Chevron Corp. reported plans to spend $39.8 billion on its capital and exploratory program for 2014, including $4.8 billion of planned expenditures by affiliates that do not require cash outlays by Chevron. The 2014 budget is $2 billion lower than expected total investments for this year, which are estimated at $42 billion, including expenditures of $4 billion for major resource acquisitions not included in the original budget.
"We expect 2013 will be a relative peak year for investments, as we completed several attractive resource acquisitions,” said John Watson Chevron’s chairman and chief executive officer, adding, “We also anticipate 2014 will represent the peak year for spending on our Australian LNG projects as we move them closer to first production.”
Ninety percent of Chevron’s spending program in 2014 is budgeted for upstream oil and gas exploration and production projects. Another 8% is associated with the company's downstream businesses.
Investments in Tengizchevroil LLP in Kazakhstan and Chevron Phillips Chemical Co. LLC (CPChem) in the US comprise 75% of affiliate expenditures.
how do you think that Chevron's $39.8 billion 2014 capital budget lower than 2013?