Chevron's portfolio is in the midst of a big structural shift. Capital allocation is moving towards short-cycle opportunities, led by the Permian basin, where Chevron holds a large, low-royalty tight oil position. The company achieved full-cycle returns of 13% on its unconventional exploration during the 2007-2016 decade, the best performance among the Majors. This success was predicated on outstanding results in the Wolfcamp and Bone Spring sub-plays. Its conventional exploration performance remains highly dependent on two world-class, legacy deepwater regions: Australia and the US Gulf of Mexico. Both face challenges in commercialising the large volumes discovered. A select number of test areas could yield the next core region.