Chevron Corporation (NYSE:CVX) is stepping up its investment in its oil and gas businesses, upgrading its capital budget for 2024 by 11% compared to this year.
The ‘Big Oil’ major now expecting to spend $18.5 billion to $19.5 billion in 2024.
This is in line with Exxon which sees annual spending between $22 billion to $27 billion per year, through 2027. A Reuters report, meanwhile, noted that over a decade-long comparison spending by the big-two US oilers will be down substantially, as together they spent some $84 billion back in 2013.
Nonetheless, it comes as a stark contrast to some of the reports out of the COP28 summit which, according to some media outlets, could see world leaders set deadlines for the end of fossil fuel use.
Chevron told investors it expected to spend around $9 billion on its assets in the US, with $5 billion earmarked for the Permian shale and $2 billion is earmarked for the Gulf of Mexico.
The estimates exclude Chevron’s acquisition of Hess Corp, being bought for $53 billion, and it doesn’t include any associated spending on the US shale or deep water Guyana assets being picked up in that deal.
In New York, Chevron stock was up 0.5% changing hands at $143.25.