Chevron Just Can't Get this Project Right

This segment is from Thursday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

Don't worry Chevron (NYSE: CVX  ) investors, $2 billion isn't that much in comparison to the company's overall spending budget. Unfortunately, that $2B is being tacked on to the previously updated Gorgon LNG budget of $52B. Since the project's birth, spending estimates have risen 46%. That being said, the entire increase can't be blamed on Chevron. Currency valuations have played a part as well. Royal Dutch Shell (NYSE: RDS-A  ) is also getting in on the Australian LNG project boom. Its Prelude FLNG ship recently shoved off from its dry dock.

For more, tune in to the video below.

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  • Report this Comment On December 13, 2013, at 11:40 AM, buyandsqueeze wrote:

    a wee bit more analysis please:

    1. chevron has a 47% share of the project...thus only 47% of the $2B

    2. the Aussie dollar is at a 3 yr low...why is there a currency translation issue here ?

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