Oil and Gas

Chevron 2009 Capital Budget Set at $22.8 Billion


Chevronon Thursday held its 2009 capital spending plan to its 2008 expenditure level, citing financial strength to fund continued investments.

Chevron, the country's No. 2 oil company, plans to spend $22.8 billion in capital projects in 2009, putting 75 percent toward upstream oil and gas exploration and production projects and 20 percent toward downstream businesses like refining and marketing.

"Much of our 2009 spending continues to be on large, multiyear projects aimed at increasing energy supplies to meet global demand and also improving operating efficiency and reliability," said Chief Executive Dave O'Reilly.

"About 10 percent of the budget is for large, one-time payments related to upstream production concessions outside the United States," he said in a statement.

Shares of Chevron were down more than 2 percent Thursday.