Chevron, a US multinational energy corporation, highlighted four of its chemical operations around the world.
These operations take place in a context in which the operations and profitability of the oil industry are influenced by many factors.
Among one of them, the prices of crude oil, natural gas, petroleum products and petrochemicals are generally determined by supply and demand.
Chevron’s 4 operations in the chemical sector are:
Chevron Oronite Company develops, manufactures and markets performance additives for lubricating oils and fuels and conducts research and development for additive components and combination packages.
By the end of 2020, the company manufactured, mixed, or conducted research at 10 locations around the world.
Construction was completed in 2020 at a lubricant additive mixing and shipping plant in Ningbo, China.
The company expects commercial production to begin in the second quarter of 2021.
Chevron owns a 50 percent interest in Chevron Phillips Chemical Company LLC (CPChem).
CPChem produces olefins, polyolefins, and alpha olefins and is a supplier of aromatics and polyethylene tubing, as well as participating in the specialty plastics and chemicals markets.
At the end of 2020, CPChem owned or had joint venture interests in 28 manufacturing facilities and two research and development centers around the world.
CPChem has a 51% interest in the US Gulf Coast Petrochemical Project II (USGC II) and a 30% interest in the Ras Laffan Petrochemical Project (RLPP) in Qatar.
Engineering and design was completed for USGC II in November 2020 and is underway for the RLPP installation.
Chevron also maintains a role in the petrochemical business through the operations of GSC, the company’s 50% -owned subsidiary. GSC manufactures aromatics, including benzene, toluene, and xylene.
These basic chemicals are used to produce a variety of products, including adhesives, plastics, and textile fibers.
Additionally, GSC produces polypropylene, which is used to make auto and appliance parts, food packaging, laboratory equipment, and textiles.
In 2020, progress continued on the construction of an olefin mixed feed cracker and associated polyethylene unit within the existing petrochemical and refining facilities in Yeosu, South Korea. The first production at the new plant is expected in the second half of 2021.
The company manages its investments in subsidiaries and affiliates and provides administrative, financial, managerial and technological support to US and international subsidiaries that participate in integrated energy and chemicals operations.
Upstream operations consist mainly of exploring, developing, producing and transporting crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transportation of crude oil through the main international oil export pipelines; transportation, storage and commercialization of natural gas; and a gas-to-liquids conversion plant.
Meanwhile, downstream operations consist primarily of refining crude oil into petroleum products; commercialization of crude oil, refined products and lubricants; transportation of crude oil and refined products by pipelines, ships, motor equipment and rail cars; and manufacturing and marketing of basic petrochemical products, plastics for industrial uses, and additives for fuels and lubricants.