Chevron Corporation, one of the many offspring of the Standard Oil Trust, has risen from humble beginnings in California to become a major player in the international oil industry. Chevron gained a strong foothold in the world’s largest oil field as a result of its spectacular discoveries in Saudi Arabia, which fueled 20 years of record earnings in the postwar period. The emergence of the Organization of Petroleum Exporting Countries (OPEC) in the early 1970s deposed Chevron of its cosy Middle Eastern status, triggering tremendous anxiety and a concerted quest for new domestic oil options at a business that had long been dependent on foreign supplies. The firm’s $13.2 billion acquisition of Gulf Corporation in 1984, the largest corporate sale to that point, more than doubled Chevron’s oil and gas holdings but struggled to return the company’s profit record to pre-1973 rate of profitability. Chevron, on the other hand, was reporting solid profits by the mid-1990s as a result of higher oil costs and the company’s expansion and cost-cutting activities..
Chevron Corporation is an international oil corporation based in the United States. Chevron, headquartered in San Ramon, California, and operating in over 180 countries, is involved in all aspects of the oil and natural gas industries, including hydrocarbon exploration and development, mining, marketing, and transportation, chemical manufacturing and trading, and power generation. Chevron is one of the world’s wealthiest corporations, ranking fifteenth in the Fortune 500 as of March 2020, with a yearly turnover of $146.5 billion and a market value of $136 billion. Chevron was listed as the world’s 61st-largest public corporation in the 2020 Forbes Global 2000. From the mid-1940s to the 1970s, it was also one of the Seven Sisters that ruled the global petroleum industry.
Chevron is one of the world’s leading integrated energy companies. It produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance business and the industry. To advance a lower-carbon future, the organisation is focused on cost efficiently lowering carbon intensity, increasing renewables and offsets in support of the business, and investing in low-carbon technologies that enable commercial solutions.
Operations
Upstream
Chevron’s oil and gas exploration and production operations are primarily in the US, Australia, Nigeria, Angola, Kazakhstan, and the Gulf of Mexico. As of December 31, 2018, the company’s upstream business reported worldwide net production of 2.930Â million oil-equivalent barrels per day.
United States
In the United States, the company operates approximately 11,000 oil and natural gas wells in hundreds of fields occupying 4,000,000 acres (16,000 km2) across the Permian Basin, located in West Texas and southeastern New Mexico.
Australia
Chevron’s largest single resource project is the $43 billion Gorgon Gas Project in Australia. It also produces natural gas from Western Australia. The $43 billion project was started in 2010, and was expected to be brought online in 2014. The project includes construction of a 15 million tonne per annum liquefied natural gas plant on Barrow Island, and a domestic gas plant with the capacity to provide 300 terajoules per day to supply gas to Western Australia. It is also developing the Wheatstone liquefied natural gas development in Western Australia. The foundation phase of the project is estimated to cost $29 billion; it will consist of two LNG processing trains with a combined capacity of 8.9 million tons per annum, a domestic gas plant and associated offshore infrastructure. In August 2014 a significant gas-condensate discovery at the Lasseter-1 exploration well in WA-274-P in Western Australia, in which Chevron has a 50% interest was announced. The company also has an interest in the North West Shelf Venture, equally shared with five other investors including BP, BHP Billiton Petroleum, Shell, Mitsubishi/Mitsui and Woodside.
Niger Delta
In the onshore and near-offshore regions of the Niger Delta, Chevron operates under a joint venture with the Nigerian National Petroleum Corporation, operating and holding a 40% interest in 13 concessions in the region. In addition, Chevron operates the Escravos Gas Plant and the Escravos gas-to-liquids plant.
Angola
Chevron has interests in four concessions in Angola, including offshore two concessions in Cabinda province, the Tombua–Landana development and the Mafumeira Norte project, operated by the company. It is also a leading partner in Angola LNG plant.
Midstream
As of 2019, Chevron did not own significant midstream assets; that year it attempted to purchase Anadarko Petroleum, which owned pipelines, but was outbid by Occidental Petroleum.
Downstream
Chevron’s downstream operations manufacture and sell products such as fuels, lubricants, additives and petrochemicals. The company’s most significant areas of operations are the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia and South Africa. The company operates approximately 19,550 retail sites in 84 countries. The company also has interests in 13 power generating assets in the United States and Asia and has gas stations in Western Canada.[Chevron owns the trademark rights to Texaco and Caltex fuel and lubricant products.
Chevron owns and operates Five active refineries in the United States. Chevron is the non-operating partner in seven joint venture refineries, located in Australia, Pakistan, Singapore, Thailand, South Korea, and New Zealand. Chevron’s United States refineries are located in Gulf and Western states. Chevron also owns an asphalt refinery in Perth Amboy, New Jersey; however, since early 2008 that refinery has primarily operated as a terminal.
Chevron’s chemicals business includes 50% ownership in the Chevron Phillips Chemical Company, which manufactures petrochemicals, and the Chevron Oronite Company (which develops, manufactures and sells fuel and lubricant additives).
