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CVX AT A GLANCE

P/E ► 0   EV/EBITDA ► 0.502 VERY LOW ROA ► 10.1% AVG ROE ► 19.2% AVG Debt to Equity ► 0.833 AVG Current Ratio ► 1.37 AVG Interest Coverage Ratio ► 2K VERY HIGH

 

 

 

 

 

 

The Chevron Corporation (NYSE: CVX) is the second largest energy company in the U.S. and is one of the six supermajor oil companies. With operations in 180 countries,^[1] it has a strong network of retail gas stations including Chevron, Texaco, and Caltex.^[2] As a vertically integrated oil company, Chevron's operations span from oil production to mining and petrochemical manufacturing.

Chevron has pursued an aggressive expansion strategy, and significant oil production increases in the first quarter of 2009 resulted from new deepwater projects in Nigeria, the United States, and Kazakhstan. The company's average worldwide oil-equivalent production was 2.66 million barrels per day in the second quarter of 2009, up 64,000 barrels per day from the year earlier.^[3] However, it reported earnings in the second quarter of 2009 down 70.7 percent from the year earlier due to the falling price of oil and a decrease in the demand for petroleum products.^[3] The fall in demand for crude oil is tied to the 2007 Credit Crunch, the 2008 Financial Crisis, and the global economic slowdown.

Chevron is subject to strict environmental restrictions and has faced costly litigation for contamination of the environment. For example, it is involved in an ongoing class action lawsuit for contamination of the Ecuadorian rainforest, and the plaintiffs have claimed damages exceeding $27 billion.^[4] Chevron has also faced major challenges due to political instability in Nigeria, the largest oil exporter in Africa. Nigerian rebels have damaged Chevron's pipelines and have limited the production capacity of its facilities in that country.

Chevron's long-term business model is threatened by the rise of renewable energy, especially as governments worldwide offer grants and subsidies to renewable energy companies. However, Chevron is one of the few oil majors that has embraced the possibility of a renewable future, and it is actively involved in pursuing alternative energy solutions. Nonetheless, forecasts that fossil fuels will account for 70% to 80% of global energy supply in 2010 suggest the short to medium-term profitability of Chevron's business model.^[5]

Company Overview

CVX Revenue and Net Income, in Millions of USD, 2005-2008^[6]

CVX Geographic Distribution of Oil Production in 2008 (thousands of barrels per day)^[7]

Chevron is one of the largest integrated energy companies in the world, with operations in 180 countries.^[8] As a vertically integrated corporation, Chevron operates across the entire supply chain – from exploration and production to refining, marketing, and transportation of petroleum products. The company is also involved in the production of chemicals, generation of power, and mining of coal and other minerals.

Business and Financial Metrics

Second Quarter 2009
Chevron reported a net income of $1.76 billion in the second quarter of 2009, down 70.7% from the second quarter of 2008.^[9] Internationally, Chevron's realized crude prices increased 21% from the first quarter but fell 56% from a year earlier to $53.82 a barrel.^[10]

Chevron's oil and gas production remained relatively flat at 2.66 million barrels of oil equivalent.^[10] Two major fields began producing in the second quarter. Tahiti, a deepwater platform in the Gulf of Mexico that is expected to add 125,000 barrels of oil and 70 million cubic feet of natural gas before the end of the year, began producing in May.^[10] In June, Chevron announced the start-up of its Frade offshore field in Brazil, which is expected to reach 30,000 barrels of oil equivalent a day in 2009.^[10]

Oil production increases in the first quarter resulted from new deepwater projects in Nigeria, the United States, and Kazakhstan. Chevron's worldwide oil-equivalent production was 2.66 million barrels per day in the first quarter 2009, up 64,000 barrels per day from the corresponding 2008 period.^[3]

Chevron expects its third-quarter earnings to be higher than the second quarter due to higher crude oil prices, increased U.S. production and $400 million of gains related to the approval of the Gorgon liquefied natural gas project offshore Western Australia. However, Chevron's international output has fallen in the third quarter due to political instability in Nigeria. International net oil-equivalent production decreased 24,000 barrels per day from 1.946 million barrels in the second quarter.^[11]

