Chevron Boosted Second-Quarter Investment -- Energy Comment
By Mary de Wet
Chevron Corp. said Friday that it more than doubled investment
in the second quarter to grow its traditional and new-energy
On its second quarter:
Capital and exploratory expenditures plus acquisitions totaled
$6.79 billion, up from $2.8 billion in the year-ago period.
"With Permian production more than 15 percent higher than a year
ago and now as one of the leading renewable fuel producers in the
United States, Chevron is increasing energy supplies to help meet
the challenges facing global markets," said Chairman and Chief
Executive Mike Wirth.
The energy company noted it closed its acquisition of Renewable
Energy Group Inc. and completed the formation of a renewable fuels
joint venture with Bunge North America Inc. in the three months
ended June 30.
"Also during the second quarter, the company sanctioned the
Ballymore project in the deepwater U.S. Gulf of Mexico, which is
expected to require a gross investment of approximately $1.6
billion. The field is planned to be produced through an existing
facility with allocated capacity of 75,000 barrels of crude oil per
day," Chevron said.
"The company also advanced its carbon capture and storage (CCS)
business this quarter by launching a CCS project aimed at reducing
the carbon intensity of its upstream operations in California and
forming an expanded joint venture to develop the Bayou Bend CCS hub
in Texas, with the goal of it becoming one of the first offshore
CCS projects in the United States," the company said.
"Further, leveraging the company's growing U.S. natural gas
production and its global liquefied natural gas (LNG) value chain,
Chevron signed agreements to export 4 million tonnes per year of
LNG out of the U.S. Gulf Coast, commencing in 2026."
On its upstream business:
"Worldwide net oil-equivalent production was 2.90 million
barrels per day in second quarter 2022. International production
decreased 13 percent primarily due to the end of concessions in
Thailand and Indonesia, while U.S. production increased 3 percent
compared to the same period a year ago mainly in the Permian
On its downstream business:
"Refinery crude oil input in second quarter 2022 decreased 8
percent to 881,000 barrels per day from the year-ago period,
primarily due to planned turnarounds.
"Refined product sales of 1.21 million barrels per day were up 4
percent from the year-ago period, mainly due to higher jet fuel
demand as travel restrictions associated with the pandemic continue
Write to Mary de Wet at email@example.com
(END) Dow Jones Newswires
July 29, 2022 07:45 ET (11:45 GMT)
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