The assertion comes as oil prices stood at their highest levels for 2016 to date, and as Chevron brings online the Gorgon liquefied natural gas project, in Western Australia.
“We’re completing major projects that have been under construction for several years,” said chief executive John Watson.
“This enables us to grow production and reduce spending at the same time, which should improve our net cash flow significantly.”
Capital budgets will be slashed to between $17-22bn per year for 2017 and 2018.
Watson added: “Industry conditions are tough right now, with low oil and natural gas prices. We believe markets will improve, and we’ll be well positioned when they do.”
Small cap investors will no doubt continue to watch the sector's blue-chip majors, for signs that the turmoil in oil markets may be on the wane.
On Tuesday, international benchmark Brent crude prices were holding above $40 per barrel, while West Texas Intermediary crude was changing hands just above $37.