Exxon and Chevron Share Perspectives on Venezuela Amid Investment Uncertainty
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Cautious Investment Outlook: Despite President Trump's push for U.S. oil companies to invest $100 billion in Venezuela's energy sector, both Exxon and Chevron refrained from announcing long-term investment commitments, reflecting uncertainty regarding the country's political and legal environment.
- Showcasing Technological Edge: Exxon CEO Darren Woods highlighted the company's technological capabilities in extracting Venezuela's expensive heavy crude, believing this could lower production costs and enhance recovery rates, although he labeled the country as 'uninvestable' at a recent White House meeting.
- Refining Capacity Expansion: Chevron CEO Mike Wirth noted that the company processes approximately 50,000 barrels per day of Venezuelan heavy crude at its Pascagoula refinery and could potentially increase this by an additional 100,000 barrels per day across its Gulf Coast and California refineries, indicating flexibility for future operations.
- Supportive Legal Framework: Chevron executives praised the recently passed hydrocarbon law, which grants private companies more autonomy within the state-controlled oil industry, potentially creating a more favorable environment for future investments.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 132.17 USD with a low forecast of 114.00 USD and a high forecast of 158.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 140.510
Low
114.00
Averages
132.17
High
158.00
Current: 140.510
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
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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Exxon and Chevron Share Perspectives on Venezuela Amid Investment Uncertainty
- Cautious Investment Outlook: Despite President Trump's push for U.S. oil companies to invest $100 billion in Venezuela's energy sector, both Exxon and Chevron refrained from announcing long-term investment commitments, reflecting uncertainty regarding the country's political and legal environment.
- Showcasing Technological Edge: Exxon CEO Darren Woods highlighted the company's technological capabilities in extracting Venezuela's expensive heavy crude, believing this could lower production costs and enhance recovery rates, although he labeled the country as 'uninvestable' at a recent White House meeting.
- Refining Capacity Expansion: Chevron CEO Mike Wirth noted that the company processes approximately 50,000 barrels per day of Venezuelan heavy crude at its Pascagoula refinery and could potentially increase this by an additional 100,000 barrels per day across its Gulf Coast and California refineries, indicating flexibility for future operations.
- Supportive Legal Framework: Chevron executives praised the recently passed hydrocarbon law, which grants private companies more autonomy within the state-controlled oil industry, potentially creating a more favorable environment for future investments.
Continue Reading