CHEVRON

CORPORATION
Management Theory and Practice
assignment

ABILASH DANIEL GEORGE

ROLL NO. 1

S1 MBA

COLLEGE OF ENGINEERING,
TRIVANDRUM
 Chevron Corporation

Company profile
Providing Energy for Human Progress

Chevron is one of the world's largest integrated energy companies. Headquartered in San
Ramon, Calif., they conduct business worldwide. They are engaged in every aspect of the
crude oil and natural gas industry, including exploration and production, manufacturing,
marketing and transportation, chemicals manufacturing and sales, geothermal energy, and
power generation. They're also investing in renewables and advanced technologies.

Company Roots
They trace their earliest roots to an 1879 oil discovery at Pico Canyon, north of Los Angeles,
Calif., which led to the formation of the Pacific Coast Oil Co. That company later became
Standard Oil Co. of California and, subsequently, Chevron. They took on the name "Chevron”
when they acquired Gulf Oil Corp., in 1984, nearly doubling their worldwide proved oil and
gas reserves. Their merger with Gulf was at that time the largest in U.S. history.
Another major branch of the family tree is The Texas Fuel Company, which was formed in
Beaumont, Texas, in 1901. It later became known as The Texas Company and eventually
Texaco. In 2001, their two companies merged. The acquisition of Unocal Corporation in 2005
strengthened Chevron's position as an energy industry leader, increasing their crude oil and
natural gas assets around the world.

Global Scope
Their diverse and highly skilled global workforce consists of approximately 60,000 employees
and about 4,000 service station employees.
In 2009, Chevron produced 2.7 million barrels of net oil-equivalent per day, 7 percent higher
than in 2008. About 73 percent of that volume occurred outside the United States. Chevron
had a global refining capacity of more than 2 million barrels of oil per day at the end of 2009.
Their marketing network supports retail outlets on six continents. And they have invested in
13 power-generating facilities in the United States and Asia.

Technology and Emerging Energy

Technology is propelling their growth. They're focusing on technologies that improve their
chances of finding, developing and producing crude oil and natural gas.

They also are investing in the development of emerging energy technologies, such as finding
better ways to make nonfood-based biofuels, integrating advanced solar technology into their
operations and expanding their renewable energy resources.

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Environment and Safety
As a company and as individuals, they take great pride in contributing to the communities
where they live and work.
They also care about the environment and are proud of the many ways in which their
employees work to safeguard it.
Their persistent efforts to improve on their safe work environment continue to pay off. In
2009, Chevron maintained a days-away-from-work injury rate that is among the best in the
industry.

Board of Directors

* John S. Watson
Chairman and Chief Executive Officer
* George L. Kirkland
Vice Chairman and Executive Vice President of Global Upstream and Gas
* Samuel H. Armacost
(Lead Director) Retired Chairman, SRI International
* Linnet F. Deily
Former Deputy U.S. Trade Representative and U.S. Ambassador to the WTO
* Robert E. Denham
Partner of Munger, Tolles & Olson LLP
* Robert J. Eaton
Retired Chairman of the Board of Management, DaimlerChrysler AG
* Chuck Hagel
Distinguished Professor, Georgetown University, University of Nebraska at Omaha
* Enrique Hernandez Jr.
Chairman, Chief Executive Officer and President, Inter-Con Security Systems, Inc.
* Franklyn G. Jenifer
President Emeritus, The University of Texas at Dallas
* Sam Nunn
Co-Chairman and Chief Executive Officer, Nuclear Threat Initiative
* Donald B. Rice
President and Chief Executive Officer, Agensys, Inc.
* Kevin W. Sharer
Chairman, Chief Executive Officer and President, Amgen, Inc.
* Charles R. Shoemate
Retired Chairman, President and Chief Executive Officer, Bestfoods
* John G. Stumpf
Chairman, President and Chief Executive Officer, Wells Fargo & Company
* Ronald D. Sugar
Chairman Emeritus, Northrop Grumman Corp.
* Carl Ware
Retired Executive Vice President, The Coca-Cola Company

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 HISTORY

Leading the Way

1876-1911

The Quest for Black Gold

Spurred by memories of the gold rush, hordes of prospectors descended on California in the 1860s,
seeking another kind of bounty - black gold, or oil. Their early efforts were fruitless.

Chevron's earliest predecessor, Pacific Coast Oil Co., was incorporated in 1879 in San Francisco.
The first logo contained the company name against a backdrop of wooden derricks set among the
Santa Susana Mountains that loomed over Pico Canyon. This was the site of the company's Pico
No. 4 field, California's earliest commercial oil discovery. (Chevron Photo)

Undeterred, petroleum pioneers Demetrius Scofield and Frederick Taylor of the California Star Oil
Works, a Chevron predecessor, took aim at Pico Canyon, a remote portion of the rugged Santa
Susana Mountains in San Joaquin County. In September 1876, driller Alex Mentry succeeded in
striking oil in Pico No. 4, despite rattlesnakes, wasps, mud and underbrush.

The first successful oil well in California, Pico No. 4 launched California as an oil-producing state
and demonstrated the spirit of innovation, ingenuity, optimism and risk-taking that has marked the
company ever since.

Lacking the capital it would need to seize marketing opportunities in this growing area, California
Star was acquired by the Pacific Coast Oil Co. on Sept. 10, 1879. Colonel Charles Felton, Coast Oil's
president, had incorporated the company less than seven months earlier, on Feb. 19, 1879.

Within the next year, Coast Oil built California's largest and most modern refinery, with a capacity
of 600 barrels a day, at Point Alameda on San Francisco Bay; constructed a pipeline that linked
Pico Canyon with the Southern Pacific's train station at Elayon in southern California; and
undertook an extensive, largely successful drilling program.

In 1895, the company initiated its enduring marine history when it launched California's first steel
tanker, the George Loomis, which could ship 6,500 barrels of crude between Ventura and San
Francisco.

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A New Force Enters the Region

In 1878, Standard Oil Co. opened a three-person, second-story office in San Francisco. Despite its
modest trappings, Standard possessed marketing acumen, outstanding products, an aggressive
advertising philosophy and financial backing from its New York parent.

By 1885, it consolidated its Western interests under its subsidiary, the Standard Oil Co. (Iowa),
which controlled distribution stations throughout the West Coast. Iowa Standard quickly became
the area's major seller of kerosene, and by 1900, the company controlled a staggering 96.5
percent of the Western market in light oils.

Lacking Iowa Standard's marketing savvy and financial clout, Coast Oil had been struggling,
despite its successful record of exploration and production. As a result, in 1900, Coast Oil agreed
to be acquired by Iowa Standard, while retaining the name of Pacific Coast Oil Co. Through the
acquisition, Iowa Standard gained a presence in the production, transportation and refining
businesses.

Richmond's Colossal Refinery

After buying 500 acres of rolling lands on the northeast shore of San Francisco Bay in 1901,
Standard completed the Richmond Refinery a year later. To feed this new colossus of West Coast
refineries, Standard laid a pipeline from Richmond to the prolific new oil fields at Kern River and
Coalinga.

Since Richmond's location also made it ideal for a marine terminal in San Francisco Bay, Standard
expanded its fleet by acquiring several vessels - including the Asuncion, a 2,196-ton collier that
was converted into a 21,000-barrel tank ship; the 12,000-barrel tanker, Maverick; the 38,000-
barrel tanker Colonel E.L. Drake; and the 23,000-barrel Barge 9.

A New Entity Is Born

As the company grew, it changed structurally. In 1906, a consolidation between Pacific Coast Oil
and Iowa Standard created a new entity, Standard Oil Co. (California), finalizing an integration that
had existed for six years.

The "new" company stepped up its marketing efforts, particularly in gasoline sales, which nearly
doubled between 1906 and 1910, and lubricants, which were marketed under the Calumet,
Diamond, Petrolite, Ruddy Harvester, Zerolene and Zone labels.

To meet the growing market for motor fuels, the company came up with a revolutionary new sales
mechanism - the world's first "service station," started in Seattle by sales manager John McLean.

The First Gusher

Until now, Standard had left the hunt for oil to others. In 1909, the company decided to gamble on
its ability to find its own oil. After several initial failures, the drilling team had its first success on
Jan. 22, 1910, when a gusher flowed in at 1,500 barrels a day at the Midway-Sunset Field in Kern
County, California.

Going It Alone

The company's expertise in searching for oil became increasingly important as a May 1911
Supreme Court decision separated Standard Oil Co. (California) from its parent, a giant New York-
based corporation. The decision concluded the government's 4 1/2-year suit under the Sherman
Antitrust Act against the Standard Oil Co. (New Jersey), its subsidiaries and affiliates.

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Before the end of 1911, Standard Oil Co. (California) added to its refining capacity with the
completion of the El Segundo plant in Southern California, formed the California Natural Gas Co. to
expand its search for natural gas in the San Joaquin Valley and beyond, and constructed a second
pipeline linking Richmond and the Kern River Field.

In addition to demonstrating its overall growth, the company reaffirmed its pioneering spirit by
naming Demetrius Scofield, who tapped the company's first well, to be president of the Standard
Oil Co. (California).

Spirit of Standard

1912-1926

A Strong Company in a Dynamic Market

Divested from its parent company in 1911, Standard Oil Co. (California) had strong financial
discipline, an impressive product line, marketing savvy, a growing refining system, a flexible
marine fleet and an extensive pipeline network. One critical challenge remained: finding the
energy to meet spiraling demand in a dynamic marketplace.

