Chevron sees higher 1st quarter upstream earnings

Posted by Oil Tycoon

April 9, 2008

NEW YORK - Chevron Corp said on Wednesday its first-quarter exploration and production earnings should rise from the previous quarter on record oil prices, but profits from refining and marketing would remain weak.

The second-largest U.S. oil company said its oil and gas production in January and February was 2.61 million barrels of oil equivalent per day, basically flat with the fourth quarter, as higher international natural gas output offset shortfalls for oil.

Benchmark oil prices averaged a record of about $98 a barrel in the quarter, driving first-quarter earnings higher from Chevron’s exploration and production business. But it said profits refining and marketing business “are expected to remain at the low level recorded” in the fourth quarter.

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