Chevron 2006 Annual Report Download - page 5

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In the U.S. Gulf of Mexico, we completed the Jack well
test, which set more than a half-dozen world records for
pressure, depth and duration in the deep water. Jack
clearly demonstrates the power of advanced technology
to discover signifi cant new energy resources. Chevron is
one of the largest leaseholders in the deepwater Gulf
of Mexico and is competitively positioned to benefi t as
the long-term potential of this frontier area for crude oil
and natural gas exploration plays out.
In Australia, where we hold the leading natural gas
resource position, signifi cant steps were made toward
securing environmental regulatory approvals necessary
for the development of the Greater Gorgon Area natural
gas project. We also delivered the fi rst commissioning
cargo of Australian liquefi ed natural gas to China aboard
the Chevron-operated Northwest Swan vessel.
Our global refi ning operations delivered record earnings
in 2006, due in part to high reliability and utilization. We
completed a major expansion at our Mississippi refi nery
that increased gasoline production capacity by approxi-
mately 10 percent, and we acquired an interest in a large
new export refi nery under construction in India, enhanc-
ing our presence in the fast-growing Asia-Pacifi c region.
We set a new safety record in 2006, our fi fth consecu-
tive year of improvement. However, we will never be
satisfi ed until we reduce the number of safety-related
incidents to zero.
CHEVRON’S ENERGY PORTFOLIO :: We expect global
demand for energy to continue growing. At the same
time, increased competition for resources and height-
ened geopolitical risks are challenging customary
supply growth options. In this kind of environment,
energy portfolio diversifi cation is an increasingly
important means for supplying consumers around
the globe with affordable, reliable energy.
Our current asset and investment portfolio is diverse.
We have a strong queue of capital projects in progress,
and our capital and exploratory budget for 2007 of
$19.6 billion refl ects the concentrated development
DAVE O’REILLY
Chairman of the Board and
Chief Executive Officer
February 28, 2007
phases of many of these key projects. Our investments
are focused on creating new legacy positions in key
conventional energy basins, expanding our assets and
capabilities in unconventional resources, and investing
in emerging sources of energy such as gas-to-liquids
and biofuels. This portfolio, with investments balanced
by location, by energy source and by time to fi rst pro-
duction, offers a strong foundation for sustained growth
in even the most challenging of environments.
HUMAN ENERGY :: At the center of our energy port-
folio are the men and women of Chevron, our “human
energy.” They run our operations safely, reliably and
effi ciently, in even the toughest conditions. They develop
technology that improves our operations today and
creates new business opportunities for tomorrow. They
ensure we contribute to a better quality of life in every
community where we operate.
The people of Chevron have a pioneering and ingenious
spirit that enables the company to continue expanding
the boundaries of energy. They understand the impor-
tance of energy to global economic growth and human
progress, and they are committed to securing the en-
ergy the world needs in innovative and value-creating
ways. I am proud to be part of the team.
The people of Chevron have
a pioneering and ingenious
spirit that enables the company
to continue expanding the
boundaries of energy.
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