What workforce trends is the industry experiencing? For example, manufacturing jobs in this industry are moving to Mexico and China at a very fast rate. Or, companies are investing heavily in engineering in order to remain competitive through innovation.
Chevron Corporation has led the way for energy innovation by expanding their technological know-how and hiring skilled experts. The emerging markets for energy fuel have increased the demand for well-paying jobs that require skilled workers. As a financially stabile company, Chevron is able to invest its strong earnings into exploration, production, and gaining a foothold in new markets. Expanding its services will inevitably create more jobs throughout the world. Chevron offers a vast array of engineering opportunities to support its energy exploration and to create innovative technology. Their greatest need for engineers relies on their leading operations: energy technology; exploration and production; natural gas; refining, marketing, and trading; and transportation and shipping (1).
According the State Department, the extraction of oil and natural gas resources in the United States could create hundreds of thousands, perhaps millions of jobs for Americans. The development of the Marcellus Shale—one of the largest natural gas reserves in North America—can create upwards of 200,000 jobs for Americans by 2015 (2). After Chevron’s acquisition of Atlas Energy in 2010, they gain extraction capabilities in the Marcellus Shale. For companies like Chevron and Kinder Morgan, the development of natural gas in North America will give way to significant job creation. As the United States is suffering from slow economic growth and high unemployment, the expansion of the energy industry has the ability fix many of these problems.
Now that corporate responsibility has placed such a large emphasis on the energy industry, companies are hiring more obscure positions to make sure they follow corporate guidelines. Botanists and marine biologists are often hired to make sure large oil and natural gas companies—like Chevron—are not destroying the environment (2). Chevron is currently looking for health and safety professionals with advanced degrees; these workers will make sure Chevron is conscious of the global environment (1). To ensure their environmental-awareness and ethical responsibility, Chevron is following new workforce trends to enhance its corporate reliability.
(1) http://careers.chevron.com/disciplines/index_of_disciplines/engineering/default.aspx
Your second paragraph really sums up a good point as to why Chevron is a good investment. Making a good investment in this industry isn't always about the biggest or wealthiest business, it is about how it is expanding and growing (which will increase the stock price by a greater margin making the investor more money). Chevron's innovation is what is making it unique when compared to other large scale companies like Exxon Mobil. I think this blog is a really great summary of all Chevron has to offer. You talked about economics (emerging markets) and corporate responsibility (through the creation of jobs - giving back to the economy) which are two great points when backing up our investment recommendation. I think we should refer back to this blog when were finalizing our investment recommendation section.
ReplyDeleteI think you addressed an often overlooked aspect of expansive companies like Chevron: the fact that they also employ massive amounts of people and power even more. I know Chevron powers around 120.000 homes and over 840,000 businesses domestically. It also employs 62,000 workers worldwide. Some people blindly disparage big companies without taking into account the external financial benefits like you have here, good job!
ReplyDeleteI agree with Dan and Lela that you really summed up good points on why were are picking Chevron over Exxon. Chevron is diversifying and looking into new forms of energy, new areas of the world, and is growing and creating jobs as it goes. Chevron really has the whole package although Exxon might seem bigger and badder right now, Chevron is doing their thing and will continue to be successful (if not even MORE successful) in the future. They are on a very good path right now.
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