In this 1915 photo, a horse-drawn wagon loaded up at a Standard Oil Co. (California) station in
Sausalito, Calif., for delivery of Red Crown Gasoline and Pearl Oil to customers in the San Francisco
Bay area. Throughout the early decades of the 20th century, the company's quality product line
successfully served the U.S. West Coast market. (Chevron Photo)

Fortunately, Standard had the right person for the job in Fred Hillman, who became director of the
Producing Department in 1911. Within four years, Standard moved from sixth place to first among
California's oil producers. And by 1919, Standard's production had grown to more than one-quarter
of the state's total.

Valuing Science

Casting aside his original misgivings about the value of science in exploration, Hillman soon built a
strong staff of geologists under the leadership of Eric Starke. Using a scientific approach became
particularly valuable in assessing California's soft subsurface formations.

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Hillman's earliest oil and gas exploration successes came at Midway, where the company made
seven discoveries in an 18-month period, including the largest, McNee No. 4, which produced a
record 30,000 barrels a day in April 1912. That same month, Derby No. 1 blew out with a daily flow
of gas estimated at 63 million cubic feet.

On July 24, McNee No. 10 came in at 2,480 feet, flowing at 10,000 barrels a day and prompting
Hillman to send his former employer at Ohio Oil a cable that read: "Can you match it, or do I take
first place?" Two days later, Hillman's question was answered when the same well broke loose, at
least doubling its output.

New Reserves to Meet Growing Demand

After moving into the Los Angeles basin, Fred Hillman led his exploration team in delivering five
gushers at the Emery Field in the West Coyote Hills between December 1912 and October 1913.

Standard Oil Co. (California) scored big in December 1913 when it purchased the Murphy Oil Co.
holdings in West Coyote and East Whittier. By 1917, Standard had added two other great Southern
California discoveries in the Montebello and Baldwin No. 3 fields.

The company's efficiency and ability to find new reserves helped it keep pace with the surging
demand for energy products fueled by the dramatic population growth and increased reliance on
automobiles throughout Standard's marketing area. In January 1919, the company had the first of
several discoveries in Elk Hills in California's San Joaquin Valley.

While Standard was compiling an impressive producing record, it also became a leader in
conserving energy resources. The Starke gas trap, an invention devised by Standard engineer C.C.
Scharpenberg and geologist Eric Starke, was one of the more ingenious methods for "capturing"
gas from a well that then could be used to meet energy needs.

To serve markets in areas such as the Northwest United States, Standard more than doubled its
ocean-going capacity between 1912 and 1916 by adding five tankers, the A.F. Lucas, El Segundo,
Richmond, J.A. Moffett and D.G. Scofield. By 1926, the fleet grew to 40 vessels, including 22 ocean-
going tankers as well as stern-wheelers, launches, barges and tugs.

Standard saturated its marketing territory with sales outlets, tripling the number of small bulk
plants by the end of 1916 and quadrupling the number of substations between 1911 and 1919.
And, by turning from horse-drawn vehicles to motor transport, the company increased the speed
and range of its sales operations.

Coping With Increased Competition

Standard Oil Co. (California) also steadily expanded its service station network. It became the
Western leader by the end of 1919 with a total of 218 stations, more than the next three rivals
combined. By 1926, the number of service stations in the company's five-state marketing area
more than tripled, to 735 units.

Though gasoline sales more than doubled between 1911 and the end of 1914, increased
competition caused Standard's market share to fall during that same period. By 1926, the
company's gasoline market share in its five-state Western area shrank to 28 percent - down from
55 percent in 1919.

Following upon the success of Red Crown automobile gasoline, Standard introduced Red Crown
aviation fuel in 1918, promoting the product through advertisements and through wider
commitment to the growth of the aviation industry. In 1924, the company painted town names on
the rooftops of its bulk plants to help guide aviators flying overhead.

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Standard excelled in developing new products, such as the line of petrochemicals manufactured to
support the Allied effort in World War I. This production of benzol, toluol and xylol was a forerunner
of the impressive line of petrochemicals that the company developed following the onset of the
Second World War.

Standard turned increasingly to international markets to maintain its sales growth. Between 1911
and 1914, export sales rose from 14 to 28 percent of the total business. In addition, the opening of
the Panama Canal in August 1914 gave the company greater access to Eastern U.S. and European
markets.

A New Name for a Growing Company

As Standard Oil Co. (California) entered the 1920s, the market's insatiable need for petroleum
products continued. In 1925 alone, the company's three refineries at Richmond, El Segundo and
Bakersfield produced more than 56 million barrels of petroleum products as well as 13.6 million
pounds of greases and 340,000 tons of asphalt.

In 1926, Standard boosted its production capacity by almost 50 percent when it acquired Pacific Oil
Co., an organization that handled the oil properties of Southern Pacific Railroad. The company
marked this achievement by creating a new corporate structure with a new name - Standard Oil
Co. of California, or Socal.

One of the hallmarks of the newly named company continued to be the respect and fairness with
which it treated its employees. This tradition of enlightened human relations dated back to the
company's founders, who espoused favorable wages, hours and working conditions for all company
employees.

In 1916, Standard became the first company in the industry to adopt an eight-hour day for all
salaried and contract employees. That same year, salaried employees were given two-week
vacations. Other benefits, including sick leave and retirement benefits, were added within the next
few years.

Honoring the 'Standard Oil Spirit'

The fair treatment of company employees had a direct payoff in morale. In 1919, 94 percent of the
employees who had served in World War I returned to work for the company at a time of high
employment and opportunities for workers.

Recognizing the cooperation and mutual confidence throughout the company, President Kenneth
Kingsbury in 1923 described this all-important attribute as the "Standard Oil Spirit," which
"represents, on the part of the personnel, a fine enthusiasm for the company, and a concern for its
welfare, of which the company is justly proud."

In War and Peace

1927-1946

A Far-Flung Search for New Reserves

With U.S. crude oil supplies depleted by the Allies' military needs during World War I, Standard Oil
Co. of California (Socal) began seeking oil and gas reserves beyond U.S. shores in the postwar
years. The long, intrepid quest would take more than 10 years before the company made its first
international discovery in June 1932.

As the growing highway system encouraged longer car trips during the 1920s and 1930s, Standard
service stations attracted motorists by adding such amenities as clean, well-appointed rest rooms
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and drinking fountains. With the introduction of the Standard Lubrication System, as well as Atlas
tires, headlight bulbs and standardized battery service, the stations offered a complete one-stop
service. (Chevron Photo)

The search began in December 1920, when a 25-person exploratory team sailed from San
Francisco to Bondoc Peninsula in the Philippines, followed by a freighter carrying 1,000 tons of
equipment. Meanwhile, other Socal crews were deployed as far afield as Alaska and Colombia in
the quest for oil. Despite each location's geological promise, the quest proved elusive.

Undeterred, Socal next focused on the Middle East, an area with no history of discoveries and no
obvious petroleum prospects. The company gained its first foothold in the region in 1928 when
Gulf Oil Corporation offered its Bahrain concession to Socal (in a move that unknowingly
foreshadowed the merger with Gulf by more than half a century).

After surveying the island, geologist Fred Davies and producing superintendent William Taylor
selected a 12-mile-long oval-shaped depression called Jabal ad Dukhan, or the "Hill of Smoke"
because its 453-foot mound was the highest point on the island.

Working in searing heat, the team met with success on June 1, 1932, after the bit pierced a layer
of blue shale and the crew smelled oil.

Next Stop, Saudi Arabia

"Though only modest in production, the Bahrain discovery was a momentous event, with far wider
implications," wrote historian Daniel Yergin of the 1932 strike by Socal. "After all, the tiny island of
Bahrain was only 20 miles away from the mainland of the Arabian Peninsula where, to all outward
appearances, the geology was exactly the same."

In June 1932, Socal began a year-long series of negotiations with the Saudi government before the
two sides signed a concession agreement providing the company with exploration rights for the
next 60 years over an area of about 360,000 square miles.

In November 1932, the company assigned the concession to its newly formed subsidiary, California
Arabian Standard Oil Co. (Casoc), later to become Arabian American Oil Co., or Aramco.

After geologists surveyed the concession area, they identified a promising site and named it
Dammam No. 1, after a nearby village. Over the next three years, the drillers were unsuccessful in
making a commercial strike, but chief geologist Max Steineke persevered.

He urged the team to drill deeper, even when Dammam No. 7 was plagued by cave-ins, stuck drill
bits and other problems, before the drillers finally struck pay dirt on March 3, 1938. This "stunning
news" opened "a new era," in Yergin's words.

Fourteen months later, when the first tanker, Socal's D.G. Scofield, arrived at Ras Tanura's newly
constructed deepwater port to load crude for international markets, Saudi Arabia's King 'Abd
Al-'Aziz turned the valve to fill the tanker.

The Birth of Caltex

Socal had already found a potential market for its Middle Eastern oil by creating a historic
partnership with Texaco in 1936. The joint venture, which became known as the California Texas
Oil Company, or Caltex, melded the company's Middle Eastern exploration and production rights
with Texaco's extensive marketing network in Africa and Asia.

Though it began as a modest operation with a single "teapot" refinery, a piecemeal transportation
system, and fuel and lubricant sales of just 22,500 barrels a day, Caltex would emerge as a major
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international marketer and refiner with operations in some 60 countries in the years following
World War II.

The joint-venture partners also agreed to share exploration rights in Central Sumatra, Java and
Dutch New Guinea, which had been granted to Socal in 1935. Just after the company discovered
the Duri Field in 1941, the Japanese incursion in World War II suspended activity until the postwar
years.

During the pre-war years, Socal's aggressive exploration program extended to the Southeastern
United States, where the California Company, a Socal subsidiary, made its first discovery at Bayou
Barataria, Louisiana, in 1939. Socal subsequently made discoveries in the U.S. Gulf Coast, the U.S.
and Canadian Rocky Mountains, and eastward to the Atlantic.

