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Chevron Product

To develop affordable, reliable, ever-cleaner energy by becoming the most admired global energy company

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To develop affordable, reliable, ever-cleaner energy by becoming the most admired global energy company

Strengths

  • ASSETS: Strong portfolio of conventional & unconventional assets
  • BALANCE: Robust balance sheet with $7.6B cash on hand
  • DIVIDENDS: 37 consecutive years of dividend growth
  • OPERATIONS: Leading operational efficiency in Permian Basin
  • INTEGRATION: Vertically integrated business model reducing volatility

Weaknesses

  • EMISSIONS: Higher carbon intensity vs European energy competitors
  • RENEWABLES: Limited renewable energy portfolio vs competitors
  • REGULATIONS: Exposure to evolving climate policies & regulations
  • TECHNOLOGY: Digital transformation lagging behind industry leaders
  • TALENT: Challenges attracting top tech talent vs tech companies

Opportunities

  • LNG: Growing global demand for liquefied natural gas
  • PERMIAN: Expanding production in high-return Permian Basin
  • HYDROGEN: Emerging clean hydrogen economy for transportation
  • CARBON: Growing carbon capture utilization & storage markets
  • PARTNERSHIPS: Strategic tech partnerships for digital innovation

Threats

  • TRANSITION: Accelerating global energy transition away from fossil
  • COMPETITION: Increasing competition from renewable energy sources
  • REGULATIONS: Stricter carbon regulations & environmental policies
  • VOLATILITY: Oil price volatility affecting long-term investments
  • TALENT: Industry talent drain to tech and renewable sectors

Key Priorities

  • TRANSITION: Accelerate low-carbon technology investments
  • DIGITAL: Enhance digital capabilities across operations
  • PERMIAN: Optimize Permian Basin assets for maximum returns
  • TALENT: Develop next-gen workforce with digital & energy expertise
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To develop affordable, reliable, ever-cleaner energy by becoming the most admired global energy company

ENERGY TRANSITION

Lead the energy transition with lower-carbon solutions

  • CAPTURE: Deploy carbon capture technology at 3 major facilities reducing emissions by 1M tons
  • METHANE: Reduce methane intensity by 50% across operations through AI monitoring systems
  • HYDROGEN: Launch 2 commercial-scale hydrogen production pilot projects by Q4
  • PORTFOLIO: Increase low-carbon investment to 15% of capital expenditure
DIGITAL EXCELLENCE

Transform operations through digital technologies

  • PLATFORM: Deploy unified data platform connecting 85% of operational systems by Q3
  • UPSKILL: Train 3,500 employees on AI/ML fundamentals through Digital Academy
  • PREDICTIVE: Implement predictive maintenance AI on 70% of critical equipment
  • AUTOMATION: Automate 40% of routine workflow processes reducing labor costs by $75M
PERMIAN POWER

Maximize Permian Basin returns and production

  • OUTPUT: Increase Permian production to 1.2M barrels/day while reducing cost per barrel by 8%
  • EMISSIONS: Achieve Permian net zero operational emissions through technology deployment
  • EFFICIENCY: Reduce drilling time by 15% through AI-optimized well planning and execution
  • WATER: Decrease freshwater consumption by 25% through advanced water recycling technologies
FUTURE WORKFORCE

Build the energy workforce of tomorrow

  • TALENT: Recruit 150 data scientists and AI specialists from top tech companies
  • DIVERSITY: Increase representation of women and minorities in technical roles by 20%
  • RESKILL: Enable 5,000 employees to complete digital skills certification programs
  • CULTURE: Achieve 85% employee engagement score in digital transformation initiatives
METRICS
  • Return on Capital Employed (ROCE): 12%
  • Carbon Intensity Reduction: 35% vs 2016 baseline
  • Digital Value Creation: $1.2B in operational savings
VALUES
  • Diversity & Inclusion
  • High Performance
  • Integrity & Trust
  • Partnership
  • Protecting People & Environment
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Align the learnings

Chevron Product Retrospective

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To develop affordable, reliable, ever-cleaner energy by becoming the most admired global energy company

What Went Well

  • EARNINGS: Q1 2023 earnings of $6.6 billion exceeded analyst expectations
  • PRODUCTION: Record 3.3 million barrels per day oil-equivalent production
  • PERMIAN: Permian Basin production grew 14% year-over-year, beating target
  • ACQUISITION: Successfully integrated PDC Energy assets into operations
  • DIVIDENDS: Maintained 36th consecutive year of dividend growth

Not So Well

  • REFINING: Refining margins compressed due to market conditions, down 22%
  • COSTS: Operating expenses increased 6% above projections due to inflation
  • REGULATIONS: New environmental regulations created compliance challenges
  • PROJECTS: Three major capital projects experienced schedule delays
  • DIGITAL: Digital transformation initiatives behind implementation schedule

Learnings

  • AGILITY: Need increased operational agility to adapt to market volatility
  • TECHNOLOGY: Digital modernization essential for maintaining competitiveness
  • INTEGRATION: Post-merger integration requires more dedicated resources
  • EMISSIONS: Carbon management increasingly critical to investor confidence
  • TALENT: Technical talent recruitment requires new approach and incentives

Action Items

  • DIGITAL: Accelerate AI implementation for predictive maintenance solutions
  • CARBON: Expand carbon capture project portfolio with two new demonstrations
  • TALENT: Launch Digital Academy to upskill 10,000 employees in next 18 months
  • INTEGRATION: Consolidate technology platforms across acquired business units
  • EMISSIONS: Implement real-time methane monitoring across all major assets
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To develop affordable, reliable, ever-cleaner energy by becoming the most admired global energy company

Strengths

  • DATA: Vast operational data across global upstream/downstream
  • INVESTMENT: Growing investment in digital transformation
  • PILOTS: Successful AI pilot programs in predictive maintenance
  • ANALYTICS: Established analytics capabilities in exploration
  • LEADERSHIP: Strong executive support for digital initiatives

Weaknesses

  • LEGACY: Outdated legacy systems limiting AI implementation
  • SILOS: Data silos preventing enterprise-wide AI solutions
  • TALENT: Limited AI/ML expertise compared to tech companies
  • CULTURE: Traditional industry culture resistant to AI adoption
  • GOVERNANCE: Underdeveloped AI governance frameworks

Opportunities

  • OPTIMIZATION: AI-driven operational optimization potential
  • EXPLORATION: Machine learning for enhanced oil recovery
  • EMISSIONS: AI monitoring to reduce methane emissions
  • MAINTENANCE: Predictive maintenance to reduce downtime
  • SAFETY: Computer vision for enhanced safety monitoring

Threats

  • COMPETITION: Tech giants entering energy analytics space
  • SECURITY: Cybersecurity vulnerabilities in connected systems
  • REGULATION: Evolving AI ethics and regulatory requirements
  • INVESTMENT: Competitors outspending on digital transformation
  • DISRUPTION: AI-enabled business model disruption in energy

Key Priorities

  • DATA: Unify data architecture across operational silos
  • TALENT: Build AI expertise through hiring and upskilling
  • MAINTENANCE: Scale predictive maintenance AI solutions
  • EMISSIONS: Deploy AI monitoring for emissions reduction