(NYSE: CVX) has basically decided to stick pretty close to its core, continuing to produce oil and natural gas instead of shifting toward cleaner alternatives as some European energy giants have done. Some investors might view that as a mistake, given the ongoing growth of renewable power. The fear is that oil and natural gas will eventually become obsolete. History suggests that's not likely to happen and it almost certainly won't happen in the next 10 years.

Chevron is an integrated energy company, which means that its operations span across the entire energy sector. It produces oil and natural gas in its upstream operations, transports these vital fuels in its midstream business, and processes them into chemicals and fuels in its refining segment. Although the price of oil and natural gas are the driving force behind revenues and earnings, having a diversified portfolio of assets helps to soften the industry's commodity-driven volatility.

Image source: Getty Images.

Continue reading

Source Fool.com