Chevron’s 2025 drilling program highlights how operational efficiency, scale, and repeatability are reshaping U.S. shale and offshore development. Rather than chasing growth through higher rig counts, Chevron Corporation is applying a factory-style development model across its core plays—focusing on fewer rigs, better execution, and higher capital efficiency.
In 2025, Chevron drilled a total of 437 wells across its U.S. onshore and offshore portfolio. The results underscore a consistent theme: efficiency creates a manufacturing approach that improves cash flow durability, even in a lower-volatility growth environment.
Wells Drilled in 2025 by Play
| Play | Wells Drilled (2025) |
|---|---|
| Permian Basin | 223 |
| Bakken (Williston Basin) | 107 |
| DJ Basin | 86 |
| Gulf of Mexico Offshore | 18 |
| Haynesville | 3 |
| Total | 437 |
Permian Basin — The Manufacturing Model in Action
Wells drilled: 223
The Permian sits at the center of Chevron’s factory-style development strategy. Management emphasized that production strength is being delivered with fewer rigs and completion spreads, driven by longer laterals, drilling cycle-time improvements, and continuous technology gains. Chevron is deliberately moderating growth and allowing production to move quarter-to-quarter based on well timing, not capital acceleration. The outcome is a mature asset capable of holding production flat at significantly lower capital intensity, translating directly into stronger and more predictable free cash flow.
Bakken (Williston Basin) — Efficiency Transfer and Portfolio Optimization
Wells drilled: 107
Following the Hess integration, Chevron views the Bakken as a high-quality shale asset operating at a stable plateau. The focus is now on importing best practices from the Permian, including longer laterals and faster drilling cycles, while also transferring Bakken operational learnings across Chevron’s broader portfolio. Management made it clear there is no rush to redefine the Bakken’s long-term role, preferring to fully optimize capital efficiency before judging how it competes internally for capital. The Bakken is firmly being evaluated through the same factory lens that has reshaped Chevron’s other shale assets.
DJ Basin — From Underestimated to Proven Performer
Wells drilled: 86
The DJ Basin was cited as a clear example of how Chevron’s disciplined approach can unlock hidden value. Management noted that the DJ was initially underestimated, but once fully understood and optimized, it proved highly competitive within the portfolio. Like the Permian and Bakken, the DJ now benefits from scale effects—thousands of mature wells creating a shallower aggregate decline profile, allowing production to be maintained with relatively modest reinvestment. The DJ reinforces Chevron’s thesis that efficiency, not activity intensity, is the key to sustained cash generation.
Gulf of Mexico Offshore — Reliability Anchors Cash Flow
Wells drilled: 18
While smaller in well count, the Gulf of Mexico plays an outsized role in Chevron’s cash-flow profile. Offshore assets are facility-limited, low-decline, and highly reliable, providing stable production with limited incremental capital. Chevron highlighted recent tiebacks reaching design capacity ahead of schedule, reinforcing the Gulf’s role as a high-margin anchor within the upstream portfolio. The offshore factory looks different than shale, but the principle is the same: execution excellence and reliability drive durable returns.
Bottom Line
Across shale and offshore, Chevron’s 2025 drilling results reinforce a consistent message:
efficiency enables a factory approach, and the factory approach delivers stronger cash flow.
Rather than chasing growth, Chevron is standardizing execution, optimizing capital allocation, and letting operational excellence compound across its portfolio—one well at a time.
