Chevron Mission Statement Analysis

• Company: Chevron Corporation  
• CEO: Mike Wirth
• Year founded: 1879
• Headquarters: San Ramon, California, USA (Relocating to Houston, Texas)
• Number of Employees: 45,600
• Type: Public
• Ticker Symbol: CVX
• Market Cap (Dec 2024): $291.83 Billion
• Annual Revenue (FY 2023): $200.9 Billion
• Profit | Net income (FY 2023): $21.4 Billion

Products & Services: Gasoline | Diesel | Marine and Aviation Fuels | Premium Base Oil | Lubricants | Fuel Oil Additives | Petrochemicals | Service Stations | Gift and Credit Cards

Competitors: ExxonMobil | Royal Dutch Shell | BP | TotalEnergies SE | ConocoPhillips | Equinor ASA | ENI | PETRONAS | Hess | Petrobras | PetroChina | Occidental Petroleum | Murphy Oil | Gazprom | Valero Energy

Did you know? Chevron’s 2023 annual production was equivalent to 3.1 million oil barrels daily.

Chevron is one of the world’s prominent energy companies, founded in Sep 1879 by Lloyd Tevis and Charles Felton. Chevron’s mission, vision, values, and goals differentiate the company from competitors and drive growth. In Aug 2024, Chevron announced plans to move its corporate headquarters from San Ramon, California, to Houston, Texas. The company was founded in California over 145 years ago. It operates oil fields, technical facilities, and two refineries and supplies over 1,800 retail stations in the Golden State. [1]

Chevron drills and refines crude oil and natural gas and produces transportation fuels, auto lubricants, petrochemicals, and additives. The company had 26,111 productive oil wells in the US as of 2023. It sells its refined petroleum products through service stations or partners. In 2024, Chevron generated $193.41 billion in revenue, with $17.66 billion in profits. [2]

Image Source: Bullfincher.io

To understand why Chevron is so successful, here is a comprehensive analysis of its mission statement, vision, values, and sustainability goals:

Chevron’s Mission Statement (Purpose)

To provide affordable, reliable, ever-cleaner energy that enables human progress. [3]

1. Affordable oil products

Chevron aims to deliver petroleum products cost-effectively. This mission underpins Chevron’s operations, from hydraulic fracturing to distribution. “The world needs affordable, reliable energy and strategies to protect the environment,” said CEO Mike Wirth. Chevron fulfills all these requirements. Its policy recognizes the value of fossil fuels without impeding a market-driven transition to affordable substitutes. [4]

2. Exceptional reliability

Chevron is committed to supplying affordable petroleum products safely and reliably. The company launched its Operational Excellence Management System (OEMS) in 2004. OEMS manages all mission-critical oil production factors, from workforce health and efficiency to process safety, reliability, and integrity. It helps Chevron leaders engage employees and build a sustainable OE culture, ensuring operational excellence. [5]

3. Cleaner energy

Chevron strives to deliver solutions that reduce carbon emissions across industries.​ For example, the firm is improving methane detection, redesigning its facilities, optimizing equipment, and adopting new operational practices to lower emissions. Chevron leads in methane management in its US operations. Its methane emissions intensity in the Permian is about two-thirds on the lower side, than the global industry average. The company launched Chevron New Energies in 2021 to accelerate lower carbon solutions. [6]

4. Fuel human progress

Chevron seeks to deliver energy that powers the world forward and improves millions of lives globally. The company believes life depends on human energy. Since 1879, Chevron has focused on enabling human progress by providing ever-cleaner petroleum products reliably and affordably. The company is still committed to this mission. [7]

Chevron’s Vision

To be the global energy company most admired for its people, partnership, and performance. [8]

Here is the breakdown of Chevron’s vision:

1. Global leadership

Chevron operates in over 180 countries worldwide. The company aims to be the global energy leader by boosting efficiency and capacity. In 2023, Chevron delivered annual production of 1 million barrels of oil equivalent daily, the highest in its history. The company also seeks to be admired for its people. It is working toward this vision by providing comprehensive employee training programs focused on career development. [9]

