Chevron Corporation (CVX) is making strategic moves to boost its oil and natural gas production in the U.S. Gulf of Mexico. The company has announced the initiation of water injection operations at its Jack/St. Malo and Tahiti facilities, located in deepwater areas of the Gulf.
At the Jack/St. Malo facility, 280 miles south of New Orleans in 7,000 feet of water, Chevron successfully implemented its first water injection project in the deepwater Wilcox trend at the St. Malo field. This project, completed under budget, involved constructing new water injection facilities, drilling two production wells, and two injection wells. This initiative is anticipated to increase the St. Malo field’s gross ultimate recovery by approximately 175 million barrels of oil equivalent.
Meanwhile, at the Tahiti facility, located 190 miles south of New Orleans in 4,100 feet of water, Chevron has commenced water injection into deepwater wells. This project involved the installation of a new manifold and 20,000 feet of flowline.
These water injection projects are part of Chevron’s broader strategy to enhance oil and natural gas recovery in the Gulf of Mexico, where the company produces some of the world’s lowest-carbon oil and gas.
Bruce Niemeyer, president of Chevron Americas Exploration & Production, emphasized the importance of these projects, stating, “Delivery of these two projects maximizes returns from our existing resource base and contributes toward growing our production to 300,000 net barrels of oil equivalent per day in the U.S. Gulf of Mexico by 2026.” He further added, “These achievements follow the recent production startup at our high-pressure Anchor field, reinforcing Chevron’s position as a leader in technological delivery and project execution in the Gulf.”
Investors can gain exposure to Chevron stock through various exchange-traded funds (ETFs) such as the EA Series Trust Strive U.S. Energy ETF (DRLL) and SPDR Select Sector Fund – Energy Select Sector (XLE).
Chevron’s stock (CVX) closed at $145.44 on Tuesday, down 1.7% from the previous day.