About Texaco Inc.

Chevron has earned its stripes as the #2 integrated oil company in the US, behind Exxon Mobil. Its global operations explore for and produce oil and oil equivalents, refines them into various fuels and other end products, and sells them through gas stations, airport fuel depots, and industrial channels. Chevron boasts more than 11 billion barrels of proved reserves, produces about 2.7 million barrels of oil per day, and has refining capacity for nearly 1.7 million barrels per day. The company sells refined products branded under the Chevron, Texaco, and Caltex names through nearly 8,000 gas stations in the US and almost 6,000 outside the US.


Chevron’s operations are grouped into two business segments: Downstream and Upstream.

Downstream operations (70% revenues) include the refining of crude oil into petroleum products; marketing oil and refined products; transporting products by pipeline, ship, truck and rail; the making and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. Also reporting results as part of Downstream are transportation services (pipelines, LNG ships, etc.) and Chevon’s 50% partnership in Chevron Phillips Chemical, which produces polymers, aromatics, specialty chemicals, and plastics.

The Upstream segment (25% of revenue) explores for, develops, and produces crude oil and natural gas. It liquifies, transports, and regasifies liquified natural gas (LNG), transports crude oil by major international pipelines, and operates a gas-to-liquids plant. It also processes, transports, stores, and markets natural gas. The segment operates some 50,000 productive oil and gas wells (net) worldwide. About 70% of its production volume comes from some 20 countries outside the US.

Total gross productive oil wells exceed 60,000 (about 45,000 net) and productive gas wells number some 7,500 (about 5,000 net).

Geographic Reach

San Ramon, CA-headquartered Chevron has substantial Upstream operations in the Americas and Asia and a lesser presence in Africa, Europe, and Australia. The Upstream portfolio contains hundreds of assets, including LNG assets in Australia, legacy crude oil assets in Kazakhstan, unconventional assets (shale, oil sands) in the United States, Canada and Argentina, and deep-water assets in Nigeria, Angola and the U.S. Gulf of Mexico. Upstream sees more than two-thirds of its revenue come from non-US sources.

The Downstream segment operates four refineries in the US, one each in Thailand, South Africa, and Canada, and has interests in another three affiliated (non-owned) facilities. It sells product through nearly 14,000 gas stations and 100 airports worldwide. Chevon’s chemical operations own or have joint-ventures in 30 manufacturing plants and two R&D centers worldwide, including new or in-construction facilities in Singapore and China. Downstream revenue comes more from non-US sources than US ones.

Sales and Marketing

Chevron’s customers include organizations such as heavy industry firms, utility companies, airlines, and car-driving consumers. The company sells crude oil, natural gas, and natural gas liquids from its producing operations under a variety of contractual arrangements. In addition, Chevron also makes third-party purchases and sales of crude oil, natural gas, and natural gas liquids in connection with its trading activities. The company markets an extensive line of lubricant and coolant products under product names such as Havoline, Delo, and Ursa in the US and Chevron, Texaco, and Caltex brands worldwide.

Financial Performance

In the last decade (2008-17), Chevron’s sales have been reduced by almost half from a peak in 2009 ($273 billion) before sliding, and then taking a further jolt in 2014, when global oil prices plummeted, to a low of $114 billion in 2016, its lowest in the 10-year period. By contrast, Chevron profits held steady during 2008-13 period averaging $210 billion each year. However, profits have since plummeted from $19 billion in 2014 to a loss of $500 million in 2016, its lowest in a decade.

Revenue increased some 25% to $142 billion in 2017. Both upstream and downstream operations saw more than 20% growth in revenue, and almost equally distributed between sales increases in the US and the international market.

Net income fared even better, spiking from a loss of nearly $500 million in 2016 to a profit of $9.2 billion in 2017, reflecting gains in benefits due to US tax reform ($5 billion), higher crude oil prices, increases in natural gas sale volumes, as well as gains from asset sell-offs.

