Chevron announces 2011 spending plans
Chevron Corp. said on Thursday that it will increase spending on exploration to drive production growth in 2011, but would devote fewer resources to the part of its business that manufactures, transports and sells gasoline, diesel and other products.
Total capital spending for the San Ramon-based company next year will be $26 billion or about 20% more than what it will spend this year, the company said in a statement. The increase will be going "upstream," or into exploration and production.
More than $17 billion of that amount will be spent overseas, the company said.
But Chevron continues to reduce the amount of resources it devotes to its "downstream" business, which includes the still weak refining segment that has yet to fully recover from a drop in demand at the pump due to the global recession. Downstream spending will drop 14.7% from 2010 to $2.9 billion.
Chevron officials said that the growth opportunities were significant.
"We have an unparalleled set of opportunities. Our previous investments have performed well, giving us the cash and financial strength to fund numerous attractive projects in rapid succession. We're building legacy asset positions, which will reward shareholders for decades to come," said Chairman and Chief Executive John Watson.
Chevron is the nation's second biggest integrated oil and natural gas company, behind Exxon-Mobil.
Readers can find more details of the Chevron announcement here.
-- Ronald D. White