Energy giant Chevron has announced a comprehensive capital expenditure plan of $18 to $19 billion for 2026, positioning the company for strategic growth while maintaining financial discipline. The investment blueprint reveals a clear prioritization of upstream oil and gas production, particularly within United States shale operations and recently acquired offshore assets in Guyana.
The announced spending range falls at the lower end of Chevron’s previously projected $18-21 billion annual investment guidance through 2030. This disciplined approach aligns with the company’s broader strategy to reduce operational costs, enhance efficiency, and deliver superior returns to shareholders amidst evolving energy market conditions.
Chevron CEO Mike Wirth emphasized the strategic rationale behind the budget allocation: “Our 2026 capital budget targets the highest-return investments while maintaining discipline and efficiency. This approach enables us to further strengthen cash flow and profitability while positioning the company for sustainable long-term growth.”
Approximately $17 billion of the total budget is dedicated to upstream activities, with $9 billion earmarked for United States operations. This includes a substantial $6 billion investment in shale development projects. The company projects it will maintain production exceeding 2 million barrels of oil equivalent per day from its US assets throughout 2026.
Offshore developments receive significant attention with approximately $7 billion allocated to key projects including the prolific Stabroek Block offshore Guyana, Eastern Mediterranean operations, and production facilities in the Gulf of Mexico.
The downstream division is expected to receive approximately $1 billion in funding, representing a slight decrease compared to current year allocations.
Chevron’s strategic focus on Guyana follows its landmark $55 billion acquisition of Hess Corporation finalized in July. This transformative deal provided Chevron with a 30% stake in the highly productive Stabroek Block offshore Guyana, while simultaneously adding valuable assets in North Dakota’s Bakken shale formation to its portfolio.