Chevron Kicks Off Whale Oil Production: Details

Chevron Corporation (NYSE:CVX) disclosed the commencement of oil production from the Whale semi-submersible platform in the deepwater U.S. Gulf of Mexico.

The company’s subsidiary, Chevron U.S.A. Inc., owns 40% working interest in Whale, with Shell Offshore Inc. owning 60% interest as operator.

Whale, located 200 miles southwest of Houston in Alaminos Canyon Block 773, is in over 8,600 feet of water.

The company estimates Whale’s peak production at 100,000 gross boe/d, with up to 15 wells in its first phase.

The project features energy-efficient gas turbines and compression systems, utilizing a simplified design for lower emissions, reduced costs, and higher returns.

Chevron’s latest milestone follows a year of key achievements, including first production from its high-pressure Anchor project and the launch of water injection operations to enhance output at its Jack/St. Malo and Tahiti facilities in the Gulf.

Bruce Niemeyer, president of Chevron Americas Exploration & Production, stated Whale’s production brings Chevron nearer to its target of 300,000 net barrels of oil equivalent per day in the U.S. Gulf of Mexico by 2026.

Last month, Chevron and Woodside swapped energy assets, with Chevron gaining Julimar-Brunello stakes and Woodside focusing on LNG assets.

Investors can gain exposure to the stock via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).

Price Action: CVX shares closed higher by 0.47% at $150.30 on Wednesday.

Read Next:

• In an Unpredictable Market Here Are Some Potential Winners and Losers for the First Quarter

Image via Shutterstock.