2014 and 2015 have been quite tough for the oil industry amid the prevailing oil crisis. Due to the crisis many oil companies went for price cutting techniques just to survive in the industry. Chevron Corporation (NYSE:CVX) is one among them and has also been cutting its operational costs, as well as its price just to reduce the expenses to at least maintain the break even. According to the indications form the company, it will probably be launching its LNG Gorgon project, which is worth $53 Billion. According to the officials from the company, it seems very positive and looks forward to achieve the best results, claiming that the target of maintaining the profitability despite the downed oil prices will be met. The company seems optimistic regarding its profitability maintenance in spite of the 50% decline in the Global crude oil prices ever since July last year.
According to the reports coming in from the analyst firms, the project initiated by the company is pretty unique in nature, particularly the size of the project which makes the largest ever oil project ever undertaken in Australia. The first finishing deadline of the project was 31st December 2014, which however, was delayed later on due to various reasons, among which an important delaying factor was the fallen oil prices last year. The company’s revenue head Jay Jenson also has his faith in the project’s success. The revenue head believes that the project is actually designed for the long run, and will show its true potential eventually. He thinks that the project will maintain a healthy revenue cash flow and profit growth in the next few decades.
Mr. Jenson alsoappears to be satisfied with the all the advancementsthe company has made so far in Western Australian region. Moreover, about 90% of the total project has already been completed. The company’s second real venture in Australia is the $29 billion LNG wanderWheatstone, which is also about 57% complete presently and will be operational probably in a year.
Some other companies which include Exxon Mobil Corporation (NYSE:XOM) and The Royal Dutch Shell plc (ADR) (NYSE:RDS) also have about 25% stakes in the Gorgon venture. The second and third LNG trains also appear to be all set to begin generation only a year after completion of Gorgon.
Chevron Corporation’s (NYSE:CVX) CEO also showed that one of variables on which the Wheatstone and Gorgon ventures’ profits will be based are the deterioration rates. According to the Exxon’s senior administration, it has not yet said anything about its development on the project Gorgon which would be embraced in a short run period.
Until now the company also has not indicated any definite number of itsoperationalbacksets, the daily newspaper of Western Australia has also assessed that the figure could surge to 4,000.
The company’s operational costs figure is also the same given by the Australia’s correspondence group. The company also intends to reduce its project workforce from 70 to 40 to be in accordance with the operational cuts made crosswise over diverse special business units of the organization.