Chevron has earned its stripes as the #2 integrated oil company in the US, behind Exxon Mobil. In 2013 it reported proved reserves of 11.2 billion barrels of oil equivalent and a daily production of 2.6 million barrels of oil equivalent, 10,072 miles of oil and gas pipeline, and a refining capacity of 2 million barrels of oil per day. Chevron also owns interests in chemicals, mining, and power production businesses. The company owns or has stakes in 8,060 gas stations in the US (and 8,600 outside the US) that operate mainly under the Chevron and Texaco brands. Chevron also owns 50% of chemicals concern Chevron Phillips Chemical.
The company has operations in Angola, Argentina, Australia, Azerbaijan, Bangladesh, Brazil, Cambodia, Canada, Chad, China, Colombia, Democratic Republic of the Congo, Denmark, Indonesia, Kazakhstan, Myanmar, the Netherlands, Nigeria, Norway, the Partitioned Zone between Saudi Arabia and Kuwait, the Philippines, Republic of the Congo, Singapore, South Africa, South Korea, Thailand, Trinidad and Tobago, the UK, the US, Venezuela, and Vietnam.
In 2013 the US accounted for 40% of Chevron’s revenues.
Chevron's upstream operations consist primarily of exploring for, developing, and producing crude oil and natural gas; liquefaction, transportation and regasification of liquefied natural gas; transporting crude oil via pipelines; processing, transporting, storage and marketing of natural gas; and a gas-to-liquids project.
Downstream operations 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.
Other activities include mining, power generation, energy services, alternative fuels, and technology development, as well as corporate administration, financing, insurance, real estate management.
Sales and Marketing
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 has seen a slow decline in revenues over the past few years. In 2013 Chevron's revenues decreased by 5% due to lower refined product prices and lower crude oil volumes and prices. US downstream operations saw lower margins on refined product sales and higher operating expenses stemming from repair and maintenance activities at its refineries. The decrease was partially offset by higher sales by its Chevron Phillips Chemical joint venture and higher upstream-related earnings from Tengizchevroil in Kazakhstan and Petropiar in Venezuela, partially offset by 2013 impairments of power-related affiliates.
In 2013 Chevron’s net income decreased by 18% due to lower revenues as the result of the sale of assets.
Its operating cash inflow decreased to $35 billion (from $38.81 billion in 2012) primarily due to a decline in net income and a change in working capital.
Chevron seeks to grow its core areas, build new legacy positions and commercialize its natural gas resource base while growing a high-impact global natural gas business, and investing in profitable renewable energy and energy efficiency businesses.
Growing its shale assets, in 2013 Chevron agreed to a $1.24 billion investment in YPF to help YPF develop the world’s second-largest shale gas deposit and fourth-largest shale oil reservoir, located in Argentina's Vaca Muerta region. In 2013 and 2012 the company also announced new exploration and production deals to expand its assets in China, Kurdistan, the Republic of Congo, Surinam, and the US.
In 2013 company acquired exploration interests in offshore Blocks EPP44 and EPP45 (more than 8 million acres in the Bight Basin off the South Australian coast).
Streamlining its gas businesses, in 2013 the company consolidating the supply and trading functions into a single supply and trading group within Chevron’s Gas and Midstream organization.
In 2013 50%-owned affiliate GS Caltex, opened a 53,000-barrel-per-day gas oil fluid catalytic cracking unit at the Yeosu Refinery in South Korea.
Mergers and Acquisitions
Growing its LNG supply and export capacity, in 2013 Chevron acquired a 50% operating interest in the Kitimat liquefied natural gas project and proposed Pacific Trail Pipeline, and a 50% stake in 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia, Canada. The company bought the assets from Apache for $405 million.