Chevron and Oil Trade Dominance Essay

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Chevron and Oil Trade Dominance

Chevron Corporation is a publically traded world leader in the energy market, trading oil and its byproducts, natural gas, as well as participating and leading in research into alternative energy sources such as solar and geothermal. They’re the third largest oil company in the world (Chevron CNN), and despite recent major legal action against the company they remain profitable.
Chevron began as a variety of companies. Originally the company was known as ‘Standard Oil Co.’ (Chevron SFGate), which itself was a splitoff from Standard Oil. Standard Oil was at one point the largest oil refiner in the world, and was headed by the Rockefeller family. Famed for their dominance over all aspects of the oil
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Together these companies controlled 85% of the world’s oil reserves (Hoyas) and it was under this situation that SoCal was able to become a world force.
As SoCal grew it became clearer that for further growth the company must begin purchasing others to maintain growth rate. While SoCal had expanded majorly from its purely western roots before, into places such as Saudi Arabia where it discovered the world’s largest oil field, or into the borders of Texas, claimed lands began to greatly outnumber new potential oil sites. Many of these new sites were owned by Gulf Oil, which itself was part of the Consortium for Iran and a fellow American-owned company. As such SoCal purchased Gulf Oil from the Mellon family in 1984, marking the record books as the world’s largest company merger (Vermont). Naturally this caused problems with United States anti-trust laws, requiring the newly formed company to sell off much of Gulf Oil’s refining capabilities. SoCal essentially purchased Gulf Oil primarily for the land rights, so in effect this did little to reduce the value of the purchase. Once the merger was approved, the company changed its name entirely to Chevron Corporation, basing it off of its already successful ‘Chevron’ retail brand.
In later years Chevron continued its company mergers, absorbing Texaco, a Texas based fuel company founded in 1901, to become ChevronTexaco for a total of $45 billion

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