Chevron has adopted an aggressive expansion strategy which has increased its global presence. In 2008, Chevron began production at its first deepwater field in the Gulf of Mexico, completed major expansion projects that doubled production capacity from the Tengiz Field in Kazakhstan, expanded production in Indonesia, started its fifth liquefied natural gas unit in Australia, and celebrated first oil at the Agbami deepwater field in Nigeria.^[14]

Geographic Distribution of CVX's Exploration and Production^[15]

Another reason for the spread of Chevron across the world is that much of the world's oil originates from OPEC-controlled countries that block the entry of foreign oil companies. Because of this, companies like Chevron must continuously search for reserves in countries that will allow the company to invest and operate without major risk of nationalization and terrorism. The most recent example of this spread is the proliferation of drilling in Africa. Africa is under-explored for hydrocarbons. This is true for even the established producers such as Algeria, Libya and Nigeria. For example, only a handful of exploration wells have been drilled in Algeria’s offshore basins, and Nigeria is thought to contain 180 trillion cubic feet of natural gas reserves.^[16] Although Nigeria has been a major oil exporter for decades, significant offshore and onshore oil resources remain unexplored in that country.^[16]

Business Segments

Chevron's upstream operations consist of exploring for, developing, and producing crude oil and natural gas. Downstream operations include refining of crude oil, marketing, and transportation of finished petroleum products.

Crude Oil Production and Exploration

One of Chevron's primary operations is exploring for and producing crude oil. At the end of 2008, Chevron's worldwide net proved crude oil and natural gas reserves were 7.9 billion barrels of oil equivalent and for affiliated operations 3.3 billion barrels.^[17] Net oil equivalent production averaged 2.53 million barrels per day, including volumes produced from oil sands in Canada. Chevron's producing areas include Angola, Australia, Azerbaijan, Bangladesh, Denmark, Indonesia, Kazakhstan, Nigeria, the Partitioned Neutral Zone between Kuwait and Saudi Arabia, Thailand, the United Kingdom, the United States, and Venezuela.^[17] Exploration areas include offshore areas in western Africa, northwestern Australia, Brazil and Canada, the Gulf of Thailand, the U.K. Atlantic Margin and the U.S. Gulf of Mexico.^[17]

Gasoline and Refineries

Chevron’s global refining system can process more than 2 million barrels of crude oil per day.^[18] The system is anchored by seven core refineries located in key areas that make up more than 75 percent of the company’s total fuel-refining capacity.^[18] These core refineries are located in Singapore, Thailand, South Korea, Richmond and El Segundo, California, Pascagoula, Mississippi, and Pembroke, United Kingdom.^[18]

At Chevron's U.S. fuel refineries, crude oil distillation capacity utilization averaged 95 percent in 2008, compared with 85 percent in 2007, and cracking and coking capacity utilization averaged 86 percent and 78 percent in 2008 and 2007, respectively.^[19] Cracking and coking units are the primary facilities used in fuel refineries to convert crude oil into gasoline and other light petroleum products.

Chevron’s vast production and refining base is supported by a strong marketing network of retail gas stations spread across 90 countries, marketing petroleum products under the brands “Chevron,” “Texaco” and “Caltex” throughout the world.^[2] The company supplies directly or through retailers and marketers approximately 9,700 Chevron- and Texaco-branded motor vehicle retail outlets, primarily in the mid-Atlantic, southern and western United States. Approximately 500 of these outlets are company-owned or -leased stations.^[19] Outside the United States, Chevron supplies directly or through retailers and marketers approximately 15,300 branded service stations, including affiliates.^[19] Additionally, Chevron markets aviation fuel at more than 1,000 airports.^[19]

Natural Gas

Chevron is involved in every aspect of natural gas activities, including production, liquefaction, shipping, regasification, pipelines, marketing, power generation, and gas-to-liquid technology.^[17] Outside the United States, all of Chevron's natural gas sales are in Australia, Bangladesh, Kazakhstan, Indonesia, Latin America, the Philippines, Thailand, and the United Kingdom.

