Chevron Corporation (NYSE:CVX) announced a $19.8 billion capital and exploratory investment program for 2017, including $4.7 billion in expenditures by affiliated companies.

“Our spending for 2017 targets shorter-cycle time, high-return investments and completing major projects under construction. In fact, over 70% of our planned upstream investment program is expected to generate production within two years,” said Chairman and CEO John Watson.

The San Ramon-based company is reducing its spending for the fourth consecutive, he said. With several major capital projects now online or expected to come online in the next few quarters, the combination of lower spending and increased production revenues should enable the company to be cash balanced in 2017, Watson aid.

The 2017 budget is down by 42% from 2015 outlays and at least 15% from projected 2016 capital investments.

Chevron’s exploratory spending will include $5.7 billion in U.S. upstream operations and $11.6 internationally. U.S. and global downstream spending will total $2.2 billion.

Upstream capital spending will include about $2.5 billion for shale and tight investments, the majority of which is slated for Permian Basin developments in Texas and New Mexico.