Chevron has reported full-year earnings of US$26.9 billion for 2011 – a new company record. It also retains its guidance of around 1% CAGR in net oil production over the 2010–2014 period and reports that its growth projects are on track. Chevron is looking to grow its oil production at a rate of 4–5% per year over the 2014–2017 period. It is currently expecting to see net oil production of 2.680mbpd boe, compared with the 2.673mbpd boe seen for 2011. Fourth-quarter 2011 earnings were down by US$172 million year-on-year, at US$5.123 billion, due in part to losses of US$204 million incurred by the company’s refining activities in the US. Chevron says its crude oil input shrank to 763,000bpd in 4Q11, down 113,000bpd on year “mainly due to maintenance-related downtime at the Richmond refinery”. Refined product sales for the quarter came in at 1.23mbpd, down 69,000bpd on year, mostly due to lower gasoline and residual fuel oil sales. Branded gasoline sales were down 3% at 515,000bpd, on weaker demand. International operations in 4Q11 generated US$143 million in earnings for 4Q11, down from the US$267 million seen in 4Q10, with Chevron attributing most of the decline to weaker margins, with currency effects also working to drag down earnings. Refinery crude input fell by 235,000bpd on year to 805,000bpd in 4Q11, “primarily due to the sale of the Pembroke refinery”, and total refined product sales dropped by 12% on year, “primarily related to the sale of the company’s refining and marketing assets in the UK and Ireland”.The company’s downstream activities generated a loss of US$61 million in 4Q11, compared with a profit of US$742 million booked in 4Q10. Overall earnings from the segment for 2011 came in at US$3.591 billion, up 44.9% YoY, and worldwide refining inputs averaged 1.787mbpd in 2011, down from the 1.894mbpd in 2010. As far as the company’s capital and exploratory programme is concerned, Chevron spent a total of US$29.1 billion in 2011, of which US$1.5 billion and US$1.2 billion was spent in the US and international downstream segments, respectively. For 2012, the company is looking to invest US$32.7 billion, of which US$2.1 billion and US$1.5 billion will be allocated to US and international downstream activities. The bulk of this will be spent on the Pascagoula base oil project, along with projects aimed at improving energy efficiency and feedstock flexibility. John Watson, Chevron’s chairman and chief executive, said in a conference call to investors that the company is still on course for completion of its Pascagoula base oil project in 2013, which will add a 25,000bpd lubricants manufacturing facility at Chevron’s 330,000bpd Pascagoula refinery in Mississippi. “We are continuing to develop an enviable project queue, with almost 90% of the programme earmarked for upstream activity. We are progressing construction on our two world-class Australian LNG projects and deepwater Gulf of Mexico developments. We are planning for increased exploration activity around the world, along with additional work to further assess the Marcellus and Unicar acreage we acquired this past year. The investments we are making today are on track to deliver significant production growth by mid-decade, which is expected to generate substantial cashflow over a long period of time,” Watson said.
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oil investments – Chevron’s net income drops by US$172m in 4Q11, driven by US refining losses
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26 comments
crudeoil
January 28, 2012 at 11:29 am (UTC 0)
Utilities Corp. (“APUC”) (TSX: AQN) today announced that it plans not to proceed
crudeoil
February 1, 2012 at 12:56 am (UTC 0)
During a Senate State Affairs Committee hearing, Sen. Kevin Meyer questioned whether this would set a precedent by limiting where the Permanent Fund could make investments.
crudeoil
February 6, 2012 at 7:14 pm (UTC 0)
Mausz has more than 12 years of experience developing and marketing
crudeoil
February 8, 2012 at 9:02 am (UTC 0)
This is an excellent article by Rich Miller, Asjylyn Loder and Jim Polson for Bloomberg. Here is the opening:
crudeoil
February 9, 2012 at 11:58 pm (UTC 0)
The payments were uncovered by a receiver’s investigation into the dealings of Venezuelan-American financier Francisco Illarramendi, whose biggest investment client was a pension fund for state oil workers in the South American country.