Chevon is seeking balanced cash flow, year-over-year, as its coffers are falling for several years. Cash holdings have reduced from $7 billion in 2016 to $4.8 billion in 2017. Operating activities provided $2.5 billion in cash. Investment utilized $8 billion, mostly in CAPEX of $13 billion in 2017—both were at its lowest levels in a decade. Financing activities used a decade-high of $14.6 billion, mostly in repayment of short and long-term debt.


With an improving oil and gas market (in 2017 the global economy grew at the fastest rate in 5 years), Chevron is faring better since the 2014 downturn in oil and gas prices led to rapidly falling revenue.

Battling an environment of low commodity prices, the company placed an explicit goal of balancing its books in 2017. To that end, the company rapidly thwarted capital spending—from $40 billion in 2013 to $19 billion in 2017— and reduced its debt ratio from 24% in 2016 to 20% in 2017.

With a healthy $20.5 billion in cash from operations, Chevron claimed to maintain its balance sheet without large asset sell-offs. However, in 2017 Chevron sold its Indonesian geothermal business, and has reported agreements to sell its major gas fields in Bangladesh and geothermal assets in Philippines

Despite cost-cutting measures, Chevron’s downstream sector has seen a flurry of activity, most of them aimed at strategic market penetration.

In 2017, Chevron entered the retail fuel market in Mexico, and expanded presence in the US Gulf Coast through the Chevron Phillips Chemical joint venture. Lubricant additive production capacity is also set to double, thanks to the construction completion of the Singapore based Oronite plant. Production boost is also expected from the upgraded California refinery (Richmond), with a completion date of 2018.

In Midstream, Chevron has expanded capacity by adding two new LNG carriers, and crossing new transport milestones by delivering an LNG cargo from Wheatstone to Japan.

Upstream, Chevron’s joint venture the Hebron Project started production in 2017, while its Permian Basin and Australian LNG production ramped up. A major project in Kazakhstan is in the books as well.

However, Chevron’s seriously depleting cash reserves may become a cause for concern if future disruptions in the market hamper revenue growth. It has reduced to one-fourth its levels just half a decade ago. With one of the most expansive, and geographically diverse acreage holdings, declining cash reserves can hamper exploration and development projects.

Company Background

Chevron's earliest predecessor was the Pacific Coast Oil Company of San Francisco incorporated in 1879. This was thirty years after the California gold rush, and a small firm began digging for a new product -- oil. The crude came from wildcatter Frederick Taylor's well located north of Los Angeles. In 1879 Taylor and other oilmen formed Pacific Coast Oil, attracting the attention of John D. Rockefeller's Standard Oil. The two competed fiercely until Standard took over Pacific Coast in 1900.

Another predecessor, the Texas Fuel Company, was founded in 1901 in Beaumont, Texas.

In 1911, the federal government broke up Standard Oil into several pieces as per the Sherman Act. One of those pieces, Standard Oil Co. (California), went on to become Chevron when in 1977, a major organizational change led to the formation of Chevron USA merging six US oil and has operations into one. That name stuck since.

In 1985, Gulf Oil merged with Chevron, and the modern brand got even more recognition as the company became the top refiner and marketer of oil and gas liquids in the US.

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Texaco Inc.

6001 Bollinger Canyon Rd
San Ramon, CA 94583-2324
Phone: 1 (925) 842-1000


  • Employer Type: Public
  • Employees: 19,011

Major Office Locations

  • San Ramon, CA

Other Locations

  • Leesburg, AL
  • North Little Rock, AR
  • Douglas, AZ
  • Bakersfield, CA
  • Chula Vista, CA
  • Lancaster, CA
  • Englewood, CO
  • Meeker, CO
  • Fort Myers, FL
  • Titusville, FL
  • Gainesville, GA
  • Morgan City, LA
  • Tallulah, LA
  • Hickory, NC
  • Kernersville, NC
  • Lincoln, NE
  • Lovington, NM
  • North Las Vegas, NV
  • Marietta, OK
  • East Greenwich, RI
  • Florence, SC
  • Hartsville, SC
  • Smyrna, TN
  • Amarillo, TX
  • Austin, TX
  • Forest Hill, TX
  • Pyote, TX
  • San Antonio, TX
  • Texas City, TX
  • Davenport, WA
  • Seattle, WA
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