On the back of new and expanded oil production projects in Kazakhstan and the Gulf of Mexico, oil giant Chevron (NYSE:CVX) is expected to generate free cash flow, likely to rise from $6 billion to $8 billion next year, according to CEO Michael Wirth. Speaking at the Goldman Sachs Energy, CleanTech & Utilities Conference in Miami. Wirth also notes that the firm wants to minimize costs by "a couple billion dollars."
Rising from 200,000 barrels daily in 2024, oil output in the Gulf of Mexico is expected to reach 300,000 barrels daily by 2026. Wirth pointed out that in the later half of the decade, the global liquefied natural gas market may see a minor glut. Notwithstanding delays resulting from a contract arbitration dispute from Hess' joint venture partners in Guyana, Chevron expects to complete its $53 billion acquisition of Hess (HES) later this year. At the same conference, Hess CEO John Hess voiced optimism that the acquisition would go as expected.
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