2. Collaboration

Chevron proactively seeks beneficial partnerships to fuel its growth. This strategy can help catapult the company closer to the global energy leader title. In Nov 2024, Chevron’s partnership with SLB and Microsoft entered its fifth year. This three-way collaboration has allowed Chevron to increase efficiency. It focused on FDPlan, DrillPlan, and DrillOps and delivered a collaborative IT platform that connects Chevron’s subsurface professionals with mission-critical data. [10]

3. Outperform competitors

Chevron seeks to improve its performance to secure the global energy leader position. Achieving this vision requires the firm to deliver high-performance products and outperform rivals. In 2024, Chevron had a higher brand value than its closest competitor, ExxonMobil. It is the most valuable US-based oil and gas company. Chevron’s hydraulic fracturing division has recorded significant growth in recent years. The company is already outperforming many competitors. [11]

Image Source: Bullfincher.io

Chevron’s Values

Chevron’s values promote diversity and inclusion, boost performance, and drive partnerships. They also support the company’s community development and environmental initiatives and nurture a culture of trust and integrity. These values are part of the Chevron Way. [12]

Here are Chevron’s values:

1. Diversity and inclusion

Chevron values diverse viewpoints, ideas, and experiences. The oil and gas giant creates an inclusive workplace environment to enhance employee engagement. In the early 1960s, Chevron made a public statement against discrimination before the Civil Rights Act was born. This commitment set the tone for the company’s diversity, equity, and inclusion (DEI) initiatives. Chevron started lesbian and gay employee resource groups (ERGs) in the 1990s and added new ERGs over time. It currently has 11 ERGs, catering to diverse demographics like race, gender, and career stage. [13]

2. Leading performance

Chevron develops leaders to sustain and strengthen its culture and future. Chevron’s We Lead model guides its leadership development programs from early career talent to senior executives. It includes assessments, asynchronous learning modules, self-paced learning materials, virtual webinars, and coaching. Chevron also offers diversity and inclusion-driven leadership development programs to develop leaders among its women, African-American, Asian-American, and Latino employees. [14]

3. Partnership

Chevron values constructive relationships. It collaborates with stakeholders and communities to foster trust and understand their insights through engagements. For example, Chevron partnered with the University of Houston in Oct 2024 to elevate UH’s student-athlete development program. Chevron will help student-athletes network and secure internships, job interviews, and professional career opportunities. This community partnership fosters trust and nurtures long-lasting relationships. [15]

4. People and environment

Chevron seeks to minimize its environmental impact and ensure safety and health in its workplace. The company engages communities and organizations to help protect the environment. For example, Chevron and CVA renewed and expanded their partnership in Feb 2024 to support initiatives that build biodiversity across Australia. The partners have collaborated on environmental programs for 17 years. [16]

5. Trust and integrity

Chevron values honesty and respect. The company works with the highest ethical standards. This value is one of the cornerstones of the Chevron Way, which explains its beliefs, vision, purpose, and values. Trust and integrity protect Chevron’s culture and reputation. [17]

Image Source: Bullfincher.io

Chevron’s Sustainability Strategy

Chevron integrates sustainability throughout its business. The company strives to reduce emissions, protect the environment, empower people, and leverage cutting-edge technologies to solve complex energy challenges. Since 2002, Chevron has issued its annual Corporate Sustainability Report, highlighting its efforts to deliver cleaner energy. [18]

How is Chevron implementing its sustainability strategy?

1. Lower carbon solutions

Chevron is working to reduce its carbon intensity. The company invests in clean energy, renewable fuels, and emerging technologies. In 2022, Chevron became America’s second-largest renewable diesel and biodiesel producer. This development came after Chevron acquired Renewable Energy Group, Inc.

