In the world today, global trade and industry prosperity and quality of living depend on provisions of consistent and affordable energy. The energy industry is comprised of all the companies and co-operations involved in production, distribution, and sale of energy. It’s a vital part of the infrastructure and upholding of society in the world. Providing the energy responsibly and securely is very significant in the energy industry and can be achieved through dependable and efficient operations while protection the health and safety of humans and the environment.
The following analytical report focuses on the corporate analysis of the Chevron Hallmark-Human Energy Corporation in the energy industry. The analysis will highlight corporate operations of the company how it manages systematically in means of significance in protecting people and the environment, the strategies used to maximize use of resources and possessions, products and services the company offers , its weaknesses and corporate competitors, its functional and operational, business, and functional strategies in keeping the company running.
The analysis will also point out key achievements of the corporation and other developments in operations and financial activities. Also highlighted will be key problems facing the corporation in its operations and conditions of keeping high rivalry to its competitors and viable alternatives to resolve the key issues facing the company. This will provide a full analysis of corporate operations and its relation with its various departments on how they work hand in hand in strategizing the corporation’s affairs in the energy industry to maintain socioeconomics in the society.
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Chevron Corporation is one of the world’s biggest well established energy companies. Its headquarters located in San Ramon, California and operates globally. The corporation engages in each and every aspect of crude oil and natural gas production including other services, such as exploration and production, manufacturing, marketing and transportation, chemicals and manufacturing and sales, geothermal energy, and power generation including renewable and advanced technologies.
The company was founded in 1879 in the early roots of oil discovery at Pico Canyon, which was later made a company called Pacific Coast Oil company that later renamed to Standard oil corporation of California and consequently, the now Chevron corporation. The company got the name Chevron after attaining the Gulf Oil Corporation in 1984, which was the largest partnership in U.S. Chevron also, has other major branches, the Texas Company and Texaco Company strengthened Chevron after merged to form Unocal Corporation.
After its formation, Chevron looked for resources in very complex fields, more intricate environments, deeper and remote reservoirs with very tough characteristics. Chevron earned approximately 72 billion dollars between 2002 and 2007, and invested deeply the same quantity to bring fresh energy provisions to market. The following is a graph analyzing its common stock (CVX).
Chevron has accomplished many achievements in the past years. In 2006 Chevron established its professionalism establishing deepwater oil exploration technology in the U.S Gulf of Mexico. It was the deepest well in the gulf, five miles deep. The project succeeded without any safety or environmental incident. This was a success due to its operational excellence management system (OEMS) which is a set of fundamentals to constantly assess and advance performance by using secure operations and environmental stewardship. The well produced oil from the Tahiti field which is the biggest in terms of production. This increased oil production to 1.9 million barrels of oil per day at the end of 2008. The corporation also introduced new three dimensional visualization technology that enabled geologist see potential crude oil reservoirs, which was used in Karachagak fields in Kazakhstan. In 2009, for the ninth time and the seventh year in a row, the Women's Business Enterprise National Council honored Chevron as a Top Corporation for providing opportunities to women entrepreneurs — a tribute to our Supplier Diversity/Small Business agenda. The company used its marketing framework to support its worldly refining capacity to retail outlets globally. This shows how corporate departments work hand in hand to ensure business continuity in the corporation through operations excellence management system.
Chevron has grown rapidly and its latest developments are proof to this. Chevron has acquired a 100 percent concern in blocks 53-30 and 64-18, and a 59.18 percent interest in block 42-05, from Devon subsidiary Devon Energy China, Ltd. The blocks cover a probing acreage of about 8,100 square miles (21,000 square km). Chevron will be operator in the exploration phase under the adaptation agreements to the fabrication sharing convention with China National Offshore Oil Corporation (CNOOC). This new interest furthers the corporation’s strategy to develop business in China and Asia regions. This will produce business opportunities for investors in the energy industry and employment opportunities for the locals this will also improve the economy of China from revenue earned from the new deep water projects. Also new technologies will be applied creating more investment opportunities for technology based companies.
