HOUSTON, May 26 (Reuters) - Chevron Corp will
consolidate its exploration and production and refining units
under a single executive, it said on Thursday, as the company
sharpens its focus on U.S. oil and gas production and cost
Chevron's decision to raise its U.S. output has been
reinforced by global sanctions against Russian oil, following
the Ukraine invasion in February. The consolidation comes after
a streamlining two years ago that would cut about 10% of its
The second largest U.S. oil producer has pledged to add 15%
this year to its output in the top U.S. shale basin, which
supplies about 23% of its global production.
The combined upstream, midstream and downstream business
segments will report to a new executive vice president, Nigel
Hearne, effective Oct. 1.
Hearne will run the Oil, Products & Gas business, Chevron
said. He previously was president of its Europe, Asia and
The company is also consolidating upstream operations into
two regions Americas Exploration & Production and
International Exploration & Production. Americas will be run by
Bruce Niemeyer and International by Clay Neff, it said.
Jobs affected are mainly at the senior executive level, a
The reorganization will "bring strategy, policy and business
development into tighter alignment as we focus on leveraging our
strengths to deliver lower carbon energy to a growing world,"
Chief Executive Michael Wirth said in a statement.
Chevron's U.S. oil and gas production rose 10% in the first
quarter over a year earlier, while international output fell 8%.
The company pumped 3.06 million barrels of oil and gas per day
(boepd) in the first quarter.
Production in the Permian, the largest U.S. shale basin,
grew to a record 692,000 boepd. It recently lifted its full-year
Permian guidance by 15% over 2021 to between 700,000 and 750,000
Wirth recently said Chevron was looking for U.S.
acquisitions to enhance its natural gas and liquid natural gas
(Reporting by Sabrina Valle in Houston, additional reporting by
Rithika Krishna in Bengaluru; Editing by Krishna Chandra Eluri
and Richard Chang)