Chevron to focus on exploration

There are two ways to solve the supply and demand problems in American oil markets--price customers out of the market or drill for more oil. Chevron decided to do the latter.

Chevron Corp. said Thursday that it will boost capital spending by 35 percent to $14.8 billion next year. The money will fund exploration, production and refining, the key elements to increasing the future supply of oil and gas.

Dave O'Reilly, chairman and CEO of the San Ramon company, said in a statement that the size of the expenditures "reflects a strong queue of growth projects, many of which are entering their construction phase and demonstrates our commitment to bring new energy supplies to market."

About two-thirds of the money will be spent overseas, with $4.9 billion earmarked for the United States.