press release

Chevron Press Release - Chevron Discontinues Operation of Silicon Valley Oil Co.

SAN FRANCISCO, Feb. 16, 2001 -- Chevron Products Co. today announced it will discontinue operations of its Silicon Valley Oil Co. (SVOC) online marketplace, effective immediately.

Launched last June, SVOC facilitated spot-market sales of fuels to commercial and industrial customers via the Internet and began its online unbranded fuels auction site in August 2000.

"Chevron has been aggressive and innovative with e-business ideas," said Patricia Woertz, a Chevron vice president and president of Chevron Products Co. "We know that along with opportunities there will be risks and learning experiences," she said. "As a first-generation e-business, SVOC was an excellent testing ground for ideas and technology, and we believe the 'lessons learned' from SVOC will help strengthen and develop our competitive advantage."

While customer feedback concerning the SVOC auction was positive, the number of customers did not increase at a rate needed to sustain long-term growth objectives.

At its peak, SVOC employed 45 people. Those employees are being reassigned to other Chevron operations, and Chevron expects that no involuntary separations will result from the closure of SVOC.

Updated: February 2001