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2008 Annual Report
Delivering
Energy Now
Developing Energy
for the Future

Table of contents

  • Page 1
    Delivering Energy Now Developing Energy for the Future 2008 Annual Report

  • Page 2
    ... - Delivering and Developing Energy 30 Chevron at a Glance 20 22 24 26 32 Glossary of Energy and Financial Terms 33 Financial Review 91 Five-Year Financial Summary 92 Five-Year Operating Summary 106 Board of Directors 107 Corporate Officers 108 Stockholder and Investor Information Learn More...

  • Page 3
    ... hull leaves Corpus Christi, Texas, on its way to support production facilities at the field, located offshore Louisiana. At right, topsides are installed. Tahiti is one of several major capital projects that will go onstream in 2009. This Page: The Tahiti Platform, U.S. Gulf of Mexico. Note: In an...

  • Page 4
    ... success finding new sources of crude oil and natural gas. We started up five major capital projects, with more to follow. And as economic challenges gripped the world's attention in the second half of the year, Chevron people addressed those challenges and focused on the long term - helping to...

  • Page 5
    ...the world. Discoveries eventually become long-term energy producers, and this year, three will begin production. Frade, offshore Brazil, is forecasted to start up in the first half of the year. The Gulf of Mexico's Tahiti Field and Angola's offshore Tombua-Landana development should reach first oil...

  • Page 6
    ... prices for crude oil and natural gas. The company increased its annual dividend payout for the 21st consecutive year. The company's stock price declined 20.7 percent in 2008. The S&P 500 Index dropped 39 percent for the year. Record net income helped boost Chevron's return on capital employed...

  • Page 7
    ... % 12.6 % 4.2 % Includes equity in affiliates, except number of employees At the end of the year Excludes service station personnel Performance Graph The stock performance graph at right shows how an initial investment of $100 in Chevron stock would have compared with an equal investment in the...

  • Page 8
    ...challenge is long-term, and it must be addressed now. 6 Above, left to right: Platong Processing Facilities, Platong Field, Gulf of Thailand; Shanghai, China; Ramon Gonzalez-Mieres, exploration geologist, Chevron Energy Technology Company, in the 3-D Visualization Laboratory, San Ramon, California...

  • Page 9
    ... the world's most advanced technology. Above, left to right: Chevron Energy Solutions solar power installation at the University of California, San Francisco; Warren Klein, external wildlife adviser, biodiversity program, Angola; Erwin M. Vargas, group leader, Public Affairs, at a Chevron-sponsored...

  • Page 10
    ... large, complex crude oil and natural gas fields. 2008 was no exception. During the year, the company brought three major new developments onstream, delivering additional supplies of energy to meet today's needs. The giant Agbami Field is the largest deepwater discovery offshore Nigeria to date. It...

  • Page 11
    Agbami Tengizchevroil Blind Faith Nigeria: We are investing in a number of projects to grow the production of crude oil and natural gas from Nigeria and to help create greater employment opportunities in the country. Kazakhstan: Expansion projects at the giant Tengiz Field have nearly doubled ...

  • Page 12
    ... overcome both challenges and almost doubled production capacity. One project called for building the largest facility in the world for processing crude oil and separating out the hydrogen sulfide gas. The second included a specially designed compressor that reinjects one-third of the gas back into...

  • Page 13
    Agbami Tengizchevroil Blind Faith Nasipkali Saparov, senior operator, Power Generation Unit, Tengizchevroil, Kazakhstan. 11

  • Page 14
    ... effort under way to find and develop new crude oil and natural gas from the region. In 2009, the deepwater Tahiti Field is expected to begin production (see Page 1). See our deepest offshore production platform. Chevron.com/BlindFaith 12 Blind Faith Platform under tow, U.S. Gulf of Mexico.

  • Page 15
    Agbami Tengizchevroil Blind Faith Blind Faith: The Impact Maximum daily production capacity of 65,000 barrels of crude oil and 55 million cubic feet of natural gas. 13

  • Page 16
    ...for adding new resources. South Korea: A major effort is under way to increase the flexibility of our major refineries to process greater quantities of heavy, difficult-to-refine crude oils. Angola: Chevron is pursuing more than a dozen major capital projects in Angola, a nation rich in energy and...

  • Page 17
    ...global, capital-intensive business requires world-class performance and a commitment to capital stewardship. Chevron has a management system in place to help identify the most promising prospects and execute them with excellence - from developing complex crude oil and natural gas fields, to managing...

