Why Chevron is pulling back from what it had planned to spend in 2026

Chevron is dialing back capital spending in 2026 as it leans into profitability during a stretch of lower oil prices, Bloomberg reports. 

The company expects to invest about $18.5 billion next year—the low end of prior guidance and well below the $19 billion–$22 billion range outlined after its Hess acquisition. Nearly one-third of that will target U.S. shale plays across Texas, New Mexico, Colorado and North Dakota.

CEO Mike Wirth says the shift reflects a strategic focus on high-return projects while maintaining dividends and stock buybacks—a move underpinned by a goal to boost free cash flow 14% annually to more than $30 billion by 2030. Chevron is also reducing growth expectations in the Permian, which is expected to plateau near 1 million BOE/day.

After major projects like Kazakhstan’s Tengiz wrapped up, Chevron is reallocating growth capital to the U.S. Gulf, eastern Mediterranean and Guyana—signaling a more disciplined era for Big Oil.

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