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: 188.770
Low
158.00
Averages
176.95
High
206.00
Current: 188.770
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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- U.S. Response Measures: The U.S. government is working to ensure oil continues to flow by providing insurance and considering Navy escorts; if successful, this could stabilize prices and prevent them from soaring above $100 per barrel, alleviating market pressure.
- Investment Recommendations: Given the uncertain oil market, investors should focus on safe oil stocks like ExxonMobil and Chevron, both of which are expected to maintain growth even if oil prices cool off, demonstrating strong financial resilience.
See More
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- Increased External Threats: President Trump has labeled the Cuban government as an 'unusual and extraordinary threat' and pledged tariffs on any country supplying oil to Cuba, further isolating the nation on the international stage and increasing pressure.
- Humanitarian Crisis Warning: The United Nations has warned of a potential humanitarian 'collapse' in Cuba due to dwindling oil supplies, prompting the government to implement measures to protect essential services and ration fuel for key sectors, highlighting the severity of the economic situation.
- Signs of Diplomatic Negotiation: Despite the tense situation, experts suggest that negotiations may be underway between the U.S. and Cuban governments regarding economic reforms, with President Miguel Díaz-Canel prioritizing economic improvement, indicating Cuba's efforts to adapt to changing geopolitical contexts.
See More
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- Leadership Transition Communication: Abel emphasized the importance of communication with Buffett to reassure shareholders during the leadership transition, thereby strengthening trust in the new management.
- Financial Performance Pressure: Despite reporting a nearly 30% decline in operating earnings for Q4, primarily due to weakness in the insurance sector, the stock rose 1% following the announcement, indicating a positive market reaction to the buyback news.
See More
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- New Fed Chair Nomination: Trump has nominated Kevin Warsh to replace current Fed Chair Jerome Powell, with Warsh advocating for interest rates below 3.5%, indicating a strong preference for lower rates that could significantly influence future monetary policy directions.
- Divergence in Fed Opinions: Some Fed voting members express concerns about the economic impact of the Iran situation, particularly regarding rising oil prices, highlighting a clear divergence from Warsh's views and complicating the policy-making process.
- Warsh's Inflation Theory: Warsh posits that inflation primarily stems from excessive government spending and money printing, planning to lower long-term rates by reducing the Fed's financial assets, although modest oil price fluctuations may not significantly impact his theory, potentially posing challenges during his confirmation process.
See More
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- Rising Treasury Yields: As of 2:47 a.m. ET, the benchmark 10-year Treasury yield increased by 4 basis points to 4.12%, while the 30-year Treasury bond yield also rose over 4 basis points to 4.758%, indicating market caution regarding economic outlook.
- Oil Price Risk Management: Treasury Secretary Scott Bessent announced that the government will implement measures to support oil trade in the Gulf, as the ongoing war threatens supply and could elevate prices, which will have significant implications for related industries.
- Strait Security Assurance: President Trump declared that the U.S. would provide risk insurance and escorts for tankers in the Persian Gulf to ensure safe passage through the Strait of Hormuz, a critical channel for about one-fifth of global crude shipments, highlighting the U.S.'s pivotal role in maintaining global energy supply chains.
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See More