The Chevron Corporation establishment is built on its values, which give guidelines to its procedures and makes it diverse from other Corporations in the energy industry. Chevron conducts their business in a social context and responsible way, in accordance to the law, supporting global human rights, and safeguarding the environment and the communities where it operates.
Chevrons uses a couple of functional strategies in which make keep it ahead of its competitors. The first is maintaining integrity within the company. The Company is candid to others and themselves in all trade dealings by taking conscientiousness and hold themselves answerable for their actions. The second aspect is diversity, where the company respects the social cultures of their workplaces and embraces the diversity of people, ideas and experiences. The corporation works directly with communities to devise and apply strategic community engagement plans to establish social economic growth. The other strategy is safeguarding the well being and safety of the companies’ personnel and protection of its resources and the environs. This is evident in its upcoming project to build a carbon emission reduction project in Barrow Island. Another strategy is partnership. Chevron is committed to being a superior associate focused on improving industrious, joint, trustworthy, and favorable relationships with its associates, governments, communities, and customers. The corporation is furthermore ardent in achieving outcome that surpasses expectations. It also has a financial return objective strategy that looks to generate stockholder worth and get constant financial payback that will enable it surpass its corporate rivals.
The corporation also boasts of its corporate management strategies that have led to the making of their operational excellence management system (OEMS) that ensure business continuity and advantage over its competitors. The OEMS is also one of the corporation’s critical affairs that bring about its success in meeting the energy demand. It operates in thirteen functional elements, will analyze some of this strategies. The first is securing of resources by providing a business friendly environment by securing the environment. Second is building and design of efficient facilities in the sense of safeguarding its personnel and environment. Third is the adaptation of management change either permanent or temporary to avoid hazards. Another strategy is the application of conformity guarantee by complying and substantiates conformance with Chevron policy and all laws and regulations relevant while adapting responsible principles no laws apply. Finally it advocates in working morally and constructively to manipulate emerging and anticipated convention and issues. Chevron depends largely on its leadership in executing the OEMS and achieving results in the right manner as accordance to the corporate policy. This is the main and core strength of the company.
The company however is faced with some key strategic issues and challenges, among them is the ever rising demand for energy in the world. The company is a full operational energy producer from refining, producing of petroleum products, distribution and sales, it’s faced with low supply in oil sometimes which affects it very much. The company has to get into many partnerships and merging of other associates to meet the energy demand in the world. Another challenge facing Chevron is the production of energy while preserving the environment, minimizing pollution and carbon emissions to reduce global warming. Also the issue of safeguarding the company’s personnel from industrial hazards due to the difficulties associated with the production of energy from exploration to manufacturing. This falls in corporate level as the company is supposed to layout strategic plans to ensure all these challenges are surpassed.
To resolve the key issues in Chevron corporate strategies will have to be in place. The first strategy I would suggest is for the corporation to commercialize and invest heavily in other renewable energy production other than its major business which is energy from crude oil. These other energy sources are like liquefied natural gas and bio fuels that would see reduction in environmental pollution. Another corporate strategy which would help the company is to implement a corporate program to promote ecological stewardship in reducing pollution of the environment. This would provide a more secure business environment once there is a sense and responsibility of the environment which holds the energy resources.
I would recommend the Chevron Corporation to adopt an environmental friendly system of assuring its investors, communities and governments of energy production and a non polluted environment in the reduction of global warming. This would increase consumer and investor confidence thus increasing profits gradually. The system would not cost much and the risk would be minimal.
Chevron is a spring of pride for the world with its operations with the uttermost principles of principles and uprightness. But it can not rest with the expanding energy demand and will persist producing every bit of energy, from each obtainable source. The company will in all manners apply its corporate strategies in enforcing this for results surpassing expectations.