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 31^st 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.

Speculators at Wall Street started their guessing game long before 2015 even begins, what would it take for the two oil giants to top the list. This research goes much deeper into the issue then just coming to a conclusion through random guesses.

The thing with DJIA stocks is that it fluctuates with sentiments, too high when they are good and too low when they are negative. So what are the sentiments surrounding these two big oil giants. At last Monday’s closing, Chevron (NYSE:CVX) was the second worst for DJIA stocks with a return below -7.3%. On the other hand Exxon (NYSE:XOM) stood third in line of worst performing Dow stock for 2014. Its loss tipping at almost 6.2%. Speculators still had a much better picture predicted for the two, with Exxon (NYSE:XOM) loss at 4% and Chevron (NYSE:CVX) gain of at least 6%.

At this stage, next year’s predictions are yet unstable. It seems the oil patch has to fall even further down before the recovery stage even begins and leads it up to a profit earning stage. It drop from $100 to $65 is quite bad. Another element to be taken into consideration that bother Exxon (NYSE:XOM) and Chevron (NYSE:CVX) are market leaders with $600 billion in combined market capitalization even after the recent setback. Hence, both have the power to seek out better opportunities in these troubled times.

Both companies also have a standard to maintain, for example ever though Exxon (NYSE:XOM)’s dividend for the year rounds up to $2.76 EPS but its Thomas Reuters prediction is set at $7.59 EPS for this year and $6.58 for 2015. Similarly Chevron (NYSE:CVX)’s divided is $4.28 for the year with estimates set as high as $10.08 EPS for 2014, and $9.14 for 2015. This could actually tempt the companies to lower their spending further and use that money for stock buybacks.

But on the other hand one might think that maybe the bad news it yet to come. Exxon (NYSE:XOM)’s shares trade at $92.40, against a 52 week, ranging between $86.91 and $104.76, with the consensus price target of $100.44. The company’s dividend yield for now is 3.0%, with chances of growth. Whereas Chevron (NYSE:CVX) trades are at $111, with the 52 week range of $106.65 to $135.10 and the consensus price set rising above $130. Its dividend yield is 3.9%.

Companies all around are responding differently to these predictions. Some are lowering their targets while some still have hopes set on them being the high yield dividends for 2015.

One of the biggest point to ponder over is, when oil prices rise, integrated oil companies have cleansing and marketing assets to turn to, for generation of cash, even though their contribution to actual earnings are pretty small. 90% of Chevron (NYSE: CVX)’s earnings comes through its oil and gas production. But the last quarter demonstrated a different scenario. The earning of oil and gas did fall by over $400 million year over year but the company shifted its focus to refining, chemical manufacturing and retail, which as a result helped raise earnings for over $1 billion to $1.39 billion. This was a 25% rise in the quarterly revenue.

This is one advantage; a firm has, when two different business segments work together. When the oil and gas prices rise, one segment enjoys high figure sales while the other suffers, and when the same prices suffer loss the other segment are on fire. Hence, in a wa,y integrated business enjoys an edge over those companies that don’t offer both services. Many oil companies could learn from this and bring it to practice in their firms.

Another point worth noting is that unlike its fellow businesses, Chevron (NYSE: CVX) didn’t convert its revenue into free cash, and instead it was dependent on debt issuance and other namely assets to cater for their capital expenditure, share repurchase and dividends, while other firms like BP, Royal Dutch Shell and ExxonMobil (NYSE:XOM) converted their revenue into cash. Chevron (NYSE: CVX) has many projects in its pipeline, and once they come into play, the company’s cash situation will boom as yet they seem hesitant about where they stand. This might take a few years but the results seem promising.

At this stage, it is a better idea for investors to sit back and be patient with Chevron (NYSE: CVX). The company should be given a chance to come out and prove itself in terms of capital spending and cash flow generation. Chevron (NYSE: CVX), no doubt has fallen behind in the Big Oil race, but its few projects, such as Gorgon and Wheatstone LNG are in the pipeline, and  could change their current state. But even that won’t happen immediately, and will take a couple of years. So instead of making any hasty decisions, investors should hold back on jumping to any major conclusions about the purchase the Chevron (NYSE: CVX) stock. Analysts have made speculations that place Chevron (NYSE:CVX) at a stable and high position in a matter of months, but it is better to let it get there first before buying the stocks.

Chevron Corporation (NYSE:CVX)’s annual sales revenue is around 230 billion which they have to manage through subsidiaries and affiliates for which Chevron Corporation (NYSE:CVX) provides administration, technical and financial support. Chevron Corporation (NYSE:CVX)’s reputation of being the leading energy company after Exxon makes it one of the most prestigious companies in the U.S.

Chevron Corporation (NYSE:CVX) will be selling off its interest in the Chevron Corporation (NYSE:CVX) Canada Limited by 30 percent out of its total 330,000 net acres to KUFPEC Canada – a foreign subsidiary of Kuwait foreign exploration Company. The price has been set at 1.5 billion, also including Chevron Corporation (NYSE:CVX)’s share of future capital costs for the joint affiliation.

Chevron Corporation (NYSE:CVX) emphasizes a lot on Duvernay, which is the largest shale plays in North America; acreage there defines long term growth prospects for Chevron Corporation (NYSE:CVX). Chevron Corporation (NYSE:CVX), since the initiation of the exploration program, has drilled 16 wells with the initial productivity of 7.5 million cubic feet of natural gas and 1,300 barrels of condensate per day. Chevron Corporation (NYSE:CVX) acquired 86,000 acres in the Duvernay shale formation the previous year and is now selling off 30% of the total.

