Case Study Of Chevron

Decent Essays
Chevron is one of the largest publicly world traded oil and gas companies in the world, based on proved reserves. It is lifting in oil and gas production and exploration and distillation of petroleum products, manufacturing of chemicals, and other energy-related businesses. Chevron, in its present form, resulted from the 2002 merger between Texaco and Chevron Corporation.
Chevron is one of the largest integrated energy players in all over the world. The company’s oil and gas development projects is among the best in this industry. However, with some deficits in its operating cash flow, the company needs to look for other avenues like asset sales to meet its shortfall.
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 Corporation lately
…show more content…
In 2014, the Chadian government announced plans to triple its oil production by 2015. The country's oil reserves are estimated to stand at 1.5 billion barrels. With Chevron now out of the picture, companies willing to accept the risks and challenges of doing business in Chad stand to gain opportunities.
These assets have played a substatial role for Chevron in Africa for the past 14 years," said the president of Chevron Africa. "They have been a profitable as a part of our portfolio for many years. The combination of current market conditions and the size of the assets relative to our portfolio make this time an ideal time for a divestiture."
Foolish conclusion:
Trends in the energy sector, including rising capex costs, have pushed Chevron to change its strategy. Selling its Chadian assets was a good decision because of the region's instability, the declining production of the assets, and the disappointing transport volume carried by the Chad-Cameroon pipeline. However, Chevron's exit opens up opportunities for competitors advancing different strategies in the potential-filled
Get Access