Oil giant Chevron said it will cut its budget by 24% next year as it aims to control spending following the decline in oil price.

The company said it would spend $26.6billion in 2016, with the bulk of spending planned on international oil and gas exploration and production projects.

Chevron has allocated around $11billion of its spending next year on major capital projects which are currently being built.

Meanwhile another $9billion will be utilised for spending on current producing assets, which include shale.

Chief executive John Watson said: “Our capital budget will enable us to complete and ramp up projects under construction, fund high return, short cycle investments, preserve options for viable long-cycle projects and ensure safe, reliable operations.

“We gain significant flexibility in our capital program as we complete projects under construction.

“Given the near-term price outlook, we are exercising discretion in pacing projects that have not reached final investment decision.”

https://www.energyvoice.com/oilandgas/95390/chevron-cuts-2016-spending-by-24-plans-bulk-of-spending-on-international-projects/