Chevron returns to profitability after downturn
Chevron posted double-digit increases in revenues and profits on Friday, boosted by good news in most business sectors, including U.S. and international oil production.Considering that San Ramon is in California which has the most hostile environment on earth for fossil fuel development, this is a big accomplishment. Of course, one of their major investments was in Texas in the Permian basin. It does highlight the general turn around in the oil business since OPEC decided to drop its suicide pact mentality that including predatory pricing.
Revenues rose $9 billion or 42 percent over the same quarter last year to $33.4 billion. Income swung to $2.7 billion in profits after the California company posted losses of $725 million in the first quarter of 2016. Earnings per share rose to $1.43 from losses of 39 cents.
Costs increased $5 billion or 20 percent to $30.3 billion, but were still far below pre-crash levels. Total oil and gas production rose from 2.67 million barrels per day last year to 2.68 million barrels per day this year, largely thanks to international — not U.S. — drilling.
The company, based in San Ramon, posted $1.5 billion in upstream profits in the first quarter this year, compared with $1.5 billion in losses in the first quarter of last year. Downstream — Chevron refining, pipelines and chemicals — made $926 million this quarter, compared to $735 million in first quarter 2016.