  • Page 18
    Develop Energy for the Future 16

  • Page 19
    ...value products from the full slate of crude oils - from light, sweet crudes to the more plentiful heavy, high-sulfur crudes. In 2008, our affiliate refinery in Yeosu, South Korea, completed a major upgrade and now has launched another project to increase the production of high-quality transportation...

  • Page 20
    ...for the Tombua-Landana development are now being assembled offshore, an approach that is expected to save time and money. Located in Angola's deep water, Tombua-Landana is expected to come onstream in 2009 and reach a peak production rate of approximately 100,000 barrels per day of crude oil in 2011...

  • Page 21
    Frade Yeosu Refinery Tombua-Landana 19

  • Page 22
    ... to help recover crude oil and natural gas from remote and increasingly complex fields. We are using proprietary technology to turn even the lowest-value crude oils into high-value consumer products. And we are working to develop next-generation energy resources. Our technology organization is based...

  • Page 23
    Erlina Parwito, senior earth scientist, Chevron Energy Technology Company, in the 3-D Visualization Laboratory, San Ramon, California. 21

  • Page 24
    22

  • Page 25
    Energy Supplies Long term, the world must develop energy in all its potential forms - from crude oil and natural gas to renewable and unconventional sources of energy. Chevron is working on all fronts. We are the world's largest producer of geothermal energy, with operations in Indonesia and the ...

  • Page 26
    ... crude oil and natural gas supplies. Improving energy efficiency is part of Chevron's long-term business strategy. Our new office complex in Covington, Louisiana, is a good example. Completed in 2008, it is certified as "gold" by the Leadership in Energy and Environmental Design, a program of...

  • Page 27
    25

  • Page 28
    26

  • Page 29
    Progress Because many of Chevron's operations are located in the developing world, we take special steps to form partnerships to help improve the overall quality of life and health of people in our local communities. In South Africa, for example, we have long been involved in the Ikhwezi Community ...

  • Page 30
    ... an offer to work in the Gulf of Mexico, it was everything I had asked for. I couldn't turn it down." Suzanne Murphy Drilling Engineer Chevron Energy Technology Company Learn about careers with us. Chevron.com/Careers Delivering and Developing Energy At the heart of Chevron's strategy is its vision...

  • Page 31
    ... it. Working together, we're beginning to see progress. In Angola, for example, we've established programs for employees and their spouses. And we've not seen a single case of a mother to child transmission of HIV/AIDS in more than two years." David McMurry Global Public Health and Special Projects...

  • Page 32
    ... renewables. 30 Above, left to right: Michael Mileo, Frade project manager, and the floating production, storage and offloading vessel under construction in Dubai and destined for the Frade Field, offshore Brazil; Chevron service station, San Ramon, California; Eric Knoshaug, researcher, National...

  • Page 33
    ... the Chevron, Texaco and Caltex motor fuel brands. Products are sold through a net work of more than 25,000 retail stations, including those of affiliated companies. Renewable Energy Strategy: Invest in renewable energy technologies and capture profitable positions. Chevron is the world's largest...

  • Page 34
    ...PSC production as a royalty payment, and the contractor may owe income taxes on its portion of the profit oil and/or gas. The contractor's share of PSC oil and/or gas production and reserves varies over time as it is dependent on prices, costs and specific PSC terms. Renewables Energy resources that...

  • Page 35
    ... Statement of Stockholders' Equity 62 Other information The company has submitted to the New York Stock Exchange a certificate of the Chief Executive Officer of the company certifying that he is not aware of any violation by the company of New York Stock Exchange corporate governance listing...

  • Page 36
    ... sustain its long-term competitive position in the upstream business, the company must develop and replenish an inventory of projects that offer adequate financial returns for the investment required. Identifying promising areas for exploration, acquiring the necessary rights to explore for and to...

  • Page 37
    ...the rapid decline in crude-oil prices that began in the second half of 2008, and the general contraction of worldwide economic activity. Management is taking these developments into account in the conduct of daily operations and for business planning. The company remains confident of its underlying...

  • Page 38
    ... factors, including the company's ability to find or acquire and efficiently produce crude oil and natural gas, changes in fiscal terms of contracts, changes in tax rates on income, and the cost of goods and services. Chevron's worldwide net oil-equivalent production in 2008, including volumes...

  • Page 39
    ... Blind Faith project in the deepwater Gulf of Mexico. Total volumes are expected to ramp up during 2009 to approximately 65,000 barrels of crude oil and 55 million cubic feet of natural gas per day. Downstream The company announced plans to sell marketing-related businesses in Brazil, Nigeria...

  • Page 40
    ... mining, power generation businesses, the various companies and departments that are managed at the corporate level, and the company's investment in Dynegy prior to its sale in May 2007. Income is also presented for the U.S. and international geographic areas of the upstream and downstream business...

