Chevron Corp. plans to reduce overall capital spending by 26% next year and slice the budget through 2025, but more resources are budgeted for the deepwater Gulf of Mexico and the Lower 48, including the legacy Permian Basin holdings.

Capital expenditures (capex) are set at $14 billion for 2021, and up to $16 billion a year is earmarked for 2022-2025, the energy major said Thursday. 

Pre-pandemic, Chevron was forecasting capex would average $19-22 billion a year through 2024. The lower spending is set even as the Noble Energy Inc. assets are integrated, a deal completed in October.

The spending is designed to “prioritize investments that are expected to grow long-term value and deliver higher returns and lower carbon” with more than $300 million earmarked for investments...