In tough economic times, few things are as important as energy. While most folks have been quite relieved about the dropping price of gasoline, one group might not be as thrilled: those who own oil and gas stocks like Chevron (CVX).
However, while oil prices are low right now, that doesn’t mean you should shy away from energy companies, and Chevron in particular could be poised for steady growth. Currently trading at around $100, the oil and gas giant is currently getting a significant amount of positive buzz. Most recently, the company announced it was on track with construction of a significant ethylene plant, which there is huge demand for right now.
Furthermore, if you’ve watched television at all the past few months, you’ve undoubtedly seen the commercials put out by Chevron that emphasize its commitment to improving the math and science scores of American students. While commercials like these are obvious grabs at positive public relations, I actually think the direction they take could be quite important for the company going forward, especially in a time where oil companies have become increasingly demonized by the public, which was greatly exacerbated by BP’s (BP) Gulf oil disaster. Taking these things into consideration, I am quite confident in the strength of Chevron going forward.
If successful, Chevron’s ethylene plant would actually be the first completed in the country in over 10 years. And given skyrocketing demand for plastics, the company could be poised to reap significant profits.To continue reading, click here.