Oil and Gas Company Profile : CHEVRON

1. The Company :

Chevron Corporation is an American multinational oil and gas company wich was created in
18791. Chevron explores, produces and transports crude oil and natural gas, refines, markets
and distributes transportation fuels and lubricants, manufactures and sells petrochemicals
and additives. The headquartered is located in California, San Ramon.
The value is to be one of the best oil and gas company. The company calls this « the Chevron
way » 2 :
- the vision
- enabling human progress
- values
- high performance
- diversity
- integrity and trust
- protect people and the environment
- partnership

The company has 3 businesses : Upstream, Downstream, Midstream. But the company mainly
focus on Exploration3 where the company works on : heavy oil, LNG, deepwater drilling,
natural gas, crude oil, shale/tight resources).
The company also works on refining, transportation driven by the brands « Chevron Pipe Line
Company and Chevron Shipping ». Chevron has another brand called « Crude Supply and
Trading (CSAT) » which focuse is to secure the prices of Chevron’s production.
The company is private controlled by 3 shareholders4 : John S. Watson, Robert Denham ,
Ronald D. Sugar.
Chevron mainly depends on Crude oil as it is involved in several major projects such as
deepwater U.S. Gulf of Mexico, offshore Western Australia, West Africa, and shale and tight
ressources play in the United States, Canada and Argentina5.

1
Investopedia website : https://www.investopedia.com/articles/insights/052216/top-3-chevron-shareholders-
cvx.asp
2
Chevron website, https://www.chevron.com/about/the-chevron-way, « The Chevron Way »
3
Chevron website, https://www.chevron.com/operations/exploration-production, « exploration and
production »
4
Investopedia : By J.B. Maverick, Updated Oct 7, 2019 « the Top 3 Chevron Shareholders »
5
Chevron website, https://www.chevron.com/operations/exploration-production, « exploration and
production »
The company operates in more than 180 and operates on big projects in Asia-Pacific (Gorgon
Gas Project) , America (jack/st. Malo project In the U.S. Gulf of Mexico, Middle East (Tengiz oil
field in Khazakstan), and Europe (Subsea Alder Project) and Africa (Project Angola Liquefied
Natural Gas).

The size and the amounts of those projects place Chevron as the secund world biggest oil and
gas companies of the world.6

2. How the Company Has Performed

Over the past five years, the company continuously invests and works hard to maintain its
position on among the top oil and gas companies. The results show clearly that the company
has made lots of profits despites the oil and gas chrash prices7.

Figure 1- Five Year Financial Summary

6
Statitsta, https://www.statista.com/statistics/241625/top-10-us-oil-and-gas-companies-based-on-market-
value/, « Ten largest American oil and gas companies based on market value in 2019 (in billion U.S. dollars) »
7
CNN Business : https://money.cnn.com/quote/financials/financials.html?symb=CVX, Chevron Corp
 Figure 2 - 2018 Chevron annal report

The company has develop new technologies, maintain its projects, strengthen its partnership
with other companies. This show that the company tried to adapt to its environment. The
company’s Value to EBITDA is 7.458.The company has grown because it is involved in several
news projects. Besides, the company has also buy another company named Nadarko
Petroleum Corporation9 and bought some new facilities such as Pasadena Refinery System10.

3. The Challenges/Successes for the Company

The most significant challenges for the company were to face the oil and gas prices crash, to
maintain its activities.
According to the Chevron Chairman and CEO Michael Wirth “We are positioning Chevron to
win in any environment by ratably investing in the highest return, lowest risk projects in our
portfolio11. » This mean clearly that they want to be on the top among oil and gas companies.
The company plans to double the production of its activities in 202012. But it will also develop
new technologies to find new ressources, and improve its facilities. The company plans to
invest $20 Billion in upstream and downstream activities, such as Permian Basin position, the
company’s major capital project at TCO in Kazakhstan, and an advantaged queue of deepwater
opportunities in the Gulf of Mexico.

8
Marketwatch : https://www.marketwatch.com/investing/stock/cvx/profile, Chevron Profile
9
Chevron website, https://www.chevron.com/stories/chevron-announces-agreement-to-acquire-anadarko
10
Chevron website https://www.chevron.com/stories/chevron-agrees-with-petrobras-to-buy-pasadena-
refinery-system-for-350-million
11
Chevron website https://www.chevron.com/stories/chevron-announces-20-billion-capital-and-exploratory-
budget-for-2020
12
CNBC : https://www.cnbc.com/video/2019/03/05/chevron-ceo-on-plans-to-double-
production.html?utm_campaign=insider&utm_source=facebook&utm_medium=social « Chevron CEO on plans
to double production »
Bibliography
1 Investopedia website : https://www.investopedia.com/articles/insights/052216/top-3-chevron-
shareholders-cvx.asp
2 Chevron website, https://www.chevron.com/about/the-chevron-way, « The Chevron Way »
3 Chevron website, https://www.chevron.com/operations/exploration-production, « exploration
and production »
4 Investopedia : By J.B. Maverick, Updated Oct 7, 2019 « the Top 3 Chevron Shareholders »
5 Chevron website, https://www.chevron.com/operations/exploration-production, « exploration
and production »
6 Statitsta, https://www.statista.com/statistics/241625/top-10-us-oil-and-gas-companies-based-on-
market-value/ « Ten largest American oil and gas companies based on market value in 2019 (in
billion U.S. dollars) »
7 CNN Business : https://money.cnn.com/quote/financials/financials.html?symb=CVX,Chevron Corp
8 Marketwatch : https://www.marketwatch.com/investing/stock/cvx/profile, Chevron Profile
9 Chevron website, https://www.chevron.com/stories/chevron-announces-agreement-to-acquire-
anadarko
10 Chevron website https://www.chevron.com/stories/chevron-agrees-with-petrobras-to-buy-
pasadena-refinery-system-for-350-million
11 Chevron website https://www.chevron.com/stories/chevron-announces-20-billion-capital-and-
exploratory-budget-for-2020
12 CNBC : https://www.cnbc.com/video/2019/03/05/chevron-ceo-on-plans-to-double-
production.html?utm_campaign=insider&utm_source=facebook&utm_medium=social « Chevron
CEO on plans to double production »