North America

Chevron reaffirms 2017 target on oil, gas output

Chevron Oil CompanyChevron Corp. Tuesday reaffirmed that it would meet its target for a large increase in oil and natural gas output in 2017.

The US oil giant, outlining its medium-term investment strategy to analysts, said it would hit 3.3 million barrels a day of oil-equivalent in 2017, up from 2.6 million barrels a day in 2012.

Chevron also said it had “momentum” for growth beyond 2017.

Chevron pointed to a range of large “mega-projects” that will enable the boost in output, such as the $52 billion Gorgon liquefied natural gas project in Australia and a number of large deepwater projects in the Gulf of Mexico.

Chevron’s investment program comes as oil majors including ExxonMobil boost capital spending to advance a new generation of projects to make up for declining oil and gas fields. Chevron has boosted its 2013 capital budget to $36.7 billion, up from $34.2 billion in 2012.

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