How Does Chevron Company Work?

Chevron's upstream segment focuses on finding and extracting crude oil and natural gas. Key operational areas include the Permian Basin and the Gulf of America within the U.S., alongside significant assets in Australia, Nigeria, Angola, and Kazakhstan. The Permian Basin alone saw nearly 18% growth in 2024, and the Ballymore field in the Gulf of America commenced production in April 2025.

The downstream segment transforms crude oil into essential products like transportation fuels, lubricants, and petrochemicals. Chevron's refining and marketing activities are concentrated in regions such as the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia, and South Africa, operating around 19,550 retail sites globally.

Chevron differentiates itself through its extensive global reach, a diverse asset base, and a strong commitment to technological advancement. This vertical integration enhances quality control and cost efficiency across its supply chain. Understanding Revenue Streams & Business Model of Chevron reveals how these integrated operations contribute to its market position.

The company is strategically investing approximately $1.5 billion in 2025 to reduce its operational carbon intensity and expand new energy businesses. This includes enhancing its renewable diesel project and developing carbon capture and storage capabilities, underscoring a commitment to lower-carbon solutions.

The acquisition of Hess Corporation for $53 billion significantly bolsters Chevron's asset base, particularly with a 30% stake in Guyana's Stabroek Block. This move is anticipated to fuel substantial free cash flow and production increases well into the 2030s.

In 2024, Chevron achieved a record worldwide production of 3.3 million net oil-equivalent barrels per day, a 7% increase. The company also commenced production at the Anchor project in the Gulf of America, utilizing advanced 20,000 psi technology.

Chevron's competitive edge is built on its strong brand, robust financial standing, and extensive global reach across over 180 countries. Its financial stability is underscored by a debt-to-equity ratio of 19.8% as of 2025, well within its target parameters.

The company is actively implementing structural cost reductions of $2-3 billion by the end of 2026 through operational efficiencies and organizational restructuring. Investments in lower-carbon technologies also highlight its adaptability to future energy demands.

As of Q1 2025, Chevron commanded a 13.11% market share in Oil & Gas Integrated Operations and 8.12% in the overall Energy Sector. Its operations span over 180 countries, supported by a robust brand and customer loyalty.

Chevron faces risks from oil price volatility, regulatory changes, and geopolitical instability. The U.S. Supreme Court's June 2024 overturning of the 'Chevron doctrine' may increase challenges to agency regulations, particularly in environmental law.

Technical issues in regions like Venezuela, including well integrity and infrastructure wear, present operational hurdles. Furthermore, California's stringent environmental regulations and high costs prompted Chevron's planned relocation to Houston by 2029, anticipating annual operational cost savings of $201 million.

Chevron's strategy centers on sustained profitability and navigating the energy transition. This involves growing its core oil and gas business while expanding into renewable fuels, carbon capture, hydrogen, and power generation.