NEW YORK, March 11 (UPI) -- The low price of crude oil is no deterrent to long-term strategic objectives for U.S. energy company Chevron, its executives said at an analyst meeting.
Fourth quarter earnings of $3.5 billion represented a 30 percent decline year-on-year for Chevron. Full year 2014 earnings were $19.2 billion, compared with $21.4 billion the previous year.
Oil prices are down more than half from June 2014 peaks and up only 9 percent since the start of the year. John Watson, Chevron's chairman and chief executive officer, said at the company's annual security analyst meeting in New York the market situation was not overly detrimental.
"The fundamentals of the oil and gas business remain attractive for our company and investors, as our products are vital to a growing world economy," he said during Tuesday's conference.
A research note published Monday by CME Group said oil prices may be depressed for several years, though the industry itself will remain relevant. Despite gains in renewable energy, CME senior economist Erik Norland said oil remains the "life blood" of the global economy.
The drop in oil prices has forced many of Chevron's rivals, and those in secondary industries like steel, to cut their spending and staff for 2015. In January, the company said production was static year-on-year, thanks in part to new operations in the U.S. Gulf of Mexico.
George Kirkland, vice chairman for Chevron, said historic success in exploration and production was repeatable in the current market climate.
"Our base business is performing exceptionally well and is profitable, even in a lower-price environment," he said.
