Commercial Production Begins at Chevron’s New Premium Base Oil Plant
SAN RAMON, Calif., July 21, 2014 – Chevron Corporation (NYSE: CVX) subsidiary Chevron U.S.A. Inc. announced that it has begun commercial production of premium base oils from a newly constructed manufacturing facility at the company's Pascagoula refinery.
Base oils produced at Pascagoula will add to capacity from the company's refinery in Richmond, California and a joint venture facility in Yeosu, Korea, approximately doubling Chevron's production capacity and positioning it to be the world's largest producer of premium base oil.
"Lubricants are a high growth business supporting economic development worldwide," said Mike Wirth, executive vice president, Chevron Downstream & Chemicals. "The addition of the Pascagoula plant to Chevron's base oil network enhances Chevron's reputation as a reliable and flexible base oil supplier globally."
Base oils from the new facility will supply customers in the U.S. East, Europe and Latin America, with Richmond continuing to supply the U.S. West, and both Richmond and Yeosu supplying Asia.
The facility is designed to manufacture 25,000 barrels per day of premium base oil, helping countries around the world meet increasingly strict regulatory requirements and higher performance standards for lubricants. Premium base oil is the main ingredient in the production of top-tier motor oils that help improve fuel economy, lower tail-pipe emissions and extend the time between oil changes. Base oils are used to make lubricants and greases for machinery and equipment in the commercial and industrial sectors.
The base oil facility uses Chevron's proprietary ISODEWAXING® technology invented in 1993. The technology results in higher yields and enables a broader range of crude oil to be used in the manufacturing process. Over half of the world's premium base oil is manufactured with this technology through licensing agreements with Chevron.
Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in the United States. Words such as "anticipates," "expects," "intends," "plans," "targets," "forecasts," "projects," "believes," "seeks," "schedules," "estimates," "budgets," "outlook" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company's net production or manufacturing facilities or delivery transportation networks due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; and general economic and political conditions. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: July 2014