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Released December 09, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Amid relentless pressure from the Biden administration, other governments and shareholders to reinvest its record-busting profits in production, Chevron Corporation (NYSE:CVX) (San Ramon, California) plans to boost its 2023 organic capital expenditures 25% from the current calendar year. But the company also made room for the lower-carbon efforts for which it has faced equal, if not more intense, pressure from the same people. Industrial Info is tracking more than $56 billion worth of active Chevron projects worldwide, including more than $17 billion worth in the U.S. alone.
Chevron is budgeting $14 billion for capital spending (capex) next year, including $11.5 billion in its upstream businesses and $1.9 billion in its downstream businesses. In both cases, the U.S. accounts for the bulk of the spending: $8 billion of upstream, and $1.5 billion of downstream.
Click on the image at right for a graph detailing Chevron's active projects worldwide, by project type.
More than 20% of upstream capex is for projects in the Gulf of Mexico. Chevron expects to finish construction in mid-2023 on its Jack/St. Malo exploration project in the Gulf of Mexico, where the company is drilling five wells, including two for production and three for water injection; installing subsea infrastructure, including wellheads, injection and production flowlines and control umbilicals; and modifying the existing platform to include a water-injection module.
Chevron believes these additions will add 175 million barrels of oil-equivalent to production, bringing the total output to roughly 675 million barrels of oil-equivalent over about 30 years. Water depth at the site is more than 7,000 feet, with reservoirs beginning at 19,500 feet below the seabed. For more information, see Industrial Info's project reports on the wells, subsea infrastructure and topsides modifications.
Downstream projects include the ongoing conversion of a refinery in Pasadena, Texas. This summer, Chevron started reconfiguring the existing 108,000-barrel-per-day (BBL/d) refinery into a hydroskimming facility to process exclusively light-tight oil (LTO), while expanding production to about 125,000 BBL/d. The hydroskimmer--which requires only a crude distillation unit, alkylation unit and a hydrotreater to refine LTO--would replace a now-closed fluid catalytic cracking unit (FCCU), which malfunctioned in mid-2021. Subscribers can learn more from Industrial Info's project report.
Chevron also plans to spend $3 billion for its equity affiliates in 2023, including $1.9 billion for upstream and $1.1 billion for downstream. About half of the total will go toward Tengizchevroil's Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) in Kazakhstan, and about one-third will be set aside for Chevron Phillips Chemical Company, including its U.S. Gulf Coast II petrochemical project.
Tengizchevroil, which is a joint venture between Chevron, Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), KazMunayGas (Astana, Kazakhstan) and LukArco (Amsterdam, Netherlands), develops projects in the western Kazakhstan steppe's Tengiz Field, which the company calls "the world's deepest producing supergiant oil field." The FGP-WPMP, which began construction in third-quarter 2018, includes the construction of a 260,000-BBL/d crude oil-processing plant and a 960 million-standard-cubic-foot-per-day natural gas-processing plant. Subscribers can click here for a full list of projects in the FGP-WPMP development.
U.S. Gulf Coast II, which kicked off site preparation in September, includes the construction of a 4.1 billion-pound-per-year ethylene cracker, which will supply feedstock for a pair of 1 billion-pound-per-year high-density polyethylene (HDPE) units. Subscribers can read detailed project reports on the ethylene cracker and HDPE units.
Big Boost to Low-Carbon Efforts
None of the above-mentioned spending should leave anyone with the impression Chevron is abandoning efforts to reduce its carbon emissions. Capex geared toward lower-carbon efforts total $2 billion across the entire company, including $500 million earmarked to lower the carbon intensity of Chevron's traditional operations and about $1 billion to grow renewable-fuel production capacity.
Chevron is partnering with Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington), Clean Energy Systems (Rancho Cordova, California) and Schlumberger Limited (NYSE:SLB) (Houston, Texas) to build a carbon-capture facility in Mendota, California. The proposed facility will use one or two direct air capture (DAC) units to capture and extract 300,000 metric tons per year of CO2 from the atmosphere. Subscribers can learn more from Industrial Info's project report.
Earlier this year, Chevron purchased Renewable Energy Group (REG) in an effort to diversify its product portfolio. Chevron now owns REG's renewable diesel plant in Geismar, Louisiana, which is undergoing $950 million worth of upgrades and expansions that will increase its production capacity from 90 million to 340 million gallons. Subscribers can learn more from Industrial Info's detailed project report.
