Chevron Taps High Demand, Expands Gas Empire in Australia & U.S. Gulf

Natural gas has become a highly versatile energy source, and Chevron Corporation (CVX) is heavily investing in its growing demand. From common uses like heating homes and cooking to more complex applications such as powering factories and generating hydrogen, natural gas is essential. It is also a critical and affordable source of energy as the world's need for electricity surges, driven not only by economic growth but also by the immense power requirements of modern technology, including artificial intelligence and data centers.

Chevron has strategically positioned its global natural gas business to take advantage of this growth. The Houston-TAX-based energy conglomerate is a major player in the liquefied natural gas (LNG) market, with large facilities in Australia, including the Gorgon and Wheatstone projects. These long-standing operations have made Chevron one of Japan’s largest LNG suppliers and have anchored its global presence for decades. The company is also expanding its reach through operations in the U.S. Gulf Coast, Asia Pacific, the Eastern Mediterranean, and West Africa. This global network provides a flexible and reliable supply, enhancing energy security for key markets around the world.

Looking ahead, Chevron is preparing to export 7 million metric tons of LNG annually from the U.S. Gulf Coast starting in 2026. This is a massive amount of energy, enough to power over 3 million homes for a year. By managing every part of the process—from finding the gas and converting it into a liquid to shipping and selling it — Chevron is working across the entire value chain. This ensures that natural gas remains a balanced energy solution, providing affordability and reliability, while also offering a lower-carbon option for the future. This strategy is central to Chevron's long-term growth and its role in the global energy market.

Natural Gas Strategies Across Industry Peers

Natural gas is crucial to ExxonMobil's (XOM) future plans. ExxonMobil — Chevron’s peer — believes global demand for natural gas will increase by over 20% by 2050, driven by its use in electricity generation and industrial production. This rising demand forms the core of ExxonMobil’s long-term strategy, guiding its investment and ambitious growth decisions, and it sees natural gas as a key way to reduce global emissions by replacing coal.

The commodity is central to European energy major Shell’s (SHEL) business, too. Shell is a top natural gas marketer and trader with a vast network across North America. The company uses its extensive resources and long-standing expertise to help businesses manage their energy needs and transition to cleaner sources. Shell is committed to providing a reliable supply and flexible solutions.

The Zacks Rundown on Chevron

Shares of Chevron have gained 6% so far this year compared with the Oil/Energy sector’s increase of 2.6%.

From a valuation perspective — in terms of forward price-to-earnings ratio — Chevron is trading at a premium compared to the industry average. The stock is also trading above its five-year mean of 11.86.

See how the Zacks Consensus Estimate for Chevron’s earnings has been revised over the past 30 days.

The stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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