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Downstream

Mike Wirth
Executive Vice President

2012 Chevron Corporation

2012 Chevron Corporation

Strategy Focused on Improving Returns

Improve returns

Operational Excellence

and grow earnings


across the value chain

Focused refining and marketing portfolio


Asset scale, flexibility, complexity
Targeted growth

2012 Chevron Corporation

Shifting Global Fundamentals


Fuels

2010
Capacity

2010
Capacity

77
MMBD

91
MMBD

2010
2020
Demand

Modest growth
and surplus capacity
2012 Chevron Corporation

Primary
Petrochemicals

Premium
Base Oils
2010
Capacity

261
MMTPA

368
MMTPA

2010

2020

Demand

209
MBD

382
MBD

2010
2020
Demand

Petrochemicals and lubricants


are growth segments
Source: Purvin & Gertz, Nexant ChemSystems, Kline & Company

Fuels Demand Outlook Plays to Our Strength


2010 2020 Growth

2010 2020 Growth

By Region

By Product

18% growth

18% growth

Europe / FSU

Gasoline

Africa / ME
Americas
Asia

Asia is the primary


engine of growth
2012 Chevron Corporation

LPG/Naphtha
Distillate

Distillate growth
continues globally
Source: Purvin & Gertz

Advantaged Fuels Footprint

72

% of Chevron Refining
Equivalent Distillation Capacity

Equivalent Distillation Capacity


Million Barrels Per Day

Pacific Rim
15
10
5
0

Rest of World
40
30
20

Chevron Refineries

10
0

2012 Chevron Corporation

Source: Oil & Gas Journal, Company Data

Petrochemicals and Lubricants Demand Growth


2010 2020 Growth

2010 2020 Growth

Petrochemicals

Premium Base Oils

41% growth

83% growth

Europe / FSU
Americas
Africa / ME
Asia

2012 Chevron Corporation

Africa / ME
Europe / FSU
Americas
Asia

Source: Nexant ChemSystems, Kline & Company

Downstream Themes

Strategy

2012 Chevron Corporation

Performance

Growth

We Deliver Results
Return on Capital Employed
3-Year R&M Commitment

2011 Actual

7%

8%

Improvement
Target

Improvement
Captured

Portfolio
and
Costs
Marketing
Refining

Market

2009
2012 Chevron Corporation

2012
Excludes Chemicals, non-recurring items

Continuing Refining Improvements


Improvements ($MM B/T)
vs. 2008 Baseline
$1B
$850
$700

MM

MM

New Plan

Captured

Target

Feedstock and
product flexibility

Greater turnaround
and maintenance

600

efficiency

575

300

400

400

275

Reduced catalyst
and chemicals costs
Improved energy

Target

2011 Actual

OPEX savings
2012 Chevron Corporation

2012 Plan

efficiency

Margin improvement
10

Sustained Top-Tier Reliability


Solomon Utilization

Sustaining

Chevron vs. International Majors

high-level of
performance

85%

1
2

Deploying

1
80%

turnaround
improvement
initiatives

75%
2000
1

2002

2004

2006

2008

2010

2011

CVX Ranking Relative to Competitors


1 being the best
Competitor Range (Majors tracked by Solomon)

2012 Chevron Corporation

Source: Solomon Associates, Company Data

11

Superior Energy Efficiency and Cash Margin


Energy Intensity Index

Net Cash Margin


Indexed to 2000 Average

115

Better

300
Better
4
200

4
3

100
4

2
100

0
2000 2002 2004 2006 2008 2010 2011

85

2000 2002 2004 2006 2008 2010 2011

CVX Ranking Relative to Competitors


1 being the best
Competitor Range (Majors tracked by Solomon)

2012 Chevron Corporation

Source: Solomon Associates, Company Data

12

2011 Portfolio Actions

Country Exits

27

Asset Divestments
Pembroke Refinery
UK, Ireland
Marketing
13 Terminals
2005-2011

Cash (B/T)

$8B

Exit locations
2012 Chevron Corporation

13

Portfolio Rationalization Continues


Signed

Spain
Caribbean
Perth Amboy
Alberta Envirofuels

Soliciting Bids
GS Power

Under Review

Signed
2012 Chevron Corporation

Egypt
Pakistan
Caltex Australia
Refining
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R&M Restructuring Strengthens Returns


