Chevron Sets 2026 Capex at $18–19 Billion

Chevron Corporation (NYSE: CVX) announced an organic capital expenditure budget of $18–19 billion for 2026, signaling a disciplined approach that keeps spending at the low end of its long-term guidance while doubling down on U.S. shale, global offshore developments, and lower-carbon initiatives.

The company expects to deploy roughly $10.5 billion in the United States, more than half of next year’s total capex, with nearly $6 billion directed to shale and tight oil assets across the Permian, DJ Basin, and Bakken. That investment underpins Chevron’s target of more than 2 million boe/d of U.S. production in 2026, reaffirming the company’s continued bet on short-cycle barrels during a volatile price environment.

The core development theme remains upstream, which will account for about $17 billion of the organic budget. Offshore spending—approximately $7 billion—is concentrated in marquee growth regions including Guyana, the Eastern Mediterranean, and the U.S. Gulf of Mexico. Capitalized interest tied mainly to the Guyana portfolio contributes roughly $400 million to the upstream line.

Downstream investment remains comparatively light at $1 billion, roughly three-quarters of which will be spent in the U.S. Chevron is also allocating about $1 billion across upstream and downstream divisions to reduce the carbon intensity of its operations and build out its emerging low-carbon businesses, keeping the company aligned with long-term decarbonization targets without materially shifting its hydrocarbon-heavy portfolio.

Corporate and other spending is expected to total $600 million.

Affiliate capex, budgeted at $1.3–1.7 billion, will be driven largely by Chevron Phillips Chemical, which is advancing two world-scale petrochemical plants set to start up in 2027. Tengizchevroil will represent around one-quarter of affiliate spending as it continues major program finalization in Kazakhstan following years of delays and cost overruns.

The 2026 plan indicates continuity with Chevron’s post-pandemic capital strategy: keeping spending contained, focusing on high-value barrels, and preserving flexibility amid geopolitical uncertainty. The emphasis on U.S. shale reflects its role as the company’s most responsive growth engine, while offshore Guyana and Eastern Mediterranean developments supply long-lead, high-margin volumes that support Chevron’s long-run cash flow outlook.

CEO Mike Wirth framed the budget as a balance of capital discipline and profitable growth, stating the program “focuses on the highest-return opportunities while maintaining discipline and improving efficiency.”

The announcement comes as Chevron continues integrating Hess Corporation, a transaction central to its long-term Guyana ambitions. The company reiterated that its investment trajectory positions it to deliver “superior shareholder returns” even as it gradually scales its low-carbon portfolio.

By Charles Kennedy for Oilprice.com

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