Strategy: Grow profitably in core areas and build new legacy positions.
Upstream explores for and produces crude oil and natural gas. At the end of 2010, worldwide net oil-equivalent reserves for consolidated operations and affiliated operations were 7.7 and 2.8 billion barrels, respectively. In 2010, net oil-equivalent production averaged 2.8 million barrels per day. Major producing areas include Angola, Australia, Azerbaijan, Bangladesh, Brazil, Canada, Denmark, Indonesia, Kazakhstan, Nigeria, the Partitioned Zone between Kuwait and Saudi Arabia, Thailand, the United Kingdom, the United States, and Venezuela. Major exploration areas include the U.S. Gulf of Mexico and the offshore areas of northwestern Australia and western Africa. Additional areas include the Gulf of Thailand, Black Sea, South China Sea, and the offshore areas of Canada, the United Kingdom, Norway, Brazil and Liberia. Shale gas exploration areas include Canada, Poland and Romania.
Gas and Midstream
Strategy: Commercialize our equity gas resource base while growing a high-impact global gas business.
We are engaged in every aspect of the natural gas business — production, liquefaction, regasification, pipeline and marine transport, marketing and trading, power generation, and gas-to-liquids. We hold the largest natural gas resource position in Australia through the Gorgon, Wheatstone and Browse Basin projects; the North West Shelf Venture; and other deepwater blocks. We also have significant natural gas resources in western Africa, Bangladesh, Canada, China, Indonesia, Kazakhstan, the Philippines, South America, Thailand, the United Kingdom, the United States and Vietnam. Additionally, we have significant positions in shale gas in the United States.
Downstream and Chemicals
Strategy: Improve returns and grow earnings across the value chain.
Our downstream operations include refining, fuels and lubricants marketing, petrochemicals manufacturing and marketing, supply and trading, and transportation. In 2010, we processed 1.9 million barrels of crude oil per day and averaged 3.1 million barrels per day of refined product sales worldwide. Our most significant areas of operations are the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia, South Africa and the United Kingdom. We hold interests in 16 fuel refineries and market under the Chevron, Texaco and Caltex motor fuel and lubricants brands. Products are sold through a network of approximately 20,000 retail stations, including those of affiliated companies. Our chemicals business includes Chevron Phillips Chemical Company LLC, a 50 percent-owned affiliate that is one of the world’s leading manufacturers of commodity petrochemicals. Our subsidiary Chevron Oronite Company LLC also is part of our chemicals business. It develops, manufactures and markets quality additives that improve the performance of fuels and lubricants.
Strategy: Differentiate performance through technology.
Technology advancements enable us to continue to overcome new and difficult business challenges. Our three technology companies — Energy Technology, Technology Ventures and Information Technology — support our base businesses and enable our most promising future opportunities. We have technology centers in Australia, Scotland and in California and Texas in the United States. Together they provide strategic research, technology development, and technical and computing infrastructure services to our global businesses.
Renewable Energy and Energy Efficiency
Strategy: Invest in profitable renewable energy and energy efficiency solutions.
We are the largest producer of geothermal energy in the world, with leading positions in Indonesia and the Philippines. We are involved in developing emerging renewable sources of energy for the future, including advanced biofuels from nonfood sources. Our subsidiary Chevron Energy Solutions develops and builds sustainable energy projects for internal and external clients that increase efficiency and renewable power, reduce costs, and ensure high-quality energy.
Operational excellence (OE) is a critical driver for business success. We define OE as the systematic management of process safety, personal safety and health, environment, reliability and efficiency to achieve world-class performance. 2010 was our safest year ever. For the ninth consecutive year, we improved our safety performance, reducing the rate of injuries severe enough to require days away from work by 28 percent, compared with the previous year. Safety is our highest priority, and we will not be satisfied until we have zero incidents — no one injured. We also continue to make progress in energy efficiency, which has improved by 33 percent since 1992, the year we began tracking our efficiency progress.
Posted: April 2011