US oil and gas company Chevron has announced a capital expenditure (capex) budget of between $18.5bn and $19.5bn for 2024.

The planned spending includes between $15.5bn and $16.5bn for consolidated subsidiaries and approximately $3bn for affiliates.

An estimated $14bn will be spent on upstream operations in 2024.

Two thirds of upstream spending is intended for the US, with roughly $6.5bn going towards expanding Chevron's US shale and tight gas portfolio, of which approximately $5bn is designated for the development of Permian Basin projects.

Of all US upstream capex, about 25% will go towards Gulf of Mexico projects such as the Anchor project, which is expected to produce its first oil in 2024.

The energy company plans to spend $1.5bn on downstream operations, with 80% reserved for US projects.

Chevron’s Geismar renewable diesel expansion project is anticipated to begin operations in 2024.

Chevron said the upstream and downstream capex includes roughly $2bn for low-carbon initiatives such as expanding into new energy business lines and reducing the carbon intensity of existing operations.

Nearly half of the capex for affiliates is reserved for Tengizchevroil's project in Kazakhstan and approximately a third will go towards Chevron Phillips Chemical Company, which includes the Golden Triangle Polymer Project and Ras Laffan Petrochemical Project.

Chevron chairman and CEO Mike Wirth said: “We are maintaining capital discipline in both traditional and new energies. These investments are expected to underpin durable free cash flow growth to support our objective of returning more cash to shareholders.”

Chevron set an annual capex projection range of $14bn–16bn through 2027 following the acquisition of PDC Energy.

In October this year, Chevron reached an agreement to acquire Hess in an all-stock deal valued at $53bn.

Following the completion of the Hess acquisition, which is expected in the first of 2024, Chevron’s annual capex budget is expected to be between $19bn and $22bn.