Chevron reports a 13.3% drop in its investments in 2021
The oil company Chevron Corporation registered a year-on-year drop of 13.3% in its investments in 2021, to 11.7 billion dollars.
This item covers capital and exploration expenses and the amounts included $3.2 billion in 2021 and $4.0 billion in 2020 for the company’s share of affiliates’ expenses, which did not require cash outlays by the company.
At the same time, upstream expenses represented 82% of the company‘s total expenses in 2021.
Chevron manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to US and international subsidiaries involved in integrated energy and chemical operations.
On the one hand, its upstream operations consist mainly of the exploration, development, production and transportation of crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transportation of crude oil through major international oil export pipelines; transportation, storage and marketing of natural gas; and a gas-to-liquids plant.
On the other hand, its downstream operations mainly comprise the refining of crude oil into petroleum products; marketing of crude oil, refined products and lubricants; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment and rail cars; and manufacturing and marketing of basic petrochemical products, plastics for industrial uses and additives for fuels and lubricants.
Investments
Chevron’s net oil equivalent production grew in 2021 to a record 3.10 million barrels per day.
The company also added 1.3 billion barrels of net proven oil equivalent reserves in 2021.
These additions, which are subject to final revisions, are equivalent to approximately 112% of net oil equivalent production for the year.
The largest net additions came from assets in the Permian Basin, the Gulf of Mexico and Australia.
The largest net reductions were due to assets in Kazakhstan mainly due to higher prices and their negative effect on reserves.
Likewise, Chevron’s revenues were 162,465 million dollars in 2021, an advance of 71.6%, at an annual rate.
Also in 2021, the company took steps to advance its lower carbon future by setting targets to reduce the carbon intensity of its operations, adopted net-zero aspiration by 2050 for Scope 1 and 2 upstream emissions, expanded its fuels business renewables, formed Chevron New Energy Organization that aims to grow hydrogen, carbon capture and offset businesses, and tripled its associated planned capital investment to approximately $10 billion through 2028.
