Chevron says on track for 20% production growth by 2017
BY BEN LEFEBVRE
NEW YORK -- Chevron expects to increase its oil and natural gas production by nearly 20% by 2017, the company said Tuesday at its annual investor conference.
Chevron is in the midst of completing a number of expensive, large-scale projects meant to raise production around the globe, including a massive natural gas project in Australia and new oil wells in the ultra-deep waters in the U.S. Gulf of Mexico. The company hopes to boost its daily oil and natural gas production to 3.3MMbbl from the 2.7 MMbbl it averaged in 2012.
"Our key development projects remain on track," said John Watson, Chevron's chief executive.
Global oil companies have scouted the globe for new production fields as such countries as China and India increase their energy appetite. Chevron, the second-largest U.S. oil company in terms of capital after ExxonMobil is spending tens of billions of dollars to search for and develop fields in nearly every continent.
Chevron expects to export natural gas in early 2015 from the Gorgon and Wheatstone projects in Australia, said George Kirkland, Chevron's head of upstream operations.
Chevron last month said initial production started at the St. Malo well in the relatively undeveloped Lower Tertiary trend far out in the Gulf of Mexico. Oil production from the well, more than 20,000 ft under the sea floor, was more than 13,000 bopd despite being constrained by the use of test equipment, the company said.
Chevron, of San Ramon, Calif., said it also may expand its operations in unconventional onshore fields in North America, including the Permian Basin in Texas and New Mexico and the Marcellus gas field in Pennsylvania. Hydraulic fracturing, or fracing, and other recent innovations in drilling techniques have yielded growing amounts of oil and natural gas from those and other rock formations.
Chevron plans to "selectively pursue growth" in petrochemicals and lubricants production, the company said.
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