Chevron Shipping Company, a wholly owned subsidiary, provides the maritime transport operations, marine consulting services and marine risk management services for Chevron Corporation. Chevron ships historically had names beginning with “Chevron”, such as Chevron Washington and Chevron South America, or were named after former or serving directors of the company.Â
On 1 July 2020 Chevron Australia Downstream Pty Ltd, a wholly owned subsidiary of Chevron Corp., announced that it has completed the acquisition from Puma Energy Asia Pacific B.V. of all shares and equity interests of Puma Energy (Australia) Holdings Pty Ltd for the amount of AU$425 million.
Alternative energy
Chevron’s alternative energy operations include geothermal solar, wind, biofuel, fuel cells, and hydrogen.
Chevron has claimed to be the world’s largest producer of geothermal energy. The company’s primary geothermal operations were located in Southeast Asia, but these assets were sold in 2017.
Prior, Chevron operated geothermal wells in Indonesia providing power to Jakarta and the surrounding area. In the Philippines, Chevron also operated geothermal wells at Tiwi field in Albay province, the Makiling-Banahaw field in Laguna and Quezon provinces.
In 2007, Chevron and the United States Department of Energy’s National Renewable Energy Laboratory (NREL) started collaboration to develop and produce algae fuel, which could be converted into transportation fuels, such as jet fuel. In 2008, Chevron and Weyerhaeuser created Catchlight Energy LLC, which researches the conversion of cellulose-based biomass into biofuels. In 2013, the Catchlight plan was downsized due to competition with fossil fuel projects for funds.
Between 2006 and 2011, Chevron contributed up to $12Â million to a strategic research alliance with the Georgia Institute of Technology to develop cellulosic biofuels and to create a process to convert biomass like wood or switchgrass into fuels. Additionally, Chevron holds a 22% stake in Galveston Bay Biodiesel LP, which produces up to 110Â million US gallons (420,000Â m3) of renewable biodiesel fuel a year.
In 2014, Chevron began reducing its investment in renewable energy technologies, reducing headcount and selling alternative energy-related assets.
In 2015, the Shell Canada Quest Energy project was launched of which Chevron Canada Limited holds a 20% share. The project is based within the Athabasca Oil Sands Project near Fort McMurray, Alberta. It is the world’s first CCS project on a commercial-scale.
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Marketing and Branding Mix of Chevron
Marketing strategy assists businesses in achieving their aims and priorities, and the marketing mix (4Ps) is a popular method for defining these techniques. This portipon delves into Chevron’s commodity, packaging, advertisement, and delivery strategy.
Chevron Product Strategy
Chevron is involved in all aspects of oil, geothermal fuels, and natural gas. Lubricants, petrochemicals, additives, and fuels are part of their marketing mix product approach. Chevron sells alternative energy options such as hydrogen, geothermal energy, wind energy, fuel cells, bio fuel, and solar.It has divided its offerings into two categories: private consumers, known as motorists, and companies. Fuels and stations are products for motorists, while special fuels for marine and aviation businesses, materials, chemicals, fuels, base oils, and process fuels are products for businesses. Jet fuels and aircraft gasoline are among the aviation stocks. It has proprietary marine lubricants for marine companies. Chevron’s base oil contains ISODEWAXING, and its process oil contains ParaLux. Ursa, Oronit, and Delo are some of the company’s other brands.
Chevron Price/Pricing Strategy
Since Chevron and Exxon Mobil are close rivals for the market leader spot, with Chevron coming in second, all have an effect on market prices.
Chevron has the potential to boost gasoline prices and thereby influence consumer prices. The firm sets its own prices rather than accepting others’. The corporation is affected by global per barrel dollar gasoline markets because they serve as the basis for selling all of the company’s petroleum products. To keep its business customers loyal, the company’s goods are priced competitively. The vast oil reserves and global reach offer it the ability to control markets. Chevron’s marketing mix pricing policy is focused on competition, but as a fuel firm, markets are often regulated and driven by government pricing, demand, and so on.
Chevron Place & Distribution Strategy
Chevron has activities in South Africa, Australia, the United States, the Gulf Coast, Southeast Asia, South Korea, and the west coast of North America. The company delivers its goods to customers through stations located in strategic locations to distribute fuel and lubricants.The corporation also transports fuel through its Chevron Pipeline Company. It also has its own shipping business, which operates a fleet of ships used to carry its diesel. They either own the ships or lease them for the transport of fuel and petroleum products.
There are wholesalers who are interested in the distribution chain of the business to which GSAT supplies gasoline.
Chevron Promotion & Advertising Strategy
Unlike its rival Exxon Mobil, which is competitive in its marketing as well as its positioning, Chevron bases its promotions on its CSR. The corporation promotes itself by print advertisements by using its corporate social responsibility programmes. The print advertisements contain sensitive, neighborhood-friendly messaging emphasising the value of promoting the local community and small businesses. Chevron asserts the value of serving the society of which the corporation is a member, or how it is a large business’s spiritual duty to sustain and benefit small companies. As a result, the Chevron marketing blend is protected.
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