Chevron Corporation - Case Study Example

The company owns or has stakes in 9,700 gas stations in the US which operate under the Chevron and Texaco brands. Outside the US it owns or has stakes in 15,400 gas stations, which also use the Caltex brand. The study examines in detail, the three different sectors or industries that Chevron has a stake in: oil and gas exploration and production, petroleum refining, and chemical industry. Earnings for the upstream segment are closely aligned with industry price levels for crude oil and natural gas.

Crude oil and natural gas prices are subject to external factors over which the company has no control. Earnings for the downstream segment are closely tied to margins on the refining and marketing of products that include gasoline, diesel, jet fuel, lubricants and fuel oil. The company recorded sales growth of 5.1 percent to $221 billion and net income of $18 billion. Revenue of the company rose to $61.4 billion from $47.7 billion. Worldwide oil-equivalent production fell by 42,000 barrels to 2.

61 million barrels per day. A detailed SWOT Analysis has also been conducted in the study, analyzing the various internal sources to examine the strengths and weaknesses, and external factors to examine the opportunities and threats in the environment. Finally, the conclusion and recommendations analyze the different strengths of the company to offset the weaknesses and environmental threats faced by Chevron.Chevron - Company overviewChevron Corporation (Chevron) is one of the largest oil refiners in the United States.

The company was incorporated in 1926 and currently has operations in the United States and approximately 180 additional countries. Chevron Corporation, then called Standard Oil Company of California, in 1938 made a huge oil discovery in Saudia Arabia, which eventually led to the discovery of 52 oil fields. After World War II, the company began a major effort to market Arabian crude oil, which was probably the single most important factor in establishing Chevron as a major multinational company.

The company acquired thousands of service stations and terminals on the East Coast and part ownership of many more throughout Europe, East Africa, and Asia. The Chevron discovery changed the course of history throughout the world (Jiffynotes, 1998). Today, the company is engaged in every aspect of the oil and natural gas industry, including exploration and production, refining, marketing and transportation, chemicals manufacturing and sales, geothermal and power generation. It is headquartered in San Ramon, California and employs approximately 65,000 people.

The company recorded revenues of $204,892 million, during the fiscal year ended December 2006, an increase of 5.8% over 2005. The operating profit of the company was $32,497