Chevron Corp. (NYSE:CVX) said Thursday they've discovered a new field of natural gas off the coast of Western Australia.
This region has become increasingly important, as several gas fields have been discovered in the region lately.
There are a number of projects Chevron has going in the area already, and according to former CEO David O'Reilly, over the next 10 years it could generate as much profit for Chevron as operations in the U.S. do.
One thing that would have to happen for that to be the case will be an increase in the price of natural gas, which is being discovered in such large quantities as to ensure low prices as supply far exceeds demand at this time, and should for years to come.
This is the second discovery of natural gas in the Exmouth Plateau by Chevron, who also found another gas field last year in the same area.
Long term, natural gas has tremendous potential, but in the short term the low prices are an impediment to companies, who are allocating resources to oil in order to generate stronger earnings.
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