Gas-to-liquid Technology In Nigeria, Chevron and the Nigerian National Petroleum Corporation are developing a 34,000 barrel-per-day gas-to-liquids facility at Escravos designed to process natural gas.^[19] At the end of 2008, engineering was completed and facility construction was under way. Chevron has a 75 percent interest in the plant, which is expected to be operational by 2012.^[19] The estimated cost of the plant is $5.9 billion.^[19]

Pipelines Chevron owns and operates an extensive system of crude oil, refined products, chemicals, natural gas liquids and natural gas pipelines in the United States.^[19] Chevron is also in the oil and gas transport business; on April 8th, 2008, it announced that it would build a pipeline, in partnership with ConocoPhillips and Exxon Mobil, that would span from the North Slope of Denali in Alaska through Canada and into the U.S. The total cost of the project is estimated at $20 billion, and will require over 1,000 government permits in both countries, but the returns could be massive, as the gas shipped by the line has the potential to meet 8% of total U.S. gas demand.^[20]

Chemicals

Chevron's chemical operations include the manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant oil additives. The company owns and operates facilities in Brazil, France, Japan, the Netherlands, Singapore and the United States and has equity interests in facilities in India and Mexico. Oronite, a subsidiary of Chevron, provides additives for lubricating oil in most engine applications, such as passenger car, heavy-duty diesel, marine, locomotive and motorcycle engines, and additives for fuels to improve engine performance and extend engine life.^[19]

Mining

Chevron’s U.S.-based mining company produces and markets coal and molybdenum. The company owns and operates two surface coal mines in New Mexico and Wyoming and one underground coal mine in Alabama. The company also owns a 50 percent interest in Youngs Creek Mining Company LLC, a joint venture to develop a coal mine in northern Wyoming.^[21] Coal sales from wholly owned mines were 11 million tons, down about 1 million tons from 2007.^[21] At year-end 2008, Chevron controlled approximately 200 million tons of proven and probable coal reserves in the United States, including reserves of environmentally desirable low-sulfur coal.^[21] In addition to the coal operations, Chevron owns and operates the Questa molybdenum mine in New Mexico. At year-end 2008, Chevron controlled approximately 53 million pounds of proven molybdenum reserves at Questa.^[21]

Power Generation

Chevron’s power generation business operates commercial power projects and has equity stakes in 13 power assets through joint ventures in the United States and Asia.^[21] The company manages the production of more than 2,300 megawatts of electricity at 11 facilities it owns through joint ventures.^[21] A number of the facilities produce steam for use in upstream operations to facilitate production of heavy oil. Additionally, Chevron has major geothermal operations in Indonesia and the Philippines and is investigating advanced solar technologies for use in oil field operations as part of its renewable energy strategy.^[21]

Key Trends and Forces

The main drivers of revenue for the oil and energy sector include crude oil prices, net proved reserves (volume in terms of barrels per day, or BPD), expansion in distribution network, presence across the supply chain (e.g. exploration, production, refining, marketing), and productivity of oil wells.

Militant groups threaten Chevron's operations in Nigeria

Nigeria, the fifth largest source of oil imports for the U.S. and the largest oil exporter in Africa, holds reserves of more than 36 billion barrels of crude oil and 187 trillion cubic feet of gas.^[22] However, Nigeria's oil production has fallen to less than half its capacity due to fighting incited by rebels in the Niger River delta region. Since the militant group began a violent campaign against oil companies in Nigeria in January 2006, Shell, Exxon Mobil (XOM), and Chevron have all suffered attacks on their pipelines and plants.

