Chevron Corp. (CVX), seeking to reverse the longest string of production declined in a decade, said oil and natural gas output fell in the first two months of the year.
The second-largest U.S. energy producer by market value pumped the equivalent of 2.579 million barrels of oil a day during January and February, according to a statement on its website today. That compares with 2.645 million in the first quarter of 2013.
When Chevron reports results for the entire three-month period on May 2, output is expected to come in at 2.61 million barrels, based on the average of three analysts’ estimates compiled by Bloomberg.
Chevron is accelerating oil exploration from Argentina to China to add reserves and revive output. Chairman and Chief Executive Officer John Watson is spending almost $40 billion this year to find, extract, transport and process oil and gas. Watson’s strategy also calls for auctioning off $10 billion in oilfields and other assets to hone the San Ramon, California-based company’s focus on the highest-profit projects.
Chevron has fallen 4.7 percent this year to $119.10, after advancing 16 percent in 2013. In March, Watson cut the company’s long-term production target by 6.1 percent to the equivalent of 3.1 million barrels a day in 2017.
The company’s output fell for a third consecutive year in 2013, the longest streak of declines since the 2001-2004 period, according to data compiled by Bloomberg.
Exxon Mobil Corp. is the biggest U.S. energy company.
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