Chevron Corp. announced Tuesday it will cut 2,000 jobs this year and make more reductions in 2011 as it revamps its struggling refinery, marketing and transportation operations.

California-based Chevron — the second-largest U.S. oil producer — has a refinery in Burnaby, B.C.

Chevron Corp. is a minority partner in Shell’s Athabasca oilsands project in Alberta. (CBC)

Chevron spokesman Lloyd Avram said executives are still deciding where and when they will eliminate the jobs as they try to complete the restructuring by the fall.

But the company said it will concentrate on its refining business in its North American and Asia-Pacific markets, where it has the greatest competitive strength.

A Chevron spokesman declined comment on how the cuts announced by the parent company will affect Canada.

The job cuts represent almost 12 percent of Chevron's 17,000 workers in the refining and retailing end of its business and just over three percent of its overall workforce.

The company expects the refining market to be "difficult" for the next several years, the company told financial analysts in a meeting in New York. As a result, it plans to cut costs and capital spending, improve efficiency and simplify its organization.

Chevron said it will also seek bids for the Pembroke refinery in southwest Wales, and fuels marketing, aviation and lubricants businesses in the Caribbean and some markets in Central America.

Chevron also has growing operations in Canada, including a minority stake in the Athabasca oilsands project in Alberta and the Hibernia South offshore oilfield off Newfoundland and the Burnaby refinery.

It said it plans to shift its exploration emphasis toward natural gas and Asia.

With files from The Associated Press