Chevron discussed its strategy and spending plans for 2011 and revealed the extent of the restructuring programme the company introduced in 2010.
John Watson, chief executive, in the annual meeting with analysts said Chevron would be investing 20 per cent more this year, at US$26 billion, with US$2.9 billion going to downstream.
Chevron sees overall 2011 oil-equivalent production at 2.79 million bpd, up 1 per cent. Growth is set to pick up to between four per cent and five per cent after 2014, once Australian gas starts flowing, with a 3.3 million bpd target for 2017.
The US$37 billion Gorgon liquefied natural gas (LNG) project, which Chevron is building with Exxon Mobil Corp and Royal Dutch Shell Plc, is slated to start up in 2014, and eventually produce the oil-equivalent of 450,000 bpd.
The company's two per cent production growth in 2010 was helped by a base business decline of just 3.5 per cent, which is below the five per cent that the company had expected.
In terms of restructuring, Chevron will have shed 2,800 staff by the end of 2011. The refining and marketing arm has pulled out of 62 countries with the company to be in fewer than 50 countries by next year, down from 81 currently.
Mike Wirth, Executive Vice President, Global Downstream, said that refining costs would be US$700 million lower next year than 2008, with US$500 million of that already achieved.
Chevron divulged cost figures for two big gas projects, one US$4.3 billion for Vietnam Block B, due for sign-off this year, and US$4.7 billion for China's Chuandongbei, which will start in 2012.
