Chevron Nears Oil Output Plateau in Permian, Adding Billions in Cash Flow

Chevron Corp. is on the cusp of reaching a production plateau in the largest US oil field, allowing it to reap billions of dollars of additional cash flow in the next few years.

The company is cutting drill rigs and frack crews in the Permian Basin of Texas and New Mexico as it approaches its long-term target of producing 1 million barrels of oil equivalent a day in the region, Bruce Niemeyer, president of the company’s shale business, said in an interview Wednesday. New wells will mostly offset natural declines, meaning production will stay around this level through 2040, enabling Chevron to reap $5 billion in annual free cash flow by 2027, he said.