In May 2009, Nigeria only produced 1.6 million barrels a day on average, compared with its known capacity of 3.2 million.^[22] The Nigerian military has battled with the rebels, who are armed with automatic weapons and rocket-propelled grenades. The main militant group, the Movement for the Emancipation of the Niger Delta, claimed responsibility for damaging two pipelines linking Chevron's refineries and power stations in May 2009. When Chevron's pipelines in Nigeria were attacked in March 2009, it reduced Chevron's daily crude oil production by 11,500 barrels per day.^[23] Political instability in Nigeria has restricted Chevron's operations in Nigeria (through damage to its pipelines and forced evacuations of its facilities) and has also put upward pressure on oil prices.

Chevron is pursuing an aggressive global expansion strategy

Chevron's crude oil production in 2008 resulted from new deepwater projects at Agbami in Nigeria, Blind Faith in the United States Gulf of Mexico, and from expansion activities completed at Tengiz in Kazakhstan.^[24] In 2009, Chevron is planning to start production at its 58 percent-owned Tahiti field in the U.S. Gulf of Mexico (expected to produce 135,000 barrels per day), 31 percent-owned Tombua-Landana field in Angola (100,000 barrels per day), and 52 percent-owned Frade field in Brazil (90,000 barrels per day).^[24] These projects scheduled for completion in 2009 will substantially increase Chevron's daily oil production.

Chevron has also invested at least $1 billion in each of 40 major capital projects.^[25] In Indonesia, Chevron expanded the Duri Field, built its fifth liquefied natural gas processing unit in Australia, and celebrated first oil at the Agbami deepwater field in Nigeria.^[25] Chevron has also actively explored for oil; the Frade field, off the coast of Brazil, is forecast to start production in the first half of 2009, the Gulf of Mexico's Tahiti Field and Angola's offshore Tombua Landana development are expected to reach first oil in the second half of 2009.^[25] Finally, Chevron has announced plans to build four new refineries in 2009.^[25] Chevron's aggressive global expansion strategy comes amid a period of weak demand for oil, but if oil prices increase in the future as other producers cut back, Chevron's increased production will cause it to benefit.

Consumer demand for oil drives Chevron's sales

The U.S. Energy Information Administration reported that consumption in 2008 of refined products in the United States declined by nearly 6 percent from the 2007 average, representing the largest annual decline since 1980.^[26] This decline, following record-high retail gas prices and crude oil prices during the first half of the year, was prompted by the severe economic downturn in the second half of the year. In 2008 world oil consumption of liquid fuels was 85.45 million barrels per day (bbl/d).^[27]

World oil consumption was forecast in April 2009 by the EIA to fall by 1.35 million bbl/d in 2009.^[28] The fall in demand for crude oil is tied to the 2007 Credit Crunch, the 2008 Financial Crisis, and the ensuing recession. When unemployment rises, people stop spending their disposable income and start saving. When people stop spending, companies stop producing, and the overall demand for energy falls. When demand for energy falls, the price of oil falls and the profit margins earned by oil companies like Chevron Corporation (CVX) fall.

A decline in oil prices has a negative impact on the company’s revenues. Chevron's revenue depends on how much oil it can sell and at what price. When the demand for crude oil fell in the second half of 2008, oil prices fell from a record high of about $147 per barrel to around $50 a barrel in the first quarter of 2009.^[29] This weakened demand has not only reduced the amount of oil Chevron can sell but it has also reduced the profit margin it earns on each barrel of oil. Although Chevron's refining and chemical operations improve their bottom-line when the price of oil decreases, as a whole, Chevron benefits when oil prices increase.

Chevron remains at the mercy of OPEC, a cartel of petroleum-producing nations that controls global oil prices by holding about 40% of the world's crude oil supply.^[30] OPEC quotas can have a significant effect on the price of crude oil; if OPEC restricts the supply of oil to the world market, then prices are forced higher. Though OPEC quotas did not significantly affect crude oil prices in 2008, they could presumably have a significant effect on crude oil prices and Chevron's profit margins in the future.