The company entered the Canadian market in 1935 when Standard Oil Co. of British Columbia was
launched in a two-room suite of the Hotel Vancouver. That same year, the company moved
quickly, purchasing local oil distribution companies, acquiring service stations, establishing
dealerships, starting a new refinery and acquiring a tanker, the B.C. Standard.

Moving Forward in Difficult Times

During the 1930s, Socal expanded its operations in Central America, building upon its leadership
position in Mexico. It added a road-surfacing plant and constructed a bulk plant in El Salvador in
1935 before expanding into Guatemala, Nicaragua, Honduras and Costa Rica.

To offset the Depression's dramatic impact on earnings, the company stimulated sales by bringing
out solidly researched new products, including Standard Gasoline in 1931, Flight and Standard
Penn motor oils in 1932, Standard Unsurpassed Gasoline with Tetraethyl Lead in 1934, DELO
(Diesel Engine Lubricating Oil) in 1935, and RPM Motor Oil in 1936.

Fueling the War Effort

The onset of World War II changed everything for the company - from the product line to the lives
of its employees. With the entry of the United States into the war in December 1941, Socal
became a key supplier of crude oil and refined products for the Allies in the Pacific.

Meeting a key need for a more efficient aviation fuel, the company spent more than $57 million to
expand 100-octane plants at the Richmond and El Segundo refineries and converted the
Bakersfield Refinery almost exclusively to 100-octane production. Company research scientists
also developed compounds that enabled U.S. Navy submarines to triple their cruising range.

World War II also created a boom in petrochemical demand. Socal invested more than $9 million to
boost production of synthetic toluene - the second "T" in TNT. When the supply of natural rubber
from Southeast Asia was cut off, the company erected a plant at El Segundo to supply butadiene
for synthetic rubber.

Supporting the War at Sea

With the United States at war, Socal's fleet came under command of the War Shipping
Administration. Its tankers towed large concrete barges to the South Seas and sometimes served
as floating service stations, fueling other vessels in the open ocean.

During the war, Socal built two new ships, the J.H. Tuttle and the R.C. Stoner, which became, by
far, the largest ships in the Standard fleet. At 18,000 tons each, they could transport almost
154,000 barrels of cargo.

Tragic Endings
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Two company ships failed to survive the war: the Storey was sunk in the South Pacific, causing the
death of two men; and the Collier sank after a submarine attack in the Arabian Sea, killing 30 men.
In all, almost 9,000 Socal employees served in the Armed Forces during World War II; 232 lost their
lives.

In the face of adversity, employees summoned up their "Standard Spirit" and pressed ahead.
During this time, women broke new ground, playing increasingly important roles in offices,
laboratories, refineries, service stations and, occasionally, oil fields.

The efforts of employees received many kudos from U.S. military and government leaders, such as
General Douglas MacArthur, who wrote: "To the men and women of Standard of California: They,
the soldiers of the fighting line, give thanks to you soldiers of the production line for the sinews of
war that made their victory possible."

A New Identity

1947-1979

Focusing on Worldwide Exploration

The resumption of peace following World War II infused Standard Oil Co. of California (Socal) with
new energy, new opportunities and an enterprising quest for new oil and gas resources. To satisfy
the growing need for petroleum products, the company frequently devoted more than two-thirds of
its annual expenditures to exploration and development.

A Standard Oil geologist examined a rock specimen in the Venezuelan Andes in 1958, where there
was an effort to build on the discovery of oil at the country's Boscan Field a decade earlier. During
the years following World War II, the company mounted an aggressive exploration program, which
led to discoveries as far ranging as the U.S. Gulf of Mexico, Canada, Saudi Arabia and Indonesia.

And the company's high success rate helped to maintain its position as the third-largest oil
producer in the United States and the No. 1 producer in California. Particularly encouraging news
came from the jungles of Sumatra, where the company learned that the Japanese occupying force
had actually struck oil at Minas No. 1, using a rig left behind by Caltex Pacific Indonesia when
crews vacated the area in 1941.

In late 1949, when Caltex Pacific finally resumed development of the field, the company realized
that Minas was an oil giant, which would yield 1 billion barrels over a 17-year period, from 1952 to
1969. Caltex Pacific would gain major additional production from the Duri Field, which was
discovered in 1941 and developed during the early 1950s.

In the decade following the war, Socal's major U.S. discoveries included the Kelly-Snyder Field in
West Texas; the Main Pass, Bay Marchand and Romere Pass fields in the offshore waters of the
Gulf of Mexico, where the company became the largest oil producer as of 1949; and the Rangely
Field in the Rockies of Colorado.

Internationally, Standard had major successes at the Acheson Field near Edmonton, Canada, and
the Boscan Field in Venezuela. And in Saudi Arabia, when drilling resumed in 1947, the company
learned that its concession area in the Enala Anticline contained the largest oil pool in the world —
105 miles of productive sands.

Building Pipelines
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Socal engineers achieved a major feat in building a pipeline over the highest pass any line had
ever crossed. The pipeline brought oil from the Rangely Field to a newly constructed refinery in
Salt Lake City.

And in Saudi Arabia, construction of the 1,068-mile Trans-Arabian Pipeline entailed use of a sky
hook to move the 325,000 tons of steel pipe from a wharf in the Persian Gulf to a yard three miles
away. From there, the steel was transported across the desert to the fields, where the pipeline was
finally completed in September 1950.

Pioneering in Petrochemicals

In the postwar period, the company built on its position as a major supplier of petrochemicals by
developing a wide array of new products.

After the U.S. government gave Socal special priority to build the nation's first synthetic detergent
plant in 1945, the company had a solid footing to produce a wide array of industrial chemicals such
as detergents, plastics and synthetic fabrics.

In 1951, the company created the Oronite Chemical Co. to market a growing output of
petrochemicals. Three years later, the Richmond Refinery completed the nation’s first unit to
manufacture paraxylene, a basic material for making Dacron and other synthetic fibers.

An Era of Growth

Reflecting Socal's growth in these postwar years, revenues surpassed $1 billion for the first time in
1951. This growth continued, initially topping $2 billion in 1961, and climbing to almost $6 billion
by 1969. The keystones of Socal’s success were its product sales, production increases and strong
record of replacing reserves.

Throughout this period, Socal developed a wide range of new products, including Chevron and
Chevron Supreme Gasoline, introduced in 1945; RPM motor oils in 1950; "Skypower" gasolines in
1956; new Chevron Supreme Gasoline and new RPM Supreme Motor Oil in 1957; and Chevron
Custom Supreme, the first three grade gasoline in the West, in 1959.

Extending the Market

Socal's marketing reach now extended far beyond the original five-state base in the Western
United States. After acquiring the Perth Amboy Refinery in 1945, the company used it as a
manufacturing base a couple of years later when it launched an expanded marketing network in
12 Eastern states through its subsidiary, California Oil Co.

U.S. expansion continued in 1961 when the company merged with Standard Oil Co. (Kentucky), the
market leader in petroleum products in five Southeastern states. To serve this market with crude
oil from fields in the Gulf of Mexico, the company constructed the 100,000-barrel-a-day refinery at
Pascagoula, Mississippi, in 1963.

Other Western Hemisphere marketing operations included service station networks in Guatemala,
El Salvador, Honduras and Costa Rica, designed to keep pace with the expanding economies of
Central America.

A New Presence in Europe

In Western Europe, Socal agreed to dissolve the Caltex structure in that area and split its
operations between the two parent companies, Socal and Texaco. To manage a share of the
divided operations, the company created Chevron Oil Europe in 1967.

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Paralleling the growth in marketing and producing operations, the company enlarged and
diversified its manufacturing capabilities in the Eastern and Western Hemispheres. At the
Richmond Refinery in 1965, the company launched the world's largest Isomax hydrocracking
complex, which converted heavy petroleum oils to light stocks used to make gasoline and other
products.

In 1969, Standard completed a 150,000-barrel-a-day expansion of its refinery at Pernis in the

Netherlands, and a year later brought onstream a new 250,000-barrel-a-day refinery at Freeport in
the Bahamas. Many of the expansions and modernizations focused on enabling plants to convert
greater quantities of high-sulfur crude into products that met environmental specifications.

In Marine, Bigger Is Better

Standard expanded its fleet in 1970 by adding six new very large crude carriers (VLCCs),
supertankers of 250,000 or more tons. The VLCCs allowed the company to move bulk oil around
the southern tip of Africa, avoiding any supply disruptions such as occurred in 1967 with the
closing of the Suez Canal.

Overcoming Political Disruptions

During the 1970s, the petroleum industry was confronted by many political issues - from the 1973
oil embargo to the nationalization of company assets by Libya, Venezuela and other oil producers.

Nevertheless, the decade was marked by numerous milestones, including major discoveries
ranging from the West Pembina Field in Alberta, Canada, to the Ninian Field in the United Kingdom
North Sea, and from the Middleton and North Apoi oil fields in Nigeria in 1972 to the giant Hibernia
Field offshore Newfoundland in 1979. With these discoveries, Socal achieved a production record
of more than 3.5 million barrels of oil equivalent in 1976, a year in which the world rebounded
from an economic recession.

What's in a Name

In 1977, the company made a major organizational change when it formed Chevron U.S.A. Inc.,
merging six domestic oil and gas operations into one. This change was driven by the need to
establish a nationwide identity and a consolidated organization.

The company naturally chose "Chevron," a name that had first appeared on its products in the
1930s and had become its most recognizable mark of identification among consumers around the
world.

As Chevron marked its centennial in 1979, Chairman of the Board Harold J. "Bill" Haynes saluted
"all those people whose ideas and hard work caused their company to grow and prosper over the
past 100 years" and encouraged everyone in the current organization to summon up the "vigor
and creativity" that would help them to flourish in future years.

