Chevron Touts Nimble Shale as Electric Cars Dim Big Oil's Future
- Oil major to spend half its budget on short-cycle projects
- Permian to make up one in every five barrels produced by 2022
Photographer: Callaghan O'Hare/Bloomberg
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Chevron Corp. will spend about half its capital budget on projects that yield quick returns over the next three years, underscoring the importance of shale as it prepares for growing uncertainty in how the world consumes energy.
The U.S. oil giant will spend about $9 billion to $10 billion a year on “short-cycle investments” through 2022, primarily focused on the Permian Basin, the world’s biggest shale oil region, the San Ramon-based company said in a presentation on its website Friday. The Permian is on course to make up about one in five barrels the super major pumps worldwide.