After falling to $34 in December, oil prices have doubled, stabilizing near $70 a barrel. If the world economy does not rebound strongly, some analysts believe the price could fall again.^[31]

Environmental Concerns and Litigation

In 2008, Chevron’s U.S. capitalized environmental expenditures were approximately $780 million, representing approximately 9 percent of the company’s total consolidated U.S. capital and exploratory expenditures.^[32] These environmental expenditures include capital outlays to retrofit existing facilities as well as those associated with new facilities. The expenditures relate mostly to air- and water-quality projects and activities at the company’s refineries, oil and gas producing facilities, and marketing facilities. For 2009, the company estimates U.S. capital expenditures for environmental control facilities will be approximately $1 billion.^[32] The future annual capital costs are uncertain and will be governed by several factors, including future changes to regulatory requirements.

Fossil fuels, though highly cost-efficient forms of energy, are heavy polluters when burned. Increasing environmental concern over environmental degradation and global climate change is fueling a consumer-driven push away from dirty forms of energy toward cleaner forms like wind energy and solar power. These concerns are also causing political movements, which are leading to increased regulation in the fossil fuels market. Government regulations like emissions caps, renewable energy subsidies, and carbon trading schemes all facilitate transitions away from dirty, nonrenewable fuels. The international focus on slowing carbon emissions is very likely to slow the market for both oil and natural gas, hurting Chevron's fossil fuels business immensely.

As one of the world's largest oil producers, Chevron also faces litigation for pollution and contamination of the environment. Chevron is being sued on behalf of 30,000 Amazon-basin residents in Ecuador on claims that Texaco Inc., which Chevron acquired in 2001, dumped more than 18 billion gallons of toxic waste from oil drilling in the jungle from 1964 to at least 1990.^[4] In 1977, Ecuador’s state-owned oil company, Petroecuador, took a 62.5% stake in the field in question, though Texaco continued to operate it.^[33] In 1992 Petroecuador took over the whole operation and Texaco withdrew from Ecuador. Texaco agreed with the Ecuadoran government that it would clean up 161 pits, or its share of the total, at a cost of $40 million.^[33] The work was done by 1998 and the Ecuadorian government signed an agreement releasing Texaco from any further liability.^[33] Nonetheless, a class-action lawsuit was filed against Chevron under a 2003 Ecuadoran law.^[33] The case began in 1993 in New York and now is being handled in a court in Lago Agrio, Ecuador.^[4] Damage estimates of $27 billion are based on thousands of pages of evidence of contamination and its health and social effects.^[4] Of this $27 billion, $9.5 billion is compensation for 1,400 deaths from cancers caused by the pollution, $8.4 billion is for unjust enrichment, and the remainder is for environmental clean-up.^[33] An Ecuadoran judge is expected to issue a ruling later this year or early in 2010.^[34] It is widely expected that he will assess billion-dollar damages against Chevron, which argues that the proceedings are politically tainted.^[34] This lawsuit will result in substantial legal fees for Chevron and potentially enormous fines.

The Rise of Renewable Energy

Alternative energy is still some years off from widespread adoption; alternative energy challenges like low production volume, low production efficiency, and lack of infrastructure (some new fuels require distribution infrastructure separate from existing oil pipelines) all have yet to be overcome. However, if and when energy sources such as ethanol, solar or wind end up taking off, the negative impact on the oil and gas industry will be immense.

Chevron is one of the few oil majors (BP and Total S.A. being the others) that has embraced the possibility of a renewable future, and it is actively involved in pursuing alternative energy solutions. For example, the company announced that it has completed phase one of a $70 million solar installation for the Contra Costa Community College District - the largest such installation at any institute of higher education in North America. By its completion, the solar installation will generate around four million kilowatt-hours of electricity per year, supplying enough power for half the campus's needs.^[35] Chevron is also in a group of investors that in May 2008 put $115 million into BrightSource Energy, a firm specializing in utilities-scale solar thermal technology.^[36]

However, the fall in oil prices has put the economics of renewable energy into question. With energy once again cheap and plentiful, the imperative to develop renewable energy has weakened. On the other hand, concern over global climate change has continued to rise, increasing government support for renewable energy grants and subsidies.

