Chevron’s annual production forecast has been revised to the lower end of its initial estimate. For 2023, the company anticipates producing between 1.164 million and 1.2 million barrels of oil-equivalent per day (boepd). This is a decline from their previous projection of 1.18 million to 1.23 million boepd.
Various factors contribute to the downward revision, including planned turnarounds and operational downtime in Chevron’s upstream operations. As a consequence, the company foresees a reduction of approximately 110,000 boepd in production during the third quarter of 2023.
Despite the challenges, Chevron’s CEO, Mike Wirth, expressed confidence in their capability to fulfill long-term production growth plans. He highlighted the company’s favorable position to meet the rising global demand for energy.
The oil and gas industry faces obstacles, evident in rising costs and mounting concerns about climate change. Such factors make it harder for companies to invest in new production. Consequently, a considerable number of firms are expected to adjust their production forecasts downward in the coming years.
However, Chevron remains a dominant player in the oil and gas sector. With a robust track record of production growth, the company is well-prepared to tackle the present challenges confronting the industry. It continues to strive for sustainable solutions in the evolving energy landscape.