  • Page 41
    ...of gasoline and other refined products and refinery-input volumes. Refer also to Note 14, "Accounting for Buy/Sell Contracts," on page 74 for a discussion of the accounting for purchaseand-sale contracts with the same counterparty. International Downstream - Refining, Marketing and Transportation...

  • Page 42
    ...also to Note 14, "Accounting for Buy/Sell Contracts," on page 74 for a discussion of the accounting for purchase-and-sale contracts with the same counterparty. International Gasoline & Other Refined-Product Sales* All Other Millions of dollars 2008 2007 2006 Net Charges* *Includes Foreign Currency...

  • Page 43
    ...-cost development projects and asset-retirement obligations. The increase between 2006 and 2007 reï¬,ects an increase in charges related to asset write-downs and higher depreciation rates for certain crude oil and natural gas producing fields worldwide. Millions of dollars 2008 2007 2006 Taxes...

  • Page 44
    Management's Discussion and Analysis of Financial Condition and Results of Operations Selected Operating Data1,2 2008 2007 2006 Liquidity and Capital Resources U.S. Upstream Net Crude Oil and Natural Gas Liquids Production (MBPD) Net Natural Gas Production (MMCFPD)3 Net Oil-Equivalent Production ...

  • Page 45
    ... a term not to exceed 10 years. At December 31, 2008, the company had outstanding public bonds issued by Chevron Corporation Profit Sharing/ Savings Plan Trust Fund, Texaco Capital Inc. and Union Oil Company of California. All of these securities are guaranteed by Chevron Corporation and are rated...

  • Page 46
    ... and other corporate businesses in 2009 are budgeted at $1.0 billion. Technology investments include projects related to unconventional hydrocarbon technologies, oil and gas reservoir management, and gas-fired and renewable power generation. Pension Obligations In 2008, the company's pension plan...

  • Page 47
    ... and take-or-pay agreements, some of which relate to suppliers' financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, drilling rigs, utilities, and petroleum products, to be used or sold in the ordinary course of the company's business...

  • Page 48
    ... with an increase in price volatility for these commodities during the year. Millions of dollars 2008 2007 Crude Oil Natural Gas Refined Products $ 39 5 45 $ 29 3 23 Foreign Currency The company enters into forward exchange contracts, generally with terms of 180 days or less, to manage some of...

  • Page 49
    ...Parties Chevron enters into a number of business arrangements with related parties, principally its equity affiliates. These arrangements include long-term supply or offtake agreements and long-term purchase agreements. Refer to Other Information in Note 12 of the Consolidated Financial Statements...

  • Page 50
    ... million related to current and former sites for the company's U.S. downstream operations, including refineries and other plants, marketing locations (i.e., service stations and terminals), and pipelines. The remaining $730 million was associated with various sites in international downstream ($117...

  • Page 51
    ... in 2009, the Act expands the current foreign tax credit (FTC) limitation for Foreign Oil and Gas Extraction Income to also include foreign downstream income, known as Foreign Oil Related Income. This change is expected to impact Chevron's utilization of FTCs. Suspended Wells The company suspends...

  • Page 52
    ...three years ended December 31, 2008, which were based on year-end prices at the time. Note 1 to the Consolidated Financial Statements, beginning on page 63, includes a description of the "successful efforts" method of accounting for oil and gas exploration and production activities. The estimates of...

  • Page 53
    ... assumptions are the expected long-term rate of return on plan assets and the discount rate applied to pension plan obligations. For other postretirement benefit (OPEB) plans, which provide for certain health care and life insurance benefits for qualifying retired employees and which are not...

  • Page 54
    ... postretirement medical plan, the annual increase to company contributions is limited to 4 percent per year. For active employees and retirees under age 65 whose claims experiences are combined for rating purposes, the assumed health care cost-trend rates start with 7 percent in 2009 and gradually...

  • Page 55
    ... Accounting for business combinations requires the allocation of the company's purchase price to the various assets and liabilities of the acquired business at their respective fair values. The company uses all available information to make these fair value determinations, and for major acquisitions...

  • Page 56
    ...for the company on January 1, 2009. This standard amends and expands the disclosure requirements of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. FAS 161 requires disclosures related to objectives and strategies for using derivatives; the fair-value amounts of...

  • Page 57
    ... similar taxes: End of day price. The company's common stock is listed on the New York Stock Exchange (trading symbol: CVX). As of February 20, 2009, stockholders of record numbered approximately 205,000. There are no restrictions on the company's ability to pay dividends. Chevron Corporation 2008...

