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Released April 30, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--With oil prices at their highest levels since late 2014, Chevron Corporation's (NYSE:CVX) (San Ramon, California) first-quarter profits for its upstream division were double those from the same period last year, fueling optimism for the oil giant's capital-spending plans for 2018 and beyond. Industrial Info is tracking $91.3 billion in active projects from Chevron, including more than $60 billion worth that are under construction or in their advanced engineering phases.
Click on the image at right for a graph detailing Chevron's active projects, by country.
Capital and exploratory expenditures in the first quarter were reported to be $4.4 billion, largely unchanged from the same period last year, although spending was weighed more toward U.S. than international projects. The upstream business represented 88% of the total in first-quarter 2018.
"Oil and gas production is increasing, most notably in our Gorgon and Wheatstone LNG projects in Australia, and our shale developments in the Permian Basin, where production grew 65% from a year ago," said Michael Wirth, the chief executive officer of Chevron, in a quarterly earnings-related press release.
The Wheatstone LNG project in Australia was a particularly strong performer for Chevron, which is nearing full completion on the $11.96 billion first phase. The project comprises two trains, each with a capacity of 4.45 million metric tons per year; the first was completed and started producing and exporting liquefied natural gas (LNG) last year, and construction on the second train is expected to wrap up this quarter. Chevron produces 67 million barrels of oil-equivalent per day at the facility in the first quarter, and shipped 69 LNG cargoes. For more information, see Industrial Info's project report.
Chevron also is in the final steps on its $226.5 million natural gas-processing plant, which is already supporting the first train with feedstock. The completed facility will have a capacity of 189.56 million standard cubic feet per day. For more information, see Industrial Info's project report.
The U.S. is home to another top-shelf offshore project for Chevron: the $5.1 billion Big Foot offshore oil and gas production platform in the deepwater Gulf of Mexico, which began construction in 2011 and is expected to be fully completed this summer. The platform, which is designed to produce up to 75,000 barrels per day (BBL/d) of oil and 25 million standard cubic feet per day of natural gas, was finally installed this spring after the first attempt in 2015 ran into a host of construction-related problems. For more information, see Industrial Info's project report.
The skyrocketing numbers in the upstream business more than offset a 21% decline in downstream earnings, which the company blamed on lower profit margins from sales of its refined products. Chevron's refinery in Richmond, California, is home to four of the company's highest-valued downstream projects:
Chevron Corporation's (NYSE:CVX) (San Ramon, California) single highest-valued project is the $27.1 billion Tengiz Crude Oil & Natural Gas Processing Plant 3 near Koschagyl, Kazakhstan, which is expected to begin construction this summer. The plant, which is part of the broader, $37 billion growth project at the Tengiz Oil Field, involves constructing a facility that will process 260,000 BBL/d of crude oil and 960 million standard cubic feet per day of natural gas. Industrial Info also is tracking Chevron's $7 billion drilling program in the Tengiz Oil Field. For more information, see Industrial Info's project reports on the processing plant and drilling program.
Total revenues for the quarter stood at $37.7 billion, a 13% increase from first-quarter 2017; net income was $3.64 billion, a 35.6% increase.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
Click on the image at right for a graph detailing Chevron's active projects, by country.Capital and exploratory expenditures in the first quarter were reported to be $4.4 billion, largely unchanged from the same period last year, although spending was weighed more toward U.S. than international projects. The upstream business represented 88% of the total in first-quarter 2018.
"Oil and gas production is increasing, most notably in our Gorgon and Wheatstone LNG projects in Australia, and our shale developments in the Permian Basin, where production grew 65% from a year ago," said Michael Wirth, the chief executive officer of Chevron, in a quarterly earnings-related press release.
The Wheatstone LNG project in Australia was a particularly strong performer for Chevron, which is nearing full completion on the $11.96 billion first phase. The project comprises two trains, each with a capacity of 4.45 million metric tons per year; the first was completed and started producing and exporting liquefied natural gas (LNG) last year, and construction on the second train is expected to wrap up this quarter. Chevron produces 67 million barrels of oil-equivalent per day at the facility in the first quarter, and shipped 69 LNG cargoes. For more information, see Industrial Info's project report.
Chevron also is in the final steps on its $226.5 million natural gas-processing plant, which is already supporting the first train with feedstock. The completed facility will have a capacity of 189.56 million standard cubic feet per day. For more information, see Industrial Info's project report.
The U.S. is home to another top-shelf offshore project for Chevron: the $5.1 billion Big Foot offshore oil and gas production platform in the deepwater Gulf of Mexico, which began construction in 2011 and is expected to be fully completed this summer. The platform, which is designed to produce up to 75,000 barrels per day (BBL/d) of oil and 25 million standard cubic feet per day of natural gas, was finally installed this spring after the first attempt in 2015 ran into a host of construction-related problems. For more information, see Industrial Info's project report.
The skyrocketing numbers in the upstream business more than offset a 21% decline in downstream earnings, which the company blamed on lower profit margins from sales of its refined products. Chevron's refinery in Richmond, California, is home to four of the company's highest-valued downstream projects:
- $300 million hydrogen unit replacement; see project report
- $200 million in hydrogen purity (FCCU feed hydrotreater) upgrades; see project report
- $200 million in hydrogen purity (SRU) upgrades; see project report
- $100 million in hydrogen unit replacements and hydrogen purity upgrades for offsite battery limits (OSBL); see project report
Chevron Corporation's (NYSE:CVX) (San Ramon, California) single highest-valued project is the $27.1 billion Tengiz Crude Oil & Natural Gas Processing Plant 3 near Koschagyl, Kazakhstan, which is expected to begin construction this summer. The plant, which is part of the broader, $37 billion growth project at the Tengiz Oil Field, involves constructing a facility that will process 260,000 BBL/d of crude oil and 960 million standard cubic feet per day of natural gas. Industrial Info also is tracking Chevron's $7 billion drilling program in the Tengiz Oil Field. For more information, see Industrial Info's project reports on the processing plant and drilling program.
Total revenues for the quarter stood at $37.7 billion, a 13% increase from first-quarter 2017; net income was $3.64 billion, a 35.6% increase.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
