Chevron Corporation (NYSE:CVX) has dozens of upstream oil and gas projects in the development or planning stage and will spend billions on these to reach the production growth goals established by the company. The company is active in Australia, Africa, the Gulf of Mexico and other areas around the world.

TUTORIAL: How To Read Financial Tables

Production Growth
Chevron reported production in 2010 of 2.76 million barrels of oil equivalent (BOE) per day, and the company hopes that the huge investments it has made will increase production to 3.3 million BOE per day by 2017.

In 2011, Chevron has budgeted $26 billion in capital spending, with $22.6 billion for its upstream segment, with the funds allocated to dozens of projects that the company has all over the world. The Asia Pacific region is a particular focus for Chevron and the company will spend 35% of its 2011 budget here.

Chevron has two large natural gas projects under construction or being planned in Australia. The Gorgon and Wheatstone projects, when completed, will have peak production capacity of approximately 710,000 barrels of oil equivalent per day. (For related reading, see Natural Gas Industry: An Investment Guide.)

The Gorgon project is operated by Chevron and is under construction with first production expected in 2014. The company is developing multiple offshore natural gas fields and then will deliver this natural gas to a liquefied natural gas (LNG) facility being built on Barrow Island off the coast of Australia. The LNG will then be shipped to various countries in Asia. Chevron estimates peak capacity of 450,000 BOE per day from this project.

The Wheatstone project is similar to Gorgon, although smaller in scope, and also involves the development of offshore natural gas fields and the construction of a LNG facility. The project is still in the planning stage by Chevron but if approved will see first production in 2016, and peak capacity of 260,000 BOE per day.

North America
In North America, Chevron is active in the Gulf of Mexico and is developing several offshore discoveries into the Lower Tertiary trend including the Jack and St. Malo fields. The first phase of the project here will cost approximately $7.5 billion and have peak production of 170,000 BOE per day, with first production in 2014. Chevron's partners at St. Malo include Petrobras (NYSE:PBR), Eni (NYSE:E), Exxon Mobil (NYSE:XOM) and Statoil ASA (NYSE:STO). Chevron also has the Big Foot project in the deepwater Gulf of Mexico, which will go on line in 2014 with peak production of 79,000 BOE per day.

In Brazil, Chevron owns a 37.5% interest in the Papa Terra project located in the Campos Basin. The company is involved in this heavy oil project with Petrobras, and expects first production in 2013, and an eventual peak production of 140,000 BOE per day.

Bottom Line
Chevron has assembled a large inventory of upstream oil and natural gas projects that it can use to grow production to meet its target levels promised to investors. These areas are distributed across many different regions.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Savings

    Easy Ways to Go Green and Stay Budget Friendly

    Social entrepreneurs recruit "skeptics" to team green, by providing economically efficient products and services that minimize consumers' carbon footprint.
  3. Investing

    Top Investment Banks In The Energy Industry

    Many global Investment banks are highly involved in the energy industry, but there are also some smaller banks and boutiques that are strong players.
  4. Stock Analysis

    3 Stocks that Are Top Bets for Retirement

    These three stocks are resilient, fundamentally sound and also pay generous dividends.
  5. Investing News

    Are Stocks Cheap Now? Nope. And Here's Why

    Are stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
  6. Investing News

    4 Value Stocks Worth Your Immediate Attention

    Here are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
  7. Investing News

    These 3 High-Quality Stocks Are Dividend Royalty

    Here are three resilient, dividend-paying companies that may mitigate some worry in an uncertain investing environment.
  8. Stock Analysis

    An Auto Stock Alternative to Ford and GM

    If you're not sure where Ford and General Motors are going, you might want to look at this auto investment option instead.
  9. Stock Analysis

    The 6 Biggest Russian Energy Companies

    Learn about the top energy companies in Russia, a country that holds some of the largest reserves of oil, natural gas and coal in the world.
  10. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  1. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  2. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  4. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  5. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  6. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!