Soaring capital expenditures is a volatile issue and Chevron Corporation (NYSE:CVX) has been dealing with in for the past 5 years.

They have been spending around 37 billion per year in capital expenditure, which was 17 billion in 2009. Over 90 percent of the 37 billion is spent on high end projects. Their ongoing LNG project in Australia has cost them a lot, because of the rise in labor cost; the gross cost estimate has risen by 45 percent since 2009 to 54 billion.

Chevron Corporation (NYSE:CVX) plans to spend 2 billion less this year on leasing rigs, floating oil platforms, installing pipelines and repairing oil-refineries. Chevron Corporation (NYSE:CVX) is aiming to reverse the trend of the over flowing expenditures by scoping down on certain projects which will result in more cash flows.

The Kuwait deal will help ease off some pressure from Chevron Corporation (NYSE:CVX), which was building from quite some time. Also the deal will give way to other lucrative offerings on which Chevron Corporation (NYSE:CVX) can focus on. The question that is a worry for Chevron Corporation (NYSE:CVX) is that what if it still cannot built up a healthy cash flow statement for its vary investors who have been constantly worried about the huge cash inflows.

Analysts have been keenly observing the capital investment of the top 25 corporations and almost all of them have increased their purchases over the year. It is a good sign for the market as investor interest will increase in the country and ultimately it will prove fruitful for the market and the country as well. Analysts believe that the government should appreciate faster capital spending growth through some policies that encourage investment within the US.

The investors all around the globe have been showing a lot of interest in telecommunications and energy, hence the government should focus explicitly on introducing policies that encourage domestic and foreign investors to come and invest in these sectors. Investments in these sectors would help grow productivity and employment in the country by creating new jobs. Energy and telecommunications along with cable technology are the sectors booming and the government should make the most out of this lucrative situation.

Telecom and the cable industry have been leading spenders since many years, with an investment of 46 billion only last year. This is followed by the oil and natural gas industry with an investment totaling $40 billion and the internet and technology ranking third with $23 billion. AT&T INC (NYSE:T) is expanding its fiber optic network for households with this investment while Verizon Communications (NYSE:VZ) is working on its 4G wireless Network.

Google Inc (NASDAQ:GOOGL), which is among world’s largest corporations missed out on the list last year but has come back with a bang. Now ranking 12^th Google Inc (NASDAQ:GOOGL) too has been expanding its territories- making acquisitions and taking further steps to reach the top. The world’s largest search engine has Youtube, Android and many other large subsidiaries under its belt to make money for it which is where the investment budget comes from.

Also one interesting thing is that the first are seeking a greater and long term productivity strategy where instead of creating more jobs for the economy, they are focusing on more productivity using less workers. Corporations want this solely for the reason of investor trust and a larger promised return which has to come from somewhere. Hence the market for energy, telecommunications, oil and natural gas all across the globe is a lucrative industry to invest in. The government should encourage large capital spending because it is in itself evidence that the corporation that is spending is also seeking in return strong enough benefits for it to be worth it to spend millions in capital expenditure.

The company plans to open twelve new filling stations over the course of the next twelve months. At the same time, BP will also increase the fleet of stations through acquisitions. The president of BP’s Australia enterprise, Andy Holmes, engaged in an interview. He refused to elaborate further about the company potential targets for buyouts. The British oil company also plans to invest about AUD$2.3 billion over the course of the next five years on its refineries in its downstream units, such as its refinery located in Kwinana, Perth.

BP is pulling back on its refining operations in Austrialia, but it is still trying to increase its retail business. Other oil and gas companies, such as the world’s third largest independent oil trader Trafigura Beheer BV as well as Vitol Group, are trying to increase their presence in the industry. BP will also invest more than AUD$1 billion into a deep water drilling campaign in waters off the southern coast of Australia.

According to Holmes, the company is vying after the big opportunities at the customer side of the business. The company’s focus on motorway stations, truck stops, or filling stations are all aspects that the company is intensifying their focus.

Currently, BP owns approximately 330 of the 1,300 filling stations with the BP brand on it in Australia. By mid 2015, tt will terminate its operations at the Bulwer Island refinery in Queensland. The company is playing with the idea of changing the facility into a terminal to receive fuel imports in order to compete against rivals from Asia.

Retail

Vitol’s auxiliary unit, Viva Energy, plans to spend AUD$1 billion over the course of the next 5 years. This move comes after the company purchased Royal Dutch Shell plc’s Geelong facility in Victoria as well as its 870 site retail business.

Last year, Trafigura’s Puma Energy unit also bought two companies that will provide the company with more than 200 pump stations in Australia.

BP also owns a stake in oil gields that will fuel the Gorgon liquefied natural gas project, which is operated by Chevron Corp (NYSE:CVX). BP also has a stake in the North West Shelf Venture as well as the Browse LNG project. The company will begin its deep water drilling campaign in the Great Australian Bight by 2016, according to Holmes’s interview.

Holmes made it clear that BP has great ambitions to increase the company’s upstream presence even more. He believes that the joint efforts of the Great Australian Bight will become a new hydrocarbon basin. BP also invested heavily into the development and growth of the Browse gas project.s

Woodside Petroleum Ltd, who operates the Browse LNG project, disposed last year of a plan to build a facility onshore in Western Australia. Later, the project was estimated to cost more than AUD$80 billion. Now, the company plans to make a decision in mid 2015 instead on whether it will proceed with a goal to liquefy the gas on giant sea vessels offshore by using technology from Royal Dutch Shell plc.