Whats in it for Chevron and Oil Drilling Essay - 1494 Words

Introduction Oil, also known as Black Gold, is the worlds prime energy source. It is used in everything from internal combustion engines, machinery installed in factories, in power generators that provide backup power during a blackout, etc to almost about any mechanical device. As a result, it is always in demand and because of this high demand, the commodity trades very well at high prices especially when supply is low. About ten years ago, oil prices were at their most brilliant, almost USD 0.89 per gallon. At this rate, a tank of gas in an average four door sedan filled up for about USD 10.00. Now, that same tank fills up for about USD 40.00. Over the past century, man has learned how to drill crude oil, process it and use it in†¦show more content†¦This article explores Chevrons recent announcement of investing USD 12 Billion in oil drilling and exploration in the Gulf of Mexico. And yes this lengthy introduction was necessary in order to give the reader an idea of the massive scale and lengths that oil companies are willing to go to in order to boost revenues by oil exploration. Chevron – An oil giant Chevron Corporation is headquartered in San Ramon, California and has a presence in more than 180 countries worldwide. Its core business is energy and it focuses on oil, gas and geothermal forms of energy. It is a publicly traded company on the New York Stock Exchange. Financial figures as of 2012 are as follows; revenue was USD 241.909 Billion, operating income of USD 46.332 Billion, net income of USD 26.179 Billion, total assets of USD 232.982 Billion and equity of USD 137.832 Billion. Chevron Corporations (CVX) stock is currently as of this writing in first quarter of 2014 trading at USD 113 on the NYSE index with an average price of USD 112.50 and a 5 year trend analysis shows that the CVX stock price has risen from about USD 52 to its current price. Whats in it for Chevron really? To put it succinctly, 1.5 Trillion US Dollars, thats what Chevron stands to gain. The media and analysts have been abuzz since Chveron made this announcementShow MoreRelatedChevron (Value Chain + Core Competencies)1423 Words   |  6 PagesConclusion 7 References 9 Introduction Chevron Corporation is multinational energy organization engaged in every facet of the oil, natural gas and thermal energy industries. Its downstream operations include selling products such as fuels, lubricants and petrochemicals to the global market. 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