While oil and gas dominate the world's supply of energy, alternative energies such as wind energy, solar energy, and geothermal energy pose a long-term threat to the oil industry. Nevertheless, forecasts that fossil fuels will account for 70% to 80% of global energy supply in 2100 suggest the short to medium-term profitability of Chevron's business model.^[5]

Renewable energy, however, also has the potential to make the oil industry more efficient. Chevron is building a solar plant in Coalinga, CA, to create steam that boosts production at one of its California oilfields.^[37] The solar thermal plant, which will collect reflected sunlight from thousands of mirrors on a tower where the water boils, will replace some steam production powered by natural gas.^[37] Steam is injected into wells to heat up heavier oil and thus lower its viscosity to make it easier to extract. Solar thermal company BrightSource Energy is partnering with Chevron on the project. Construction of the Coalinga plant is expected to begin this year, with production slated to start by the end of 2010.^[37]

Competition

Chevron competes with other major petroleum producers. The six major oil producers are BP (BP), ChevronTexaco (CVX), Total (TOT), ConocoPhillips (COP), Exxon Mobil (XOM) and Royal Dutch Shell (RDS'A).

• BP (BP) is one of the six major oil producers. As of April 2009, BP operates in 29 countries including Mexico, Russia, Algeria, and many others in the Middle East and Africa.^[38] BP has also created a separate business that specializes in alternative, renewable forms of energy known as BP Alternative.^[39]
• Total S.A. (TOT): Along with oil exploration and production activities, the company's upstream business segment consists of integrated Liquid Natural Gas operations, from liquefaction to gasification, as well as a power generation business and stakes in multiple photovoltaic developers. Total's French origins give the company an advantage over many western oil majors, as it has larger reserve and production bases in young, high-yield regions like Africa and the Middle East, and Total is one of the few companies that has operations in Iran.
• CONOCOPHILLIPS (COP) is a vertically integrated petroleum company with operations in more than 40 countries.^[40]
• Exxon Mobil (XOM) is the largest of the vertically integrated oil majors, as well as the largest publicly-traded corporation in the world by market cap and revenue.^[41] The company was valued at over $500 billion at its peak, and had a 2008 net income of $45.2 billion, the highest in the world's corporate history.^[42] Of any of the oil majors, ExxonMobil has consistently produced the highest revenue, income, and returns on capital employed (38.53%).^[43]
• Royal Dutch Shell (RDS'A) (Shell) is one of the largest private sector energy companies in the world. The company is engaged in the exploration and production of oil and gas, refining and marketing of liquefied natural gas as well as manufacturing, marketing, and shipping of oil products and petrochemicals. The company also deals in renewable/alternative sources of energy including wind and solar energy. It operates primarily in Europe and the US.
• ENI S.p.A. (E) is the sixth-largest vertically integrated oil company in the world by market cap. In addition to oil production, Eni is also a major natural gas and electric utilities company, and operates in the oilfield services industry through its stake in Saipem S.p.A.
• Occidental Petroleum (OXY) is one of the largest oil and gas companies in the U.S. with operations mainly in the U.S, the Middle East, and Latin America. Occidental is only involved in exploration and production of oil and gas reserves.
• Repsol YPF (REP-MC) is an international energy company with operations in over 30 countries. It is primarily involved in oil and liquefied natural gas exploration, refinement and distribution.
• Saudi Aramco is the state-owned oil company of Saudi Arabia. It is a fully integrated petroleum company with operations in exploration and production, refining and marketing, and petrochemical manufacturing.

