SINGAPORE (Reuters) - Oil major Chevron Corp will next year invest around $4 billion to ramp up its crude production in the Permian Basin area of the United States, a company executive said on Monday.
Ryan Krogmeier, Chevron’s vice president of crude supply and trading, told the S&P Global Platts APPEC conference in Singapore that the company would increase its output from the Permian Basin, largely situated in Texas and New Mexico, to over 400,000 barrels per day over the next few years.
“We will be investing roughly $4 billion, next year, of capital in the Permian Basin, and we plan to grow production over the next several years to well in excess of 400,000 bpd,” he said.
Chevron expects crude oil output from all producers operating in Permian to rise by 1.4 million bpd in 2020, from 2.4 million bpd at present.
“The Permian is the powerhouse (of U.S. crude output growth),” Krogmeier added.
Reporting by Mark Tay; Editing by Richard Pullin and Joseph Radford