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Chevron outlines cut in exploration and production spending

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Chevron said its spending plans next year for exploration and production should be about 15 percent lower as market pressures endure for the company. Chevron said it pegged its exploration and production budget for next year at $19.8 billion, 15 percent lower than this year and 42 percent below 2015 levels. Chevron said its spending plans next year for exploration and production should be about 15 percent lower as market pressures endure for the company.

Chevron said it pegged its exploration and production budget for next year at $19.8 billion, 15 percent lower than this year and 42 percent below 2015 levels. “This is the fourth consecutive year of spending reductions,” Chairman and CEO John Watson said in a statement. The company reported third quarter net income of $2.65 billion, against $4.24 billion during the same period last year. Production was down 3 percent to 3.8 million barrels of oil equivalent per day.

The third quarter marked the fourth consecutive quarter for a downturn for the world’s largest publicly traded oil company. First quarter earnings of $1.8 billion were the weakest in more than a decade. Chevron said about 10 percent of its spending plans for next year target the Permian shale basin in the United States, one of the more resilient reserves in the country. About 35 percent of the spending will be geared toward liquefied natural gas assets in Australia and around 15 percent is designated for operations in oil-rich Kazakhstan.

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