Using the latest technology, Chevron continues to make major discoveries in the United States while maintaining strong production in mature fields.
Chevron is one of the largest hydrocarbon producers in the United States. In 2020, we produced an average of 1.06 million barrels of net oil-equivalent per day, 34 percent of the corporation’s worldwide total.
Our company’s major operations in the United States are primarily in the midcontinent region, the Gulf of Mexico and California.
At the end of 2020, Chevron was the second-largest leaseholder in the Gulf of Mexico.
Midcontinent
Chevron operates crude oil and natural gas fields in the midcontinental United States – primarily in Colorado, New Mexico and Texas. Chevron acquired Noble Energy, Inc. in October 2020. In 2020, the company’s net daily production from Chevron and Noble assets in these areas averaged 342,000 barrels of crude oil, 1,249 million cubic feet of natural gas and 179,000 barrels of natural gas liquids (NGLs).
Chevron is among the largest net acreage leaseholders and producers in the Permian Basin of West Texas and southeastern New Mexico. Operations in the Permian date to 1920, and total net production has surpassed 5 billion barrels of oil-equivalent. The Permian is composed of several basins, including the liquids-rich Midland and Delaware basins, and it offers opportunities for conventional resources as well as for shale and other tight resources. In the Midland and Delaware basins, horizontal drilling and multistage hydraulic fracturing yield considerable incremental potential. In the Central Basin Platform, we are maintaining production of these conventional resources through well workovers, artificial-lift techniques, facility and equipment optimization and enhanced recovery methods.
Chevron’s capital spending on exploration and development of our approximately 2.2 million net acres (8,903 sq km) of shale and other tight resources in the Midland and Delaware basins is focused on horizontal wells with multistage fracture stimulation.
Chevron follows a factory development strategy in the Permian Basin, which uses multiwell pads to drill a series of horizontal wells that are completed concurrently using hydraulic fracture stimulation. To increase performance, we also apply data analytics and technology.
Other midcontinent holdings include approximately 70,000 net acres (283 sq km) in the Haynesville Shale in East Texas. Low transportation cost and proximity to the Gulf Coast position the Haynesville resource as a competitive, reliable and long-term source of gas supply. The Noble acquisition also included 35,000 net acres (142 sq km) of mature assets in the Eagle Ford Shale in southern Texas.
Deepwater Gulf of Mexico
Chevron is one of the leading leaseholders in the deepwater Gulf of Mexico, with a long history of technical achievement and operational safety.
Average net daily production in 2020 was 175,000 barrels of crude oil, 96 million cubic feet of natural gas and 11,000 barrels of NGLs, primarily from the Jack/St. Malo and Tahiti fields, the Perdido Regional Development, and the Caesar/Tonga, Big Foot, Tubular Bells, Blind Faith and Mad Dog fields.
The Jack and St. Malo fields in the Walker Ridge area – in a water depth of 7,000 feet (2,134 m) – are being jointly developed with a host floating production unit centrally located between the two fields. Chevron has a 50 percent interest in the Jack Field and a 51 percent interest in the St. Malo Field and operates both. Production from the development is linked to the market by the Jack/St. Malo oil and gas export pipelines. Total net daily production in 2020 averaged 57,000 barrels of liquids and 9 million cubic feet of natural gas. Total potentially recoverable oil-equivalent resources are estimated to exceed 500 million barrels.
Also in Walker Ridge is the 60 percent-owned and operated Big Foot project. In 2020, net daily production averaged 14,000 barrels of liquids and 2 million cubic feet of natural gas. The project has an estimated production life of 35 years and total potentially recoverable oil-equivalent resources are estimated to exceed 200 million barrels.
In 2020, net daily production at the 58 percent-owned and operated Tahiti Field averaged 39,000 barrels of crude oil, 17 million cubic feet of natural gas and 2,000 barrels of NGLs. The Tahiti Field has an estimated remaining production life of more than 20 years.
Chevron has a 15.6 percent nonoperated working interest in the Mad Dog Field, where net daily production in 2020 averaged 9,000 barrels of liquids and 1 million cubic feet of natural gas. The Mad Dog 2 Project is developing the southwestern extension of the Mad Dog Field. The total potentially recoverable oil-equivalent resources for Mad Dog 2 are estimated to exceed 500 million barrels.
Stampede is a joint development of the Knotty Head and Pony fields, in Green Canyon. Chevron holds a 25 percent nonoperated working interest. The fields are in a water depth of 3,500 feet (1,067 m), with a reservoir depth of 30,000 feet (9,144 m). In 2020, total daily net production averaged 7,000 barrels of liquid and 2 million cubic feet of natural gas. The field has an estimated production life of 30 years.
