Chevron Boosts Exploration Spending with Over 20 New Wells Planned
Chevron (CVX) is boosting its exploration activity next year in an effort to improve performance and find new sources of production. The company plans to drill about 20 exploration wells, compared with 10 wells two years ago, along with five or six appraisal wells.
Chevron's exploration spending is expected to exceed $1.5 billion in 2026, a more than 50% increase from last year. This investment will support the company's new strategy, which includes using AI and hiring people with new ideas to improve results.
The increased spending comes after a period of weaker exploration activity. According to Wood Mackenzie data, Chevron's conventional exploration and appraisal spending fell 36% during 2021-2025 compared with the previous five-year period.
However, investors may question whether additional spending will lead to meaningful discoveries. The company has a strong record of dividend growth, but it also faces pressure to improve exploration performance after years of declining proved reserves and disappointing results.