Chevron sets 2026 capex at $18–$19 billion, prioritizes high-return upstream growth

Chevron Corp. has announced an organic capital expenditure (capex) range of $18–$19 billion for 2026, positioning next year’s budget at the lower end of its long-term guidance as the company emphasizes disciplined spending, efficiency improvements and high-return upstream development.

Chairman and CEO Mike Wirth said the program is structured to expand cash flow and earnings while maintaining strategic flexibility. “Our 2026 capital program focuses on the highest-return opportunities while maintaining discipline and improving efficiency, enabling us to grow cash flow and earnings,” he said. “We’re positioned to deliver superior shareholder returns while advancing investments that strengthen long-term value.”

Upstream remains the dominant focus

Chevron expects to direct approximately $17 billion toward upstream activities. More than half of total organic capex—around $10.5 billion—will be deployed in the United States, with nearly $6 billion earmarked for shale and tight oil developments across the Permian, DJ and Bakken basins. These assets will underpin the company’s targeted U.S. production level of more than 2 MMboed in 2026.

The company plans to spend roughly $7 billion on global offshore projects, supporting continued growth in Guyana, the Eastern Mediterranean, and the Gulf of America. The budget also includes approximately $0.4 billion in capitalized interest, largely tied to Guyana’s expanding deepwater developments.

Downstream, low-carbon and affiliate investment

Chevron intends to invest around $1 billion in downstream operations, with approximately 75% of that spend allocated to U.S. assets. Across upstream and downstream budgets, about $1 billion will be directed toward lowering carbon intensity and advancing new energy businesses.

Affiliate capex for 2026 is projected between $1.3–$1.7 billion, led by Chevron Phillips Chemical Company LLC as work progresses on two world-scale petrochemical facilities scheduled to start up in 2027. Spending by Tengizchevroil LLP is expected to represent roughly one-quarter of affiliate expenditures.