Hot and heavy but ready to shut down at a moment’s notice. A big operator’s dream. Portends high quarterly earnings vol at $TPL but we’ll (I’ll) take it.
Chevron Corp. will spend about half its capital budget on projects that yield quick returns over the next three years, underscoring the importance of shale as it prepares for growing uncertainty in how the world consumes energy.
The U.S. oil giant will spend about $9 billion to $10 billion a year on “short-cycle investments” through 2022, primarily focused on the Permian Basin, the world’s biggest shale oil region, the San Ramon-based company said in a presentation on its website Friday. The Permian is on course to make up about one in five barrels the super major pumps worldwide.
But now they’re investing heavily, attracted by the ability to ramp up production quickly and potentially reduce it if oil prices crash.
That’s a particularly useful trait when the future of oil and gas consumption is unclear, with electric vehicle usage growing and governments clamping down on greenhouse gas emissions.