Chevron has announced its capital expenditure plans for 2026, with a total budget set between $18 billion and $19 billion. This figure is at the low end of the company's long-term guidance range of $18 billion to $21 billion. The overwhelming majority of this spending will be directed toward its global upstream operations.

Upstream Capital Expenditure Focus

The company expects global upstream capital expenditure to reach approximately $17 billion in 2026. Within the United States, upstream spending is planned for up to $9.2 billion. A significant portion of this, around $6 billion, is allocated to US shale and tight assets, specifically in the Permian, Denver-Julesburg, and Bakken basins. This investment is intended to support a targeted US production exceeding 2 million barrels per day in 2026.

Globally, offshore capital expenditure is forecast at about $7 billion. This investment is primarily aimed at driving growth in key regions, including Guyana, the East Mediterranean, and the US Gulf of Mexico. Chevron's position in Guyana was strengthened following its acquisition of Hess, giving it a 30% stake in the offshore Stabroek field.

Geographic and Segment Allocation

More than half of the total 2026 capital expenditure, approximately $10.5 billion, will be deployed within the United States. Capital expenditure for affiliate entities is projected to be between $1.3 billion and $1.7 billion. About one-quarter of this affiliate spending is scheduled for the Tengizchevroil project in Kazakhstan, where Chevron holds a 50% stake and is the operator.

Downstream, Corporate, and Energy Transition

Downstream capital expenditure is expected to be approximately $1 billion, with nearly three-quarters of that allocated to US operations. Corporate and other capital expenditure is projected to be around $600 million. Furthermore, about $1 billion of the total 2026 capital expenditure across downstream and upstream segments will be dedicated to lowering the carbon intensity of its operations and growing new energies businesses.

Strategic Rationale

The company stated that its 2026 capital program is designed to focus on the highest-return opportunities while maintaining financial discipline and improving operational efficiency. The strategy aims to grow cash flow and earnings, deliver superior shareholder returns, and advance investments that strengthen long-term value.