U.S. energy behemoth Chevron Corporation (CVX) has dismissed protests from the Occupy Chevron (Poland) group that seeks to stop the company from exploring natural gas in Zurawlow, Poland. Chevron has asserted that it already has the license to explore the site.
Occupy Chevron is a group in Zurawlow, which has been occupying the shale-gas field since Jun 3, 2013. The group intends to drive Chevron out of the locality.
Chevron believes that Poland is a key place for exploring natural gas. However, Canadian energy explorer, Talisman Energy Inc. (TLM) has wound up their business from Poland, while leading integrated oil and gas firm, Marathon Oil Corporation (MRO) is finding its way to exit.
San Ramon, Calif.-based Chevron is one of the largest publicly traded oil and gas companies in the world, based on proved reserves. The company divides its operations into two main segments: Upstream and Downstream. Chevron’s current oil and gas development project pipeline is among the best in the industry – targeting volume growth of 25% by 2017.
However, as Chevron conducts operations in many countries, the company is exposed to risks associated with doing business abroad. Such risks include embargoes and/or expropriation of assets, exchange rate risks, terrorism and political/civil sentiment, etc.
Chevron currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.
Meanwhile, one can look at Ferrellgas Partners LP (FGP) as a good buying option. The energy stock – sporting a Zacks Rank #1 (Strong Buy) – has solid secular growth stories with the potential to rise significantly from the current levels.
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