crudeoil
February 12, 2012 at 9:50 pm (UTC 0)
A man works at the Cidade Angra dos Reis offshore platform at the Lula oil field, about 300 km from the coast of Rio de Janeiro. (Reuters)
crudeoil
February 16, 2012 at 8:21 am (UTC 0)
The ministry in a statement said the total was 29.5% more than in 2010 due to
crudeoil
February 17, 2012 at 8:23 am (UTC 0)
Investments in the industry hit $20.7-billion in 2008 before stalling along with the global economy and slipping to $10.6-billion the following year, according to Statistics Canada.
crudeoil
February 19, 2012 at 10:46 pm (UTC 0)
U.K.-based oil and gas company BG Group (BRGYY.PK) split its ADR stock 5 for 1 last week. Some details from the corporate site:
crudeoil
February 21, 2012 at 1:45 am (UTC 0)
today provided a recap of recent achievements for the Marcellus, Eagle Ford and Marmaton. At the same time, the Company discussed changing market dynamics and the impact on near-term plans for Cabot.
crudeoil
February 24, 2012 at 10:33 pm (UTC 0)
“So the investments were made in a rushed and aggressive manner … But (now) I think they will be more cautious when it comes to due diligence and investment decisions.”
crudeoil
March 1, 2012 at 8:26 am (UTC 0)
purchasing managers rose to 56.9 from a revised 54.7 in January,
crudeoil
March 2, 2012 at 12:49 pm (UTC 0)
BLOOMINGTON, Ind. — Can major new investments in American oil, gas and coal production send our economy soaring?
crudeoil
March 5, 2012 at 5:27 am (UTC 0)
Cnooc has bid for at least $4.5 billion of overseas assets
crudeoil
March 5, 2012 at 5:27 am (UTC 0)
Can you get more returns from your commodities investments, without opening yourself to more risk? Kurt Nelson, co-founder of SummerHaven Investment Management, a manager of commodities ETFs, explains some of the investment strategies.
crudeoil
March 6, 2012 at 6:25 pm (UTC 0)
That means that there are opportunities for increased production, although they will require significant investments because of their complexity, said Juan Jose Suarez Coppel, director general of Mexico’s state-owned oil company, Petroleos Mexicanos.
crudeoil
March 6, 2012 at 6:25 pm (UTC 0)
Juan Jose Suarez Coppel, director general of Pemex, also spoke to challenges
crudeoil
March 10, 2012 at 2:04 am (UTC 0)
Players in the renewable-energy sector include everyone from small manufacturers of solar panels to multi-national oil companies and investment banks.
crudeoil
March 11, 2012 at 6:33 am (UTC 0)
The Chinese government was motivated by a keenness to secure its multi-billion dollar investments in the East African nation particularly in the oil sector. Most of Sudan’s oil exports went to energy-hungry China.
crudeoil
March 11, 2012 at 7:39 pm (UTC 0)
The Chinese government was motivated by a keenness to secure its multi-billion dollar investments in the East African nation particularly in the oil sector. Most of Sudan’s oil exports went to energy-hungry China.
crudeoil
March 12, 2012 at 6:53 pm (UTC 0)
“The water that could be used even for a modest oil shale production, say of 400,000 barrels a day, would be enough to satisfy the needs of 600,000 people.”
crudeoil
March 14, 2012 at 12:57 am (UTC 0)
San Ramon-based Chevron (NYSE: CVX) is investing on both sides of its business — upstream (finding oil and gas and getting them out of the ground) and downstream (refining them and selling the products).
crudeoil
March 17, 2012 at 4:12 pm (UTC 0)
Niger, a poor semi-arid West African nation. One of the world’s
crudeoil
March 17, 2012 at 4:12 pm (UTC 0)
Instead, the president called for additional investments in green energy to lessen dependence on foreign oil and ease the pain at the pump.
crudeoil
March 22, 2012 at 12:27 am (UTC 0)
With gas prices rising, Republicans said Obama is not doing enough to promote domestic oil production. They also criticized his alternative energy investments, particularly the now-bankrupt Solyndra.
crudeoil
March 23, 2012 at 12:24 am (UTC 0)
With total investments in Norway’s petroleum industry forecast at a record-high 186 billion Norwegian kroner (roughly $32 billion) this year, according to the national statistics bureau, engineers …