In addition, there are significant cultural differences between the U.S. And these countries as well. As a result, there continues to be a strong push towards creating more co-ownership of oil refineries, production centers and operations between U.S..-based companies working in the area and national governments. In the case of the Brazilian government, who approached Chevron about such an arrangement in 2008 specifically for partnership with Petroleo Brasileiro S.A., Chevron declined to enter into a nationalized-based alliance with the company and nation and instead sold the assets of their refineries to Brasileiro S.A. instead (Wall Street Journal, 2008). In Mexico, Chevron competes with Petroleos Mexicanos (Pemex), another partially nationalized oil producer, which has sought to have an alliance with Chevron to gain access to American markets through the NAFTA Agreement. Latin American and Mexican oil producing companies however are more focused on how to gain access to American markets while attaining the economies of scale achievable through nationalization, which makes the level of competition in these alliances formidable. Chevron therefore has been reluctant to create partnerships with nationalized oil producers as a result (DataMonitor: Oil & Gas Exploration & Production Industry Profile, 2008).
Additional competitors globally include the entirely nationalized Russian oil producer Surgutneftegaz OAO, which Chevron is relying on Unocal's assets and fields in that region to provide competitive parity.
There are nearly a dozen other competitors Chevron has globally including Royal Dutch Shell Plc, China Petroleum & Chemical Corp. Inc., Jinzhou Petrochemical Co Ltd., PetroChina Co Ltd., all in China. StatoilHydro ASA, Valero Energy Corp., Repsol YPF, S.A., Nippon Oil Corp, SK Corp. (Korea), Marathon Oil Corp., and PTT Public Co Ltd. In total, Chevron has eighteen competitors over $50B in sales in 2008, each with significantly different levels of performance and process efficiency as indicated by the employee headcounts shown in Table 3, Chevron Global Competitors Financial Results, 2008. Provided in the analysis are Revenues, Net Income, Total Assets, Total Liabilities, and Total Employee Count. With nearly 40% of competitive revenues coming out of the highly nationalized regions of South America and Mexico, it is clear that Chevron faces significant competitive challenge in this region of the world (DataMonitor: Oil & Gas Industry Profile, 2008) yet cannot specifically participate in nationalization efforts or risk impacting their own profitability. Instead, Chevron will need to selectively compete in key Latin American and Mexican markets by first focusing on their innate efficiencies in diesel products (National Petroleum News, 2006) and redefine the role of all competitors in this industry by embracing global eco-friendly, sustainability and "green" initiatives (Harding, 2007). Instead of concentrating then on global competition on price, Chevron is successfully changing the focus to its core strengths of diesel (National Petroleum News, 2006) and sustainability or green marketing (Harding, 2007).
Table 3: Chevron Global Competitors Financial Results
Revenues Net Income Total Assets Total Liabilities Empl. Refinadora Costarricense de Petroleos S.A. (RECOPE, S.A) (Costa Rica)
Empresa Colombiana de Petroleos - ECOPETROL (Colombia)
Petroleos Mexicanos (Pemex) (Mexico)
Surgutneftegaz OAO (Russia)
Exxon Mobil Corp.
Royal Dutch Shell Plc
Chevron Corporation $
220,904,000,000 $
148,786,000,000 $
65,000 ConocoPhillips
China Petroleum & Chemical Corp. Inc. Jinzhou Petrochemical Co Ltd.
PetroChina Co Ltd.
StatoilHydro ASA
Petroleo Brasileiro S.A.
Valero Energy Corp. (New)
Repsol YPF, S.A.
Nippon Oil Corp
SK Corp. (Korea)
Marathon Oil Corp.
PTT Public Co Ltd.
Domestic Competitors
Exxon is the largest competitor that Chevron has in the U.S. with $404B in revenues attained during 2008. Conoco-Phillips is just below Chevron with $194M in revenue during 2008 as well. The majority of competitors have annual revenues below $100B in the U.S., lead by Valero Energy and Marathon Oil. Table 4, Chevron U.S. Competitors, 2008 provides an analysis of 2008 Revenues, Net Income, Total Assets, Total Liabilities and Employees.
Table 4: Chevron U.S. Competitors, 2008
Revenues
Net Income
Total Assets
Total Liabilities
Employees
Exxon Mobil Corp.
Chevron Corporation
ConocoPhillips
Valero Energy Corp. (New)
Marathon Oil Corp.
Sunoco, Inc.
Hess Corp
Tesoro Corporation
PDV America, Inc.
Shell Oil Co.
Murphy Oil Corp
United States Steel Corp. (New)
Anadarko Petroleum Corp
Premcor Refining Group, Inc.
Chevron Global Marketing
Chevron has specifically organized their global marketing function into a specific cross-functional resource that all other product divisions rely on. Appropriately called the Global Marketing Division, this organization serves 26 nations and has a structure that aligns marketing directors to each region of the world in addition to marketing staffs for executing strategies and tactics. One of the global marketing...
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