2023-09-06 21:50:08
Oil producer Chevron said on Wednesday it expects to increase capital spending in the Permian Basin by 25% in 2024 from its annual forecast, despite a more modest plan for the number of rigs in the rig. the largest unconventional pond in the United States.
The US producer has increased its investments in the Permian Basin following suffering from inflationary pressures and well productivity issues last year.
It forecasts record production and cash flow in the basin, the largest oil field in the United States, while cutting costs to ensure the distribution of cash to shareholders.
Chevron expects regarding $5 billion in capital expenditures next year in the Permian Basin due to higher activity levels, increased water treatment facilities and lower l inflation, she said in a presentation at a Barclays energy conference.
This figure is to be compared with the plan for 2022 which calls for investing around $4 billion each year to increase production in the Permian region during the decade. It is targeting 1 million barrels of oil equivalent per day (boepd) in 2025, compared to 772,000 boepd in the last quarter.
Still, Chevron forecasts an average of 13 to 14 company-operated rigs in 2024 in the basin, up from 2022 but less than previously expected.
“We are getting more out of our drilling and fracking rig fleet,” said A. Nigel Hearne, executive vice president of Oil, Products & Gas. “This helps increase the number of wells put into production, while keeping unit costs stable in an inflationary environment.
US energy companies have
reduced the number of drilling rigs
U.S. energy companies reduced the number of oil and natural gas rigs in operation as the industry reacted to falling prices from a year ago.
The total number of US oil rigs increased until last November, following Russia’s invasion of Ukraine, but has since fallen by around 18%, while the number of rigs gas has fallen regarding 30% since its last peak in March.
In May, Chevron increased its annual total capital expenditure forecast by $1 billion, to a range of $14 billion to $16 billion per year through 2027. (Reporting by Sabrina Valle in Houston, Marguerita edition Choi)
1694042198
#Chevron #increases #capital #spending #Permian #Basin #cuts #drilling #plans
