Reports related to this article:
Project(s): View 11 related projects in PECWeb
Plant(s): View 4 related plants in PECWeb
Released May 01, 2017 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Stronger crude oil prices put Chevron Corporation (NYSE:CVX) (San Ramon, California) back into the black in first-quarter 2017, with capital spending dropping significantly as more projects, particularly a train at the massive Gorgon LNG project in Australia, were brought online. The company's production also ticked up, consistent with gains in worldwide oil-equivalent production. Industrial Info is tracking more than $92 billion in active projects involving Chevron, including $10.4 billion in the U.S. and $20.6 billion in Australia.
Visit Industrial Info at Booth #9800 at the upcoming Offshore Technology Conference (OTC), May 1-4, at NRG Park in Houston, Texas. The OTC is the largest oil and gas sector trade show in the world. Last year, more than 68,000 attendees from 120 countries gathered at the annual conference, with more than 2,600 companies exhibiting.
Chevron's capital and exploratory expenditures in first-quarter 2017 were $4.4 billion, compared with $6.5 billion in the corresponding 2016 period. Cost cuts were cited as a major factor for the company's healthier bottom line: Earnings stood at $2.68 billion, compared with a $725 million loss in first-quarter 2016. Capital spending for 2017 is on track to be about $19.8 billion, about 56% lower than 2014.
Chevron's best performing segment was its international upstream operations, which earned $1.4 billion, compared with a loss of $609 million in first-quarter 2016. One of the company's highest-profile projects, the Gorgon LNG project offshore Western Australia, started its production of liquefied natural gas (LNG) from the third of three production units in late March. The company recently started the detailed design phase for a $1.2 billion offshore expansion in the Greater Gorgon Gas fields, off the coast of Barrow Island, which includes the installation of a feed gas pipeline system and the construction of additional subsea production wells. For more information, see Industrial Info's project report.
The company also is weighing its prospects for a potential fourth train at Gorgon, which, if approved, would not begin construction for several years. As currently envisioned, it would add another 5.2 million tonnes per year of LNG production, bringing the overall capacity to 20.8 million tonnes per year. For more information, see Industrial Info's project report.
Production increases at Chevron's U.S. properties were found in the Gulf of Mexico, including the Jack/St. Malo project, and the Permian Basin. In the Gulf, the company is at work on the $5.1 billion Big Foot offshore oil and gas production platform. Completion of the 75,000-barrel-per-day (BBL/d) crude oil and 25 million-standard-cubic-foot-per-day natural gas facility is expected in second-quarter 2018, which would follow more than seven years of construction. For more information, see Industrial Info's project report.
Higher margins on refined product sales nearly doubled Chevron's U.S. downstream earnings from first-quarter 2016. The company is at work on a slew of upgrade and replacement projects at its 240,000-BBL/d Richmond Refinery in Richmond, California, including a $300 million hydrogen unit replacement, $200 million in FCCU upgrades, $200 million in SRU upgrades and $100 million in OSBL upgrades. These overhauls, which will replace a 53-year-old hydrogen unit and allow the refinery to use higher sulfur gas oil blends, are under construction and are expected to wrap up in the summer of 2018. For more information, see Industrial Info's project reports on the hydrogen unit, FCCU, SRU and OSBL projects.
In the nearer term, Chevron expects to complete two projects at the Richmond Refinery by the end of this summer: $60 million in upgrades to the long wharf, and a $50 million modernization of the FCCU. The latter will replace the current ammonia injection system and reduce particulate matter. For more information, see Industrial Info's project reports on the long wharf and FCCU projects.
The company's international downstream earnings dipped slightly, alongside sales margins for refined products. Chevron signed an agreement to sell its Canadian refining and marketing assets in Alberta and British Columbia, where it is at work on a $10 million hydrotreater unit upgrade and an $8 million FCCU upgrade at the Burnaby Refinery. The changes are expected to reduce sulfur content in the gasoline produced from 30 to 10 parts per million. For more information, see Industrial Info's reports on the hydrotreater and FCCU projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Visit Industrial Info at Booth #9800 at the upcoming Offshore Technology Conference (OTC), May 1-4, at NRG Park in Houston, Texas. The OTC is the largest oil and gas sector trade show in the world. Last year, more than 68,000 attendees from 120 countries gathered at the annual conference, with more than 2,600 companies exhibiting.
Chevron's capital and exploratory expenditures in first-quarter 2017 were $4.4 billion, compared with $6.5 billion in the corresponding 2016 period. Cost cuts were cited as a major factor for the company's healthier bottom line: Earnings stood at $2.68 billion, compared with a $725 million loss in first-quarter 2016. Capital spending for 2017 is on track to be about $19.8 billion, about 56% lower than 2014.
Chevron's best performing segment was its international upstream operations, which earned $1.4 billion, compared with a loss of $609 million in first-quarter 2016. One of the company's highest-profile projects, the Gorgon LNG project offshore Western Australia, started its production of liquefied natural gas (LNG) from the third of three production units in late March. The company recently started the detailed design phase for a $1.2 billion offshore expansion in the Greater Gorgon Gas fields, off the coast of Barrow Island, which includes the installation of a feed gas pipeline system and the construction of additional subsea production wells. For more information, see Industrial Info's project report.
The company also is weighing its prospects for a potential fourth train at Gorgon, which, if approved, would not begin construction for several years. As currently envisioned, it would add another 5.2 million tonnes per year of LNG production, bringing the overall capacity to 20.8 million tonnes per year. For more information, see Industrial Info's project report.
Production increases at Chevron's U.S. properties were found in the Gulf of Mexico, including the Jack/St. Malo project, and the Permian Basin. In the Gulf, the company is at work on the $5.1 billion Big Foot offshore oil and gas production platform. Completion of the 75,000-barrel-per-day (BBL/d) crude oil and 25 million-standard-cubic-foot-per-day natural gas facility is expected in second-quarter 2018, which would follow more than seven years of construction. For more information, see Industrial Info's project report.
Higher margins on refined product sales nearly doubled Chevron's U.S. downstream earnings from first-quarter 2016. The company is at work on a slew of upgrade and replacement projects at its 240,000-BBL/d Richmond Refinery in Richmond, California, including a $300 million hydrogen unit replacement, $200 million in FCCU upgrades, $200 million in SRU upgrades and $100 million in OSBL upgrades. These overhauls, which will replace a 53-year-old hydrogen unit and allow the refinery to use higher sulfur gas oil blends, are under construction and are expected to wrap up in the summer of 2018. For more information, see Industrial Info's project reports on the hydrogen unit, FCCU, SRU and OSBL projects.
In the nearer term, Chevron expects to complete two projects at the Richmond Refinery by the end of this summer: $60 million in upgrades to the long wharf, and a $50 million modernization of the FCCU. The latter will replace the current ammonia injection system and reduce particulate matter. For more information, see Industrial Info's project reports on the long wharf and FCCU projects.
The company's international downstream earnings dipped slightly, alongside sales margins for refined products. Chevron signed an agreement to sell its Canadian refining and marketing assets in Alberta and British Columbia, where it is at work on a $10 million hydrotreater unit upgrade and an $8 million FCCU upgrade at the Burnaby Refinery. The changes are expected to reduce sulfur content in the gasoline produced from 30 to 10 parts per million. For more information, see Industrial Info's reports on the hydrotreater and FCCU projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
