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Chevron

Chevron

Tagline

"Finding newer, cleaner ways to power the world."

Net Worth

$190,000,000,000

Started in (City)

California

Started in (Country)

United States

Incorporation Date

10th December, 1879

Bankruptcy Date

-

Founders

  • John D. Rockefeller's

About

Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world’s largest companies; as of March 2020, it ranked fifteenth in the Fortune 500 with yearly revenue of $146.5 billion and a market valuation of $136 billion It was also one of the Seven Sisters that dominated the global petroleum industry from the mid-1940s to the 1970s. Chevron is incorporated in California. Chevron’s downstream operations manufacture and sell products such as fuels, lubricants, additives, and petrochemicals. The company’s most significant areas of operations are the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea and Australia. In 2018, the company produced an average of 791,000 barrels of net oil-equivalent per day in the United States. One of Chevron’s early predecessors, Star Oil, discovered oil at the Pico Canyon Oilfield in the Santa Susana Mountains north of Los Angeles in 1876. The 25 barrels of oil per day well marked the discovery of the Newhall Field and is considered by geophysicist Marius Vassiliou as the beginning of the modern oil industry in California. Energy analyst Antonia Juhasz has said that while Star Oil’s founders were influential in establishing an oil industry in California, Union Mattole Company discovered oil in the state eleven years prior.

Beginning

In September 1879, Charles N. Felton, Lloyd Tevis, George Loomis and others created the Pacific Coast Oil Company, which acquired the assets of Star Oil with $1 million in funding. Pacific Coast Oil became the largest oil interest in California by the time it was acquired by Standard Oil for $761,000 in 1900. Pacific Coast operated independently and retained its name until 1906 when it was merged with a Standard Oil subsidiary and it became Standard Oil Company (California) or California Standard. Another predecessor, Texas Fuel Company, was founded in 1901, in Beaumont, Texas as an oil equipment vendor by "Buckskin Joe." The founder’s nickname came from being harsh and aggressive. Texas Fuel worked closely with Chevron. In 1936, it formed a joint venture with California Standard named Caltex, to drill and produce oil in Saudi Arabia. According to energy analyst and activist shareholder Antonia Juhasz, the Texas Fuel Company and California Standard were often referred to as the "terrible twins" for their cutthroat business practices. The Texas Fuel Company was renamed the Texas Company and later renamed Texaco.

Road to Success

Today Chevron is the owner of the Standard Oil trademark in 16 states in the western and southeastern U.S. To maintain ownership of the mark, the company owns and operates one Standard-branded Chevron station in each state of the area, although its status in Kentucky is unclear after Chevron withdrew retail sales from Kentucky in July 2010. Chevron would sell the Gulf Oil trademarks for the entire U.S. to Cumberland Farms, the parent company of Gulf Oil LP, in 2010 after Cumberland Farms had a license to the Gulf trademark in the Northeastern United States since 1986. In 1996, Chevron transferred its natural gas gathering, operating and marketing operation to NGC Corporation (later Dynegy) in exchange for a roughly 25% equity stake in NGC. In a merger completed on February 1, 2000, Illinova Corp. became a wholly-owned subsidiary of Dynegy Inc. and Chevron’s stake increased up to 28%. However, in May 2007, Chevron sold its stake in the company for approximately $985 million, resulting in a gain of $680 million. As of December 31, 2018, Chevron had approximately 48,600 employees (including about 3,600 service station employees). Approximately 24,800 employees (including about 3,300 service station employees), or 51 per cent, were employed in U.S. operations.

Challenges

In October 2015, Chevron announced that it is cutting up to 7,000 jobs, or 11 per cent of its workforce. Because of the COVID-19 pandemic and the 2020 Russia–Saudi Arabia oil price war, Chevron announced reductions of 10–15% of its workforce. As of 2019, Chevron did not own significant midstream assets; that year it attempted to purchase Anadarko Petroleum, which owned pipelines but was outbid by Occidental Petroleum.

Failures

The following are the major controversial issues faced by chevron : • Environmental damage in Ecuador – 2007 • Oil spills in Angola • U.S. Clean Air Act Settlements • NiMH battery technology for automobiles • Niger Delta shootings • UN sanctions • Richmond, California refinery • Oil spill off the coast of Rio de Janeiro • KS Endeavor explosion • Forest Fire in Lawachara National Park, Bangladesh • Polish gas exploration • Argentina agreement and protests • Public Eye Lifetime Award • Global warming

Achievements

  • Chevron was awarded the 2019 Secretary of Defense Employer Support Freedom Award, the nation’s highest honor for exemplary support of National Guard and Reserve employees.
  • Forbes and Statista named Chevron to the 2019 list of America’s “Best Employers for Women.”

Subsidies

  • Texaco
  • Noble Energy
  • Chevron Oronite SA

CEOs

  • Michael Wirth
  • John Watson
  • David J. O'Reilly