Chevron plans to significantly increase its drilling activity next year as part of a broader push to revamp its oil and gas exploration efforts. The U.S. energy company’s exploration budget is set to rise by more than 50 percent compared with 2025, according to Kevin McLachlan, who was recruited from TotalEnergies last year to lead Chevron’s exploration division. This boost in spending aims to address the unit’s recent underperformance and expand its presence in frontier regions.
Between 2021 and 2025, Chevron’s spending on conventional exploration and appraisal fell by 36 percent to $1.82 billion compared with the previous five-year period. The company had been focusing on lower-risk drilling programs and its U.S. shale operations, particularly in the Permian Basin. However, as these mature, Chevron is increasing its exploration activities in higher-impact areas such as South America, Sub-Saharan Africa, and the Eastern Mediterranean, seeking significant new discoveries.
McLachlan outlined plans to double the number of exploration wells drilled, from 10 wells two years ago to around 20 exploration wells next year, along with five or six appraisal wells. He emphasized the importance of enhanced investment in seismic data acquisition, which is critical for identifying prospects.
Chevron’s reserves had declined to a decade low of 9.8 billion barrels of oil equivalent at the end of 2024, roughly half that of its largest rival, ExxonMobil. This decline, alongside recent unsuccessful exploratory wells such as one in Namibia’s Orange Basin, prompted the company to hire McLachlan, who is recognized for his turnaround of TotalEnergies’ exploration division. Under his leadership, TotalEnergies made several significant discoveries, including the Venus field offshore Namibia, which was named “Discovery of the Year” in 2023.
The company’s broader exploration spending, including unconventional projects, is expected to surpass $1.5 billion this year, up from under $1 billion in 2025. Chevron has also expanded its exploration acreage, securing new blocks in Brazil, Egypt, Guinea-Bissau, the Gulf of Mexico, Namibia, Peru, and Suriname since 2024.
Industry analysts credit Chevron with making a “comeback” in high-impact exploration. Andrew Latham, senior vice-president of energy research at Wood Mackenzie, noted that Chevron’s prior emphasis on shale had limited its international exploration efforts, but as the Permian matures, the company is returning to “international wildcatting.”
McLachlan highlighted that Chevron is integrating artificial intelligence (AI) into its exploration activities through a program called “exploration moonshot.” The AI tools analyze seismic data to improve prospect identification and differentiate discovery wells from dry holes, achieving about 90 percent accuracy in tests. While AI is expected to enhance the exploration process significantly, McLachlan stressed that human expertise remains central.
Following Chevron’s $53 billion acquisition of Hess, some members of the exploration team involved in the notable Liza discovery in Guyana have joined Chevron, and the company has retained its Guyana-focused team that collaborates with ExxonMobil. This integration has introduced new ideas and talent into Chevron’s exploration operations.
McLachlan has also made key personnel additions, including Emmanuelle Garinet, appointed as director of exploration for the Americas and Sub-Saharan Africa. Chevron recently announced an early-stage oil discovery from a well offshore Angola, which could bolster efforts in Sub-Saharan Africa.
While McLachlan declined to speculate on where the next major discovery might emerge, he expressed confidence that Chevron has established the necessary foundations for future success, with more results expected in the coming months.