Chevron, whose U.S. oil production came in flat year over year and international production fell 2.5% to 1.3 million barrels a day in the first quarter, would have suffered a similar fate were it not for the strength of its natural gas business, which proved to be its saving grace, delivering a 3.2% year-over-year increase in first-quarter sales.
Chevron Corporation (NYSE:CVX) plans to more aggressively direct its efforts toward LNG. Through its various LNG ventures, the company plans to boost total production by 20% through the end of 2017. In addition to its Angola LNG project, Chevron has two LNG projects in Australia, as well as a 50% interest in the proposed Kitimat LNG terminal in Canada.
With global LNG demand forecast to exceed output by the end of this decade and with demand for LNG expected to grow at an average rate of 15 million tons a year through 2025, Chevron Corporation (NYSE:CVX) appears to have solidified a first-mover advantage in the promising African region that should serve it well for years to come.
The article An LNG Milestone for Chevron in Angola originally appeared on Fool.com.
Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Chevron Corporation (NYSE:CVX) and TOTAL S.A. (NYSE:TOT).
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