Strategy: Improve returns and grow earnings across the value chain.
Downstream and Chemicals is focused on strategic markets where we have a competitive advantage. In addition to gasoline, diesel and other fuels, we are well positioned in additives, petrochemicals and lubricants.
Refining
Approximately 95 percent of our crude oil refining capacity is concentrated in North America and the fast-growing Asia-Pacific region where we have several joint-venture refineries. We have spent the past few years aggressively upgrading our refinery system to improve reliability, efficiency and flexibility. Chevron ranked No. 1 in refinery utilization for the third straight Solomon Associates refinery benchmark study. Solomon is a leading benchmarking firm that tracks the refinery utilization of nine major international oil refiners. The 2010 study represents Solomon's latest biennial results for refinery utilization.
Our expertise in refining provides important support to the growth plans of our upstream businesses, especially in the development of major capital projects involving crude oil upgrading, gas-to-liquids, sour gas processing and liquefied natural gas.
Chemicals and Lubricants
We are the only integrated energy company with a wholly owned additives company—Chevron Oronite Company. In addition, our Chevron Phillips Chemical Company joint venture gives us a strong position for growth in petrochemicals. We are constructing a $1.4 billion facility at our Pascagoula, Mississippi, refinery that will make us the world's largest producer of premium base oil, the main ingredient in the production of top-tier motor oil. The facility is scheduled to be completed by the end of 2013.
Portfolio Rationalizations
As part of our downstream restructuring effort, we continue to rationalize nonstrategic assets. In 2011, we sold our 220,000-barrel-per-day Pembroke Refinery in the United Kingdom along with related marketing assets. We also reached a sales agreement for most of our downstream assets in Spain and completed a number of other transactions to sell assets, primarily in the Caribbean, Central America and southern Africa. Since 2010, we have exited 32 countries to better focus our refining and marketing portfolio.
Posted: April 2012