Chevron 2006 Annual Report Download - page 24

In 2006, Chevron processed approximately 2 million barrels of crude oil per day and averaged
approximately 3.6 million barrels per day of refi ned products sales worldwide. Major areas of
operations are in Asia, in sub-Saharan Africa, on the U.S. Gulf Coast extending into Latin Amer-
ica and on the U.S. West Coast. We hold interests in 20 fuel refi neries and have a marketing
presence in approximately 175 countries. We market under the Chevron, Texaco and Caltex
motor fuel brands. Products are sold through a network of approximately 25,800 retail stations,
including those of affi liate companies.
Downstream
Chevron’s downstream strategy is to improve base
business returns and selectively grow with a focus
on integrated value creation. Our downstream
operations comprise refi ning, fuels and lubricants
marketing, supply and trading, and transportation.
Our refi ning operations are strategically located to
serve fast-growing markets in North America and
Asia. Our three motor fuel brands are among the
industry’s most respected.
REFINING In 2006, we completed an expansion
at our Pascagoula, Mississippi, refi nery to increase
production of gasoline and other light products, and
began upgrading an affi liate refi nery in South Korea
to process heavy crude oils. We also purchased a
OPERATING HIGHLIGHTS
5 percent interest in Reliance Petroleum Limited,
which will own and operate a 580,000-barrel-per-
day crude capacity refi nery being built in India. It is
expected to begin operating in late 2008. We have
the opportunity to increase our ownership to 29
percent. Our refi nery utilization rate was 90 percent
in 2006, an improvement of 4 percent from 2005 and
our strongest rate since 1999. In the United States,
our refi neries operated close to their crude oil unit
design capacity.
MARKETING In the United States, the Chevron
and Texaco brands have been ranked the two most
powerful brands by the Oil Price Information Service,
the leading source for petroleum pricing and news
information. In 2006, we expanded our U.S. Texaco
marketing network to more than 2,100 sites and
continued a phased introduction of our gasoline addi-
tive, Techron, to our international Texaco and Caltex
brands. We also continued to divest nonstrategic
marketing assets, exiting the fuels marketing busi-
ness in Ecuador, Paraguay and Scandinavia.
OTHER Chevron is a leading global marketer of
fi nished lubricants. In 2006, we began an expansion
of base-oil production at the Richmond, California,
refi nery and at the Yeosu, South Korea, refi nery. Also
during the year, the company’s supply and trading
organization expanded crude oil selection options for
our refi ning system and created a new organization
to manage our growing supplies of natural gas liquids
and liquefi ed petroleum gas.
DOWNSTREAM
AT A GLANCE
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> Above, left to right: Caltex service station, Singapore; Singapore Refi ning Company.
> Opposite page, left to right: Fuel cell, Santa Rita Jail, Alameda County, California; Laboratory
Technician Frederic Richer, Chevron Oronite, Gonfreville, France.
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