Chevron plans to increase conventional exploration and appraisal spending by more than 50% compared with 2025, marking a significant rebuilding of its global exploration portfolio. The company expects to drill approximately 20 exploration wells and another five or six appraisal wells in 2027, compared with only 10 wells two years earlier.
The strategy is being led by Kevin McLachlan, Chevron’s vice president of exploration, who joined the company from TotalEnergies. Chevron has increased spending on seismic data, introduced more artificial intelligence into prospect evaluation and doubled its global exploration acreage since 2024. The objective is to develop a diversified portfolio of prospects rather than depend on one major discovery. Financial Times
Although much of the new conventional exploration program targets international areas such as Guyana, Namibia, Guinea-Bissau and Egypt, Chevron enters this expansion with a considerably larger U.S. acreage and production platform.
U.S. acquisitions expanded Chevron’s operating position
| Acquisition | Completed | Value | U.S. acreage and assets added |
|---|---|---|---|
| PDC Energy | 2023 | $6.3 billion equity value; $7.6 billion including debt | Approximately 275,000 net acres in Colorado’s DJ Basin and 25,000 net acres in the Delaware Basin |
| Hess Corporation | 2025 | $53 billion equity value; approximately $60 billion including debt | Approximately 463,000 net acres in the Bakken, plus producing deepwater Gulf of America assets |
The PDC acquisition strengthened Chevron’s scale in two of its most important U.S. operating areas. It created a roughly 600,000-net-acre DJ Basin position when combined with Chevron’s existing Colorado assets and added complementary acreage in West Texas. Chevron
The Hess acquisition added one of the largest positions in North Dakota’s Bakken, along with Gulf of America production of approximately 31,000 BOE per day at closing. While Guyana was the deal’s primary growth asset, the acquisition also significantly expanded Chevron’s U.S. drilling inventory and production base. Chevron/SEC announcement
Chevron’s 2026 U.S. drilling activity
OilGasLeads.com data identified 261 Chevron wells drilled between January 4 and September 13, 2026.
Basin Q1 Q2 Q3 through Sept. 13 2026 total Delaware Basin 34 26 24 84 DJ Basin 21 19 19 59 Williston Basin/Bakken 16 21 18 55 Midland Basin 7 12 21 40 Offshore Gulf of America 5 3 5 13 San Joaquin Basin 0 0 6 6 Piceance Basin 0 1 1 2 Eagle Ford 1 0 0 1 Arkoma Basin 0 1 0 1 Total 84 83 94 261
Chevron’s overall U.S. drilling count was stable during the first half, moving from 84 wells in Q1 to 83 in Q2. Activity then increased to 94 wells in Q3 through September 13, already 13.3% above the complete Q2 total.
The strongest increase occurred in the Midland Basin, where Chevron’s quarterly count rose from seven wells in Q1 to 12 in Q2 and 21 in the partial third quarter. The Delaware Basin remained Chevron’s largest drilling area with 84 wells, although quarterly activity moderated. DJ Basin drilling was stable, while the expanded Hess position helped make the Williston/Bakken Chevron’s third-largest U.S. drilling market.
These figures primarily represent development drilling and should not be treated as part of Chevron’s separate conventional exploration-well target. However, they demonstrate that Chevron’s exploration push is being launched from a large and increasingly active U.S. operating platform.
Industry Impact
Chevron’s strategy combines higher-risk conventional exploration with repeatable U.S. shale and offshore development. The company can pursue larger discoveries internationally while its DJ, Permian, Bakken and Gulf assets provide production, inventory and cash flow from politically stable U.S. “safe barrel” resources.
OFS Sales Strategy
Oilfield service companies should prioritize Chevron opportunities in the Midland Basin, where the data shows the clearest increase in drilling, followed by the Delaware, DJ and Bakken. Target drilling, completions, directional services, production infrastructure and supply-chain decision-makers, while monitoring Chevron’s expanded seismic and appraisal programs for longer-term geophysical, offshore and subsurface-service opportunities.
Author: phinds