Chevron's Thriving Performance: A Quarter of Record-Breaking Production and Strategic Growth
Chevron delivered another quarter of outstanding operational performance and disciplined execution, reliably supplying the energy the world needs. According to Mike Wirth, Chairman and CEO, the company achieved record crude throughput in its refining system, helping meet demand in supply-constrained markets.
This achievement is a testament to Chevron's commitment to safe execution, reliability, cost, and technology. The company's strong operational performance was driven by improvements in its base business, creating meaningful value. In Shale & Tight, Chevron achieved first-quartile reliability in the DJ Basin during the third quarter by applying AI to anticipate and minimize downtime.
The company also delivered strong results in other parts of upstream, including record quarterly production in the Eastern Mediterranean as the Tamar Optimization Project and Leviathan Third Gathering Line ramped quickly. Reliability in Australia continues to be strong, where predictive maintenance, centralized data-driven decision-making, and AI help maximize LNG supply into a tight market.
In addition to its operational achievements, Chevron has been investing to develop future energy supply. The company announced a discovery in Angola within tieback range of Chevron-operated facilities, providing an opportunity for short-cycle, capital-efficient development. This is part of Chevron's broader strategy to expand its portfolio and increase production.
Chevron's growth plans are not limited to upstream operations. The company also continues to invest in downstream activities, including refining and petrochemicals. In the U.S., Chevron achieved record crude throughput in its refining system, helping meet demand in supply-constrained markets.
The company's efforts have paid off, with Chevron achieving a significant milestone of more than 2 MMbpd for the fifth consecutive quarter in upstream production in the U.S. This achievement demonstrates the company's ability to consistently deliver strong operational performance and drive growth.
Chevron's success is also reflected in its international operations. The company has established new fiscal terms in Venezuela, making it a more competitive player in the region. Additionally, Chevron recently announced an expected 50% reduction in Bakken midstream tariffs that expands economic inventory and competitiveness.
The company's long-term strategy is to double production for its three joint ventures to roughly 600,000 bpd by 2031. This development program will be self-funding and could extend further into the 2030s, underpinned by billions of barrels of resource. Total costs are expected to be under $20 per barrel, with competitive investment returns, and no major upgrades are needed, as infrastructure has been well-maintained.
Chevron's growth plans also include expanding its acreage and establishing new fiscal terms in Venezuela. The company recently announced an expected 50% reduction in Bakken midstream tariffs that expands economic inventory and competitiveness. Chevron is well-positioned to deliver more energy today and well into the future, with a strong portfolio of assets and a clear strategy for growth.
