North Sea energy firms look beyond UK after tax squeeze
Written by Emily J. Thompson, Senior Investment Analyst
Source: reuters
- North Sea Oil and Gas Producers: Facing challenges due to a windfall tax in the UK, leading to mergers and shifting operations overseas.
- Impact on Domestic Production: Accelerating decline in domestic production, potentially increasing import dependency, consumer prices, and job losses.
- Taxation Changes: UK imposed a 25% Energy Profit Levy in 2022, extended until 2029 with a 35% rate, affecting profits of oil and gas firms.
- Company Responses: Major oil companies like Shell and Chevron are divesting assets, while smaller producers are merging to reduce costs and increase revenue.
- Future Outlook: Industry seeks government support for maximizing production from depleted reserves, while climate activists call for halting new investments in oil and gas.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 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
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 166.660
Low
158.00
Averages
176.95
High
206.00
Current: 166.660
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.
