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Gas industry

Unocal Corp. to Invest $1.4 Billion in Capital Spending in 1995

Strategic Insights

— 2 min read

Unocal Corp.'s chief executive, Roger C. Beach, announced the company's plans to increase capital spending by 10% in 1995, totaling $1.4 billion. The increased investment will focus on growth in three strategic business areas: the development of new oil and gas ventures, refinery modifications, and service station improvements. The company expects to allocate 61% of its forecast 1995 capital spending on worldwide exploration and development activities, with a significant portion dedicated to domestic projects, including the development of key projects in the Louisiana/Gulf of Mexico area and Alaska's Granite Point field.

Key Takeaways:

  • Unocal Corp. plans to invest $1.4 billion in capital spending in 1995, a 10% increase from $1.27 billion in 1994.
  • The increased investment will focus on three strategic business areas: new oil and gas ventures, refinery modifications, and service station improvements.
  • $855 million, or 61% of the forecast 1995 capital spending, will be allocated for worldwide exploration and development activities.
  • $405 million, or an increase of 31% from 1994, is earmarked for foreign oil and gas activities, including development of gas reserves offshore Thailand and the Netherlands.
  • The $450 million targeted for domestic projects is down 8% from 1994, with nearly 60% allocated for development in the Louisiana/Gulf of Mexico area.
  • The capital spending plan includes $200 million for worldwide exploration, with over half of it targeted for projects near existing operations with potential for rapid development.
  • Planned capital expenditures for the 76 Products Co. are about $380 million, with 80% allocated for refinery projects, including $240 million for modifications to manufacture reformulated gasoline for the California market.
  • Geothermal power projects are scheduled to receive $80 million in 1995, more than double the $35 million spent in 1994.

Statistics:

  • Unocal Corp.'s capital spending in 1994: $1.27 billion
  • Unocal Corp.'s planned capital spending in 1995: $1.4 billion (10% increase)
  • 1995 capital spending allocation for worldwide exploration and development activities: $855 million (61% of total)
  • 1995 capital spending allocation for foreign oil and gas activities: $405 million (increased by 31% from 1994)
  • 1995 domestic projects budget: $450 million (down 8% from 1994)
  • Worldwide exploration spending in 1995: $200 million
  • Geothermal power projects funding in 1995: $80 million (more than double the $35 million spent in 1994)

Sources:

  • "Unocal Corp. expects to increase 1995 capital spending 10% to about $1.4 billion." - Unspecified news source (exact date not provided)
  • "LOS ANGELES -- Unocal Corp. said it expects to increase its 1995 capital spending 10% to total about $1.4 billion..." - Unspecified news source (exact date not provided)
  • "Roger C. Beach, Unocal's chief executive..." - Unspecified news source (exact date not provided)

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