Chevron plans to increase its oil and gas production by 20 percent by 2017, but most of the growth will be abroad, in part because U.S. policy isn't "pro-development," CEO John Watson told CNBC's "Closing Bell" on Tuesday.
"We've seen oil and gas production increase nicely in the U.S. over the last few years, but it's all on private land. On federal lands, and the [government] owns a lot of land, we haven't seen that production increase," said Watson, the head of the country's second-largest oil company, behind Exxon Mobil.
Some 85 percent of the outer continental shelf is "off limits to development," he said.
(Read more: El Niño warning puts farmers and commodities investors on alert)