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P1 Takehome Data average months before quitting hourly rate male/female hours of OT required Boss C6-1 CASE STUDY 6 CHEVRON’S INFRASTRUCTURE EVOLUTION Chevron Corporation ( 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 C6-2 technology contributed to it achieving a 69% discovery rate in 2011[CHEV12]. Supervisory Control and Data Acquisition (SCADA) Systems Chevron refineries are continually collecting data from sensors spread throughout the facilities to maintain safe operations and to alert operators to potential safety issues before they ever become safety issues. Data from the sensors is also used to optimize the way the refineries work and to identify opportunities of greater efficiency. IT controls 60,000 valves at Chevron’s Pascagoula, Mississippi refinery; the efficiency and safety of its end-to-end operations are dependent on advanced sensors, supervisory control and data acquisition (SCADA) systems, and other digital industrial control systems [GALL12].

SCADA systems are typically centralized systems that monitor and control entire sites and/or complexes of systems that are spread out over large areas such as an entire manufacturing, fabrication, power generation, or refining facility. The key components of SCADA systems include:

- Programmable logic units (PLCs) and remote terminal units (RTUs) connected to sensors that convert sensor signals to digital data and send it to the supervisory system

- A supervisory computer system that acquires data about the process and sends control commands to the process

- A human-machine interface (HMI) that presents process information to operators

- Process meters and process analysis instruments

- Communication infrastructure connecting the supervisory system and RTUs and PLCs

Data acquisition occurs at the PLC or RTU level, including meter readings and equipment status reports, which are sent to the supervisory system. This data is compiled and formatted by the HMI so operators can determine whether adjustments are needed. Current data can also be compared to historical data stored in a SCADA database for trend analysis and auditing.

In addition to Chevron refineries, SCADA systems are crucial for national infrastructures such as water supplies, pipelines, and electric grids. Due to the potential risks associated with attacks or damage to these systems, securing SCADA infrastructure is critical.

Chevron has traditionally focused more on infrastructure than business applications, but recognizes the importance of enterprise systems like SAP ERP, which it has used for over two decades, supporting more than 50 instances running on Oracle databases. Other key enterprise applications include Ariba Buyer, EMC Documentum, Informatica, and MicroStrategy [SCRI11]. To enhance business agility, Chevron is shifting focus toward web services, SaaS, and cloud computing, especially with regard to mobility, which they see as transformative for information delivery and decision-making without compromising security or reliability.

By leveraging cloud solutions like SaaS applications (e.g., Ariba, Salesforce.com), Chevron aims to develop a more integrated supply chain network that includes all major partners. Managing secure data transfer is a priority, facilitated through identity management systems involving single sign-on (SSO) tokens issued by an identity broker that authenticates users and grants access across intranet and SaaS platforms. This approach aligns with Chevron’s objective to improve IT and business alignment, leveraging mobility, analytics, visualization, and social media to support its global operations [GALL12].

Chevron’s technical infrastructure convergence requires continuous updating with embedded sensors, RTUs, and PLCs within operational facilities. However, business literacy among IT leaders is equally vital, given the complexity of managing geographically dispersed enterprise networks and the strategic importance of secure, efficient, and flexible IT systems in supporting global operations.

Discussion Points Addressed in Literature Review:

1. Seismic imaging technology enhances Chevron’s exploration capabilities by identifying underground reservoirs, boosting production efficiency and success rates.

2. Popular security concerns surrounding SCADA include vulnerabilities to cyberattacks that could lead to operational disruptions, safety hazards, or environmental damage. Strengthening security involves network segmentation, robust access controls, and regular patch management.

3. Transitioning enterprise applications to the cloud offers flexibility, scalability, and cost advantages but raises concerns over data security, compliance, and control.

4. Identity management and SSO streamline user access across multiple systems, improving security and efficiency in intranets and extranets.

5. Business literacy among CIOs is increasingly crucial for aligning IT initiatives with strategic corporate goals, especially in geographically distributed and technologically complex environments.

Paper For Above instruction

Chevron Corporation exemplifies a global energy giant that leverages sophisticated IT infrastructure to support its extensive exploration, production, and refining operations. Among the key technological advancements supporting Chevron’s operations are seismic imaging, SCADA systems, enterprise resource planning (ERP), and cloud computing solutions. These tools collectively underpin Chevron’s strategic objectives of discovery, operational efficiency, and risk mitigation.

Seismic imaging technology is instrumental in Chevron’s hydrocarbon exploration efforts. This technology involves the use of advanced seismic surveys that send sound waves into the earth’s subsurface to produce detailed imaging of geological formations. Chevron employs proprietary seismic imaging software that enhances the accuracy of detecting potential oil and gas reservoirs. The process typically involves generating seismic waves through controlled sources, such as vibration or explosives, and capturing the reflected signals with geophones or hydrophones. These signals are then processed through sophisticated algorithms to create detailed three-dimensional images of subsurface structures. This allows Chevron geologists and engineers to assess the presence of hydrocarbons with higher confidence, reducing exploration risks and increasing success rates. Chevron’s innovation in seismic imaging contributed to a 69% discovery rate in 2011, exemplifying the technology’s pivotal role in resource identification and development.

