Business · Energy & Commodities · 3 hrs ago
Chevron Raises Exploration Spending by 50%
U.S. oil company Chevron is increasing exploration spending by 50% this year, after years of focusing much of its work on the Gulf of Mexico and the Permian Basin.
It is looking for new oil and gas prospects in frontier regions including Africa, South America and the Eastern Mediterranean.
Chevron says it needs to find new reserves to offset declines at existing sites, while rising global oil demand could increase the need for supplies.
Disruptions to oil and gas flows through the Strait of Hormuz have also highlighted the risks of relying heavily on one region.
The company says about half of its exploration budget now goes to undeveloped frontier basins, up from 20% a few years ago.
Its 2027 plan calls for 20 exploration wells and possibly up to six appraisal wells, which assess whether a discovery could be developed.
Chevron is raising its exploration spending this year by 50% compared with last year.
Spending could top $1.5 billion, up from just below $1 billion in 2025.
The company is shifting toward frontier exploration and expanding its focus across South America, Africa and the Eastern Mediterranean.
Chevron plans to drill 20 exploration wells in 2027 and may drill up to six appraisal wells.
The company increased its exploration acreage by 35% over the past year and has announced discoveries in Nigeria and Angola.
- Who
- Chevron, with its exploration program led by vice president Kevin McLachlan.
- What
- Chevron is increasing its exploration budget by 50% this year and expanding frontier exploration.
- When
- This year; the article was published on October 31, 2026. Chevron’s 2027 program includes 20 exploration wells.
- Where
- South America, Africa and the Eastern Mediterranean, including areas such as Guyana, Angola, Namibia, Nigeria and Egypt.
- Why
- Chevron says it needs more exploration exposure and opportunities to renew and diversify its portfolio.
This story does not have two clearly opposing sides.
Chevron increased exploration spending this year by 50% compared with last year, according to McLachlan.
CEO Mike Wirth told analysts he was unhappy with exploration results from recent years and said the team had operated in a narrow range.
McLachlan told the Financial Times that Chevron was raising its exploration budget by 50% this year.
Chevron announced discoveries in Nigeria and Angola and increased its exploration acreage by 35% over the past year.
Chevron plans to drill 20 exploration wells and may drill up to six appraisal wells.
- Exploration spending increase
- 50% compared with last year
- Possible 2026 exploration spending
- More than $1.5 billion
- 2025 exploration spending
- Just below $1 billion
- Exploration acreage increase
- 35% over the past year
- 2027 exploration plan
- 20 exploration wells; possibly up to six appraisal wells
What people are saying
We needed to increase the spend because we just didn’t have the exposure
So we’ve increased our spend on seismic data, which is the enabling piece of how to generate prospects, without which you can’t generate ideas.
I'm not happy with the results out of exploration over the last few years, but I want to acknowledge our exploration team has been operating in a pretty narrow range.
We haven't had this deep of an inventory of opportunity.