  • Page 58
    ... registered public accounting firm have free and direct access to the Audit Committee without the presence of management. Management's Report on Internal Control Over Financial Reporting The company's management is responsible for establishing and maintaining adequate internal control over...

  • Page 59
    ...of accounting for buy/sell contracts on April 1, 2006. As discussed in Note 16 to the Consolidated Financial Statements, the Company changed its method of accounting for uncertain income tax positions on January 1, 2007. A company's internal control over financial reporting is a process designed to...

  • Page 60
    ... excise, value-added and similar taxes. Includes amounts in revenues for buy/sell contracts; associated costs are in "Purchased crude oil and products." Refer also to Note 14, on page 74. $ 6,725 See accompanying Notes to the Consolidated Financial Statements. 58 Chevron Corporation 2008 Annual...

  • Page 61
    ...) cost arising during period Defined benefit plans sponsored by equity affiliates Income taxes on defined benefit plans Total Other Comprehensive (Loss) Gain, Net of Tax Comprehensive Income See accompanying Notes to the Consolidated Financial Statements. $ 23,931 (112) (6) - (6) 139 32 ( 61...

  • Page 62
    ...plant and equipment, net Deferred charges and other assets Goodwill Assets held for sale Total Assets Liabilities and Stockholders' Equity Short-term debt Accounts payable Accrued liabilities Federal and other taxes on income Other taxes payable Total Current Liabilities Long-term debt Capital lease...

  • Page 63
    ... retirements and sales Net foreign currency effects Deferred income tax provision Net (increase) decrease in operating working capital Minority interest in net income Increase in long-term receivables (Increase) decrease in other deferred charges Cash contributions to employee pension plans Other...

  • Page 64
    Consolidated Statement of Stockholders' Equity Shares in thousands; amounts in millions of dollars 2008 Shares Amount Shares 2007 Amount Shares 2006 Amount Preferred Stock Common Stock Balance at January 1 Balance at December 31 Capital in Excess of Par Balance at January 1 Treasury stock ...

  • Page 65
    ... dollars, except per share amounts Note 1 Summary of Significant Accounting Policies General Exploration and production (upstream) operations consist of exploring for, developing and producing crude oil and natural gas and marketing natural gas. Refining, marketing and transportation (downstream...

  • Page 66
    ...Statements Millions of dollars, except per-share amounts Note 1 Summary of Significant Accounting Policies - Continued Properties, Plant and Equipment The successful efforts method is used for crude oil and natural gas exploration and production activities. All costs for development wells, related...

  • Page 67
    ... over the service period required to earn the award, which is the shorter of the vesting period or the time period an employee becomes eligible to retain the award at retirement. Stock options and stock appreciation rights granted under the company's Long-Term Incentive Plan have graded vesting...

  • Page 68
    ... under the Chevron Corporation Long-Term Incentive Plan (LTIP). In addition, approximately 409,000 shares remain available for issuance from the 800,000 shares of the company's common stock that were reserved for awards under the Chevron Corporation Non-Employee Directors' Equity Compensation and...

  • Page 69
    ... are reported on the Consolidated Balance Sheet as "Accounts and notes receivable," "Accounts payable," "Long-term receivables - net" and "Deferred credits and other noncurrent obligations." Gains and losses on the company's risk management activities Chevron Corporation 2008 Annual Report 67

  • Page 70
    ...reported as either "Sales and other operating revenues" or "Purchased crude oil and products," whereas trading gains and losses are reported as "Other income." Foreign Currency The company enters into forward exchange contracts, generally with terms of 180 days or less, to manage some of its foreign...

  • Page 71
    ...is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. For this purpose, the investments are grouped as follows: upstream - exploration and production; downstream - refining, marketing and transportation; chemicals; and all other...

  • Page 72
    ... of worldwide cash, cash equivalents and marketable securities, real estate, information systems, mining operations, power generation businesses, technology companies, and assets of the corporate administrative functions. Income by Major Operating Area Upstream United States International Total...

  • Page 73
    ..., on page 74, for a discussion of the company's accounting for buy/sell contracts. Minimum rentals Contingent rentals Total Less: Sublease rental income Net rental expense $ 2,984 6 2,990 41 $ 2,949 $ 2,419 6 2,425 30 $ 2,395 $ 2,326 6 2,332 33 $ 2,299 Chevron Corporation 2008 Annual Report 71

  • Page 74
    ... tax 2008 2007 Upstream Tengizchevroil $ 6,290 Petropiar/Hamaca 1,130 Petroboscan 816 Angola LNG Limited 1,191 Other 725 Total Upstream 10,152 Downstream GS Caltex Corporation 2,601 Caspian Pipeline Consortium 749 Star Petroleum Refining Company Ltd. 877 Escravos Gas-to-Liquids - Caltex Australia...

