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94 CHEVRON CORPORATION 2006 ANNUAL REPORT
Noteworthy amounts in the categories of proved-
reserve changes for 2004 through 2006 in the table above
are discussed below:
Revisions In 2004, net revisions decreased reserves 218
million barrels for consolidated companies and increased
reserves for affi liates by 204 million barrels. For consolidated
companies, the decrease was composed of 161 million barrels
for international areas and 57 million barrels for the United
States. The largest downward revision internationally was
70 million barrels in Africa. One fi eld in Angola accounted
for the majority of the net decline as changes were made to
oil-in-place estimates based on reservoir performance data.
One fi eld in the Asia-Pacifi c area essentially accounted for
the 43 million-barrel downward revision for that region. The
revision was associated with reduced well performance. Part
of the 36 million-barrel net downward revision for Indonesia
was associated with the effect of higher year-end prices on
the calculation of reserves for cost-oil recovery under a
production-sharing contract. In the United States, the
68 million-barrel net downward revision in the Gulf of
NET PROVED RESERVES OF CRUDE OIL, CONDENSATE AND NATURAL GAS LIQUIDS
Consolidated Companies
United States International
Gulf of Total Asia- Total Affi liated Companies
Millions of barrels Calif. Mexico Other U.S. Africa Pacifi c Indonesia Other Int’l. Total TCO Other
RESERVES AT JAN. 1, 2004 1,051 435 572 2,058 1,923 796 807 696 4,222 6,280 1,840 479
Changes attributable to:
Revisions 13 (68) (2) (57) (70) (43) (36) (12) (161) (218) 206 (2)
Improved recovery 28 – 6 34 34 – 6 – 40 74 – –
Extensions and discoveries – 8 6 14 77 9 – 17 103 117 – –
Purchases1 – 2 – 2 – – – – – 2 – –
Sales2 – (27) (103) (130) (16) – – (33) (49) (179) – –
Production (81) (56) (47) (184) (115) (86) (79) (101) (381) (565) (52) (9)
RESERVES AT DEC. 31, 20043 1,011 294 432 1,737 1,833 676 698 567 3,774 5,511 1,994 468
Changes attributable to:
Revisions (23) (6) (11) (40) (29) (56) (108) (6) (199) (239) (5) (19)
Improved recovery 57 – 4 61 67 4 42 29 142 203 – –
Extensions and discoveries – 37 7 44 53 21 1 65 140 184 – –
Purchases1 – 49 147 196 4 287 20 65 376 572 – –
Sales2 (1) – (1) (2) – – – (58) (58) (60) – –
Production (79) (41) (45) (165) (114) (103) (74) (89) (380) (545) (50) (14)
RESERVES AT DEC. 31, 20053 965 333 533 1,831 1,814 829 579 573 3,795 5,626 1,939 435
Changes attributable to:
Revisions (14) 7 7 – (49) 72 61 (45) 39 39 60 24
Improved recovery 49 – 3 52 13 1 6 11 31 83 – –
Extensions and discoveries – 25 8 33 30 6 2 36 74 107 – –
Purchases1 2 2 – 4 15 – – 2 17 21 – 119
Sales2 – – – – – – – (15) (15) (15) – –
Production (76) (42) (51) (169) (125) (123) (72) (78) (398) (567) (49) (16)
RESERVES AT DEC. 31, 20063,4 926 325 500 1,751 1,698 785 576 484 3,543 5,294 1,950 562
DEVELOPED RESERVES5
At Jan. 1, 2004 832 304 515 1,651 1,059 641 588 522 2,810 4,461 1,304 140
At Dec. 31, 2004 832 192 386 1,410 990 543 490 469 2,492 3,902 1,510 188
At Dec. 31, 2005 809 177 474 1,460 945 534 439 416 2,334 3,794 1,611 196
At Dec. 31, 2006 749 163 443 1,355 893 530 426 349 2,198 3,553 1,003 311
1 Includes reserves acquired through property exchanges.
2 Includes reserves disposed of through property exchanges.
3 Included are year-end reserve quantities related to production-sharing contracts (PSC) (refer to page 24 for the defi nition of a PSC). PSC-related reserve quantities are 30 percent, 29 percent
and 28 percent for consolidated companies for 2006, 2005 and 2004, respectively, and 100 percent for TCO for each year.
4 Net reserve changes (excluding production) in 2006 consist of 326 million barrels of developed reserves and (91) million barrels of undeveloped reserves for consolidated companies and
(428) million barrels of developed reserves and 631 million barrels of undeveloped reserves for affi liated companies.
5 During 2006, the percentages of undeveloped reserves at December 31, 2005, transferred to developed reserves were 11 percent and 2 percent for consolidated companies and affi liated
companies, respectively.
INFORMATION ON CANADIAN OIL SANDS NET PROVED RESERVES NOT INCLUDED ABOVE:
In addition to conventional liquids and natural gas proved reserves, Chevron has signifi cant interests in proved oil sands reserves in Canada associated with the Athabasca project. For internal
management purposes, Chevron views these reserves and their development as an integral part of total upstream operations. However, SEC regulations defi ne these reserves as mining-related
and not a part of conventional oil and gas reserves. Net proved oil sands reserves were 443 million barrels as of December 31, 2006. The oil sands reserves are not considered in the standardized
measure of discounted future net cash fl ows for conventional oil and gas reserves, which is found on page 99.
TABLE V – RESERVE QUANTITY INFORMATION – Continued
Supplemental Information on Oil and Gas Producing Activities