now, possibly the first sign of the post-John Watson era for Chevron. They should have invested longer on deepwater drilling instead! Sorry to hear that, good news for their competitors.
  • Kr55 on September 25 2017 said:
    Guess they have a responsibility to stick to their plan and try to hype it up as much as they can. Just wouldn't want to risk my investments on when they have to sheepishly reveal decline rates are much higher than they expected and the growth is coming way below their targets next year.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News