A New Blueprint

1980-2001

As Standard Oil Co. of California (Socal) began its second century, it had become a major company
in the United States and the Chevron brand was becoming familiar around the world. The company
had ownership in 50 refineries, with a production capacity of almost 3 million barrels per day and
featured the third-largest fleet among oil companies worldwide.

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In 1993, Chevron became the first major Western oil company to enter the newly independent
Kazakhstan. Chevron CEO Ken Derr and Kazakhstan President Nursultan Nazarbayev signed an
agreement creating the Tengizchevroil joint venture to develop the giant Tengiz Field. (Chevron
Photo)

The company experienced strong results during the early 1980s, such as major discoveries and
large acquisitions of offshore acreage in the U.S. Gulf of Mexico, a $1 billion modernization of its
Pascagoula Refinery and the introduction of new Chevron Supreme Unleaded Gasoline with
Techroline.

And yet the larger picture was unsettling, prompting the company to conclude that its normal
business strategies simply wouldn't be enough. Chairman of the Board George Keller expressed
this view when he said, "Over the next decade, the oil business will become increasingly
competitive." He added, "Flexibility in swiftly adapting to change will be mandatory for success -
and possibly survival."

Merging With Gulf

The company's chance came virtually overnight. Gulf Oil Corp., the nation's fifth-largest petroleum
company, had been under siege from an investor group seeking to gain control of the company
and sell it piecemeal for a quick profit. After warding off a takeover bid, Gulf's board of directors
chose to offer the company up for sale.

On March 5, 1984, Keller made a bid of $80 per share, roughly $13.3 billion, and hours later
received a phone call from Gulf Chairman James Lee, telling him that Socal had won the bidding.

With a price tag of $13.3 billion, it was the largest merger in corporate history at the time - and a
strong marriage of assets, corporate philosophy and the varied talents of two organizations'
employees. By acquiring Gulf, Socal nearly doubled its worldwide proved oil and gas reserves
overnight.

Through the merger, Socal added major exploration and production operations in areas where it
was already strong, such as the U.S. Gulf of Mexico, Canada, and the North Sea. In West Africa,
Gulf's foreign reserves suddenly lifted the company to a leading position.

Gulf's assets included a solid marketing and refining system, the Pittsburg & Midway Coal Mining
Co. and Warren Petroleum, a successful manufacturer and seller of natural gas liquids.

With the merger came a new name for the company: Chevron Corporation - the name by which
gasoline and other products had been known for decades in the United States and under which the
company operated in many non-U.S. locations.

A Smooth Integration

The melding of Chevron and Gulf was impressively quick and smooth. Assets of both companies
were sold or streamlined. By late 1985, the merger was complete.

Signifying the integration of the two companies, some 3,000 Gulf stations in Arkansas, Louisiana
and Texas adopted Chevron’s name and products beginning in 1988. Concurrently, Chevron
continued its long-term program to build or modernize stations at key locations and sell less-
competitive facilities.

Chevron also modernized the Richmond and El Segundo refineries to enable them to convert more
low-value fuel oils into high-value gasoline and other products, while streamlining the newly
acquired Port Arthur plant to reduce operating costs.

14
Through the Gulf merger, Chevron became the No. 1 U.S. refiner and marketer as well as the
nation's market leader in gas liquids. By 1988, when the company acquired $2.5 billion in
properties from Tenneco, Chevron became the leading oil and gas producer in the U.S. Gulf of
Mexico.

With these strengths came a companywide enthusiasm to fulfill a corporate mission of being
"better than the best." To achieve this mission, Chevron stressed operational excellence and
environmental responsibility.

Chevron's revised environmental policy added an important new mandate: risk management,
which involved identifying potential problems and solving them before they became real problems.
It also expanded a far-sighted program, Save Money and Reduce Toxics, which had already cut
hazardous waste disposal by 60 percent since 1986.

A key part of Chevron's mission was to increase worldwide production. Through acquisition of Gulf
properties, Chevron made major discoveries from the Alba Field in the North Sea to the Kutubu and
Iagifu fields in Papua New Guinea.

Shifting Priorities

In the early 1990s, with the industry confronted by oversupply and a global recession, Chevron
achieved major cost savings through the sale of its Philadelphia and Port Arthur refineries, its retail
gasoline network in Central America and its Ortho lawn and garden consumer-products business.

As U.S. exploration opportunities shrank, Chevron shifted its emphasis increasingly toward
international projects, such as the development of the huge Tengiz Field in Kazakhstan after
forming a partnership with that country's government in 1993.

Other major opportunities included the Escravos natural gas project in Nigeria, the giant Hibernia
Field offshore Newfoundland, the Kokongo Field in Angola and the Britannia project in the North
Sea.

The company's strategies clearly were paying off. In 1996, earnings hit an all-time high of $2.6
billion, and production of more than 1 million barrels a day was the highest in 11 years, driven by
record volumes in Angola, Kazakhstan and Nigeria.

Chevron's ability to grow through alliances was an important factor in its success - and an
acknowledgement that the industry's best opportunities often involved mega-projects that
required the resources of more than a single corporation. This awareness continued to resonate as
the face of the industry changed through mergers and acquisitions, which fundamentally altered
the energy business - and the competitive stakes.

A Long Affiliation

After forming a corporate Mergers and Acquisitions group in January 1998, Chevron began
evaluating other companies that might best complement its own. Based on a long affiliation with
Texaco dating back to the 1936 formation of a joint-venture company, Caltex, Chevron rated
Texaco high as a potential merger partner.

In addition to its world-class assets and strong corporate culture, Texaco had the experience of
integrating Getty Oil Co.'s operations and people following the 1984 acquisition of Getty. In 1999,
Chevron initiated a series of talks with Texaco, which proved unsuccessful.

The following year, Chevron renewed talks with Texaco. On Oct. 16, 2000, the two companies
announced that they had reached an agreement to merge. Nearly one year later, on Oct. 9, 2001,

15
the shareholders of Chevron and Texaco voted to approve the merger, and ChevronTexaco Corp.
began doing business that same day.

The company became the second largest U.S.-based energy company, with more than 11 billion
barrels of oil and equivalent gas reserves and 2.4 million barrels per day of refining capacity.

The End of Easy Oil

2002-Present

In the months that followed the creation of ChevronTexaco, the new company found itself looking
for resources in ever-more-difficult environments - deeper, more remote and increasingly complex
fields, and underground reservoirs with more challenging characteristics.

Chevron began production from its Tahiti Field, the deepest producing field in the U.S. Gulf of
Mexico, in May 2009. One of the largest crude oil and natural gas reservoirs in the gulf, the field
was developed after the company used 3-D imaging signals to penetrate 2-mile-high layers of salt
and visualize the full extent of the field.

From 2002 to 2007, Chevron earned close to $72 billion. During that same period, the company
invested roughly the same amount to bring new energy supplies to market.

The company remained a leader among its peers, averaging a 42 percent success rate for
exploration wells from 2002 through 2007. Chevron's exploration program added an average of 1
billion barrels to its resource base over that same time period.

In 2005, the company changed its name to Chevron Corp. and then acquired Unocal Corp., further
enhancing its position as a leading energy provider. The acquisition was a strong strategic fit,
strengthening the company's exploration and production portfolio in the Asia-Pacific region, the
U.S. Gulf of Mexico and the Caspian region. The addition of Unocal provided a deep source of
talent and leading-edge technology that Chevron quickly integrated throughout its organization.

Technology offered a key advantage in the search for new energy supplies. Chevron's approach to
technology is unique in the industry. Fully integrated across the company — from exploration to
product delivery — the company's technology success builds upon a combination of proprietary
capabilities and strong partnerships.

Chevron demonstrated its expertise in employing deepwater exploration technology in the U.S.
Gulf of Mexico. In 2006, the Jack well test set more than half-a-dozen world records for pressure,
depth and duration in deep water. Five miles deep, it was the deepest well ever tested in the gulf.
And these records were achieved without a single safety or environmental incident.

Also in the U.S. Gulf of Mexico, Chevron achieved first oil from the Tahiti Field in May 2009. In
approximately 4,100 feet (1,250 meters) of water, Tahiti features the deepest producing well in
the gulf.

Three-dimensional visualization technology gives geologists a virtual tour through the rock, deep
underground, and allows them to "see" potential reservoirs. This technology was employed at the
Tahiti Field and at the Tengiz and Karachaganak fields in Kazakhstan.

The company used its expertise in reservoir management to complete a major expansion project
that nearly doubled production capacity from the giant Tengiz Field in Kazakhstan. The project —
called the Sour Gas Injection/Second Generation Plant — took five years and $7 billion to complete.

16
What's Next for Chevron?

With forecasters predicting that the world's energy demand could increase as much as 50 percent
in the next 30 years, the world will need all the energy that can be produced from every potential
source.

To meet that kind of demand, the world will need to produce every molecule of energy, from every
available source. And while oil, natural gas and coal are expected to provide over 80 percent of the
world’s energy for the near future, next-generation renewables, such as biofuels, solar and wind
power may play a key role in meeting the world’s energy needs.

Chevron formed research partnerships with many academic institutions to pursue renewable
energy technology, including biofuels from non-food sources. Chevron also is partnering with
Weyerhaeuser, the forest products company, on a technology to commercialize biofuels from wood
fiber and other waste products.

These technologies are paving the way for an energy future in which the world has abundant
supplies from multiple sources, from renewable to conventional.

