Chevron posted its highest quarterly profit in 10 years as oil and gas prices surged, and said it was looking to boost investment in natural gas on rising world demand.
Oil prices have soared after Russia’s invasion of Ukraine, bolstering profits for oil majors worldwide. The company has pledged to increase oil output, heeding the White House call for more fossil-fuel production as European nations and other try to wean themselves off Russian energy.
Chevron Chief Executive, Mike Worth, said the company was considering additional investments in renewable fuels and liquefied natural gas (LNG).
The United States is the world’s largest LNG exporter, and the Biden administration has been scrambling to boost supply to Europe as Russia threatens the continent’s supply after heavy sanctions imposed on Moscow.
“It is an area of high priority for us because of the market demand for it,” Wirth said.
Wirth said Chevron was discussing new LNG investments in the U.S. Gulf and in expanding its LNG project in Israel. It is also in talks with a number of companies for potential partnerships in the renewable fuel industry.
“I don’t want to leave the impression that we are off to the races to do anything tomorrow,” Wirth said. “We really can take a long-term look.”
Chevron, the second largest U.S. oil producer posted adjusted earnings of $6.5 billion or $3.36 per share, for the first quarter, up from $1.7 billion.
Chevron’s U.S. oil and gas production rose 10% from the previous year. In the first quarter, Chevron pumped a record 692,000 barrels of oil and gas per day in the Permian, the top U.S. unconventional basin, and boosted full year output to a projected 700,000 to 750,000 barrels of oil and gas per day.