Chevron Corporation

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Chevron Corporation
What began as the Pacific Coast Oil Company on September 10, 1879 in San Francisco transformed into what is now Chevron Corporation, recently ranked 8th among the world’s top oil companies by Petroleum Intelligence Weekly in 2011, second among US oil companies behind ExxonMobil. The company has a market capitalization of over $204.9 billion. They have expanded into essentially every area of the energy industry, including exploring for, producing, and transporting crude oil and natural gas; refining, marketing, and distributing transportation fuels and lubricants; manufacturing and selling petrochemical products; generating power and producing geothermal energy; providing energy efficient solutions; and developing energy resources for the future, such as advanced biofuels. In 2011, Chevron produced, on average, 2.673 million barrels of oil per day, 75% of which was done outside of the US. By the end of 2011, Chevron’s global refining capacity reached 1.96 million barrels of oil per day. They are the largest private producer of oil in Kazakhstan, oil and natural gas producer in Thailand, and overall oil producer in Indonesia. Currently, Chevron has numerous projects underway that will tap into new resources around the globe, including several offshore projects in Africa, Asia, and Europe. They are also involved with the development of the Athabasca Oil Sands project in Canada and the development of steam used to recover oil. As mentioned, they have begun to explore unconventional energy resources including natural gas, oil sands, geothermal and solar energy, and biofuels. With the world’s attention slowly turning towards energy efficiency and with global demand for energy projected to grow by 36% by 2035 due to the expected population increase of 25% in the next 20 years, Chevron continues to search for more efficient and renewable resources and the development of efficient technologies with a budget of $32.7 billion for capital and exploratory projects for 2012. In 2011, Chevron Corporation finished the year with $253.7 billion in revenues, an increase of 23.8% from 2010. They produced 2.673 thousand barrels per day of oil-equivalents, down 3% from the previous period due to normal field declines, maintenance-related downtime, and the impact f higher prices on entitlement volumes. The decrease in production, however, was curbed due to the introduction of several major capital projects including the Perdido project in the U.S. Gulf of Mexico, the expansion in the Athabasca Oil Sands Project in Canada, the Frade Field in Brazil, and the Platong II natural gas project in Thailand, as well as the acquisition of Atlas Energy. Production is projected to increase to 2.680 million bpd by year-end 2012. Chevron also produced 1.849 thousand bpd of crude oil and natural gas liquids, down 3.8% from 2011, and 4.941 million cubic feet per day of natural gas, down 2% from 2011. At year-end 2011, Chevron was ranked sixth among the world’s top oil companies by Petroleum Intelligence Weekly based on 2010’s fiscal results.

Chevron has operations in 22 countries outside the U.S. in the Americas, Africa, Asia, Australia, and Europe. The firm benefits from having a well-diversified and fully integrated platform as they compete in both upstream and downstream operations and have several subsidiaries. Another strength is their history of generating sufficient cash to pay out dividends and cover capital and exploratory expenditures. In 2011, they had a success rate in exploration wells of 70%, exceeding their 10-year average and one of the best success rates among their peers. In addition, over the past year, Chevron surpassed their competitors with a gross margin of $40.91 billion, compared to their peer group totaling just $24.7 billion in gross margin. Among them, Exxon Mobil finished the year with $29.61 billion in gross margin, and Conoco Phillips ended with a margin of $21.73 billion. This shows that Chevron is able...
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