Downstream & Chemicals

Transcription

1 Downstream & Chemicals Mark Nelson Executive Vice President

2 Downstream & chemicals portfolio Fuels refining & marketing Focused, regional optimization Petrochemicals Advantaged feed, scale and technology Lubricants & additives Strategic positions serving global markets Refinery Refinery acquisition Olefins / Polyolefins complex Premium base oil plant integrated with refinery Integrated fuels value chain Aromatics complex World-scale additives plant See Appendix: slide notes for definitions, source information, calculations, and other. 2

3 Strategy focused on leading returns Sustain world-class operational excellence Grow earnings across the value chain Target investments Lead the industry in returns 3

4 Strong financial performance Reported earnings $ billions Adjusted earnings per barrel $/bbl $ % 24.8% 13.8% Adjusted 13.0% ROCE 14.1% Adjusted ROCE Asset sales and other special items Adjusted earnings CVX ranking relative to IOC competitors IOC competitor range: BP, RDS, XOM See Appendix: reconciliation of non-gaap measures. 4

5 Global product demand Fuels Petrochemicals Lubricants & additives Demand growth, Compound annual growth rate LPG/Naphtha Distillate Gasoline Olefins Aromatics Premium base oil Additives 0% 4% Global economic growth drives product demand Petrochemicals grow faster than fuels IMO supports light product margins See Appendix: slide notes for definitions, source information, calculations, and other. Sources: Wood Mackenzie, NexantThinking Petroleum and Petrochemicals Economics program, Klein & Company 5

6 Conversion to crude capacity ratio Well positioned for IMO 2020 Conversion capacity and complexity Conversion to crude capacity ratio 100% Nelson complexity index 15 Nelson complexity index 10 5 Complex refiners advantaged Highest Nelson complexity 0% CVX BP RDS XOM TOT Coking FCC Hydrocracking Lubricants Nelson complexity index Nelson Complexity Index (NCI) source: Oil and Gas Journal; Conversion to crude capacity source: IHS Markit 6

7 Major capital projects Evaluation / FEED Chevron Phillips Chemical Co. USGC II Chevron Phillips Chemical Co. Middle East growth Singapore Refining Co. Resid upgrading Under construction Salt Lake refinery ISOALKY plant Oronite China blending & shipping GS Caltex Olefins project Commission / start-up Richmond refinery Modernization 7

8 Pasadena refinery acquisition Scope 110 MBD Houston Ship Channel terminal 5.6 MM bbls storage tanks 143 acres vacant land Explorer Pipeline Strategic fit Enables light crude processing Permian Eagle Ford Colonial Pipeline Pascagoula Integrates and optimizes with Pascagoula Supplies equity fuels to Texas / Louisiana Pasadena Transaction $ 350MM, plus working capital Expected close 1H19 Products and intermediaries Exports Crude 8

9 Integrated fuels value chains U.S. West Coast #1 brand share in Western U.S. Growing retail in Mexico San Joaquin Valley equity crude Tightly integrated supply chain U.S. Gulf Coast A Leading leading brand in Central America Top net cash margin refinery Equity crude integration Optimizing across the value chain Asia Pacific Long-standing partnerships World-class manufacturing Strengthening upgrading capability and marketing positions Equity crude Pasadena Pascagoula South Korea Richmond Equity crude El Segundo Salt Lake Equity crude Central America Equity crude Thailand Malaysia Philippines Singapore Mexico Colombia To Central America Future integration Products and intermediaries Equity crude 9

10 Leading refinery performance Utilization Percent Energy efficiency Index Net cash margin Index 90% % CVX ranking relative to competitors Competitor range Sources: Solomon Associates See Appendix: slide notes for definitions, source information, calculations, and other. CVX ranking relative to competitors Competitor range CVX ranking relative to competitors Competitor range 10

11 Fuels marketing initiatives Americas On track for ~400 branded sites in Mexico by 2020 Mexico terminals expected start-up 2020 Targeting additional ~75 ExtraMile convenience stores per year FPO Asia Plan to grow by up to 300 branded sites in Southeast Asia by 2022 GS Caltex equity investment in car sharing company, Green Car FPO Mobile e-pay PayPal and Honda partnerships in U.S. CaltexGO mobile pay in Southeast Asia FPO 11

12 Renewable fuels Integrated value chain Biojet SFO Sustainable Aviation Fuel Biofuels manufacturing El Segundo co-processing Renewable diesel R99 commercial sales Biodiesel and ethanol blending New and emerging technologies Carbon Engineering CO 2 capture to low carbon intensity fuel Natron Energy Sodium-ion battery products Modest investment Portfolio of options Biodiesel and ethanol blending Competitive returns Reliable supply EV charging installations ChargePoint (equity investment) EVgo Renewable natural gas Evaluating dairy digesters & methane capture systems 12

13 Advantaged petrochemicals portfolio Petrochemical capacity, 2019 Million metric tonnes per year 7 Texas Saudi Arabia Qatar North America Middle East Asia Pacific Olefins / Polyolefins Aromatics Under construction See Appendix: slide notes for definitions, source information, calculations, and other. Sources: NexantThinking Petroleum and Petrochemicals Economics program 13

14 Strong petrochemical market fundamentals Ethylene cash cost advantage, $ per metric tonne Polyethylene demand growth, 2018 to 2030 kg per capita U.S China EU 20 Population, million India North America ethane Middle East ethane GDP per capita, $ thousands Sources: NexantThinking Petroleum and Petrochemicals Economics program, Wood Mackenzie Chemicals 14

15 Chevron Phillips Chemical performance Utilization Percent Reported earnings $ billions 100% World class assets 4 Advantaged feedstock Proprietary technologies 2 High operating rates 80% Sustainability focus CPChem Industry average CPChem 100% See Appendix: slide notes for definitions, source information, calculations, and other. 15

16 Lubricants and additives activities Renewable base oil Equity investment in Novvi LLC Technology partnership Plant-based renewable feedstock High-performance synthetic base oil Novvi plant capital investment, expected start-up 3Q19 Finished lubricants Delo, 67% of first fill trucks in North America Motorcycle oil products launched in Asia / Latin America Taro Ultra to meet IMO 2020 Additives Portfolio to address IMO 2020 Singapore capacity expansion for next gen automotive lubricants Solutions for latest stationary gas engine designs 16