Chevron is a multinational energy corporation that is based in America that deals with gas and oil. It is the direct descendant of standard oil and the company is the second largest. Chevron is generally known as the Standard Oil Company of California. The headquarters of Chevron is situated in San Ramon, California (Chevron 2022a). The company is active in various countries. Chevron is famous for engagement in various aspects of natural gas and oil industries like hydrocarbon exploration and production, refining, market and transport, manufacturing of chemicals and sales, and generation of powers.
Chevron explains the beliefs, purpose, vision and values. The company guides how it will work and create a common understanding that is based on aspirations and culture. Human ingenuity has the power that will resolve challenges and overcome obstacles. The vision of the company is to meet the increasing needs of energy of the world and develop the requirement of advancements and innovations that leads to a better life. The vision of Chevron is to develop affordable, ever cleaner and reliable energy that assist in the progress of human (Chevron 2022a). To achieve this, the mission of the company is to work together to deliver the energy that will assist humans in their progress in the world. The company lives on this purpose every day. The mission of the company is to use the perseverance and imagination of the people to deliver solutions that will meet the greatest challenges of energy. The mission of the company will make the global supply chain and energy more sustainable, assisting the customers and industries to advance in a world that is low carbon filled. The vision of the company is to be a global energy company that will be most admired for its partnership, performance and people (Chevron 2022d). The values of the company are diversity and inclusion, performance, partnership, trust and integrity which will help people to achieve the mission and vision of the company. The inclusive environment of work of the company values the diversity and uniqueness of talent, ideas and experience. Chevron develops the leaders and collaborates as one team to provide top-level performance. The company believes in a partnership where there is a trusting and mutually beneficial relationship. Chevron works together to get the solution that will provide benefit to the shareholders and society. The mission of the company is to earn trust and respect with the highest ethical standards.
The business Chevron combines the effective use of technology along with innovation t improve mature fields, discover new resources and fulfil the growing demand for energy of the world. The company has targeted investments and a persistent focus on operational excellence. The company delivers energy for progress. The focus area of the company is the deep-water US Gulf of Mexico, West Africa, Western Australia, Shale and Tiger resources in the US, Argentina or Canada. The company utilizes various technological capabilities to fulfil the new challenges (Chevron 2022b). Chevron plays an important role in bringing opportunities for new resources and proved reserves into production via major capital projects. The portfolio of the company spans all forms of energy. Exploring and producing each of the key basins delivers scopes to fulfil the complex energy challenges of tomorrow.
The Business level strategy of Chevron is executing a straightforward strategy that is grounded in capital and cost discipline. The company aims to improve the flow of cash and return more to the shareholders by improving the strength of the company to provide low-carbon energy to the growing world. To regulate the higher returns, there should be the maintenance of guidance for annual organic capital and exploratory expenditures of $15 billion to $17 billion through 2026 (Chevron 2022b). The company announced to make a target to decrease 2026 operating expenses per barrel by greater than 10% from 2021. The business level strategy of the company is to improve the expected gas and oil production by greater than 3% by 2026. The company aims to decrease the intensity of the carbon intensity of carbon of its operations and increase the new energy business line in hydrogen, the capture of carbon and offsets.
The company is consistent with the long-standing financial priorities of the company, increased cash generation from the traditional business. The company supports the growing dividend, strong balance sheet, investment in the new and traditional energy businesses and steady buybacks. Chevron is one of the leading energy companies in the world and it believes that reliable, affordable and ever-cleaner energy is necessary to achieve a more prosperous and sustainable world (Chevron 2022c). The corporate-level strategy of the company is to the production of natural gas and crude oil; manufacture transportation fuels, petrochemicals, lubricants and additives; developing technologies that will improve the business and industry. The focus of Chevron is to decrease the intensity of carbon and seek to develop lower carbon businesses in addition to a traditional line of business.
Chevron is a multinational integrated gas and Oil Company that is America based. The business of the company covers the gas and oil chain, exploration of natural gas and crude oil, production to the generation of power, transportation, marketing of petroleum products, and trade of international crude oil and product. Chevron is aware of all the environmental risks of its operations (IIDE 2022). The motive of this company is to decrease the risks that will hamper the status of the company in the industry.
Strengths Strengths of Chevron are 63rd rank with the Brand Finance report; vertical engagement of Chevron in exploration and production of crude oil and natural gas; improvement in the technology to reduce the carbon footprint and emission of the greenhouse gas that results in the extraction of more fuel with less effort. Chevron has many patents that are registered in its name and they have a continuous investment in R&D (IIDE 2022). It assists in decreasing expenditure and delivers competitive advantages. The major strengths of Chevron are its gigantic geographic presence. The company is found in more than 180 nations and is officially recommended by Renault, Mitsubishi, Nissan and others. |
Weaknesses The weaknesses of the company are increasing debts which means increased business risk and an elevated amount of flow of cash. The other weaknesses are a shortage of financial and technical issues, a history of social and environmental impacts, strong governmental regulations and policies, legal issues (IIDE 2022). |
Opportunities The opportunities are increasing demand for Chevron, investment of Chevron in solar and wind power; global economic growth and the demand-supply gap (IIDE 2022). |
Threats Threats of Chevron are lawsuits in various markets, dependability of the company on renewable energy and non-conventional source of energy, increased emission of carbon dioxide leading to change of the climate, political volatility, and intense competition (IIDE 2022). |
Factors |
Description |
Political |
The Political factors causing an effect on Chevron are geopolitical conflicts and tensions in the Middle East, the impact of change in the tax policies, and the effect of trade regulations and sanctions on businesses (Fern Fort University 2022). |
Environmental |
Various economic factors are fluctuating crude oil prices and the impact of slowdown, GDP and economic growth that affects the status of Chevron (Fern Fort University 2022). |
Social |
They are aware of the consumer and focus on environmentally friendly fuels, the level of social concerns and awareness in society, and the pressure of the investor to venture beyond the core business of Chevron (Fern Fort University 2022). |
Technological |
The technological factors affecting Chevron are automation in gas and oil and artificial intelligence; edge computing and increased adoption of loT services; drone technology and 3D virtual modelling (Fern Fort University 2022). |
Legal |
The legal factors are an infringement of the property, health and safety in the gas and oil industry (Fern Fort University 2022). |
Environmental |
Environmental factors are regulation of the emission of greenhouse gas, an initiative of the capture of carbon and storage, and impact of the adverse weather condition (Fern Fort University 2022).
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The key success factors of Chevron are a disciplined capital program, significant growth in the Permian, and delivery on financial commitments.
The major problem is the $22 billion cash pile of the company
794 MBOED was produced in 2021 from shale and tight resources. There were approximately $4.5 billion of the capital budget of the company in 2022 was focused on shale and tight resources. 2.6 million Net of the shale and tight resources was used for production and exploration (Chevron 2022b).