Chevron Corporation Is Contributing A lot To The Australian Economy

The relationship between Chevron and Australia is going fairly well, the future seems bright for both.

Australia is one of the places that are economically benefited directly or indirectly through various projects carried on by Chevron Corporation. The mega projects and activities that the company has carried out in Australia are Grogon Liquefied Natural Gas and The Wheatstone Projects. Along with these projects the corporation has made other investments as well; through these projects, investments and activities the economy has larger benefitted.

Chevron is considered as one of the major contributors and distributors of natural gas in the country. For the development of the corporation’s Gorgon and Wheatstone projects, it has committed over $45 billion from 2009 to 2014. The oil major had further provided major employment opportunities in the country which has largely contributed to the country’s economy as well. The oil and gas corporation has managed to hire over 19,000 employees from Fiscal Year 2009 to Fiscal Year 2014. In the same time span, over $1 billion have been invested in research and development in the region.

Furthermore, Chevron has also worked towards enhancing academic education and research in the country and has contributed over $53 million so that better education can be provided in the region. It has also invested in exploration activities; the amount contributed on this cause is $1.6 billion. Through this investment, the country was able to make 24 offshore discoveries.

According to the corporation, these investments and contributions will benefit Australia’s economy from 2009 all though 2040. It is likely to contribute over $1 trillion to the gross domestic product, which could be generating $32 billion to GDP annually and along with that it could also contribute to Federal Government with an amount of $338 billion in revenue. Over the period of time, these projects could generate as many as 150,000 full time jobs for workers which would mean there will be 5000 job openings in the country on an annual basis.

Once the Gorgon and Wheatstone project is fully operational, it has the capability of producing 550 joules of domestic day daily which would amount to 50% of the current domestic gas supply in Australia. It is quite evident from all this information that both Chevron and Australia aren’t letting this partnership go easily or any time soon for that matter.

On November 18, 2015 Chevron’s stock was being traded in the market for $92.21 which showed a change of 1.30%. For the next year, the company is forecasting earnings per share of -8.06% while having a current return on investment at 6.40%. The market capitalization of the gas and oil company is 171.32 billion and the current EPS is 4.60 with a price to earnings ratio of 20.03.