Chevron Corp. expects to spend a record $32.7 billion on capital projects in 2012 as it continues to invest in massive oil and gas projects worldwide. The budget is 17% higher than the $28 billion spent last year, its highest level of spending ever.
ConocoPhillips and Marathon Oil Corp. recently announced double-digit capital budget increases for 2012, showing major oil companies are confident about the sustainability of high oil prices.
Chevron plans to spend 87%, or $28.5 billion, on exploration and production projects in Australia, deep waters of the U.S. Gulf of Mexico, Nigeria, Angola and China. Planned capital spending is also directed toward improving crude oil and natural gas recovery and reducing declines in production that take place in existing fields over time.
Chevron’s 2012 capital program includes spending of nearly $9 billion in the U.S., with major new investments in the Gulf of Mexico, the Marcellus Shale fields in Pennsylvania and at its Pascagoula, MS refinery.