SWOT Analysis of Chevron: Top Oil Company in America

Products & Services by Chevron

These are some of the products and services by Chevron:

• Fuel, lubricants and petrochemicals (Delo)
• Oil & gas exploration and production
• Natural gas
• Oil refining
• Chemicals

Competitors of Chevron

Here are some of the close competitors of Chevron:

• OMV Group
• Air Liquide
• ENGIE
• Cheniere Energy
• TotalEnergies

Let’s begin with the SWOT analysis of Chevron

SWOT Analysis of Chevron

SWOT can tell the areas that are holding you back, or about the loss if you don’t protect them. SWOT analysis is a tool that helps you analyze your company’s strengths, weaknesses, opportunities and threats.

To better understand the SWOT analysis of Chevron, refer to the infographics image below:

Let’s start by discussing the strengths of Chevron from the SWOT analysis of Chevron.

Strengths of Chevron

The strengths of Chevron are the points that helped Chevron to achieve success. Let’s have a look at the strengths:

• Brand Price: Chevron ranks 63rd  in line with the Brand Finance report. The price of his emblem is $ 17.822 billion. It is the fifth-biggest oil corporation withinside the world.
• Vertical Integration: Chevron has successfully integrated its business operations vertically by engaging in exploration and production of natural gas, crude oil, etc. The upstream market, involving exploration and production. In the downstream market, it is in the marketing of fuel and lubricants. They enjoy quality control and cost benefits as competitive advantages by vertical integration.
• Research and Development: Chevron is continuously trying to improve its technology to decrease its carbon footprint and greenhouse emission while trying to extract more fuel with fewer efforts. Chevron has many patents registered in their name and Chevron has sustained investment in R&D. R&D helps in reducing expenditure and also gives competitive advantages.
• Gigantic Geographic Presence: Chevron has a big geographic presence across the world. It is found in more than a hundred and eighty nations. Its fundamental hobby is focused in nations including the United States, Nigeria, Congo, Angola, Sierra Leone, South Africa, China, Cambodia, Myanmar, South Arabia, Russia, Denmark, Norway, Canada, Brazil, etc. 
• Sponsor of Automobile: Chevron fuel and lubricants are officially recommended by prominent Renault, Nissan, and Mitsubishi Alliance members. Chevron is also the official sponsor to provide fuel and lubricants to professional auto racing teams and the world’s car championships.
• Lubricant and Gas Inventories: As of economic 2015, Chevron has a complete 11.2 billion barrels of oil reserves and 29,437 BcF of herbal fuel online reserves. In 2015, Chevron had 48,485 generating wells. These excessive reserves with Chevron supply it the benefit of being aggressively available in the marketplace and of demonstrating its excessive efficiency.

Weaknesses of Chevron

Weaknesses are the areas where the company is lacking behind and needs improvement. Let’s have a look at the weaknesses of Chevron:

• Increasing Debts: Chevron has been experiencing a growing debt for the past few years. In FY 2015 the debt of the company was $27.8 Billion. In FY 2021 the debt of the company increased to $38.6 Billion. The increasing number of debt means increasing business risk and a subsequential amount of cash flow goes for payment of interest. This may increase the number of financial obligations in future.
• Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
• Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
• History of Environmental & Social Impacts: Chevron has been criticized several times for increasing carbon emission globally. Also, the company is listed under the top 100 companies responsible for 0.9% of global emissions. 
• Legal Issues: Chevron has been worried about some of the prison’s intended and illegal actions. It has been fined through the US Environmental Protection Agency (EPA), civil research through the Pennsylvania Department of Environmental Protection­, and the Occupational Safety & Health Administration of the US. It became additionally fined for violating legal guidelines as that they’d now no longer stated extra emissions withinside the State of New Mexico. Such a prison count harms the emblem photograph of the company. 

Opportunities for Chevron

Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for Chevron Energies:

• Increasing Demand: It is predicted that calls for natural gas are going to increase. This ought to suggest a massive possibility for Chevron to faucet into this.
• Renewable Energy: Chevron is investing heavily to increase solar and wind power which will ultimately help to increase energy storage. Chevron aims to grab the opportunity to become one of the top producers of renewable energy globally in the upcoming years.
• Global Economic Growth: Due to the increase in the demand for energy and increasing dependency on fuels it can be an opportunity for Chevron to grow in its field.
• The Demand-Supply Gap: The gap between demand and supply is widening and it’s a great opportunity for Chevron to take advantage of the excess demand in the market. By grabbing this opportunity Chevron can increase its market hold.

Threats to Chevron

Threats are the issues that can cause problems to the company in future. Let’s have a look at some of the threats to Chevron:

• Lawsuits: The company can face lawsuits in various markets. As there are different laws and a continuous fluctuation of standards regarding products in those markets.
• Eco-friendly Fuel: If the dependability on renewable energy and non-conventional sources of energy increases then the company may face a large drawback as their products are not environment friendly.
• Climate Changes: As energy demand is increasing, carbon dioxide emission in production as well as upstream is expected to increase which needs to be under control for Chevron. Chevron has to find ways to reduce the emission of carbon dioxide or else Chevron has faced increasing costs and strict regulation. 
• Political Volatility: Oil and gas have been a very important subject of discussion between many countries for the last century. Energy demands and Production are always surrounded by politics. Chevron has the disadvantage of becoming a victim of political development in the future.
• Intense Competition: Increased competitors’ technologies and profit stability have increased the competition in the industry over the last two years which has put downward pressure on not only profit but also sales.

This ends our detailed SWOT analysis of Chevron. Let us conclude our learning below.