For 145 years, Chevron has been a leader in the energy industry. Throughout its long and storied history, the company has fought to see continued growth and reinvented itself numerous times to withstand hardships, including the challenging, and extremely cyclical nature of the energy industry. In 2020, Chevron, like the rest of the energy industry, was hit hard when the COVID pandemic shut down the world and economy. The global demand for oil fell by about 25%, and mass layoffs were taking place throughout the industry. Since then, like many other industries, energy is experiencing a recovery...but interestingly, the pandemic also appears to have pressed the “fast-forward” button on many industry trends that have been on industry leaders' radars for years. Things that we typically wouldn’t have expected to see for another decade or so, such as the push for more technology+IoT solutions, pressure to pursue more environmentally friendly energy solutions, and concerns about the ability of aging infrastructure to support consumer demand. Currently, Chevron is the second largest oil company in America, and is active in more than 180 countries...but how will the oil and gas giant address these challenges? And where will they be after all of these trends fully play out?
Well, if Chevron has anything to say about it, they’ll be at the forefront. In their recent Q2 2021 earnings call, Chevron leadership focused heavily on the positives in their financials. However, with one look at their website, you can tell that they are focused on much more than money. It highlights the company's emphasis on achieving sustainability and lowering the carbon footprint of their operations. The website also dives into technology and brings to light all of the improvements they are making on that front to improve efficiency and productivity. So, Chevron is definitely taking the industry trends seriously, and working to face them head on.
Are you interested in Chevron, the energy industry, or in building your business acumen? If so, don’t miss our next Earnings Call Lab on Wednesday, October 27 at 11 am (Eastern) where we’ll teach you how to break down Chevron’s strategy and financial metrics.
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