Chevron is negotiating for huge oil fields in Iraq as an alternative to Russian companies.
A report by the oil and energy website Motley Fool, published Monday, confirmed that oil giant Chevron is steadily becoming a major player in Iraq, a move that could attract long-term investors.
The report, translated by Al-Maalomah News Agency, stated that “the ongoing US-Israeli conflict continues to compel investors to closely monitor oil price news, while simultaneously propelling the energy sector to the forefront of the S&P 500 index. Conflict in the Middle East often leads to a surge in oil company stocks.”
The report added that “shares of oil giant Chevron have risen by 25.11 percent since the beginning of the year, partly due to the conflict in Iran, as well as expectations of a resumption of Venezuelan oil production following the departure of former President Nicolas Maduro.”
It continued, “The company has also acquired two oil fields in Iraq, which could provide a long-term boost to Chevron’s stock. It is perhaps to Chevron’s credit that it is not overestimating its opportunities in Iraq. Currently, the Middle East, as a region rather than a single country, represents only 5 percent of the company’s total production.”
Experienced investors in traditional energy stocks, including Chevron, understand that the lifeblood of the oil industry’s exploration and production sector lies in discovering new reserves. After all, no oil field provides an unlimited supply of barrels.
The report noted that “in Iraq, Chevron is achieving a significant milestone in this area. The West Qurna-2 oil field, where Chevron is replacing a Russian competitor, is estimated to hold approximately 13 billion barrels, representing 10 percent of Iraq’s total production. The Nasiriyah oil field, where Chevron is replacing another Russian company, is smaller than the other two, but still highly significant due to its estimated recoverable reserves of approximately 4.36 billion barrels.”
The report emphasized that “Russia is a major supplier of crude oil to China, and with Chevron’s entry into Iraq, China may be forced to replace some of the crude oil it previously purchased from the Kremlin. The White House is likely quite receptive to this scenario, suggesting that Chevron’s projects in Iraq may receive long-term support.” The term of the US government.
Almaalomah.me