Sabrina Valle

HOUSTON (Reuters). – U.S. Oil Producer Chevron Corp (NYSE:) announced Wednesday that it will increase spending for new oil-and gas projects by 202% to $15 billion in 2022, and also raise shareholder returns.

Major oil companies responded to the rise in profits due to higher oil and natural gas prices by signaling they intend to increase drilling expenditures and reduce carbon emissions.

Chevron has increased its guidance for share buyback to $3 billion-$5billion per annum, from $2-$3billion in July.

Its investor-friendly buyback program is now back at pre-pandemic levels. The company was producing $5 billion per annum before the outbreak.

However, the company continues to invest in projects less than the $20 Billion originally scheduled for 2020. That was months before it experienced the impacts of the coronavirus.

Chevron chief executive Michael Wirth declared that the spending plan “reflects Chevron’s long-standing commitment to capital discipline.”

Although the 2022 spending plan is larger than the forecast, it still falls within the range of $15 billion to $17 miliarde that Chevron used for its previous guidance.

Following the October rebound in price, which hit a 7 year high in October and has since fallen to 7 years ago, the company is now reducing its debt and generating cash for distributions to shareholders.

Chevron, out of an estimated $8 billion for oil and natural gas-producing assets, will invest $3 billion at U.S. Permian Basin activities next year. The company will also invest $2 billion in the Tengiz gas field in Kazakhstan.