Inside Chevron’s rapid rise in the Permian

Chevron Corp. has engineered a remarkable transformation in the Permian Basin, evolving from a minor player producing less than 100,000 boe/d a decade ago to targeting an impressive 1 MMboe/d by 2025, Hart Energy explores. This meteoric rise is largely attributed to the company's strategic development of its legacy holdings, which span over 2 million net acres across the Delaware and Midland basins. CEO Mike Wirth highlighted the uniqueness of Chevron's position, noting that much of this acreage is held in fee with virtually no royalties due to mineral ownership.

The company's late entry into the US shale game has not hindered its progress. Chevron's Permian production averaged 880,000 boe/d in the second quarter of 2024, with plans to exit the year at 940,000 boe/d. To achieve its ambitious 2025 target, the company is actively exploring innovative techniques to boost resource recovery, including changes in well completion and fracturing methods, as well as piloting different chemicals and gas injection strategies.

Beyond the Permian, Chevron has grown through slow, but steady, acquisitions across the DJ, becoming Colorado's largest oil and gas producer with the purchase of Noble Energy in 2020 and PDC Energy in 2024.