Page 4 - NorthAmOil Week 50 2022

NorthAmOil COMMENTARY NorthAmOil

ExxonMobil, Chevron unveil plans

to raise spending in 2023

US-based super-majors ExxonMobil and Chevron have announced plans to raise their

capital expenditures next year

US US-BASED super-majors ExxonMobil and This includes more than $4bn earmarked for
Chevron have announced their plans to increase development in the Permian Basin and around
WHAT: capital expenditures in 2023. Their moves come $2bn for other shale and tight assets. Chevron
Chevron and ExxonMobil on the back of record profits achieved recently, noted that more than 20% of its upstream capex
are both raising their bolstered by higher oil prices, but also against budget was for projects in the Gulf of Mexico.
capex budgets next year. the backdrop of rising energy production costs. The company’s lower carbon budget, mean-
Additionally, the capex budget increases come while, includes $500mn allocated to lowering
WHY: as US President Joe Biden continues to call for the intensity of its traditional operations and
The super-majors are producers to invest more in domestic output. around $1bn for raising its renewable fuel pro-
responding to various At the same time, the two companies’ duction capacity.
trends and pressures. announcements illustrate their ongoing com- “We’re maintaining capital discipline while
mitment to improving shareholder returns, and investing to grow both traditional and new
WHAT NEXT: moves to invest more in production will be bal- energy supplies,” stated Chevron’s chairman and
Both companies remain anced against this commitment. CEO, Mike Wirth. “Our 2023 capex budgets are
committed to improving consistent with our long-term plans to safely
investor returns. Chevron deliver higher returns and lower carbon.”
Chevron said in its 2023 budget announcement, Chevron’s spending is higher than it was
unveiled on December 7, that it was raising its over 2020-21, but still considerably below
capex for next year by more than 25%, excluding the $30bn per year budgets it averaged over
acquisitions, to $17bn. This consists of $14bn for 2012-19. Nonetheless, the budget increase
consolidated subsidiaries and $3bn for equity aligns with Biden administration calls for
affiliates. more investment into new production. Wirth
Notable items in the company’s budget also noted that the super-major’s spending is
include around $2bn earmarked for lower car- considerably more efficient than it had been in
bon spending – more than double the amount previous years, with Chevron producing more
for 2022. Additionally, the super-major said per dollar invested.
that of the $11.5bn allocated to global upstream However, the spending increase does not
capex, $8bn would go to projects in the US. come at the expense of the company’s focus on

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