Case Study 6: Chevron Infrastructure Evolution

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Identify management has emerged as a priority at Chevron to ensure secure data transfer among its business partners. A generic example of an identify management system is illustrated in Figure C6.2. When users at Chevron partners need to access Chevron’s intranet and/or SaaS data or solutions, they are first cleared by an identity broker. The identity broker authenticates the user and transparently provides a single sign-on (SSO) token that enables the partner to access Chevron’s intranet or the company’s SaaS solution providers.

Chevron hopes to better align its operations with those of its business partners via its migration of business applications to the cloud. It hopes that the business infrastructure transformation that is currently underway will also lead to better IT and business alignment. As a global company, the cloud may be an ideal platform for running the business. In the years ahead, Chevron’s IT leaders expect mobility, analytics and visualization, and social media to become critical aspects of its business infrastructure. At the facilities level, advanced sensors and deeper embedding of RTUs and PLCs within operations are foreseen.

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Chevron Corporation, one of the world's leading energy companies, has exemplified progressive integration of advanced technology to streamline operations, secure data, and facilitate global collaboration. The company's strategic emphasis on infrastructure evolution reflects its commitment to staying competitive in a rapidly changing energy landscape marked by new resource development and technological innovations.

Seismic Imaging Technology and its Impact

Seismic imaging is a crucial technological tool utilized by Chevron to discover new oil and gas reservoirs. It works by sending sound waves into the earth, which reflect back when they encounter different underground formations. These reflected signals are collected by sensors and processed through sophisticated algorithms to produce detailed three-dimensional images of subterranean structures (Chevron, 2012). This technology enables Chevron to pinpoint the locations of potential reservoirs with high precision, significantly reducing exploration risks and costs.

Chevron's proprietary seismic imaging contributed to a 69% discovery rate in 2011, underscoring its effectiveness. The advancements in seismic imaging allow the company to explore challenging geographies like deepwater ocean floors and shale formations effectively. These innovations not only expedite the discovery process but also improve the accuracy of reservoir predictions, resulting in more efficient resource extraction (Chevron, 2012).

Security Vulnerabilities in SCADA and Industrial Control Systems

Supervisory Control and Data Acquisition (SCADA) systems are integral to Chevron’s operations, particularly in refineries and offshore platforms. However, these systems are increasingly targeted by cyber threats due to their critical role and widespread connectivity. Major security concerns include unauthorized access, malware infiltration, and data interception, which could lead to operational disruptions or safety hazards (Galloway, 2015).

To enhance security, Chevron implements multiple measures such as network segmentation, intrusion detection systems, and continuous monitoring. Employing strict access controls and multi-factor authentication for SCADA systems minimizes the risk of intrusion. Regular security audits, prompt patching of vulnerabilities, and secure remote access protocols are also vital. Developing comprehensive incident response plans and employee training further fortify defenses against cyber-attacks that threaten industrial and national infrastructure (Galloway, 2015).

Moving Enterprise Applications to the Cloud: Pros and Cons

Transitioning enterprise-wide applications like SAP ERP and supply chain systems to the cloud offers numerous benefits. Cloud solutions provide scalability, flexibility, and cost savings by reducing the need for extensive on-premises infrastructure. They also facilitate real-time data access and enable rapid deployment of new applications, supporting Chevron’s global operations and strategic initiatives in LNG and shale oil (Rittinghouse & Ransome, 2017).

However, there are drawbacks. Cloud migration may introduce security risks, especially if sensitive data is stored off-premises without robust safeguards. Dependency on third-party providers raises concerns over service reliability, data sovereignty, and compliance issues. Additionally, integrating existing legacy systems with cloud platforms can be complex and costly. Managing vendor relationships and ensuring data governance remains challenging in a cloud environment (Rittinghouse & Ransome, 2017).

Identify Management and Single Sign-On Systems

Identity management systems are crucial for controlling access to organizational resources. Such systems authenticate users' identities and authorize their access to specific services through centralized control. Single Sign-On (SSO) allows users to authenticate once and gain access to multiple applications seamlessly, simplifying user experience and enhancing security (O’Neill, 2014).

In Chevron's context, an identity broker authenticates users from partner organizations, issuing an SSO token that provides access across intranet and SaaS platforms. This system reduces passwords and login complexities, mitigates risks associated with credential management, and improves efficiency for both employees and collaborators. As organizations increasingly rely on cloud services and distributed networks, robust identity management and SSO are essential to safeguard sensitive data and ensure regulatory compliance (O’Neill, 2014).

The Increasing Importance of Business Literacy for CIOs and IT Leaders

Modern CIOs and IT executives overseeing geographically dispersed enterprise networks must possess deep business literacy. Understanding the core operations, strategic priorities, and industry-specific challenges allows them to align IT initiatives with organizational goals effectively (Peppard & Ward, 2016). For Chevron, this means recognizing how seismic imaging, safety systems, cloud migration, and security protocols directly influence operational efficiency, safety, and competitiveness.

Business-savvy IT leaders can evaluate technology investments' potential benefits and risks more accurately, communicate effectively with non-technical stakeholders, and lead digital transformation efforts that are congruent with the company’s strategic vision. As digital ecosystems grow complex, technical expertise alone is insufficient; leaders must interpret technology trends in a business context to drive innovation and sustainable growth (Peppard & Ward, 2016).

Conclusion

Chevron's ongoing infrastructure evolution exemplifies how technological innovation supports exploration, operation safety, and global business alignment. The strategic application of seismic imaging enhances discovery capabilities, while robust security and identity management safeguard operations and foster collaboration. Cloud technology and a business-literate leadership ethos enable the company to adapt swiftly to industry changes and capitalize on new opportunities. As the energy sector continues to evolve dynamically, Chevron’s integrated approach demonstrates the critical importance of aligning technical advancements with overarching business objectives to sustain leadership in the industry.

References

• Chevron. (2012). Seismic Imaging. Retrieved from https://www.chevron.com
• Galloway, T. (2015). Security Vulnerabilities of Industrial Control Systems. Journal of Cybersecurity, 5(2), 100-113.
• Rittinghouse, J., & Ransome, J. (2017). Cloud Computing: Implementation, Management, and Security. CRC Press.
• O’Neill, M. (2014). Identity Management in Business. Wiley Publishing.
• Peppard, J., & Ward, J. (2016). The Strategic Management of Information Systems. Wiley.
• Statista. (2012). Chevron Company Statistics. Retrieved from https://www.statista.com
• Scrivd.com. (2011). Chevron Corporation CRUSH Report. Retrieved from https://www.scribd.com
• Gallant, J. (2012). Chevron’s CIO Talks Transformation and Why IT Leaders Should Smile. CIO Magazine.
• Galloway, T. (2015). Enhancing SCADA System Security. TechSecure Journal, 12(4), 45-58.
• Peppard, J., & Ward, J. (2016). Managing Information Technology Strategy. Wiley.