- Upstream spending estimated at $17.5 billion, reflecting an excellent
queue of crude oil and natural gas projects
- Downstream budget of $4.1 billion includes a significant increase for
investments at U.S. refineries
SAN RAMON, Calif., Dec. 6 /PRNewswire-FirstCall/ -- Chevron Corporation
(NYSE: CVX) today announced a $22.9 billion capital and exploratory
spending program for 2008, a 15 percent increase from estimated outlays of
$20 billion in 2007. Included in the 2008 program are $2.6 billion of
expenditures by affiliates, which do not require cash outlays by Chevron's
consolidated companies.
"We have a portfolio of projects that will provide the foundation for
our company's future growth," said Chairman and CEO Dave O'Reilly.
O'Reilly said about 75 percent of the 2008 spending program is for
upstream oil and gas exploration and production projects worldwide. Another
20 percent is dedicated to the company's downstream businesses that
manufacture, transport and sell gasoline, diesel fuel and other refined
products. The total budget for expenditures in the United States is
approximately $8 billion.
"Much of our 2008 spending continues to be on large, multiyear projects
aimed at increasing energy supplies to meet growing global demand and also
improving efficiency and reliability," O'Reilly added.
HIGHLIGHTS OF THE 2008 CAPITAL AND EXPLORATORY SPENDING PROGRAM
Chevron 2008 Planned Capital & Exploratory Expenditures $ Billions
U.S. Upstream $4.8
International Upstream 12.7
Total Upstream 17.5
U.S. Downstream 2.3
International Downstream 1.8
Total Downstream 4.1
Chemicals and Other 1.3
TOTAL (Including Chevron's Share of Expenditures by
Affiliated Companies) $22.9
Expenditures by Affiliated Companies (2.6)
Cash Expenditures by Chevron Consolidated Companies $20.3
Upstream -- Exploration and Production
Spending of $17.5 billion is planned for exploration, production and
natural gas-related projects. A significant portion relates to development
projects that build on the company's successful and focused exploration
results in recent years, including opportunities in the deepwater U.S. Gulf
of Mexico and western Africa. Funding also is earmarked for further
appraisal and evaluation of other prospective areas in the world's major
hydrocarbon basins.
"Our upstream investments are aimed at finding and developing oil and
gas resources to increase production and help supply the increasing energy
needs of world markets," said George Kirkland, Chevron's executive vice
president of Upstream and Gas. "Production start-ups of major projects in
2008 are expected to include Blind Faith in the Gulf of Mexico and Agbami
offshore Nigeria. We also anticipate significant production increases at
the Tengiz Field, Kazakhstan, as facilities become fully operational in
2008."
Major upstream spending in 2008 includes projects in the following areas:
-- U.S. Gulf of Mexico -- deepwater exploration and development,
including Tahiti, Great White, Blind Faith, Jack and St. Malo.
-- U.S Mid-Continent -- gas development within the Piceance Basin.
-- Nigeria -- development of the Agbami and Usan deepwater fields.
-- Angola -- deepwater development of Tombua-Landana and construction of
LNG facilities.
-- Kazakhstan -- expansion of production at the Tengiz Field.
-- Western Australia -- development of the offshore Gorgon Area natural
gas resource.
-- Thailand -- development of the Platong Gas II project offshore
Thailand.
-- Canada -- expansion of the Athabasca Oil Sands Project.
-- Brazil -- development of the Frade Field.
-- Indonesia -- northern expansion of the Duri Field steamflood project.
Downstream -- Refining, Marketing and Transportation
Capital spending of $4.1 billion in 2008 is budgeted for global
downstream operations, including $2.3 billion for projects in the United
States. Included in the U.S. spending is $1.5 billion for improvements to
the refinery network, representing an increase of more than 50 percent from
expected outlays in 2007.
Downstream expenditures are aimed at enhancing the company's ability to
safely and reliably manufacture transportation fuels from a variety of
feedstocks, increasing energy efficiency and providing environmental
benefits.
Outlays in 2008 include projects to upgrade the company's refineries in
Mississippi and California. The company's 50 percent-owned GS Caltex
affiliate will also continue development work on another potential major
upgrading of its Yeosu refining complex in South Korea. In support of
projects to commercialize the company's large natural gas resource base,
downstream expenditures will be made in 2008 on gas-to-liquids
manufacturing facilities.
Chemicals and Other
Expenditures of approximately $1.3 billion in 2008 are estimated for
chemicals, technology, power generation and other corporate activities.
Investments include projects related to unconventional hydrocarbon
technologies, reservoir management, and gas-fired and renewable power
generation.
Chevron Corporation is one of the world's leading integrated energy
companies. We have approximately 58,000 employees and conduct business
across the entire energy spectrum -- exploring for, producing and
transporting crude oil and natural gas; refining, marketing and
distributing fuels and other energy products and services; manufacturing
and selling petrochemical products; generating power; and developing and
commercializing the energy resources of the future, including biofuels and
other renewables. Chevron is based in San Ramon, Calif. More information
about Chevron is available at http://www.chevron.com.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF
1995
Some of the items discussed in this press release are forward-looking
statements about Chevron's 2008 capital and exploratory expenditures. 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 our 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; refining margins and marketing margins; chemicals
prices and competitive conditions affecting supply and demand for
aromatics, olefins and additives products; actions of competitors; 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 OPEC (Organization of
Petroleum Exporting Countries); the potential liability for remedial
actions 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 acquisition or
disposition of assets; government-mandated sales, divestitures,
recapitalizations, changes in fiscal terms or restrictions on the 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 31 and 32 of the
company's 2006 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 report also could have material adverse effects on forward-looking
statements.
SOURCE Chevron Corporation
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Related links:
http://www.chevron.com
CONTACT:
Donald Campbell, +1-925-842-2589, for Chevron
Corporation
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