Chevron and Shell to Sign Agreements Boosting Venezuelan Oil Production
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy CVX?
Source: seekingalpha
- Agreement Signing: Chevron and Shell are expected to sign agreements that will significantly boost U.S. production of Venezuelan heavy crude and natural gas, marking a pivotal step for foreign investment in the country's oil and gas market.
- Chevron's Strategic Move: Chevron plans to return an offshore gas field to Venezuela and expand its operations in the country's main oil region, demonstrating its long-term commitment and investment intentions in the Venezuelan market.
- Shell's Operational Control: Shell is expected to sign an agreement to take control of the Loran gas field, which had confirmed over 7 trillion cubic feet of reserves but remained undeveloped, now focusing on expanding the Petropiar project.
- Improved Policy Environment: This agreement represents the first major expansion deal since the U.S. captured President Maduro, reflecting the positive impact of the reform of Venezuela's main oil law aimed at attracting more foreign investment.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 184.910
Low
158.00
Averages
176.95
High
206.00
Current: 184.910
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Attractiveness: With a dividend growth streak exceeding 25 years, Chevron's current 3.8% yield becomes particularly appealing in a high oil price environment, potentially attracting more investors seeking stable income.
See More
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- Legal Dispute Impact: ExxonMobil raised objections due to its business relationship with Hess, causing over a year of delays; while initially viewed negatively, this provided Chevron an opportunity to consolidate resources before oil prices surged.
- Financial Condition Changes: Following the acquisition, Chevron's debt levels increased, with a debt-to-equity ratio rising from 0.12x to 0.25x, yet the company remains financially robust, showcasing its ability to withstand risks in a high oil price environment.
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See More
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- Energy Conservation Advocacy: Chevron's president of downstream, midstream, and chemicals, Andy Walz, encourages Americans to drive less and conserve energy, emphasizing that energy-saving practices are essential to cope with the challenges posed by high fuel prices.
- Long-Term Outlook: Walz warns that high global oil prices make it unlikely for U.S. gas prices to decrease in the short term, stating there is no
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