Chevron Press Release - Chevron Launches Silicon Valley Oil Co.
Internet marketplace to link fuel and lubricants suppliers with customers
SAN FRANCISCO, June 21, 2000 -- Chevron Corp. today announced the formation of Silicon Valley Oil Co. (SVOC), an online marketplace which plans to enable sales of fuels and lubricants to commercial and industrial customers via the Internet.
The formation of SVOC continues the ongoing implementation of Chevron's strategy to lead the industry in transforming its key business processes to those of the e-business world.
"Silicon Valley Oil Co. intends to forge a new electronic link between commercial and industrial customers and the petroleum marketers who supply lubricants and fuels," said Patricia Woertz, a corporate vice president and president of Chevron Products Co.
"The SVOC marketplace is designed to connect the thousands of commercial and industrial customers to the 8,500 petroleum marketers who are at the nexus of a $50 billion U.S. market for lubricants and diesel fuel," she said.
Several large petroleum marketers have agreed to participate in the site from its inception and to provide feedback during live testing. They include Hasco Oil of Long Beach, Calif., and Thomas Petroleum of Victoria, Texas.
Richard Camper, Hasco Oil Sales Manager, said, "This is a wonderful innovation which allows us to build on the power of the Internet so we can reach existing and new customers in a more effective way."
"SVOC is an outgrowth of an internal project that only carried the Chevron brand," said Woertz. "With increased use of the Internet, we recognized that we had an opportunity to provide the full utility demanded by the market. We decided to establish SVOC as a neutral site that would be open to a broad customer base. We believe SVOC's cutting-edge capability will create new business opportunities for marketers and suppliers who choose to utilize it."
Chevron worked with Computer Sciences Corp. during the initial strategy formulation, market research and creation of SVOC. CSC is currently engaged as a development partner in designing the operational strategy and its implementation as well as the technical infrastructure to support SVOC's operations.
SVOC plans to launch its marketplace during the third quarter. The site will allow buyers, for example, to place orders for diesel fuel and sellers to bid to fill the orders -- leveraging current business practices with the convenience and efficiency of the Internet.
Commercial and industrial buyers include trucking and delivery companies, grocery chains, rental car firms, transit agencies and manufacturers.
James L. Conger, who led the SVOC business development team while working for Chevron's lubricants division, has been named the company's president and chief operating officer.
Chevron, headquartered in San Francisco, Calif., is a leading energy company, operating in about 90 countries and employing about 31,000 people. Since January, Chevron has participated in the formation of four new Internet companies: Petrocosm, RetailersMarketXchange, Upstreaminfo.com and PetroCore.
Silicon Valley Oil Co.:
SVOC is an Internet service company dedicated to the fuels and lubricants marketplace. SVOC leverages the strengths of the existing distributor network while taking advantage of the speed and lower cost of the Internet. More information on SVOC can be obtained at www.svoc.com.
Updated: June 2000