Case Study on Chevron Infrastructure Evolution

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Chevron Corporation (www.chevron.com) is one of the world’s leading energy companies. Chevron’s headquarters are in San Ramon, California. The company has more than 62,000 employees and produces more than 700,000 barrels of oil per day. It has 19,500 retail sites in 84 countries. In 2012, Chevron was number three on the Fortune 500 list and had more than $244 billion in revenue in 2011 [STAT12].

IT infrastructure is very important to Chevron and to better support all facets of its global operations, the company is always focused on improving its infrastructure [GALL12]. Chevron faces new challenges from increased global demand for its traditional hydrocarbon products and the need to develop IT support for new value chains for liquid natural gas (LNG) and the extraction of gas and oil from shale. Huge investments are being made around the world, particularly in Australia and Angola on massive projects of unprecedented scale. Modeling and analytics are more important than ever to help Chevron exploit deep water drilling and hydrocarbon extraction in areas with challenging geographies. For example, advanced seismic imaging tools are used by Chevron to reveal possible oil or natural gas reservoirs beneath the earth’s surface. Chevron’s proprietary seismic imaging technology contributed to it achieving a 69% discovery rate in 2011[CHEV12].

  • Do some Internet research on Chevron’s use of seismic imaging technology. Briefly explain how it works and how it has helped Chevron discover new oil and gas reservoirs.
  • Do some Internet research on security vulnerabilities associated with SCADA and digital industrial control systems. Summarize the major security concerns associated with these systems and steps than can be taken to enhance their security.
  • Discuss the pros and cons of moving enterprise-wide applications that have traditionally been supported on premises to the cloud.
  • Do some Internet research on identify management and single sign on systems. Briefly explain how these work and why they are important in business intranets and extranets.
  • Why is it increasing most important for a CIO or IT executive who oversees geographically distributed enterprise networks to be business literate?

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