Chevron is approaching a stable oil output plateau of 1 million barrels of oil equivalent per day (boe/d) in the Permian Basin, signaling a strategic shift from growth to cash flow prioritization. The company has reduced its active drilling rigs in the region from 13 to 9 in 2025 and is also cutting hydraulic fracturing crews. Chevron aims to secure approximately $5 billion per year in free cash flow by 2027, reflecting a broader industry trend toward capital discipline amid changing market conditions. This slowdown in fracking activity in the Permian Basin is occurring faster than expected, influenced by tariff uncertainties and production increases by OPEC+. Industry analysts, including Goldman Sachs, note that the market currently does not require additional growth, prompting Chevron and others to focus on cash generation rather than expanding output.