Exploration and Production

Chevron has extensive oil and gas exploration and production operations around the world. In
2009, their worldwide net oil-equivalent production averaged 2.7 million barrels per day, 7 percent
higher than in 2008. Their producing operations are geographically dispersed. In 2009, about 27
percent of production was in the United States and another 13 percent was in Kazakhstan, with
other countries accounting for no more than 10 percent of total production each.

Chevron has an extensive queue of major capital projects under way to bring new oil and natural
gas resources to global markets. Their range of projects is diverse, from conventional oil and
natural gas to deepwater developments, liquefied natural gas (LNG), and heavy oil. In 2009, nine
new projects came on line.

Chevron could not reach its production levels without focusing resources on maximizing the
potential of mature reservoirs. The company is managing decline rates in existing fields with well
workovers, artificial-lift techniques, facility and equipment improvements, and enhanced-recovery
methods such as steamflooding and water injection.

Exploration is the foundation for their future growth. Since 2002, Chevron has added more than 9
billion barrels of oil-equivalent to its resource base. The company's focus areas for exploration in
2009 were the deepwater regions of West Africa and the U.S. Gulf of Mexico, the Gulf of Thailand,
and offshore northwest Australia. Drilling and seismic activities were ongoing or being planned in
promising fields offshore United Kingdom, the eastern coast of Canada and deepwater Brazil.

Chevron Partners for Growth in the Caspian

In the Caspian region, Chevron is the largest private producer of oil in Kazakhstan, and they're
involved in two of the country's largest projects, Tengiz and Karachaganak. Since 1993, Chevron
has led the Tengizchevroil (TCO) joint venture in the development of the giant Tengiz and adjacent
Korolev fields. TCO has completed a major expansion project — the Sour Gas Injection and Second
Generation Plant — that increased TCO's oil production capacity by approximately 80 percent.
Chevron also holds a stake in Karachaganak, Kazakhstan's second-largest producing petroleum
reserve. And they are the largest private shareholder in the Caspian Pipeline Consortium pipeline,
which provides a critical export route for oil from Tengiz and Karachaganak.
17
In Azerbaijan, Chevron has an interest in the Azerbaijan International Operating Company, which
produces and develops offshore oil reserves in the Caspian Sea from the Azeri-Chirag-Gunashli
project. They are also a partner in the Baku-Tbilisi-Ceyhan pipeline, which transports oil from
landlocked Caspian oil fields to Mediterranean deepwater port facilities.

Asia-Pacific Is Rich With Opportunities

As Asia-Pacific's largest resource holder and producer among international oil companies, Chevron
is investing in a portfolio of energy resources to meet growing energy demand in the region.

In Australia, the company is a founding partner in the North West Shelf Venture, which has been
exporting LNG to customers in the Asia-Pacific region for 20 years and supplying natural gas to
Western Australia for 25 years. They have operated the country's largest onshore oil field on
Barrow Island for more than 40 years. They are leading the development of the Gorgon and
Wheatstone LNG and domestic gas projects. The Gorgon Project is Australia's largest single
resource project and has an expected economic life of more than 40 years from the time of
startup. Chevron continues to make significant investments in exploration offshore northwest
Australia and has announced a number of gas discoveries in recent years.

In Thailand, Chevron is the leading natural gas and oil producer. They provide enough natural gas
to meet the needs of about one-third of the country's power demand. They operate more than 210
platforms in the Gulf of Thailand, where their Platong Gas II project is currently under construction.

Elsewhere in Asia-Pacific, Chevron is Indonesia's top oil producer, and they operate one of the
largest steamflood developments in the world at the Duri Field on Sumatra. In China, they operate
the Chuandongbei natural gas development, and their Bibiyana natural gas field, which started up
in 2007, is one of the most significant gas discoveries in Bangladesh.

Chevron Grows Along With Africa and Latin America

Chevron is applying its expertise and advanced technology to meet the energy needs of Africa's
and Latin America's growing economies. Their operations include oil and natural gas, LNG, gas-to-
liquids (GTL), deep water, and heavy-oil exploration and production.

Chevron is ranked among Angola's top petroleum producers, investing in major energy projects
intended to dramatically increase oil production and conserve natural gas for use in Angola.

Recent developments on key projects include:

• First oil achieved in 2009 at two offshore projects, Tombua-Landana and Mafumeira
Norte
• Continued construction of Angola's first LNG plant
• Startup of the Cabinda Gas Plant
• Continued exploration success offshore Angola
In Nigeria, they are optimizing production in mature onshore and near-shore fields while
developing major deepwater and gas projects. These projects include development of the Agbami
Field, one of Nigeria's largest deepwater fields, which began production in 2008, and the Usan
deepwater project, which began development drilling in 2009. Construction was completed in late
2009 on the Chevron-operated Escravos Gas Plant Phase 3A expansion. Construction continued on
a GTL facility at Escravos.
In Latin America, Chevron has operations or interests in six countries. They are expanding their
work in Brazil, where they have invested significant resources developing the Frade Field, one of
the largest deepwater heavy-oil projects in the world. Frade achieved first production in 2009. In

18
January 2010, they announced plans to go ahead with development their second deepwater
development, Papa-Terra.

Chevron participates in both onshore and offshore production projects in Venezuela, including
Petropiar, a successful project that involves upgrading extra-heavy crude oil to lighter, higher-
value synthetic crude oil, and the planned development of the country's first LNG train. In
Colombia, Chevron produces enough natural gas to meet approximately 65 percent of the nation's
demand.

Maximizing Mature Resources and Creating New Opportunities

In North America, Chevron uses the latest technology to maintain strong production in mature
fields while discovering and developing new resources. They are the third-largest producer of oil
and gas in the United States, with major producing operations in California, the Gulf of Mexico,
Louisiana, Texas, New Mexico, the Rocky Mountains and Alaska.

They are one of the largest producers of crude oil and natural gas on the Gulf of Mexico shelf and
in deepwater Gulf of Mexico. Their projects include the Blind Faith and Tahiti deepwater
developments, both of which ramped up production rates in 2009, and Jack & St. Malo and Big
Foot, which have moved into the front-end engineering and design phase.

Operating primarily in the San Joaquin Valley, Chevron again ranked No. 1 in net oil-equivalent
production in California in 2009. Their extensive thermal recovery operations have revolutionized
the production of heavy oil from these hundred-year-old central California fields. They are one of
the largest hydrocarbon producers in the Permian Basin of West Texas, and they operate 10
platforms and several oil and gas producing fields in Alaska.

In Canada, most of their crude oil production comes from the Hibernia Field offshore
Newfoundland, and they are a partner in the Athabasca Oil Sands Expansion Project, which
produces bitumen — hydrocarbons mixed with asphalts and tars — from oil sands. They are also
evaluating a range of unconventional resource options across Canada and pursuing development
opportunities offshore eastern Canada and in Canada's western Arctic. The Chevron Arctic Center
in Calgary is home base for experts on safe and environmentally sound exploration and resource
development in the challenging Arctic environment.

Chevron is the only large international energy company with a continuous upstream presence in
the Kingdom of Saudi Arabia spanning more than seven decades. On behalf of the kingdom, they
conduct exploration and production activities in the onshore Partitioned Zone. Their Large-Scale
Pilot Steamflood Project at the Wafra Field is designed to determine the technical and economic
viability of thermal-recovery projects in the heavy-oil carbonate reservoir.

In Europe, Chevron has a variety of producing operations and exploration interests in the western
region of the Shetland Basin, the Norwegian Barents Sea and Greenland. Chevron operations in the
North Sea have a track record of technological innovation. The Captain Field was one of the first
North Sea fields to employ horizontal drilling. Chevron is joint operator of the Britannia Field, which
supplies a significant percentage of the United Kingdom's natural gas demand.

Manufacturing, Products and Transportation

Chevron works in all segments of the downstream industry — manufacturing, products, chemicals
and transportation.

19
The company's refining resources are concentrated in North America, Western Europe, South
Africa and the Asia-Pacific rim. Their refineries serve customers around the world. This refining
system can process more than 2 million barrels of crude oil per day.

Chevron markets refined products and lubricants primarily under three brands: Chevron, Texaco
and Caltex. Their retail products are available on six continents. Their retail stations are located in
the United States, Western Canada, Latin America, Asia and Africa and in parts of Europe and
Pakistan.

Chevron's Lubricants business provides finished and unfinished lubricants and premium base oils
to commercial, industrial, marine and retail customers worldwide. Their Supply & Trading
organization plays a critical role by trading and marketing crude oil and refined products.

Chevron Pipe Line Co. transports crude oil, natural gas, natural gas liquid, CO2, petrochemicals and
refined products in the United States through an extensive system of pipelines and storage
facilities that it owns and/or operates.

In addition, Chevron Shipping Co. manages a worldwide fleet of vessels that transport their
products.

Manufacturing

Chevron's global refining system manufactures fuels and other products sold by Chevron's
marketing, lubricants, and supply and trading organizations. They market these products under
three brands — Chevron, Texaco and Caltex.

Including the company's share of affiliates, Chevron can process more than 2 million barrels of
crude oil per day.

Seven refineries make up more than 75 percent of the company's total fuel refining capacity. Five
of these core refineries — in Singapore, Thailand, South Korea, and Richmond and El Segundo,
Calif. — manufacture products for countries in the Pacific Basin. The other two refineries, in
Pascagoula, Miss., and Pembroke, Wales, United Kingdom, supply countries primarily in the
Atlantic basin. Many of these refineries are capable of processing heavy crude oils and producing a
variety of high-value products such as transportation fuels.

Operating safely, reliably and with a commitment to protecting the environment remain among
their top priorities. Toward that end, they have implemented the Loss Prevention System
throughout their Chevron wholly operated facilities. This tool is a behavior-based safety system
designed to help strengthen their culture of injury-free and incident-free operations while also
providing a base for strong, competitive performance.