Country Count

62%

143

reduction

55

Focused footprint
Simpler model
Reduced costs
Higher returns

2006 2011

Trade Sales
Million Barrels / Day

17%

2.9

2.4

reduction

2006 2011

Terminal Count

Company-Owned Stations

Headcount
Thousands

53%

260

47%

4300

reduction

123

2008 2011
2012 Chevron Corporation

reduction

2300

2008 2011

36%

18.8
12.1

reduction

2008 2011
Excludes Chemicals

15

Strong Competitive Performance

$2.21

per barrel

2011 Adjusted Earnings*

$5
$4
$3
$2 5
$1
$0
-$1
2007

1
1
6

2008

2009

2010

35%

14.3%

25%

2011 Adjusted ROCE

15% 5

5%
6

-5%
2007
1
* Adjusted earnings per barrel exclude Chemicals due to
availability of volume data.
2012 Chevron Corporation

2011

2008

2009

2010

2011

CVX Ranking Relative to Competitors


1 being the best
Competitor Range: BP, COP, RDS, TOT, XOM,

Competitor analysis based on Chevron estimates and public information handled on a consistent basis. Excludes special items. Reconciliation to non-GAAP
earnings measure for Chevron can be found in the Appendix of this presentation. Chevrons 2007 to 2010 information is conformed to 2011 segment presentation.

16

Downstream Themes

Strategy

2012 Chevron Corporation

Performance

Growth

17

Portfolio Optimization
Emphasizes Higher Return Segments
Relative Capital Employed

Growth in
Other
Lubricants

higher return
segments

Chemicals

Conscious
investment shift
Refining &
Marketing

2011
2012 Chevron Corporation

Portfolio balance

2014
18

GS Caltex Yeosu, South Korea


Deep Integration, Positioned for Growth
4th largest refinery in the world

Solomon Utilization

3rd largest aromatics plant in

100

the world
Fuels, petrochemicals and
base oil integration

Yeosu vs. Competitor Range


Yeosu

80

Competitor Range
(Solomon Asia Pacific excluding Japan)

60
40

2004

2006

2008

2010

2011

Equivalent Distillation Capacity


Million Barrels Per Day
6
4
2
0

2004
2012 Chevron Corporation

2006

2008

2010

2011

Source: Solomon, Oil & Gas Journal

19

Chevron Phillips Chemical Company


Top Performer in Advantaged Geographies
First quartile peer return-on-

Access to low cost feedstock

assets

Ethylene Cash Cost


1,000

500

N. America Ethane

Cedar Bayou Texas ethylene


cracker

Middle East

Plans for 1.5MM MTA

Asia

producer in Middle East

Europe

Largest IOC petrochemical

N. America Naphtha

$/MT

100% of Chevron Phillips ethylene capacity


in Middle East and North America
Peer group: Borealis, Dow, LYO, NCX, RDS, Westlake, XOM
2012 Chevron Corporation

Source: CMAI

20

Chevron Lubricants
Industry Leading Premium Base Oil Technology
First all-hydroprocessing

Premium Base Oil Capacity

base oil plant

by end of 2013
MBD

No.1 producer of premium

60

base oils in Pacific Rim


RDS

World leader in premium


base oil production by 2013

40

XOM
S-Oil

SK

20

0
Project Sanctioned
2012 Chevron Corporation

Source: LubesnGreases

21

Chevron Oronite Specialty Chemicals


Growing High Return Segment
World-scale

No.1 market share

plants in all three


demand regions

and technology

Largest additives
plant in Asia

Lubricant Additives
Demand

Marine
Railroad
Natural gas
engine oil

55%

Asia
Pacific

21%

Europe
Africa
Middle East

increase

increase

7%

Americas

increase

2010
2012 Chevron Corporation

2020
Source: Chevron analysis and projections

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Investing in Asia, Chemicals and Lubricants


Pascagoula

Saudi Arabia

Singapore

South Korea

Premium Base Oils


25 MBD

Olefins & Derivatives


3.3 million MT/year

Additive Expansion
120,000 MT/year

Gas Oil Conversion


53 MBD

Startup Timing
2012
2013
2014

2012 Chevron Corporation

23

Well-Positioned for Today and the Future

Strategy

Performance

Growth

Improve returns
Operational
excellence
Focused
portfolio
Competitive
assets

Top-tier performance
Safety
Reliability
Profitability

Targeting growth
Asia
Chemicals
Lubricants

2012 Chevron Corporation

24

Questions and Answers

2012 Chevron Corporation

Break

2012 Chevron Corporation

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