SCADA systems are at the core of Chevron’s operational automation, ensuring safe, efficient, and reliable refinery and production processes. SCADA integrates hardware components such as PLCs, RTUs, sensors, and process meters with centralized supervisory computers and HMIs. Data acquisition at the PLC or RTU level enables real-time monitoring of equipment status and process variables such as temperature, pressure, flow, and valve positions. This data flows through secure communication networks to the central supervisory system, where it is analyzed to detect anomalies, optimize operations, and preempt safety issues. The control capabilities of SCADA facilitate precise adjustments to process conditions, improving efficiency and safety in Chevron’s refineries and extraction sites. Given the critical nature of these systems, cybersecurity is a primary concern, especially since malicious attacks could cause operational disruptions or safety hazards.

The security vulnerabilities of SCADA and digital industrial control systems are significant, making them attractive targets for cyber espionage, sabotage, or terrorism. Common concerns include insecure network connections, default or weak authentication mechanisms, and unpatched vulnerabilities in legacy systems. Attackers could exploit these weaknesses to manipulate sensors, disrupt control commands, or cause physical damage. To mitigate these risks, Chevron implements multiple layers of security, including network segmentation to isolate critical control systems, regular system patches and updates, strict access controls, multi-factor authentication, and intrusion detection systems. Employing security best practices such as encryption of communication channels and continuous monitoring further enhances cybersecurity defenses. Protecting SCADA systems is vital for maintaining the safety, integrity, and resilience of Chevron’s operations and safeguarding personnel, environment, and assets.

Transitioning enterprise-wide applications to the cloud presents both benefits and challenges. Cloud adoption offers scalability, cost savings, and operational flexibility by enabling access to applications and data from anywhere. For Chevron, deploying applications like SAP ERP, Ariba, and Salesforce in the cloud supports global collaboration, streamlines supply chain management, and reduces infrastructure complexity. However, risks associated with data security, compliance with industry regulations, and potential loss of control pose significant concerns. Ensuring data encryption, access controls, and compliance with standards such as ISO 27001 and industry-specific regulations is essential. Moreover, integrating legacy systems with cloud platforms can be complex, requiring careful planning and migration strategies. While the cloud’s agility aligns with Chevron’s strategic emphasis on innovation and responsiveness, it demands robust cybersecurity measures and governance frameworks to mitigate vulnerabilities and maintain trust.

Identity management and single sign-on (SSO) systems are integral to managing secure and seamless access across interconnected enterprise applications. These systems authenticate users once and provide access tokens that enable authorized access to multiple systems without repeated logins. An identity broker acts as a gatekeeper, verifying user credentials and issuing SSO tokens that facilitate access to Chevron’s intranet and SaaS platforms like Ariba and Salesforce. These mechanisms simplify user experience, reduce password fatigue, and enhance security by enforcing centralized access control policies. In business intranets and extranets, effective identity management prevents unauthorized access, protects sensitive data, and supports compliance requirements. Implementing robust identity solutions also facilitates auditability and accountability, which are critical for regulatory compliance and operational integrity.

The increasing importance of business literacy among CIOs and IT leaders stems from the complex, interconnected nature of modern enterprise networks. Understanding strategic business drivers, operational processes, and market dynamics enables IT leaders to align technology initiatives with organizational goals. In geographically dispersed environments like Chevron’s, business literacy helps in designing scalable, secure, and responsive IT architectures that support global operations. It also facilitates effective communication with executive management and business units, ensuring that IT investments deliver tangible value. As digital transformation accelerates, CIOs must navigate technological complexities while articulating how IT solutions enable competitive advantages, customer satisfaction, and operational excellence. Consequently, business-savvy CIOs can better advocate for investments in innovative solutions such as cloud, mobility, and analytics, ensuring they contribute directly to strategic objectives and value creation.

In conclusion, Chevron’s approach to integrating advanced seismic imaging, secure SCADA systems, cloud-based enterprise applications, and robust identity management illustrates how technology fosters operational excellence in the energy sector. Maintaining security, optimizing exploration, enhancing enterprise agility, and fostering strategic alignment require continuous innovation and a deep understanding of both technology and business. Equipping IT leaders with business literacy critical in managing global, complex networks will ensure sustained success and resilience in facing future energy challenges.

References

• CHEV12. Chevron. (2012). Seismic Imaging. Retrieved from https://www.chevron.com
• GALL12. Gallant, J. (2012). Chevron’s CIO Talks Transformation and Why IT Leaders Should Smile. Retrieved from https://www.cio.com
• SCRI11. Scribd. (2011). Chevron Corporation CRUSH Report. Retrieved from https://www.scribd.com
• STAT12. Statistic Brain. (2012). Chevron Company Statistics. Retrieved from https://www.statisticbrain.com
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