Several of their refineries recently have undergone major upgrades.

In 2009, Chevron's 50 percent-owned GS Caltex affiliate continued work on projects at its refinery
in Yeosu, South Korea, that improve the refinery's ability to process lower-cost, heavier feedstocks.
The project is expected to be completed in the third quarter 2010.

At their refinery in El Segundo, Calif., they continue to invest in projects that improve reliability
and process flexibility. In 2009, modifications were made to the facility's fluid catalytic cracker and
one of its crude units. The work improves the refinery's ability to process lower-cost, heavier
feedstocks. In late 2010, the facility also is expected to begin construction on a new plant that
aims to increase the refinery's sulfur-handling capacity. Project completion is expected in 2012.

20
At their Pascagoula refinery, they continued construction in 2009 on a new continuous catalytic
reformer unit, which is designed to improve reliability. Planning continued on Pascagoula's
lubricant base oil complex.

In 2009, Chevron completed modifications that enable the 50 percent-owned Singapore Refinery to
meet regional specifications for clean diesel fuels.

Products

Chevron is known around the world through its three brands: Chevron®, Texaco® and Caltex®.
These brands have achieved high rankings both in the United States and around the world.

• Their Americas Products organization serves retail, commercial and industrial, and
aviation fuel customers in North and Latin America under the Chevron and Texaco
brands.
• Their International Products organization markets their petroleum products and
aviation fuels through Caltex in the Asia Pacific, Africa, Middle East and Pakistan
regions, and Texaco in Europe.
The Techron Difference
Globally more than 98 percent of all Chevron, Texaco and Caltex gasolines are sold with Techron
— an additive that produces lower emissions, higher performance and cleaner engines.

Starting in 2009, they began applying Techron technology to diesel fuel. They successfully
launched Techron D in selected markets around the world. Techron D is formulated specifically for
diesel engines that comply with today's stringent emission standards.

Alternative Fuels

Chevron continues to introduce alternative fuels. Wherever sold, Chevron biodiesel meets U.S.
biomass-based diesel requirements and original equipment manufacturer’s guidelines as well as
their own high standards of quality, reliability and performance.

Health, Environment and Safety

Throughout the world Chevron works to protect the safety and health of people and the
environment, and to conduct their operations reliably and efficiently. To this end, they employ a
set of management systems they call Operational Excellence. Using these tools, their products
organizations ensure that their service stations, product terminals and transportation fleet operate
safely and reliably.

Americas Products

In the Americas, they offer retail, commercial and industrial, and aviation fuel products and
services under their Chevron® and Texaco® brands.

Approximately 10,000 Chevron and Texaco retail stations serve customers in the United States,
Canada and countries in the Caribbean, Central America and Andean region.

They are a leading supplier of jet fuel and aviation gasoline to commercial airlines, general aviation
and military customers. In the United States, Chevron is the number one commercial aviation fuel
provider, with operations in more than 400 airports across the country.

Trusted by Customers

21
Fueled by Techron, their Chevron and Texaco brands have been longstanding fixtures for
consumers across the Americas.

The Chevron and Texaco brands consistently rank as the "Most Powerful Brands" in the United
States, according to the Oil Price Information Service. Chevron was recognized by the Lundberg
Survey for its highest value margin at the pump of all U.S. brands. Their convenience store brand,
ExtraMile, joined their Food Mart and Texaco Star Mart® franchises in earning the Convenience
Store Chain of the Year award from Convenience Store Decisions magazine.

In 1995, their World of Cars campaign helped introduce Chevron with Techron. The next year the
first of millions of toy Chevron Cars began to roll off the assembly line. To celebrate the
campaign's tenth anniversary, they redesigned their Chevron Cars website which later won awards
for innovation and interactivity.

They chose Latin America as the first region to begin selling Texaco with Techron gasoline. That
2005 launch has been followed by successful rollouts all around the world.

Health, Environment and Safety

Health, environment, safety, reliability and efficiency are the key components of Chevron's
Operational Excellence management system. Using these tools ensures that their Chevron and
Texaco stations and product terminals in the Americas operate safely and reliably.

Reliability is especially critical during natural disasters. They maintain spare equipment and
supplies in key facilities near hurricane-prone areas. In 2008, this preparation allowed the
company to quickly restore fuel-delivery operations and provide electrical generators, food and
water to communities affected by Hurricanes Gustav and Ike in the Caribbean and along the U.S.
Gulf Coast.

Chevron demonstrates its commitment to both the environment and the communities where they
work through their underground storage tank system assessment and replacement program.

International Products

Internationally, Chevron markets and retails their petroleum products and aviation fuels under the
Caltex brand in the Asia Pacific, Africa, Middle East and Pakistan regions, and Texaco in Europe.

Africa, Middle East, Pakistan

• They have a network of about 1,200 Caltex-branded service stations in 13 countries.

• Chevron Aviation serves 190 international airlines in 89 airports.
Asia Pacific
• They have more than 2,200 Caltex-branded retail outlets in 10 countries.
• Australia alone has about 1,800 Caltex service stations.
• Korea has 3,400 GS Caltex service stations.
• Chevron Aviation has operations at 27 airports in eight countries in the region.
Europe
• Approximately 1,200 Texaco-branded service stations serve customers in 3 countries.
• Chevron Aviation operates at 32 international airports across Europe.
Chevron Products also manages the company’s interests in eight joint venture refineries in seven
countries. Their equity share of the total refining capacity is about 764,000 barrels per day.
Trusted by Customers

Caltex and Texaco have a strong presence and long heritage in their markets.

22
The phrase "respectfully helpful" defines their Caltex employees, products and services. The Caltex
and Texaco brands have won numerous awards, including:

• The Reader's Digest Trusted Brand Gold Award (Petrol Category) in Hong Kong has
been given to Caltex for 10 years running.
• In 2009, Caltex was recognized for having the Most Innovative Outdoor Idea at the
Singapore Outdoor Ad Awards.
• In the United Kingdom, Texaco was voted by consumers as a UK Superbrand for
2008/2009 and Texaco was voted as the Top Fuel Supplier by the UK fuel retailer
industry.
The Caltex Supa Strikas — stars of a popular comic, web and animated TV program — have grown
in popularity and are familiar to 10 million people on three continents. First developed in South
Africa, the series is now translated into six languages.
Health, Environment and Safety

Health, environment, safety, reliability and efficiency are the key components of Chevron's
Operational Excellence management system. Through it they ensure that their Caltex and Texaco
stations, product terminals and transportation fleets operate safely and reliably.

Some of the environmental programs they have implemented include:

• An assessment and replacement program for their underground storage tank system.
• The tracking and reporting of greenhouse gases, energy consumption and hazardous
waste management.

Lubricants

Chevron is a leader in finished lubricants and a leading global manufacturer of premium base oil.
They sell products on six continents, employ a diverse workforce and operate hundreds of facilities
worldwide.

Their lubricants organization supplies products to a variety of commercial, industrial and retail
customers. A complete line of lubrication and coolant products — including Havoline®, Delo®,
Ursa®, Meropa®, HDAX® and Rando® — are sold under their three brands: Chevron, Texaco and
Caltex.

Chevron is working on a project that would cement their leadership role in lubricants. In 2009, they
proceeded with engineering and procurement work on a premium base-oil facility at their
Pascagoula, Miss., refinery. Base oil is the oil used in lubricant formulas before additives are
introduced.

The facility is expected to have daily production of approximately 25,000 barrels of premium base
oil that would be used to manufacture high-performance lubricants, such as motor oils for
consumer and commercial uses.

Chevron Oronite

Chevron Oronite (Oronite) develops, manufactures and markets worldwide performance-

enhancement additives for lubricating oils and fuels.

The company, wholly owned by Chevron, has more than 2,000 employees and contractors. Oronite
engages in three main business segments: lubricating oil additives, fuel additives, and components
and chemicals.

Lubricating Oil Additives

23
The lubricating oil additives business segment manufactures additives for lubricating oil for most
engines, including passenger cars, heavy-duty diesel trucks, marine vessels and locomotives. Each
engine type has different needs and industry specifications, requiring unique additive formulations
to properly protect the mechanical parts from premature wear and corrosion.

Several different components and chemicals — such as dispersants, detergents, viscosity index
improvers and inhibitors -- are blended to meet the desired performance standards. Also, specialty
additives are marketed for other applications, such as power transmission fluids and hydraulic oils.

Fuel Additives

Oronite provides fuel additives that improve a car's performance and extend an engine's life. Most
additive applications are for gasoline and diesel fuels. Fuel performance standards vary for
customers throughout the world. Each region provides specific formulations for its area, and many
additive formulations are unique — blended specifically for a single commercial client.

Components and Chemicals

Oronite manufactures and markets a number of chemical intermediates and components used to
make additives and chemicals. These components and chemicals fall into four categories:
detergents, dispersants, inhibitors and chemical intermediaries.

Oronite divides its operations into three regions: the Americas, Asia-Pacific and
Europe/Africa/Middle East. To deliver their products efficiently and reliably, Oronite has a network
of six manufacturing sites around the world. All Chevron Oronite wholly owned manufacturing sites
are fully certified to ISO 9001 and ISO 14001 standards as specified by the International
Organization for Standardization Quality and are active members of their respective countries'
"Responsible Care Program" as governed by their local trade associations.

Key Oronite manufacturing facilities are in Belle Chasse, Louisiana; Gonfreville, France; and
Singapore. These major facilities are supplemented by a plant in Maua, Brazil, and by their joint-
venture partners in San Juan del Rio, Mexico, and Chennai, India. The company also operates
technology centers throughout the world. They are in Richmond, California, in the United States;
Rotterdam, Netherlands; and Gonfreville, France. A testing and development center is in San
Antonio, Texas.

