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Chevron Corporation – Business Description


Chevron Corporation (Chevron) engages in fully integrated petroleum operations, chemicals operations, mining operations of coal and other minerals, power generation, and energy services. The company conducts business activities in the US and approximately 180 other countries.

Chevron operates through four business divisions: upstream, downstream, chemicals, and all others.
Chevron’s upstream business explores for and produces crude oil and natural gas. The company’s exploration and production operations also market natural gas. Chevron’s worldwide net oil-equivalent production was approximately 2.62 million barrels per day in 2007.

At the end of 2007, Chevron’s worldwide net proved crude oil and natural gas reserves for consolidated operations were 7.9 billion barrels of oil-equivalent and for affiliated operations were 2.9 billion barrels. Net oil-equivalent production averaged 2.62 million barrels per day, including volumes produced from oil sands in Canada. Major producing areas include Angola, Australia, Azerbaijan, Bangladesh, Denmark, Indonesia, Kazakhstan, Nigeria, the Partitioned Neutral Zone between Kuwait and Saudi Arabia, Thailand, the UK, the US, and Venezuela. Major exploration areas include western Africa, Australia, Brazil, Canada, the Gulf of Thailand, the Norwegian Barents Sea, the international waters between Trinidad and Tobago and Venezuela, the UK Atlantic Margin, and the U.S. Gulf of Mexico.

Chevron’s downstream comprises refining, fuels and lubricants marketing, supply and trading, and transportation. The refining, marketing, and transportation operations transport crude oil, natural gas, and petroleum products by pipeline, marine vessel, motor equipment, and rail car. It is a global and diverse organization with interests in 19 fuel refineries and an asphalt plant.

In 2007, Chevron processed approximately 1.8 million barrels of crude oil per day and averaged approximately 3.5 million barrels per day of refined product sales worldwide. Downstream’s most significant areas of operations are sub-Saharan Africa, Southeast Asia, South Korea, the UK, the US Gulf Coast extending into Latin America, and the US West Coast.

Chevron markets petroleum products under three brands: Chevron, Texaco, and Caltex.The company also manufactures gasoline additive under the brand name Techron.

The company supplies its products directly or through retailers and marketers to almost 9,700 branded motor vehicle retail outlets, concentrated in the mid-Atlantic, southern, and western states of the US. Approximately 550 of the outlets are company-owned or leased stations. Outside the US, Chevron supplies directly or through retailers and marketers to approximately 15,400 branded service stations, including affiliates.

The company is also engaged in other global marketing businesses. Chevron markets aviation fuel at more than 1,000 airports and has a worldwide market share of about 11%. The company is a leading marketer of jet fuels in the US.The company also markets an extensive line of lubricant and coolant products under brand names that include Havoline, Delo, Ursa, Meropa, and Taro.

Chemicals operations include the manufacture and marketing of commodity petrochemicals for industrial applications, and fuel and lubricating oil additives. Chevron operates in the chemicals segment via its 50%-owned affiliate Chevron Phillips Chemical Company (CPChem) and the wholly-owned Chevron Oronite Company (Chevron Oronite).

CPChem has operations in the US, Puerto Rico, Singapore, China, South Korea, Saudi Arabia, Qatar, Mexico, and Belgium. Chevron Oronite is a fuel and lubricating-oil additives business that owns and operates facilities in the US, France, the Netherlands, Singapore, Japan, and Brazil and has equity interests in facilities in India and Mexico.

The all others segment includes Chevron’s mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels, and technology companies.

Chevron’s mining operations in the US produce and market coal, molybdenum, rare earth minerals, and calcined petroleum coke in both the US and international markets. The company’s coal mining and marketing subsidiary, Chevron Mining (CMI), owns and operates two surface coal mines, McKinley, in New Mexico, and Kemmerer, in Wyoming, and one underground coal mine, North River, in Alabama. CMI controls approximately 214 million tons of proven and probable coal reserves in the US, including reserves of environmentally desirable low-sulfur coal.

Chevron’s power generation business develops and operates commercial power projects. It owns 15 power assets located in the US and Asia. The company produces over 2,334 megawatts (MW) of electricity at 11 facilities it owns through joint ventures.