Chevron Corp. (NYSE: CVX), located in the US state of Delaware, operates on national and international subsidiaries and affiliates that engage in petroleum and petrochemical operations, mining, power generation and related services. They are involved primarily in the exploration, development and production of crude oil and natural gas, storing and marketing of natural gas, crude oil and refined products, while also processing, liquefying, and transporting and regasification of liquefied natural gas, and marketing of petro-chemical products to be used in industries and as fuels and lubricants.
The company has a well dispersed international market, operating and managing projects in almost every continent.
CVX competes with several big oil corporations namely BP, Total, ConocoPhillips, Exxon Mobil, Royal Dutch Shell, ENI, Occidental Petroleum, Repsol and Saudi Aramco.
Trends and Forces
Environmental Concerns and Litigation
As one of the world's largest oil producers, Chevron Corp. faces litigation for pollution and contamination of the environment. Following are the various high profile cases on Chevron:
Texaco Inc., acquired by Chevron in 2001, has been fighting a class-action law suit filed against them on behalf of over 30,000 residents of Amazon Basin, Ecuador who claim that over 18 million gallons of toxic waste had been dumped from oil drilling in the jungle. In the past, Texaco has agreed with the Ecuadoran government that it would be cleaning up the waste so spoilt, costing around $40 million attributable to his share of spills and wastes, which it completed in 1998. However, still, the law suit was filed against them holding them for being responsible for around 1400 deaths from cancer caused by the pollution necessitating such clean ups. Although, the Ecuadorian courts have already judged in favour of natives for around $18 billion, the big oil company convinced Manhattan court to restrict the enforcement of such judgement, hence saving itself for the time being in paying such huge amount as fines to Ecuadorian Government.
CVX stock news shows that Chevron was required to pay $1.5 million to California City, for not being able to control gasoline addictive from leaking into a water supply.
Recent - Chevron's Pennsylvania natural gas well:
Very recently as per CVX stock news, a fire has erupted in the gas well resulting in a person burnt and another missing. The fire is estimated to continue indefinitely until the whole gas well burns up. Alternately, flames can be put by smothering through chemicals or foaming. Although there has been no major fire casualties witnessed around the site or any damage to the nearby homes and structures, there will still be required quality tests to know the pollution rates.
The BP (BP) oil spill and the six month moratorium on offshore drilling in the Gulf of Mexico:
In 2010, the BP suffered a major operational setback, when its oil rig caught on fire,...