# Chevron considering rail transport for Kazakhstan oil, CEO says Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-08 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Chevron Corp. working with Kazakhstan government to ensure Meta Description: Chevron Corp. collaborating with Kazakhstan to ensure oil flow sustainability amid Black Sea loading interruptions. Find out more here. URL: https://financedigest.com/chevron-considering-rail-transport-for-kazakhstan-oil-ceo-sayshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-07t152313z2lynxmpei860pqrtroptp4usa-stocks-1736815260510-compressed.jpg) (Reuters) – Chevron Corp. is working with the Kazakhstan government to assure oil flows from the landlocked country’s fields can be sustained in the event of halts to Black Sea loadings, Chief Executive Michael Wirth said at an energy conference on Wednesday. Oil from Kazakhstan’s vast Tengiz Field flows across Russia via a pipeline to the Black Sea port of Novorossiisk, where two of three loading buoys are undergoing repairs. The pipeline is flowing about 1 [million barrels per day](https://www.financedigest.com/royal-mail-says-uk-business-losing-one-million-pounds-a-day-amid-union-clash.html "Royal Mail says UK business losing one million pounds a day amid union clash") (bpd), below its 1.5 million bpd capacity. There are no constraints right now on loading,” because of the [repairs to the port’s loading buoys and maintenance on the pipeline](https://www.financedigest.com/germanys-gas-crisis-in-charts-pipeline-repair-and-then-what.html "Germany’s gas crisis in charts: Pipeline repair, and then what?"), he said. Rail transit could be an alternative to a loss of the loading port or pipeline, he said. Tengiz producers “have shipped a lot of [oil via rail out of that area” over the years](https://www.financedigest.com/oil-rises-to-7-year-high-as-turkey-outage-adds-to-tight-supply-outlook.html "Oil rises to 7-year high as Turkey outage adds to tight supply outlook"), Wirth said. But the reality is in the [near term](https://www.financedigest.com/automotive-glass-market-to-witness-sales-slump-in-near-term-due-to-covid-19-long-term-outlook-remains-positive.html "Automotive Glass Market to Witness Sales Slump in Near Term Due to COVID-19; Long-term Outlook Remains Positive"), the primary and the large-scale option remains this pipeline. That pipeline exported some 1.2 million barrels per day, of Kazakhstan’s main crude grade, [last year](https://www.financedigest.com/over-50-of-businesses-increased-their-cyber-security-budget-last-year-amid-attacks.html "Over 50% of businesses increased their cyber security budget last year amid attacks"). It also carries some Russian [oil from Russia](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") that is added before reaching the port. In other remarks at the Barclays CEO Energy-Power Conference, Wirth said [oil demand growth will be “pretty good,” but in the near term there are questions about demand in Europe and China](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus"). [Investors also want Chevron and other oil](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") producers to restrain spending on new oil and gas production. Its [cash reserves have risen beyond that needed to sustain its business](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") and will be allocated to shareholder returns over time, he said. The [company will only do deals](https://www.financedigest.com/navigating-a-buoyant-ma-market-does-the-deal-corridor-with-the-us-or-eu-offer-british-companies-the-better-scope-for-growth.html "Navigating a buoyant M&A market: Does the deal corridor with the US or EU offer British companies the better scope for growth?") “that make us stronger,” said Wirth. Its goals are to protect its dividend, [grow its business](https://www.financedigest.com/5-considerations-when-trying-to-grow-your-business-during-a-pandemic.html "5 Considerations When Trying to Grow Your Business During a Pandemic"), maintain a strong balance sheet, and return cash to shareholders through share buybacks, he said. Chevron did not pursue a stake in Qatar’s liquefied natural gas (LNG) expansion project “because we felt like we had [higher return](https://www.financedigest.com/investors-seek-higher-returns-as-catastrophe-bond-issuance-slows-during-q2-according-to-aon-study.html "INVESTORS SEEK HIGHER RETURNS AS CATASTROPHE BOND ISSUANCE SLOWS DURING Q2, ACCORDING TO AON STUDY") opportunities,” he said. The company recently struck deals for U.S. LNG [projects now in development](https://www.financedigest.com/cordant-projects-to-develop-eleven-moxy-hotels-across-uk.html "Cordant Projects to develop Eleven Moxy Hotels across UK"). Its LNG business has focused on markets along the Pacific Ocean, and [expects Europe](https://www.financedigest.com/israel-renews-gas-exploration-expects-export-deal-to-europe.html "Israel renews gas exploration, expects export deal to Europe") to become an important LNG market, he said. (Reporting by Gary McWilliams; Editing by Chizu Nomiyama) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---