Chevron 2004 Annual Report Download - page 17

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We have designed and implemented comprehensive and disciplined man-
agement systems to help us build organizational capability in operational
excellence and capital stewardship. These systems are aimed at achieving
top operating performance and ensuring that we direct our $10 billion 2005
capital and exploratory budget toward the highest-quality opportunities
with the greatest potential to create future growth and stockholder value.
 Operational excellence is a systematic process
for managing our businesses at world-class levels. It is not an independent
process; rather, it is woven into every aspect of our activities. Through opera-
tional excellence, we protect people and the environment and maintain our
reputation as a reliable and efficient energy provider.
Our company’s highest priority is safety, and 2004 was our safest year ever.
Our total recordable incident rate (per 200,000 hours worked) for employ-
ees and contractors improved 14 percent from the previous year, and days
away from work improved 10 percent. Even so, our goal is zero incidents – no
one injured – and we will not be satisfied until we reach it.
Our environmental performance also continued to improve during the year.
Compared with 2003, we reduced the number of oil spills by 14 percent and
the volume spilled by 42 percent. We also made strides in energy conserva-
tion. In 2004, we consumed 2 percent less energy in our operations than in
the previous year, representing savings of $72 million. Since 1992, the year
we began tracking, we have reduced companywide energy use by 24 per-
cent. We also are tracking and managing our greenhouse gas emissions.
As part of this effort, in 2004 we completed a companywide third-party
verification of greenhouse gas emissions.
 This subsidiary helps external part-
ners and internal business units find ways to save energy. For example, in
2004, the U.S. Postal Service (USPS) asked CES to complete major energy
efficiency upgrades and a hybrid renewable power plant – including a fuel
cell and two solar electric technologies – at USPS’s largest processing and
distribution facilities in San Francisco, California. The improvements are
expected to lower total annual electricity purchases by $1.2 million and
reduce carbon dioxide emissions by approximately 6,600 tons annually, the
equivalent of planting 1,860 acres of trees.
BUILDING THE “PLUS 1”
FOR CAPITAL STEWARDSHIP
We are committed to being the
industry leader in capital stew-
ardship and have a management
system in place to help us identify
the most promising investments
and execute them well. An example
is the $2.2 billion Benguela Belize-
Lobito Tomboco project offshore
Angola, one of our “Big 5” projects.
The development calls for the first
compliant piled tower (CPT) to be
installed outside the U.S. Gulf of
Mexico. Fixed to the sea floor, it
will support drilling and production
facilities and will be the fifth-tallest
structure in the world. The tower is
being fabricated in numerous coun-
tries – on schedule and on budget.
Above: The CPT base template and
foundation piles are en route from
Texas to Angola.