You may not have noticed at the pump lately, but apparently there has been a decline in oil prices somewhere, according to Chevron executives. Chevron reported a decrease in earnings of 27% this past quarter, and blames a decline in oil prices, and decreased oil production. Prices at the gas pump might seem to be climbing to a lot of everyday people, who feel almost no relief in sight for near record gas prices. Last year, Chevron was raking in over $6 billion in sales, but this year they only managed to squeeze out $4.5 billion from consumers. The picture they would like to paint is that of some sort of major decline in costs to the consumers.
Chevron Reports An Earnings Decrease Of 27% Blaming Oil Prices
You have to take Chevron’s quarterly report and earnings with a grain of salt, as the economy is not all that rough on the oil industry lately. Chevron might have personally felt a decline in earning, failing to meet the expectations of investors, but their competitors did not. Many of the other oil companies showed higher than expected earnings for Q1 2014, helping to boost their stock prices. Chevron’s stock prices have managed to remain steady with investors however, as the industry is still a solid investment for the time being.
Chevron’s slip may have made progress for its competitors a little bit easier this past quarter, contributing to their growing numbers. There is still a large demand for oil based products in the market, and that is not predicted to go away any time soon. Gasoline and other refined products from crude oil still fuel a large number of devices that we use on a daily basis in the industrialized world.
Chevron made some remarks about some up and coming production increases that it expects to see in its refiners all across the globe. In particular there is a lot of hope for locations in Mexico and Australia, where oil refining has a lot of potential to grow in the coming years.
Chevron Reports An Earnings Decrease Of 27% Blaming Oil Prices.