A 2016 photo accompanying the report highlights Chevron's long-term focus on the Permian Basin, where production is projected to reach 900,000 barrels per day by 2023—up from 377,000 bpd in 2018. The company plans $4 billion in share buybacks and higher dividends to deliver a 6% annual return for investors by 2023, according to a 2019 report.
Chevron's strategy centers on short-cycle shale projects, with $3.6 billion allocated to Permian Basin development and $1.6 billion for other shale regions like the Marcellus and Vaca Muerta. The company raised its Permian reserves estimate to 16.2 billion barrels of recoverable resources, up from 9 billion barrels.
CEO Mike Wirth emphasized the basin's improving position, stating, "Our position in the Permian Basin just continues to get better." This contrasts with Exxon Mobil's delayed 2024 shale production goals, as Chevron aims to outpace rivals with faster returns.
Chevron also plans to divest $5-10 billion in assets between 2018 and 2020, including North Sea and Danish operations. Annual capital spending will range $19-22 billion from 2021 to 2023, with $3.6 billion dedicated to Permian Basin projects.
