Focus on non-US economies and expansion plans in developing economies, such as Asia and Latin America, have provided the company with a significant advantage over companies who rely solely on the U.S. economy for their revenues.
Chevron Corp. and its partners are close to nailing down a binding agreement to move forward with development of the $5-billion Hebron Ben Nevis offshore oilfield, marking a new, more cordial phase in the relationship with Danny Williams, Premier of Newfoundland and Labrador.
Gary Luquette, president of Chevron North America Exploration and Production Co., said Hebron will be a world-scale project producing up to 200,000 barrels a day from a concrete gravity-based structure, rivalling the Hibernia project.
"We have all the partners sitting with their hands on the switch now," Mr. Luquette said in an interview. "As soon as we get the commercial agreements with the provincial government hammered out, we are ready to go."
San Ramon, Calif.-based Chevron, the project leader, and partners Exxon Mobil Corp., Petro-Canada and StatoilHydro ASA, aim to complete commercial agreements by mid-year.
Chevron has announced that it will begin testing an oil extraction technique that could allow it to extract billions of barrels of oil reserves in the region between Saudi Arabia and Kuwait.
The extraction technique, called "steamflooding," is a process in which steam is injected into an oil reservoir to make the oil less viscous and easier to pump. This technique is widely used in California and Indonesia. Though Chevron faces unique challenges in Saudi Arabia--namely extracting oil from carbonate rock--it has undergone small-scale tests and plans to conduct further testing in the summer of 2009.
Approximately 4% of Chevron's global production occurs in the neutral zone between Saudi Arabia and Kuwait. Successful steamflooding tests could potentially yield tens of billions of barrels of oil.