In 2009, Oronite began operations of the detergent expansion unit at its Palua Sakra facility in
Singapore. This project is expected to significantly increase detergent capacity to meet the needs
of Oronite's marine customers.

Oronite passed two important safety milestones in 2009. The company:

• Set an Oronite safety record, with 7 million hours — a full year — without a workday
lost due to injury.
• Achieved the 20th consecutive year without a workday lost due to injury at their
research and development center in Omaezaki, Japan.
The Oronite name dates back to 1917, when it was used to market petroleum-based products.

Supply & Trading

24
Chevron's Supply & Trading organization is a critical link between their company's upstream and
downstream operations. Supply & Trading provides crude oil and refined products to the
company's global refining and products networks.

Their challenge is to supply the best crude and other raw materials to the right locations, at the
right times and at the lowest possible cost. At all times, they stay focused on one goal: to maintain
safe operations.

They trade more than 400 different grades of crude oil and petroleum products. In 2009, the
selection of crude oil options for their company's refineries continued to expand. During the year,
16 unique crude oils were new to individual refineries, including nine new to their system. They
also continued to increase their capabilities in supplying biofuels such as ethanol.

Pipelines

Chevron runs an extensive network of crude oil, natural gas and refined product pipelines and
storage facilities in North America. They also operate and invest in pipeline projects around the
world.

Chevron Pipe Line Company serves the petroleum and petrochemical industry in North America
from its headquarters in Houston, Texas. The company operates crude oil terminals and pipelines
in the U.S. Gulf of Mexico, Texas, Louisiana, Colorado, Utah, California and Alaska. They own and/or
operate refined product terminals and pipelines in Texas, California, Idaho and Washington. They
also own and operate natural gas pipelines and storage facilities in southern Louisiana and West
Texas. As of 2009, Chevron operated more than 10,800 net miles (17,300 km) in North America.

Chevron continues to build and grow the network.

They are expanding their Keystone natural gas storage facility near Midland, Texas, by
approximately 2 billion cubic feet, for a total natural gas capacity of nearly 7 billion cubic feet.
They expect the project to be completed in the second quarter 2010.

Work began in late 2009 to bring the Cal-Ky Pipeline, which was decommissioned in 2002, back
into crude oil service as a supply line for the Pascagoula Refinery. The pipeline is expected to
return to service in 2011.

Chevron has pipeline interests around the world that are operated by their international partners.
They include the following:

• The Caspian Pipeline Consortium operates a 935-mile (1,505-km) crude oil export
pipeline that runs from the Tengiz Field in Kazakhstan to the Russian Black Sea port of
Novorossiysk.
• The Chad/Cameroon project is developing crude oil fields in southern Chad and
transporting the crude oil more than 665 miles (1,070 km) by underground pipeline to
the coast of Cameroon for export to world markets.
• The 421-mile (678-km) West African Gas Pipeline transports Nigerian natural gas to
customers in Ghana, Benin and Togo for industrial applications and power generation.
• The Baku-Tbilisi-Ceyhan pipeline moves crude oil 1,094 miles (1,762 km) from Baku,
Azerbaijan, through Georgia to Mediterranean deepwater port facilities in Ceyhan,
Turkey.
• The Western Route Export Pipeline offers a connection between Baku, Azerbaijan, on
the Caspian Sea to Supsa, Georgia, on the Black Sea.

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Chevron's pipeline and terminal operations remain focused on delivering safe, reliable, efficient
and flexible services to meet customers' needs.

Shipping

Chevron Shipping Company transports crude oil, refined products, liquefied petroleum gas and
liquefied natural gas to customers worldwide. During 2009, they managed approximately 2,500
deep-sea tanker voyages using a combination of single-voyage charters, short- and medium-term
time charters, and company-owned or bareboat-chartered vessels.

Headquartered in San Ramon, Calif., Chevron Shipping also maintains regional offices in the major
trading centers of Houston, London and Singapore. They offer a full range of services:
transportation, commercial arrangements, risk management, and technical and marine operations
consulting.

They commissioned their first tanker ship — an oil-fired steamer dubbed the George Loomis — in
1895. In 1920, they launched the first American tanker equipped with diesel-electric-drive
propulsion. Their fleet has grown steadily from the days when barrels of oil were rolled onto the
decks of sailing ships to the technically advanced supertankers of today.

As part of their ongoing fleet modernization program, they expect delivery of two U.S.-flagged
tankers in 2010. The company also plans to retire three U.S.-flagged product tankers between
2010 and 2011. The new tankers are expected to bring improved efficiencies to Chevron's fleet. To
protect the environment, all of Chevron's owned and bareboat-chartered fleet is double-hulled.

Other Businesses

Chevron has other interests, including technology companies, power generation businesses,
petrochemicals manufacturing, coal mining operations, worldwide cash management and debt
financing activities, corporate administrative functions, insurance operations and real estate
activities.

Chevron Mining Inc. is the company's wholly owned mining and marketing subsidiary, producing
coal and molybdenum. Chevron's Global Power Company has more than 20 years' experience in
successfully developing and operating commercial power projects in the United States and Asia.
They also produce petrochemicals through their joint venture Chevron Phillips Chemical Company
LLC. And they make additives for lubricating oils and fuels through their subsidiary Chevron
Oronite.

Chemicals

Chevron Phillips Chemical Company

Chevron is one of the world's leading manufacturers of petrochemicals through its joint venture
company Chevron Phillips Chemical Company LLC (CPChem).

CPChem is half-owned by Chevron. Headquartered in The Woodlands, Texas, CPChem has about
4,600 employees at 35 manufacturing facilities in the United States, Brazil, Colombia, Singapore,
China, South Korea, Saudi Arabia, Qatar and Belgium.

CPChem is a top supplier of products used to make many popular and convenient items, including:

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 • Olefins and polyolefins – used in food packaging, bag liners, high-pressure pipe and
fuel tanks
• Aromatics – used to make a variety of items, from aspirin to air bags to clothing to
compact discs
• Alpha olefins – used in synthetic motor oils, lubricants and automotive additives
• Styrenics – used in packaging, electronic parts, paper, housewares, tires, luggage,
carpeting and toys
Maintaining its position as an industry leader, CPChem is involved in a number of projects.
CPChem already operates one plant in Qatar and has interests in the Q-Chem II project, which, in
March 2010, start-up was expected for its ethylene cracker, a section of a chemical facility used in
the petrochemical production process. In the third quarter 2010, its high-density polyethylene and
normal alpha olefins plant operations are expected to start up. High-density polyethylene has a
wide variety of applications, including milk jugs, water pipes and plastic lumber. And normal alpha
olefins are used to make synthetic motor oils, lubricants and automotive additives, among other
things.

CPChem has a 50 percent interest in the Jubail Chevron Phillips Company, which has a styrene
facility in Al Jubail, Saudi Arabia. Saudi Polymers Company, a joint-venture company formed to
execute another petrochemical project in Al Jubail, continued construction in 2009. Completion is
expected in 2011. Styrene is used in the production of rubber, insulation, fiberglass and food
containers, among other things.

In 2009, construction on a new 22 million-pound-per-year Ryton® polyphenylene sulfide (PPS)

plant was completed in Borger, Texas. Ryton PPS is used in a variety of applications, including
automotives and electronics.

Americas Styrenics LLC, 50 percent-owned by CPChem, began operations in 2008. The company
has the largest polystyrene capacity in the Western Hemisphere. One of the most ubiquitous kinds
of plastic, polystyrene is used to make plastic dinnerware, CD cases, insulation and foam drink
cups, among other things.

In Cedar Bayou, Texas, CPChem and several partners run one of the world's largest loop slurry
high-density polyethylene plants. This proprietary technology, used in making polyethylene, is
licensed by more than 85 commercial facilities around the world.

CPChem holds more than 2,850 domestic and international patents and patent applications and
employs more than 330 scientists, researchers and engineers at its four research and technical
centers.

The company also is a leader in petrochemical and polymer research. CPChem provides laboratory
and pilot-scale experimentation, analytical and mechanical testing, and patent, technical and
service support for customers worldwide.

By the end of 2009, the number of CPChem-owned facilities recognized for their high level of
safety by the U.S. Occupational Safety and Health Administration Voluntary Protection Program
had risen to 20.

CPChem has been recognized for high standards in environmental protection and safety. In 2009,
CPChem received the 2008 First Place Award for Environmental Performance by the Kingdom of
Saudi Arabia Royal Commission for the second consecutive year.

Power

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Chevron has more than 25 years of experience developing and operating commercial power
projects around the world.

Their power generation assets have a total operating capacity of more than 3,100 megawatts.

Chevron has interests in 13 power-generation facilities in the United States and Asia. Twelve of
these are combined-cycle and natural gas–fired cogeneration plants that use waste heat to
produce additional electricity and heat for industrial uses.

The 13th facility is a wind farm in Casper, Wyoming, that began operations in late 2009. The 100
percent-owned and operated Casper Wind Farm is a small-scale wind power facility built on the
site of a decommissioned refinery site. The renewable energy is delivered to the local utility
provider.

They also are the world's leading producer of geothermal energy, with major operations in
Indonesia and the Philippines. Chevron's two geothermal projects in Indonesia — at the Salak and
Darajat fields in West Java — generate 636 megawatts of geothermal energy. In the Philippines,
Chevron operates steam fields that provide geothermal energy to the Tiwi and Mak-Ban power
plants, which supply power to Luzon. These facilities together generate more than 637 megawatts.

A number of their facilities also provide steam for the production of heavy oil.

Mining

Chevron owns interests in and operates three coal mines and a minerals mine in the United States
through its subsidiary Chevron Mining Inc.

