Chevron is on track to reach roughly 300 Mb/d of gross Venezuelan crude oil production by year-end and double output from its three joint ventures there to about 600 Mb/d by 2031, the company said during its quarterly earnings call October 30.
CEO Mike Wirth noted the importance of new fiscal terms and expanded acreage there, and said the development program would be self-funding and extend into the 2030s (see chart below), underpinned by the country’s vast resources.
“Total costs are expected to be under $20/bbl, with competitive investment returns, and no major upgrades are needed, as infrastructure has been well-maintained,” Wirth said. “Chevron markets 100% of the crude from the three ventures, with the majority going to U.S. refineries, including Pascagoula and El Segundo, adding to domestic product supply.”
Source: Chevron
Global Q3 production was nearly 4 MMboe/d, despite entitlement impacts and planned maintenance turnarounds, and U.S. upstream output stayed above 2 MMboe/d for the sixth consecutive quarter, which Vice Chairman Mark Nelson said was driving “significant efficiencies,” citing reductions in capex per barrel and drilling-and-completion expenses.
Chevron also said it is working toward a final investment decision (FID) for its Project Kilby, a 2.67-GW, behind-the-meter power project in West Texas backed by a 20-year power purchase agreement with Microsoft. Chevron said it is on track to have first power in 2028 and full energization in 2031, but that progress was dependent on permitting. (The Texas moratorium on data centers is the subject of an upcoming blog.)
