As one of the leading energy companies with 47,000 employees, Chevron faces a volatile market in 2005. At the annual stockholders' meeting on April 25, 2005, David O'Reilly, CEO, said, "We have the right strategies, the right people, a strong queue of projects and great momentum. With the recent acquisition of Unocal, oil-equivalent reserves will increase 15% to 13 billion barrels, which will boost expected net oil-equivalent production to about 3 million barrels per day in 2006."
Peter Robertson, vice chairman of the board added, "Clearly, we benefited from high oil and natural gas prices, as well as from improved refining margins. But we also benefited from our strong operating performance, and we ran our base business well."
Executives view expanded branding and liquefied natural gas [LNG] as keys to success. Chevron recently regained the right to market fuels in the U.S. under the Texaco brand, and signed a preliminary agreement in China that will lead to the expansion of the Caltex brand there. The company continues to make progress toward building a high-impact, global natural gas organization by moving forward with its two major initiatives: a regionally focused LNG initiative designed to move natural gas to growing markets in North America and Asia, and a gas-to-liquids strategy in which natural gas is converted to ultraclean, high-performance transportation fuels. Chevron recently received regulatory approval for an LNG import terminal offshore Baja California, Mexico, and signed of a 20-year agreement for regasification capacity at the proposed Sabine Pass LNG terminal in Louisiana, which will provide access to key U.S. Gulf Coast natural gas markets.
Special Recognition
The Chevron fuel brand was named the "Top Tier" by four of the world's leading automakers, the first in the U.S. and Canada to receive that recognition.
IW 50 Best Manufacturing Company
