NEW YORK ( TheStreet) - Chevron ( CVX) is one of the largest energy companies in the world and engages in several businesses like exploration & production of oil and natural gas, refining, transportation, trading and chemicals. It competes with other major oil producers like Exxon Mobil ( XOM), ConocoPhillips ( COP) and Anadarko ( APC).

While oil exploration and production is the primary value generator accounting for nearly 40% of the stock value and natural gas production and trading make up nearly 30% of its value, chemicals also chip in with just under 5% of the Trefis price $105 price estimate to provide a slight boost to the stock as demand for oil, gas and chemicals recovers.

Here are two main factors driving revenue growth. First, Chevron has a 50% stake in Chevron Phillips Chemical Company (CPChem), which has interests in 34 manufacturing facilities and five research and technical centers around the world.

S&P upgraded credit rating for Chevron Phillips in August, 2010 based on a stable outlook and attributed improvement of credit measures to improving demand for the company's products, competitive advantages resulting from low feedstock costs in the Middle East and North America, and competitors' temporary outages and project start-up delays.

Second, the demand for petrochemicals is tied to GDP and thus an improving economy in 2011 and beyond is likely to aid sales. According to a report from investment bank Alpen Capital in early 2010, global ethylene demand is expected to grow at an average annual rate of 4.7% in the future amounting to 153 mmt by 2015. Additionally the Asian markets like India and China have the capacity to drive growth in prices for petrochemicals by maintaining high demand.

Though we estimate that chemicals are a small revenue contribution compared to total company revenues, we believe the chemical business is highly correlated with its other businesses and as demand for oil and gases continues to climb so will chemicals.

You can see the complete $105 Trefis price estimate for Chevron's stock here .

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