Energy giants are making significant investments in LNG, ignoring forecasts of peak gas demand.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Source: CNBC
Oil Majors' LNG Investments: Major oil companies like Shell, TotalEnergies, BP, Exxon Mobil, and Chevron are significantly increasing their investments in liquified natural gas (LNG), anticipating a rise in global demand despite concerns about the energy transition.
Concerns Over Environmental Impact: Analysts warn that LNG, while marketed as a cleaner alternative to other fossil fuels, poses environmental risks, particularly due to methane leaks, and may not serve as a viable "bridge fuel" in the shift towards renewable energy.
Discrepancies in Demand Forecasts: The International Energy Agency (IEA) projects that while LNG demand will grow, it may plateau by the end of the decade, contradicting the optimistic forecasts from oil majors, highlighting potential oversupply issues.
Geopolitical Risks and Market Dynamics: Geopolitical tensions, especially in Asia, raise concerns over reliance on fossil fuels, with countries vulnerable to LNG supply disruptions, prompting calls for careful capital budgeting among energy supermajors to ensure long-term profitability.
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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: 207.790
Low
158.00
Averages
176.95
High
206.00
Current: 207.790
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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