(1) Does not include reserves of equity affiliates

Energy Companies Anadarko Petroleum • BP • ChevronTexaco • Arch Coal • Cameco • ConocoPhillips • Enbridge • Consolidated Edison • Entergy • Exelon • Exxon Mobil • Frontier Oil • GE • Halliburton • Philips • Massey Energy • Occidental Petroleum • PG&E • Peabody Energy • Shell • Sasol • Schlumberger • Sinopec • Suncor • Sunoco • SunPower • Suntech • Suzlon • Toshiba • Valero • Xcel

References

1. ↑ North America Exploration & Production: A Year of Opportunity
2. ↑ ^{2.0 2.1} CVX 10-k 2009, Business Overview, p. 25
3. ↑ ^{3.0 3.1 3.2} Chevron First Quarter Earnings Release, May 1, 2009
4. ↑ ^{4.0 4.1 4.2 4.3} Chevron Toxico: Chevron Must Clarify Risk in Ecuador Suit, Cuomo Says, May 6, 2009
5. ↑ ^{5.0 5.1} Peak oil, peak coal, peak gas and projected fossil fuel use
6. ↑ Google Finance: CVX Income Statement
7. ↑ CVX 10-k 2009, Item 1: Business, p. 5
8. ↑ North America Exploration & Production: A Year of Opportunity
9. ↑ CVX 10-Q 2009 2Q
10. ↑ ^{10.0 10.1 10.2 10.3} WSJ: Chevron: "Weak Dollar, Refining Profits Offset High Crude"
11. ↑ Mixed Bag: Chevron Q3 Earnings Up on Production, Refining Biz Flat
12. ↑ CVX 10-K 2009 Item 7 "Sales and Revenues"
13. ↑ CVX 10-K 2009 Item 1, p. 25
14. ↑ Chevron 2008 Annual Report: Letter to Stockholders, p. 2
15. ↑ CVX 10-k 2009, Item 1: Business, p. 10
16. ↑ ^{16.0 16.1} Geotimes: Africa: A New Frontier in Oil and Gas Exploration
17. ↑ ^{17.0 17.1 17.2 17.3} Chevron 2009 Annual Report, p. 31
18. ↑ ^{18.0 18.1 18.2} Chevron 2009 Annual Report Supplement, p. 46
19. ↑ ^{19.0 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8} CVX 10-k 2009 Item 1, p. 26
20. ↑ MarketWatch: "BP, Conoco team up on major Alaska gas pipeline"
21. ↑ ^{21.0 21.1 21.2 21.3 21.4 21.5 21.6} CVX 10-k 2009 "Other Businesses, p. 28
22. ↑ ^{22.0 22.1} Bloomberg: Nigeria Oil Falls to 50% of Capacity as Fighting Kills Hundreds, May 22, 2009
23. ↑ Upstream Online: Chevron says Nigeria oil pipe back
24. ↑ ^{24.0 24.1} Chevron 2009 Q1 Earnings Release
25. ↑ ^{25.0 25.1 25.2 25.3} Chevron 2008 Annual Report, Chairman's Letter, p. 3
26. ↑ Chevron Supplement to the 2008 Annual Report, p. 45
27. ↑ Energy Information Agency - World Liquid Fuels Consumption
28. ↑ Energy Information Administration - Short-Term Energy and Summer Fuels Outlook
29. ↑ BBC News: Oil price goes below $50 a barrel
30. ↑ Wien International - OPEC – 40 Years in Vienna
31. ↑ New York Times: Oil Industry Sets a Brisk Pace of New Discoveries
32. ↑ ^{32.0 32.1} Chevron 10-K 2009, p. 29
33. ↑ ^{33.0 33.1 33.2 33.3 33.4} The Economist: Ecuador, Chevron and pollution
34. ↑ ^{34.0 34.1} Businessweek: Big Penalties Loom for Chevron in Ecuador
35. ↑ Chevron Energy Solutions Completes First Phase of North America's Largest Solar Power Project in Higher Education
