Chevron Corp. Announces 2026 Capital Expenditure Plan and Gorgon Stage 3 Investment Decision

Chevron Corp. has disclosed its capital investment programme for 2026, projecting spending in the range of $18 billion to $19 billion. This allocation sits at the lower end of the company’s long‑term guidance, reflecting a strategy that prioritises high‑yield projects while maintaining disciplined expenditure.

Focus on High‑Yield Opportunities

The company’s 2026 plan underscores a concentration on activities that deliver robust return on capital. Key allocation priorities include:

  • U.S. shale development – continued investment in the prolific Permian Basin and other domestic shale plays to support domestic output and margin expansion.
  • Offshore projects – targeted spending on Atlantic and Gulf of Mexico assets that offer favourable risk‑return profiles.
  • Lower‑carbon initiatives – funding for carbon‑capture and storage (CCS), renewable natural gas (RNG), and other low‑carbon technologies to align with global decarbonisation mandates and ESG expectations.

Chevron’s emphasis on these segments reflects broader industry trends in which major integrated oil and gas operators are reallocating capital toward assets with shorter payback periods and lower environmental footprints.

Gorgon Stage 3 Development in Australia

In a complementary development, Chevron’s Australian arm received a final investment decision (FID) for Gorgon Stage 3, a multi‑billion‑dollar expansion project located off Western Australia’s north‑west coast. The project is expected to:

  • Increase gas production capacity, reinforcing Chevron’s position as a leading natural‑gas producer in the region.
  • Leverage existing infrastructure, including pipelines and liquefied natural gas (LNG) export facilities, to accelerate commercialisation.
  • Contribute to Australia’s gas supply diversification, supporting the country’s long‑term energy transition strategy.

The FID signals Chevron’s commitment to sustaining its global portfolio while balancing investment in emerging markets that offer favourable fiscal regimes and stable regulatory environments.

Operations in Venezuela

Despite operating in a challenging geopolitical context, Chevron remains the only U.S. crude producer active in Venezuela. The company continues to deploy personnel to its sites, underscoring its resilience in the face of regulatory cautions regarding air travel safety. Chevron’s ongoing presence highlights its strategy of maintaining operational continuity in high‑risk jurisdictions to preserve strategic assets and maintain a foothold in the region’s crude supply chain.

Strategic Implications

Chevron’s 2026 capital allocation reflects a disciplined approach that aligns with:

  • Market dynamics – prioritising projects with lower capital intensity and higher cash‑flow generation amid volatile commodity prices.
  • Competitive positioning – sustaining a diversified asset base across high‑yield U.S. shale, offshore developments, and lower‑carbon projects to maintain resilience against sectoral shocks.
  • Economic factors – navigating inflationary pressures and regulatory shifts while ensuring that investments deliver long‑term value for shareholders.

By integrating cross‑sector insights—such as the interplay between U.S. shale economics, offshore market conditions, and Australian gas development—Chevron demonstrates adaptability and analytical rigor in its capital allocation decisions. The company’s focus on fundamental business principles and disciplined spending positions it to navigate the evolving landscape of the global energy transition.