Introduction to Oil and Gas Environment

Running head: INTRODUCTION TO OIL AND GAS ENVIRONMENT
Introduction to oil and gas environment
Name of the Student
Name of the University
Author Note

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INTERNATIONAL FINANCIAL MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Explaining the roles and responsibilities within the downstream division of Chevron:............2
Identification of three PESTLE factors impacting the success of chosen company:.................4
Project run by company making contribution to local community:...........................................4
References list:...........................................................................................................................6
Conclusion:................................................................................................................................6
Introduction:
The report is prepared for demonstrating the responsibilities and roles of downward
division of company. For this purpose, the company that has been selected is Chevron which
is the leading integrated energy companies in the world. Chevron is actively engaged in

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selling and manufacturing of additives and petrochemicals, transporting and producing crude
and natural gas and oil, deployment and development of technologies that helps in enhancing
the value of business in every aspect of operations of company. The success of organization
is driven by a diverse, dedicated and highly skilled global workforce that is united values,
vision and strategies. Company carries out its operations in a responsible manner by
capturing new high turn opportunities, application of advanced technologies and producing
returns in a manner that is environmentally and socially responsible (Chevron.com 2018).
The success of Chevron is evaluated by the application of PESTLE framework that gives a
detailed review of three factors impacting the operations of company. The later of report
presents the discussion of project that is chosen or run by its management that makes
contribution to the local community.
Discussion:
Explaining the roles and responsibilities within the downstream division of Chevron:
The downstream division of Chevron is highly competitive that helps in contributing
to growth of earnings by making targeted investment across the value chain and leading the
industry in returns. Such downstream and chemical business of company comprise of global
portfolio that is strategically placed to focus on leveraging areas of strength. Results in the
downstream division are enhanced by the technical, commercial and operational expertise by
the midstream division. The largest cost components of refined products in downstream
business are crude oil which has the responsibility of delivering value to shareholders and
competitive results in any business environment (Chevron.com 2018). Operations in
downstream division consist primarily of marketing of crude oil and refined products,
refining of crude oil into petroleum products, refined products by pipeline, crude oil
transportation, rail car, marine vessel, motor equipment, marketing and manufacturing of

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petrochemicals commodity for industrial uses, lubricant additives and fuel. Some other roles
of the downstream division includes debt financing activities, worldwide cash management,
insurance operations, corporate administrative functions, technology companies and real
estate activities (Pred 2017).
Exposure of downstream division is shifted to higher return segments such as
additives, lubricants and petrochemicals along with strengthening the value chain fuels in
marketing and refining business. The downstream is well focused to remain on value rather
than remaining on volume that makes the division to grow margins across the value chains
and improving their operations. Moreover, downstream division of Chevron collaborates with
its pipeline and power organization that helps in reducing the cost of energy, achieving
efficiency gains, test new technologies, improving power reliability and managing emissions
(Chevron.com 2018). .
The profitability of operations of downstream is affected by the efficiency and
reliability of marketing, refining and petrochemical assets of company, volatility of rates of
tanker charter for the shipping operations of company and effectiveness of supply functions
of crude oil and products. In addition to this, there are some another factors impacting the
downstream performance that is beyond the control of company (Ahmad et al. 2016) This
includes cost of energy and general level of inflation.
For company, the regional headquarter in the Asia pacific region is Singapore that
comprise of lubricants, manufacturing and marketing business. The downstream business of
Chevron intends to maintain focus on margins by efficiently planning and scheduling the
supply chain. The division has the responsibility of continuously scrutinizing and driving
savings by way of improved scheduling and forecasting along with dealing with the short
planning horizons. In order to ensure that the demands of customer are met with the changing