36. ↑ CNet: BrightSource Energy lands $115 million for solar 'power tower'
37. ↑ ^{37.0 37.1 37.2} Reuters: Chevron building solar-steam plant
38. ↑ BP Annual Review 2008
39. ↑ BP alternative: About Us
40. ↑ COP 2007 10-K
41. ↑ Social Picks - Index of Market Cap Leaders by Nation Posts Decline
42. ↑ France 24 - Exxon claims world's highest annual profits for 2008
43. ↑ Yahoo! Finance - XOM: Key Statistics
44. ↑ COP 2008 10-K, Item 8,Page 149
45. ↑ COP 2008 10-K, Item 8,Page 152
46. ↑ ^{46.0 46.1} RDS’A 2008 20-F, Supplementary Information, Crude oil and natural gas liquids
47. ↑ ^{47.0 47.1} XOM 2008 10-K, Item 1, Page6
48. ↑ ^{48.0 48.1} CVX 10-K 2009, Item 1, Page 7
49. ↑ ^{49.0 49.1} BP 2008 20-F, Item 1, Page 16
50. ↑ Lukoil Investor Relations – Fact Book 2008, Page 11
51. ↑ ^{51.0 51.1 51.2 51.3} ENI S.p.A. – Fact Book 2007, Page 11
52. ↑ ^{52.0 52.1} TOT 2008 20-F, Item 4, Page 10
53. ↑ COP 2008 10-K, Item 8, Page 151
54. ↑ ^{54.0 54.1} RDS’A 2008 20-F, Supplementary Information, Natural gas
55. ↑ Lukoil Investor Relations – Fact Book 2008, Page 12
56. ↑ ^{56.0 56.1} COP 2008 10-K, Item 6, Page 42
57. ↑ ^{57.0 57.1} XOM, 2008 10-K, Item 6, Page 36
58. ↑ ^{58.0 58.1} CVX 2008 10-K, Item 1, Page 5
59. ↑ ^{59.0 59.1} BP 2008 20-F, Item 1, Page 14
60. ↑ Lukoil Investor Relations – Fact Book 2008, Page 13
61. ↑ ^{61.0 61.1} TOT 2008 20-F, Item 4, Page 12
62. ↑ Lukoil Investor Relations – Fact Book 2008, Page 14
63. ↑ E 2007 Annual Report
64. ↑ SUN 2008 10-K, Item 7, Page 35
65. ↑ ^{65.0 65.1} CVX 10-K 2009, Item 1, Page 24
66. ↑ VLO 2008 10-K, Item 1, Page 3
67. ↑ ^{67.0 67.1} XOM 2008 10-K, Item 6, Page 43
68. ↑ RDS’A 2008 20-F, Results, Refining Data
69. ↑ Sinopec Investor Relations, Operational Statistics for 2008
70. ↑ WNR 2008 10-K, Item 7, Page 34
71. ↑ ^{71.0 71.1} COP 2008 10-K, Item 1, Page 16
72. ↑ ^{72.0 72.1} BP 2008 20-F, Item 1, Page 29
73. ↑ Lukoil Investor Relations – Fact Book 2008, Page 15
74. ↑ Conversion factor is 1 BPD = 50 tonnes per year
75. ↑ ^{75.0 75.1 75.2} TOT 2008 20-F, Item 4, Page 36
76. ↑ SUN 2008 10-K, Item 1, Page 1
77. ↑ ^{77.0 77.1} VLO 10-K 2008, Item 1, Page 1
78. ↑ RDS’A 2008 20-F, Results, Manufacturing
79. ↑ Sinopec Refining Overview
80. ↑ WNR 2008 10-K, Item 1, Page 19
81. ↑ Lukoil Investor Relations – Fact Book 2008, Page 16
82. ↑ SUN 2008 10-K, Item 1, Page7
83. ↑ CVX 10-K 2008, Item 1, Page 25
84. ↑ CVX 10-K 2008, Item 1, Page 26
85. ↑ XOM 2008 10-K, Item 2, Page 25
86. ↑ RDS’A 2008 20-F, Results, Marketing
87. ↑ Sinopec 2008 Annual Report, Business Review and Prospects, Page 20
88. ↑ WNR 2008 10-K, Item 1, Page 3
89. ↑ COP 2008 10-K, Item 1, Page 18
90. ↑ BP 2008 20-F, Item 1, Page 30
91. ↑ Lukoil Investor Relations – Fact Book 2008, Page 60