Question

What other considerations might a manager at Chevron have to account for while planning production in such a complex environment?

Answer 1

Chevron is one of the biggest Oil companies in the world. As a manager of Chevron there are various aspects that have to kept in mind while planning its production; to begin with revenues of oil companies are highly dependent on the oil wells which has to tapped properly, the process then leads to the extraction of oil wells which then again has to be refined for marketing and transporting purposes, tapping of oil wells are done by geologist and hence any failure of oil wells will lead to huge chunk of money wasted from the viewpoint of the company (which might dent the company’s future expansion programs), dipping in revenues over a period of time (be it year on year or quarter on quarter) will also not go down to well with the shareholders as their confidence might shake during this tenure.