Chevron has set its 2026 capital expenditure guidance at $18B–$19B, landing at the low end of its previously communicated $18B–$21B annual range. The spending plan underscores a familiar strategy: maintain discipline, generate higher returns, and continue prioritizing top-tier barrels across U.S. shale basins and select offshore hubs.
Nearly a third of Chevron’s planned 2026 budget will be directed to U.S. shale, spanning the Permian Basin, DJ Basin, and Williston (Bakken), along with smaller allocations to the Haynesville and U.S. offshore programs. Upstream investment alone accounts for ~$17B, including ~$6B dedicated to shale and ~$7B targeted toward global offshore projects in Guyana, the Eastern Mediterranean, and the U.S. Gulf of Mexico.
“Our 2026 capital program focuses on the highest-return opportunities while maintaining discipline and improving efficiency, enabling us to grow cash flow and earnings,”
— Chevron Chairman & CEO Mike Wirth
Chevron’s budget intentions align closely with the company’s actual 2025 U.S. drilling activity — which revealed a clear focus on core shale and select offshore deepwater developments.
🔎 Chevron’s 2025 U.S. Drilling Activity: Data Tells the Story
Analysis of 411 wells drilled by Chevron in 2025 provides a ground-level view of where Chevron’s capital is truly flowing. The activity confirms the company’s prioritization of shale-driven returns and high-performance deepwater projects.
🛢️ Top U.S. Plays by Wells Drilled (2025)
| Major Play | Wells Drilled | Share of U.S. Activity |
|---|---|---|
| Permian Basin (Midland + Delaware) | 210 | 51% |
| Williston (Bakken) | 101 | 25% |
| DJ Basin | 81 | 20% |
| Deepwater Gulf of Mexico | 16 | 4% |
| Haynesville (Gas) | 3 | <1% |
Chevron’s footprint is heavily concentrated across three liquids-rich basins — a strategy consistent with maximizing high-margin barrels per dollar of capex. Notably, the Permian saw more drilling than the DJ and Bakken combined, reinforcing its role as Chevron’s primary growth engine.
⛽ Shale = Returns, Deepwater = Longevity
Chevron’s 2025 mix shows a deliberate balance:
- Short-cycle shale keeps cash flowing fast
- Deepwater Gulf of Mexico wells, though fewer, provide long-life, low-decline production
That combination helps Chevron sustain both near-term cash generation and long-duration output — a core theme in Wirth’s 2026 strategy.
🛠️ Who’s Turning Chevron’s Wells? Key Contractors by Rig Count
Chevron leaned heavily on a tight group of high-performance drilling contractors in 2025:
Contractor & Rig Wells Drilled H&P 517 43 True 41 38 Patterson 814 28 Nabors X28 28 Patterson 289 26
For shale-focused operators like Chevron, rig selection impacts both drilling days and cost per lateral foot. Chevron’s repetition across rigs and contractors indicates:
- a preference for standardization
- a drive toward repeatable drilling cycles
- and lower learning curve costs through consistent crews
This is a textbook example of how scale + consistency = cost efficiency in shale.
🧾 What 2025 Activity Says About Chevron’s 2026 Strategy
Chevron’s drill-bit behavior matches its capital message. The company is:
✔ Doubling down on resource-rich, repeatable U.S. shale
✔ Maintaining selective exposure to deepwater growth
✔ Avoiding broad gas spending, despite rising LNG tailwinds
✔ Prioritizing efficiency through contractor standardization
If 2025 was the execution, 2026 is the continuation — but with greater cash discipline.
📌 Final Takeaway
Chevron’s 2026 capital plan proves one thing:
big oil isn’t chasing volume — it’s chasing value.
The company is staying lean, drilling exactly where it wins, and turning its shale and offshore assets into a synchronized engine of short-cycle returns and long-cycle stability.
