Chevron’s Upstream Segment: Production Growth on the Horizon?


Dec. 4 2020, Updated 10:52 a.m. ET

Chevron’s upstream production

Chevron (CVX) produced 2.7 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in 1Q17, posting a 0.4% year-over-year rise in its production. CVX expects 4%–9% growth in its production volumes in 2017 over 2016.

Of its total 1Q17 output, 2.0 MMboepd, or 75%, came from its international operations. Chevron’s upstream portfolio extends worldwide, including its international megaprojects such as Gorgon and Wheatstone. Liquids accounted for 1.7 MMbpd (million barrels per day), or 64%, of Chevron’s total output in 1Q17.

In 1Q17, Chevron’s peer ExxonMobil (XOM) produced 4.2 MMboepd. Royal Dutch Shell’s (RDS.A) and BP’s (BP) productions stood at 3.8 MMboepd and 2.4 MMboepd, respectively, in the quarter.

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Chevron’s upstream portfolio: Aligned for production growth

Chevron’s (CVX) crude oil and natural gas production is poised for growth, with some of its major projects starting in 2016–2017. Chevron foresees three of its main legacy upstream assets accounting for one-third of its total hydrocarbon production by 2019. These assets include its gas portfolios in Australia (such as Gorgon and Wheatstone), its conventional oil and gas assets in Kazakhstan (such as Tengiz), and its shale and tight assets in the Permian Basin in the United States.

In 1Q17, Chevron had all three of its trains operational at Gorgon. Also, its Wheatstone project is expected to deliver its first LNG (liquefied natural gas) cargo by mid-2017. At Tengiz, to increase production in the field, Chevron is progressing with its WPM (wellhead pressure management) and FG (future growth) projects. These projects are expected to commence by 2022.

Similarly, in the Permian Basin, Chevron is likely to ramp up to 20 rigs by 2018. Recently, Chevron started production at its Mafumeira Sul project offshore Angola. Mafumeira Sul is a deep-water project with total potential recoverable oil equivalent resources of ~300 million barrels.

In terms of its other leading projects, in 2016, CVX resumed LNG production at its Angola LNG project. Chevron also began production at its Bangka project in Indonesia. Its Alder project in the North Sea also achieved its first production in November 2016.

Reserve base

Chevron has a large proved reserve base of 11.1 billion barrels of oil. Going forward, these reserves are expected to provide production growth for the company.


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