Professional Documents
Culture Documents
Mike Wirth
Executive Vice President
Improve returns
Operational Excellence
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
By Region
By Product
18% growth
18% growth
Europe / FSU
Gasoline
Africa / ME
Americas
Asia
LPG/Naphtha
Distillate
Distillate growth
continues globally
Source: Purvin & Gertz
72
% of Chevron Refining
Equivalent Distillation Capacity
Pacific Rim
15
10
5
0
Rest of World
40
30
20
Chevron Refineries
10
0
Petrochemicals
41% growth
83% growth
Europe / FSU
Americas
Africa / ME
Asia
Africa / ME
Europe / FSU
Americas
Asia
Downstream Themes
Strategy
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
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
Sustaining
high-level of
performance
85%
1
2
Deploying
1
80%
turnaround
improvement
initiatives
75%
2000
1
2002
2004
2006
2008
2010
2011
11
115
Better
300
Better
4
200
4
3
100
4
2
100
0
2000 2002 2004 2006 2008 2010 2011
85
12
Country Exits
27
Asset Divestments
Pembroke Refinery
UK, Ireland
Marketing
13 Terminals
2005-2011
Cash (B/T)
$8B
Exit locations
2012 Chevron Corporation
13
Spain
Caribbean
Perth Amboy
Alberta Envirofuels
Soliciting Bids
GS Power
Under Review
Signed
2012 Chevron Corporation
Egypt
Pakistan
Caltex Australia
Refining
14
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
$2.21
per barrel
$5
$4
$3
$2 5
$1
$0
-$1
2007
1
1
6
2008
2009
2010
35%
14.3%
25%
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
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
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
Solomon Utilization
100
the world
Fuels, petrochemicals and
base oil integration
80
Competitor Range
(Solomon Asia Pacific excluding Japan)
60
40
2004
2006
2008
2010
2011
2004
2012 Chevron Corporation
2006
2008
2010
2011
19
assets
500
N. America Ethane
Middle East
Asia
Europe
N. America Naphtha
$/MT
Source: CMAI
20
Chevron Lubricants
Industry Leading Premium Base Oil Technology
First all-hydroprocessing
by end of 2013
MBD
60
40
XOM
S-Oil
SK
20
0
Project Sanctioned
2012 Chevron Corporation
Source: LubesnGreases
21
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
22
Saudi Arabia
Singapore
South Korea
Additive Expansion
120,000 MT/year
Startup Timing
2012
2013
2014
23
Strategy
Performance
Growth
Improve returns
Operational
excellence
Focused
portfolio
Competitive
assets
Top-tier performance
Safety
Reliability
Profitability
Targeting growth
Asia
Chemicals
Lubricants
24
Break