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 business lines.

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 US 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 assigned 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 US natural gas production and its global liquefied natural gas (LNG) value chain, Chevron signed agreements to export 4 million tons per year of LNG out of the US 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 US production increased 3 percent compared to the same period a year ago mainly in the Permian Basin.”

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 to ease.”

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