Chevron Targets up to $19 Billion in spending next Year to accelerate Oil Production in the US and Guyana

Chevron plans to allocate roughly $17bn of the total to upstream activities, with about $9bn earmarked for U.S. development and nearly $6bn of that targeted at shale/tight assets such as the Permian, DJ and Bakken basins.

Chevron has unveiled a focused capital program for 2026, signaling a renewed push to lift oil production in the United States and offshore Guyana while steering the company towards stronger cash returns. The oil major said it expects organic capital expenditure to range between $18 billion and $19 billion next year-at the lower end of its long-term $18 billion -$21 billion guidance-as it concentrates on projects it deems highest-return.

The spending blueprint points strongly to U.S. upstream and Guyana offshore operations as the immediate growth engines. Chevron plans to allocate roughly $17bn of the total to upstream activities, with about $9bn earmarked for U.S. development and nearly $6bn of that targeted at shale/tight assets such as the Permian, DJ and Bakken basins. Management told investors this domestic push is designed to cement U.S. production at more than two million barrels of oil equivalent per day.

Offshore, Chevron is banking on Guyana-a fast-emerging prize for the major producers-to deliver scale. Global offshore capex is forecast at around $7bn, with a heavy weighting to Guyana’s Stabroek block following Chevron’s acquisition of Hess earlier in 2025, which added substantial stakes and near-term development options. The company has said it sees upside to the currently estimated resource base in Guyana, underlining why the firm is girding its offshore programme with meaningful investment.

Chevron’s budgeting choices reflect an industry balancing act: grow production where returns are strongest, while protecting cash flow and shareholder distributions amid uncertain oil price dynamics. The 2026 capex range is intentionally conservative relative to past guidance and follows a wider company drive to squeeze costs and improve project delivery after a period of larger, transformational M&A. Executives have emphasised that the programme is about “highest-return opportunities”-a phrase intended to reassure investors that spending will be disciplined even as volumes rise.

The emphasis on Guyana is no surprise. Chevron’s larger presence in the South American jurisdiction follows its high-profile takeover of Hess earlier in 2025, a transaction that analysts and the company itself say materially boosts access to the prolific Stabroek Block. That deal-reported at roughly $55 billion-brought Chevron a meaningful stake in one of the most productive offshore discoveries of the past decade, and the new capex plan reflects a commitment to develop and monetise those assets.

For the market, the mix is telling. Offshore projects tend to be capital-intensive but offer long-dated, volume-rich growth; US shale provides shorter-cycle returns and cash generation. By allocating capital across both, Chevron seeks to balance near-term cash flow with medium-term growth-an approach that also gives the company optionality as oil prices evolve. The plan trims downstream spending to around $1 billion, underscoring the upstream bias of the 2026 budget.

Investors will also have noticed that the 2026 budget follows a year of corporate recalibration. Chevron has been reshaping its portfolio, integrating Hess’s assets, and pursuing structural savings after announcing workforce reductions and other efficiency measures earlier in the year. The capital plan’s relatively conservative top-line — and its clear allocation to high-return pockets — is part of a broader strategy to lift production without sacrificing the margin discipline that investors demand.

Analysts are likely to parse two key metrics: production growth from the acquired Guyana acreage and cash conversion from US shale. Guyana’s Stabroek Block promises large, long-lived barrels that can materially alter Chevron’s growth trajectory, while disciplined shale investment can rapidly translate into free cash flow if operational execution holds. The company’s ability to deliver on both fronts will be central to its credibility with markets.