The Anchor Field is in the Green Canyon area, approximately 140 miles (225 km) off the coast of Louisiana, in a water depth of approximately 5,000 feet (1,524 m). Chevron has a 75.4 percent interest in the Northern Unit area and a 62.9 percent working interest in the Southern Unit area. This project will utilize an ultra-deep water offshore drillship, capable of handling pressures of 20,000 psi, which also enables access to other high-pressure resource opportunities across the Gulf of Mexico. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 420 million barrels.
Chevron operates the 60-percent owned Ballymore Field in the Mississippi Canyon area, approximately 75 miles (120 km) off the coast of Louisiana and 3 miles (5 km) from Chevron’s Blind Faith Platform, in a water depth of 6,536 feet (1,992 m). Chevron also has a 40 percent nonoperated working interest in the Whale discovery in the Perdido area, located about 200 miles (322 km) southwest of Houston, Texas.
In 2020, the company participated in three deep-water wells: two exploration and one appraisal well. Chevron added 23 blocks in Gulf of Mexico lease sales totaling approximately 132,000 net acres in 2020.
Colorado
Chevron has 327,000 net acres (1,323 sq km) in Colorado’s DJ Basin with current development in two core areas: Wells Ranch and Mustang. Row development with integrated pipeline infrastructure in the Mustang area improves both cycle times and capital efficiency. In 2020, net daily oil-equivalent production was 148,000 barrels, composed of 98,000 barrels of liquids and 301 million cubic feet of natural gas (a combined 36,000 barrels of oil-equivalent attributable to Chevron in 2020).
In the Mustang area, dozens of wells have been drilled using utility electric power since 2019. Facility design and electrification have removed produced water tanks, oil rejection tanks and burners, significantly reducing the surface footprint and greenhouse gas emissions.
California
In 2020, Chevron was one of the largest net daily oil-equivalent producers in California, with 104,000 barrels per day, composed of 102,000 barrels of crude oil and 12 million cubic feet of natural gas.
Most of the production is from Chevron-operated leases that are part of three major crude oil fields in the San Joaquin Valley – Kern River, Midway Sunset and Cymric. We also operate and hold interests in the McKittrick, San Ardo, Coalinga and Lost Hills fields. Our expertise in steamflood operations – which makes the oil flow more easily – has resulted in a crude oil recovery rate at the Kern River Field of more than 60 percent.
Chevron continues to leverage leading-edge heat management capabilities in the recovery of these hydrocarbons, with emphasis on improved energy efficiency through new technology and processes. A new 29-megawatt solar farm that is designed to supply 80 percent of the power needs at the Lost Hills Field went online in April 2020.
Pipeline
Our subsidiary Chevron Pipe Line Company transports crude oil, refined petroleum products, liquefied petroleum gas (LPG), natural gas, NGLs and chemicals within the United States. Chevron’s acquisition of Noble Midstream Partners LP included assets used in oil transportation, natural gas processing, gathering, treating and transportation in the DJ Basin in Colorado and Delaware Basin in Texas. In addition, the company operates pipelines for its 50 percent-owned Chevron Phillips Chemical affiliate. We also have direct and indirect interests in other U.S. and international pipelines.
In the U.S. Gulf of Mexico, Chevron completed and commissioned a 136-mile (219-km), 24-inch (61-cm) crude oil pipeline from the Jack/St. Malo deepwater production facility to a platform in Green Canyon Block 19 on the U.S. Gulf of Mexico shelf, where there is a connection to pipelines that deliver crude oil to Texas and Louisiana.
Shipping
Chevron Shipping Company LLC is based in San Ramon, California.
Our fleet uses a combination of single-voyage charters, short- and medium-term charters, and company-owned and bareboat-chartered vessels. Our fleet includes both U.S.- and foreign-flagged vessels. The U.S.-flagged vessels transport refined products, primarily in the coastal waters of the United States. The foreign-flagged vessels primarily transport crude oil, LNG, refined products and feedstocks to and from various locations worldwide. To support the company’s growing LNG portfolio, we added six new LNG carriers. Chevron also owns a one-sixth interest in each of seven LNG carriers that transport cargoes for the North West Shelf Venture in Australia.
Power generation
The Chevron Pipeline and Power business unit manages Chevron’s interest in our gas-fired and renewable power generation assets and provides comprehensive commercial, engineering and operational support services to improve the power reliability and energy efficiency of Chevron operations worldwide.
Gas-fired cogeneration facilities produce electricity and steam and use recovered waste heat to support enhanced oil recovery operations.
Our renewable operations consist of wind, geothermal and solar assets, including interests in geothermal and solar joint ventures in Arizona, California and Texas.
