Chevron cuts spending plans again, sets 2021 budget of $14 billion

(Reuters) – U.S. oil major Chevron Corp (NYSE:CVX) on Thursday cut billions more off its long-term capital and exploratory budget after completing a major restructuring of its operations as it seeks to preserve its dividend.

The company said it now expects its total capital and exploratory budget through 2025 to be between $14 billion (10.44 billion pounds) and $16 billion, down from an earlier forecast of between $19 billion and $22 billion.

It also said that despite the reduction to the overall budget, it expects to be able to raise investment in the Permian and other shale basins, helped by an anticipated drop in capital needed for a major expansion in Kazakhstan.

The company set its 2021 budget at $14 billion, with $11.5 billion earmarked for oil exploration and production.

Chevron was among the first U.S. oil and gas majors to slash spending plans this year after the coronavirus pandemic’s impact on demand helped spark a collapse in oil prices, making companies focus on preserving cash instead of drilling more.