Headquartered in Englewood, Colo., Chevron Mining provides coal and molybdenum to customers
around the world.

Coal Assets in Transition

Their coal mines are in Berry, Alabama (North River), in New Mexico (McKinley) and in Wyoming
(Kemmerer). Chevron also owns a 50 percent interest in a joint venture to develop a coal mine in
northern Wyoming.

At the end of 2009, having fulfilled customer contractual obligations, the McKinley Mine suspended
coal production after producing more than 179 million tons of coal over a span of 47 years. In
2010, the company plans to focus on full reclamation activities for the mine.

Coal reserves at the North River Mine and elsewhere in Alabama are being marketed for sale.

In July 2009, the McKinley Mine donated 208 acres (0.84 sq km) of adjacent, unmined land to the
Navajo Code Talkers Association for a museum and future veterans’ center in recognition of the
mine’s longtime partnership with the Navajo Nation.

Molybdenum Adjusting to the Minerals Market

Chevron also operates a molybdenum mine in Questa, N.M. Molybdenum is primarily used as an
alloying agent in steel. They have scaled back development and production plans at Questa due to
the dramatic price drop in the molybdenum market.

They continue to build on their record of safety. The Questa Mine was honored with the 2009
Underground Metal/Nonmetal Safe Operator of the Year Award and the 2009 Safety Innovator of

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the Year Award from the New Mexico Mining Association in cooperation with the New Mexico
Bureau of Mine Safety.

Technology

Technology plays an important role in helping Chevron to deliver the energy the world needs.

Chevron has three technology companies that support their businesses: Energy Technology
Company, Chevron Technology Ventures and Information Technology Company.

The work that these companies do is integrated across Chevron, ensuring a strong bond between
their technology and their business strategy.

Their 2009 Achievements

• Chevron implemented a next-generation earth-modeling and interpretation platform

called Intersect that is expected to significantly improve exploration and production
efficiencies over the next 10 to 15 years.
• Chevron deployed a new reservoir simulator at several of the company's producing
fields that cuts assessment time, processes many scenarios and improves recovery
efficiency.
• They installed a secure wireless mesh network at their Richmond, Calif., refinery, which
enables more process data, such as temperature and pressure, to be collected at half
the cost of wired devices.
• They completed equity investments and research agreements with biotechnology
companies for evaluation of potential biofuels feedstocks and conversion technologies
to advance their goal to develop nonfood renewable transportation fuels.
• Chevron began construction on a solar-to-steam demonstration project in San Joaquin
Valley, Calif., and a 1-megawatt solar photovoltaic installation on the site of a former
refinery in Bakersfield, Calif. The Bakersfield project is expected to be completed in the
second quarter 2010, the solar-to-steam project in 2011.

Diversity

Supporting Diversity and Fostering Inclusion

With operations all over the world, Chevron values the rich diversity of ideas, experience and skills
of its employees. And they work to appreciate diversity in everything they do every day.

They express their belief in the value of diversity through principles, practices and accountability.
This begins with The Chevron Way, which states:

"They learn from and respect the cultures in which they work. They value and demonstrate respect
for the uniqueness of individuals and the varied perspectives and talents they provide. They have
an inclusive work environment and actively embrace a diversity of people, ideas, talents and
experiences."

Their principles endorse a spirit of inclusion and foster an environment in which everyone can
reach his or her full potential. They are committed to being recognized as a global leader that
backs its words with accountability and quantifiable results.

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Each day, they run their business in a way that respects their employees and the world
community. Among their many achievements are the following:

• Chevron was the first major integrated energy company to offer domestic partner
benefits to its employees.
• For the sixth consecutive year, Chevron was given a perfect score on the Corporate
Equity Index by the Human Rights Campaign, which rates nearly 600 businesses on
their policies around and treatment of gay, lesbian, bisexual and transgender
employees, consumers and investors.
• Chevron was listed as a Top 50 Employer of 2009 by Workforce Diversity for
Engineering and IT Professionals magazine.
• In March 2009, Chevron was recognized by Australia's Equal Opportunity for Women in
the Workplace Agency as one of five Employers of Choice for Women in Western
Australia.
• In 2009, for the ninth time and the seventh year in a row, the Women's Business
Enterprise National Council honored Chevron as a Top Corporation for providing
opportunities to women entrepreneurs — a tribute to their Supplier Diversity/Small
Business program.
• Several Chevron employees were recognized by the Hispanic Engineer National
Achievement Awards Conference for their technical expertise and their community
engagement work.
• Chevron was recognized by the publishers of Professional Woman's Magazine, Hispanic
Network Magazine and the Black EOE Journal and named as one of the 2009 Best of the
Best corporations that provide the best career and advancement opportunities for
minorities.
Within Chevron, they support employees interested in reaching out to others. In 2009, more than
21,000 employees were members of their employee networks and affinity groups. These groups
focus on mentoring, employee development, recruitment, community volunteerism and cultural
awareness. Across the corporation, they provide counsel, consulting support and resources to
operating companies, business units and management teams to encourage consistent application
of corporate diversity strategies and objectives.
Chevron does business with a broad spectrum of companies. Chevron's Supplier Diversity/Small
Business program works with small, minority- and women-owned businesses to develop
innovative, cost-effective ways to supply goods and services.

Chevron's University Partnership Program provides scholarships, grants and departmental gifts to
key universities around the world. Chevron has invested millions of dollars in programs that
promote minority education in disciplines that are critical to their energy future.

They have strategic alliances with key organizations that promote equality and fairness for
minorities and women.

These accomplishments form the foundation of partnership, acceptance and goals that they share
as Chevron employees.

Operational Excellence

Achieving World-Class Performance

Chevron strives to protect the safety and health of people and the environment, and to conduct
their operations reliably and efficiently. The systematic management of safety, health,

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environment, reliability and efficiency to achieve world-class performance is how they define
Operational Excellence (OE).

Their commitment to OE is embodied in The Chevron Way value of Protecting People and the
Environment, which places the highest priority on the health and safety of their workforce and the
protection of their assets and the environment.

They approach the five areas of OE as one priority because success in each helps ensure success
in the others, and ultimately, this success becomes a powerful driver for robust business
performance.

Safe, reliable, efficient and environmentally sound operations just make good business sense, and
they strive to complete every task the right way, every time.

Operational Excellence is based on five objectives:

• Achieve an injury-free workplace.

• Promote a healthy workplace and mitigate significant health risks.
• Eliminate spills and environmental incidents and mitigate environmental risks.
• Operate incident-free with industry-leading asset reliability.
• Maximize the efficient use of resources and assets.

Tenets of Operation

Operational Excellence requires constant attention to countless details and human factors.
Chevron's OE safety culture is based on 10 Tenets of Operation, a code of conduct that employees
and contractors use and that supervisors and managers reinforce. The tenets are based on two
key principles:

• Do it safely or not at all.

• There is always time to do it right.

The tenets address a wide range of behavior-based fundamentals. For example, employees and
contractors must always operate within the design and environmental limits of their facilities, with
safety devices in place and functioning.
In addition, the tenets call for always involving the right people — those most knowledgeable,
experienced or familiar — in decisions affecting safety procedures and equipment.

1. Always operate within design and environmental limits.

2. Always operate in a safe and controlled condition.
3. Always ensure safety devices are in place and functioning.
4. Always follow safe work practices and procedures.
5. Always meet or exceed customers’ requirements.
6. Always maintain integrity of dedicated systems.
7. Always comply with all applicable rules and regulations.
8. Always address abnormal conditions.
9. Always follow written procedures for high-risk or unusual situations.
10.Always involve the right people in decisions that affect procedures and equipment.

Operational Excellence Management System

To achieve Operational Excellence, Chevron created an Operational Excellence Management

System (OEMS) comprising 13 OE Elements and deployed it throughout the company to drive,
continuously improve and measure performance.

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13 OE Elements

1. Security of Personnel and Assets - Providing a secure environment in which business

operations may be conducted successfully.

2. Facilities Design and Construction - Designing and constructing facilities to prevent

injury, illness and incidents and to operate reliably, efficiently and in an
environmentally sound manner.

3. Safe Operations - Operating and maintaining facilities in a manner that does not cause
injuries, illnesses or incidents.

4. Management of Change - Managing both permanent and temporary changes to

prevent incidents.

5. Reliability and Efficiency:

o Reliability - Operating and maintaining facilities to sustain mechanical integrity

and prevent incidents.

o Efficiency - Maximizing efficiency of operations and conserving natural

resources.

6. Third-Party Services - Systematically addressing and managing contractor conformance

to OE through contractual agreements.

7. Environmental Stewardship - Working to prevent pollution and waste; striving to

continually improve environmental performance and limiting impacts from their
operations.

8. Product Stewardship - Managing potential risks of their products throughout the

products' life-cycles.

9. Incident Investigation - Investigating incidents to identify, broadly communicate and

correct root causes of incidents to reduce the likelihood of recurrence.

10.Community Awareness and Outreach - Reaching out to the community and engaging in
open dialogue to build trust.

11.Emergency Management - Having preparedness plans in place to quickly and

effectively respond to and recover from any emergency.

12.Compliance Assurance - Complying and verifying conformance with company policy

and all applicable laws and regulations; applying responsible standards where laws and
regulations do not exist; enabling employees and contractors to understand their
safety, health and environmental responsibilities.

13.Legislative and Regulatory Advocacy - Working ethically and constructively to influence

proposed laws and regulations, and debate on emerging issues.

Leadership is the largest single factor for success in Operational Excellence. So the OEMS holds
Chevron leaders at all levels accountable for reinforcing OE standards and behaviors and for
achieving results the right way according to company values. These values include partnership,
community support and ethical business practices.

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