Chevron aims to produce oil and natural gas more efficiently and responsibly. It leverages tried-and-tested strategies to minimize environmental impacts. For example, Chevron’s Kern County facility implemented the utilization,carbon capture, and storage (CCUS) project in California to lower carbon intensity. CCUS allows Chevron to capture carbon dioxide from its operations and inject it into a subterranean storage reservoir. [19]

2. Protecting the environment

Chevron’s environmental strategy focuses on reducing water use and protecting ecologically sensitive areas. The company works with Aris Water Solutions in the Permian Basin to improve the efficiency of its recycled-produced water. As of 2022, Chevron used brackish or recycled water to meet 99% of water demands for Permian well completions.

Chevron participates in The Environmental Partnership and Project Astra. It also works with local climate-focused organizations. These collaborations help improve the industry’s environmental performance through methane detection and data sharing. [20]

3. Empowering people and communities

Chevron’s sustainability strategy includes social investment. The company empowers people and communities to drive sustainable growth and long-term business success. It achieves this sustainability goal through the Chevron HumanKind corporate giving program.

Chevron employees and retirees use HumanKind to maximize their charitable contributions and support. HumanKind matches employees’ charitable donations up to $10,000 yearly. In 2022, Chevron Humankind donated over $34 million to US non-profit organizations and provided 88,700 volunteer hours to over 1,200 charitable groups. [21]

4. Embracing technology

Chevron leverages partnerships to develop and scale innovative tech solutions that support a sustainable, resilient energy system. The company has decreased its upstream methane intensity by 64% since 2016. It recently deployed the industry’s first 20,000 psi deepwater tech in the US Gulf of Mexico to help unlock resources. As of Nov 2024, Chevron Technology Ventures had invested in over 140 startups to support sustainable efforts of companies in its supply chain. [22]

References

1. Catlin, V. (2024, Aug 2). Chevron headquarters to leave California for Texas. FOX40
2. Simply Wall St (2024, Feb 3). Chevron Full Year 2023 Earnings: Misses Expectations. Yahoo Finance
3. Chevron Corporation. Who We Are: Our Purpose. Chevron.com
4. Chevron Corp. (2024). Chevron at CERAWeek 2024. Chevron.com
5. Chevron Corp. Chevron: Operational Excellence. Chevron.com
6. Chevron Corp. (2022, Jul 28). 3 ways we’re answering the call for affordable, reliable, and ever-cleaner energy. Chevron.com
7. Chevron Corp. Chevron: Enabling Human Progress. Chevron.com
8. Chevron Corp. The Chevron Way: Our vision. Chevron.com
9. Chevron Corp (2024, Feb 26). Chevron: 2023 Annual Report. Chevron.com
10. Chevron Corp (2024, Nov 25). The power of collaboration: Teaming up with Microsoft, SLB. Chevron.com
11. Statista Research Department (2024, Jun 26). Chevron: Statistics & facts. Statista
12. Chevron Corporation. The Chevron Way: Our values. Chevron.com
13. Grensing-Pophal, L. (2023, Sep 20). Breaking bias and building bridges: Chevron’s proactive approach to DEI. Diversity & Inclusion
14. Ellis, R. (2022, Jun 13). Building Chevron’s Leadership Pipeline. TD.org
15. University of Houston (2024, Oct 31). Houston Athletics Announces Community Partnership with Chevron. UH Cougars
16. Chevron Australia (2024, Feb 11). Conservation Volunteers Australia and Chevron expanded the partnership. Chevron.com
17. Chevron Corp. Getting results the right way. Chevron.com
18. Burkinshaw, S. (2023, May 9). Chevron reveals key takeaways from the 2022 sustainability report. Sustainability News
19. Chevron Corp. (2022, May 23). Carbon capture and storage project in California. Chevron.com
20. Chevron Corporation (2024, Apr 4). Sharing data is benefiting emission reduction efforts. Chevron.com
21. WJ Associates (2024, May 14). Use the Chevron Humankind Program for Charitable Giving & Tax Planning? WJohnsonAssociates.com
22. Chevron Corporation (2024, Nov 14). Chevron VP talks about technology and energy transition. Chevron.com
23. Featured Image by Luis Ramirez