"We're maintaining capital discipline while investing to grow both traditional and new energy supplies," said Mike Wirth, the chief executive officer of Chevron, in a press release. "Our 2023 capex budgets are consistent with our long-term plans to safely deliver higher returns and lower carbon."
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active Chevron projects worldwide, and click here for a full list of reports for active U.S. projects.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Chevron is budgeting $14 billion for capital spending (capex) next year, including $11.5 billion in its upstream businesses and $1.9 billion in its downstream businesses. In both cases, the U.S. accounts for the bulk of the spending: $8 billion of upstream, and $1.5 billion of downstream.
Click on the image at right for a graph detailing Chevron's active projects worldwide, by project type.More than 20% of upstream capex is for projects in the Gulf of Mexico. Chevron expects to finish construction in mid-2023 on its Jack/St. Malo exploration project in the Gulf of Mexico, where the company is drilling five wells, including two for production and three for water injection; installing subsea infrastructure, including wellheads, injection and production flowlines and control umbilicals; and modifying the existing platform to include a water-injection module.
Chevron believes these additions will add 175 million barrels of oil-equivalent to production, bringing the total output to roughly 675 million barrels of oil-equivalent over about 30 years. Water depth at the site is more than 7,000 feet, with reservoirs beginning at 19,500 feet below the seabed. For more information, see Industrial Info's project reports on the wells, subsea infrastructure and topsides modifications.
Downstream projects include the ongoing conversion of a refinery in Pasadena, Texas. This summer, Chevron started reconfiguring the existing 108,000-barrel-per-day (BBL/d) refinery into a hydroskimming facility to process exclusively light-tight oil (LTO), while expanding production to about 125,000 BBL/d. The hydroskimmer--which requires only a crude distillation unit, alkylation unit and a hydrotreater to refine LTO--would replace a now-closed fluid catalytic cracking unit (FCCU), which malfunctioned in mid-2021. Subscribers can learn more from Industrial Info's project report.
Chevron also plans to spend $3 billion for its equity affiliates in 2023, including $1.9 billion for upstream and $1.1 billion for downstream. About half of the total will go toward Tengizchevroil's Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) in Kazakhstan, and about one-third will be set aside for Chevron Phillips Chemical Company, including its U.S. Gulf Coast II petrochemical project.
Tengizchevroil, which is a joint venture between Chevron, Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), KazMunayGas (Astana, Kazakhstan) and LukArco (Amsterdam, Netherlands), develops projects in the western Kazakhstan steppe's Tengiz Field, which the company calls "the world's deepest producing supergiant oil field." The FGP-WPMP, which began construction in third-quarter 2018, includes the construction of a 260,000-BBL/d crude oil-processing plant and a 960 million-standard-cubic-foot-per-day natural gas-processing plant. Subscribers can click here for a full list of projects in the FGP-WPMP development.
U.S. Gulf Coast II, which kicked off site preparation in September, includes the construction of a 4.1 billion-pound-per-year ethylene cracker, which will supply feedstock for a pair of 1 billion-pound-per-year high-density polyethylene (HDPE) units. Subscribers can read detailed project reports on the ethylene cracker and HDPE units.
Big Boost to Low-Carbon Efforts
None of the above-mentioned spending should leave anyone with the impression Chevron is abandoning efforts to reduce its carbon emissions. Capex geared toward lower-carbon efforts total $2 billion across the entire company, including $500 million earmarked to lower the carbon intensity of Chevron's traditional operations and about $1 billion to grow renewable-fuel production capacity.
Chevron is partnering with Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington), Clean Energy Systems (Rancho Cordova, California) and Schlumberger Limited (NYSE:SLB) (Houston, Texas) to build a carbon-capture facility in Mendota, California. The proposed facility will use one or two direct air capture (DAC) units to capture and extract 300,000 metric tons per year of CO2 from the atmosphere. Subscribers can learn more from Industrial Info's project report.
Earlier this year, Chevron purchased Renewable Energy Group (REG) in an effort to diversify its product portfolio. Chevron now owns REG's renewable diesel plant in Geismar, Louisiana, which is undergoing $950 million worth of upgrades and expansions that will increase its production capacity from 90 million to 340 million gallons. Subscribers can learn more from Industrial Info's detailed project report.
"We're maintaining capital discipline while investing to grow both traditional and new energy supplies," said Mike Wirth, the chief executive officer of Chevron, in a press release. "Our 2023 capex budgets are consistent with our long-term plans to safely deliver higher returns and lower carbon."
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active Chevron projects worldwide, and click here for a full list of reports for active U.S. projects.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
