Running Head: CHEVRON CORPORATION
Chevron is one of the leading energy companies in the world. Its headquarters are
located in San Ramon, California. It has various divisions and branches in the many countries
in the world. The biggest venture of the Chevron Company is the production of gas and oil. It
drills and harvests oil and gas all over the world. The origin of Chevron can be traced back to
1876 at the period when oil was discovered at California, Canyon.
After the discovery of the oil, the Pacific Coast Oil Company was established, and it
was later branded as Standard Oil Company of California. In 1984, the Standard Oil
Company of California merged with Gulf Oil Corporation to form Chevron. The merger
doubles the oil production of the Chevron. After the merger, Chevron continues to expand its
boundary through the acquisition of Texas Fuel Company and Unocal Corporation in 2001
and 2005 respectively. After the establishment of Chevron, it has received various successes
and problems. This paper will majorly concentrate on problems faced by the corporation in
expanding their business globally.
Challenges facing Chevron from a global perspective
Problems in acquisition of rights to drill
In trying to internationalize business, Chevron has experienced numerous challenges.
Chevron, like other oil companies, has experience problems in acquisition of rights to drill oil
in various countries (Manna et al, 2014). Despite discovering oil in some other countries,
they have faced setbacks in reaching a deal for the oil reservoirs. Most of the host countries
have not been willing to give out the mining rights even though many of them do not have the
capability to undertake the mining on their own. Many host countries who deny sealing the
deal with Chevron argue that the oil is their treasure.
The negative perceptions by the host countries towards the Chevron are also a factor
towards the rejection to seal the deal. To win the deals, the Chevron Corporation has been