Chevron expects spending to rise 22.5%

Chevron Corp. expects capital and exploratory spending to rise 22.5% in 2007 as it seeks to increase its oil production, the No. 2 U.S. oil company said.

It sees capital and exploratory spending of about $19.6 billion in 2007, up from about $16 billion this year.

The San Ramon, Calif.-based company also said its board had approved a plan to buy back as much as $5 billion in common stock over as many as three years.

Nearly 75% of Chevron’s 2007 budget -- $14.6 billion -- is for exploration and production, and about 20% is earmarked for refining, marketing and transportation.