press release
Chevron Announces $26.0 Billion Capital and Exploratory Budget for 2011

  • Upstream spending estimated at $22.6 billion, progressing an industry-leading slate of crude oil and natural gas projects
  • Downstream budget of $2.9 billion includes outlays for enhancing refinery reliability and flexibility

SAN RAMON, Calif., December 9, 2010 – Chevron Corporation (NYSE: CVX) today announced a $26.0 billion capital and exploratory spending program for 2011.  Included in the 2011 program are $2.0 billion of expenditures by affiliates, which do not require cash outlays by Chevron.  Acquisition costs associated with the recently announced purchase of Atlas Energy, Inc. are not included.  

 "We have an unparalleled set of opportunities.  Our previous investments have performed well, giving us the cash and financial strength to fund numerous attractive projects in rapid succession.  We're building legacy asset positions which will reward shareholders for decades to come," said Chairman and CEO John Watson.  "At the same time, we are committed and able to reward shareholders with competitive dividend growth and share repurchases."

Approximately 85 percent of the 2011 spending program is for upstream oil and gas exploration and production projects worldwide.  Another 10 percent is associated with the company's downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals.


Chevron 2011 Planned Capital & Exploratory Expenditures $ Billions
U.S. Upstream $ 5.4
International Upstream 17.2
Total Upstream 22.6
U.S. Downstream 1.7
International Downstream 1.2
Total Downstream 2.9
Other 0.5
TOTAL (Including Chevron's Share of Expenditures by Affiliated Companies) $26.0
Expenditures by Affiliated Companies (2.0)
Cash Expenditures by Chevron Consolidated Companies $24.0

Spending of $22.6 billion is planned for exploration and production activities, including major natural gas-related projects.  Major capital investments include development of the vast natural gas resources in Western Australia and development opportunities in the deepwater U.S. Gulf of Mexico, Western Africa and the Gulf of Thailand.  Funding is planned for focused exploration and appraisal programs in core hydrocarbon basins. Capital spending will also be directed towards existing assets throughout the world to improve oil and gas recovery, and reduce natural field decline.

"We are moving into a period of higher capital spending as we fund new legacy projects, including sizeable investment in our LNG mega projects," said George Kirkland, Chevron vice chairman.

            Upstream spending expected in 2011 includes major projects in the following regions:

  • Western Australia – development of Gorgon and Wheatstone natural gas resources and associated LNG facilities.
  • U.S. Gulf of Mexico – deepwater exploration and development, including Jack/St. Malo, Tahiti-2, Big Foot, Perdido and Buckskin appraisal
  • Brazil – development of the Papa Terra and Frade deepwater fields.
  • Nigeria – development of the Usan and Agbami deepwater fields and construction of the Escravos gas-to-liquids facility.
  • Angola – construction of an LNG facility.
  • Thailand – development of the offshore Platong II natural gas project.
  • China – development of the Chuandongbei natural gas project.
  • Canada – Athabasca Oil Sands expansion and Hebron development.
  • United Kingdom – development of the offshore Clair Ridge Field in the West of Shetlands area.

Capital spending of $2.9 billion in 2011 is budgeted for downstream operations.  Outlays in 2011 include projects at the company's refineries in Mississippi and California which are geared towards improving returns.  These expenditures will enhance the company's ability to manufacture transportation fuels and base oils from a variety of feedstocks, while increasing product yields and energy efficiency.

The company's 50 percent-owned GS Caltex affiliate is also expected to continue to upgrade the Yeosu refining complex in South Korea.  Additional projects associated with the company's chemicals operations in Saudi Arabia and Qatar are managed through the 50 percent-owned Chevron Phillips Chemical Company LLC.

All Other
Expenditures of approximately $0.5 billion in 2011 are budgeted for technology, power generation and other corporate activities.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at


This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals, and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings, the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company's net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from pending or future litigation; the company's future acquisition or disposition of assets; gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading "Risk Factors" on pages 30 and 32of the company's 2009 Annual Report on Form 10-K. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.

Published: December 2010