Chevron to invest 3.3 bln USD in Permian Shale to improve performance

HOUSTON, Dec. 7 (Xinhua) -- It's reasonable for Chevron, an American multinational energy corporation, to consolidate its diversity of capital allocation to improve its financial performance next year, A Houston-based analyst said Thursday.

Jonathan Z, COO of the consulting company The Oil World, told Xinhua that though crude oil backs up to 50-60 U.S. dollars per barrel range, oil supermajors are still kind of struggling.

"For delivering its robust financial performance in 2018, it's reasonable for Chevron to consolidate its diversity of capital allocation to different projects, for example, Permian Shale, ongoing operations in Kazakhstan, etc," he said.

Chevron Corporation on Wednesday announced its 2018 capital and exploratory spending program of 18.3 billion U.S. dollars. In the upstream business, approximately 8.7 billion U.S. dollars is forecast to sustain currently producing assets, including 3.3 billion dollars for the Permian Basin of Texas, famous shale field in the United States.

Chairman and CEO of Chevron John Watson said, "We're fully funding our advantaged Permian Basin position and dedicating approximately three-quarters of our spending to projects that are expected to realize cash flow within two years."

Permian Basin was ranked at the top among all U.S. shale oil basins in the latest drilling productivity report, issued by the U.S. Energy Information Administration.

Chevron Corporation, based in San Ramon in California state, is one of the world's leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Enditem