  • Page 75
    .... Colonial Pipeline Company Chevron owns an approximate 23 percent equity interest in the Colonial Pipeline Company. The Colonial Pipeline system runs from Texas to New Jersey and transports petroleum products in a 13-state market. At December 31, 2008, the company's carrying value of its investment...

  • Page 76
    ...Depreciation expense includes accretion expense of $430, $399 and $275 in 2008, 2007 and 2006, respectively. Primarily mining operations, power generation businesses, real estate assets and management information systems. Note 14 Accounting for Buy/Sell Contracts The company adopted the accounting...

  • Page 77
    ...to the environment from the oil exploration and production operations, and seeks unspecified damages to fund environmental remediation and restoration of the alleged environmental harm, plus a health monitoring program. Until 1992, Texaco Petroleum Company (Texpet), a subsidiary of Texaco Inc., was...

  • Page 78
    ... low tax rate on the sale of downstream assets in Europe. The change in "Other" from a negative 1.8 percent to a negative 0.7 percent primarily related to a lower effective tax rate on the sale of the company's investment in Dynegy common stock in 2007. The company records its deferred taxes on...

  • Page 79
    ... were as follows: United States - 2003, Nigeria - 1994, Angola - 2001 and Saudi Arabia - 2003. On the Consolidated Statement of Income, the company reports interest and penalties related to liabilities for uncertain tax positions as "Income tax expense." As of December 31, 2008, accruals of $276 for...

  • Page 80
    ...outstanding under these credit agreements during 2008 or at year-end. At December 31, 2008 and 2007, the company classified $4,950 and $4,382, respectively, of short-term debt as long-term. Settlement of these obligations is not expected to require the use of working capital in 2009, as the company...

  • Page 81
    ...FAS 132(R)-1 will depend on the company's plan assets at that time. Note 20 Accounting for Suspended Exploratory Wells The company accounts for the cost of exploratory wells in accordance with FASB Statement No. 19, Financial and Reporting by Oil and Gas Producing Companies (FAS 19), as amended by...

  • Page 82
    ... charged to expense Other reductions* Ending balance at December 31 *Represent property sales and exchanges. $ 1,660 $ 1,239 $ 1,109 643 486 446 (49) (136) - $ 2,118 (23) (42) - $ 1,660 (171) (121) (24) $ 1,239 government approval of the plan of development received in fourth quarter 2008...

  • Page 83
    ...restored options were granted under the LTIP. No further awards may be granted under the former Texaco plans. Unocal Share-Based Plans (Unocal Plans) When Chevron acquired Unocal in August 2005, outstanding stock options and stock appreciation rights granted under various Unocal Plans were exchanged...

  • Page 84
    ...other investment alternatives. The company also sponsors other postretirement (OPEB) plans that provide medical and dental benefits, as well as life insurance for some active and qualifying retired employees. The plans are unfunded, and the company and retirees share the costs. Medical coverage for...

  • Page 85
    ... Balance Sheet for the company's pension and other postretirement benefit plans at December 31, 2008 and 2007, include: Pension Benefits 2008 U.S. Int'l. U.S. 2007 Int'l. Other Benefits 2008 2007 Deferred charges and other assets Accrued liabilities Reserves for employee benefit plans Net...

  • Page 86
    Notes to the Consolidated Financial Statements Millions of dollars, except per-share amounts Note 22 Employee Benefit Plans - Continued The components of net periodic benefit cost for 2008, 2007 and 2006 and amounts recognized in other comprehensive income for 2008 and 2007 are shown in the table...

  • Page 87
    ... in the expected long-term rate of return on plan assets since 2002 for U.S. plans, which account for 68 percent of the company's pension plan assets. At December 31, 2008, the estimated long-term rate of return on U.S. pension plan assets was 7.8 percent. The market-related value of assets of...

  • Page 88
    ...assess the plans' investment performance, longterm asset allocation policy benchmarks have been established. For the primary U.S. pension plan, the Chevron Board of Directors has approved the following percentage asset-allocation ranges: equities 40-70, fixed income/cash 20-60, real estate 0-15 and...

  • Page 89
    ... and 2006, respectively. Chevron also has a Long-Term Incentive Plan (LTIP) for officers and other regular salaried employees of the company and its subsidiaries who hold positions of significant responsibility. Awards under LTIP consist of stock options and other share-based compensation that are...

  • Page 90
    ... and take-or-pay agreements, some of which relate to suppliers' financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, drilling rigs, utilities, and petroleum products, to be used or sold in the ordinary course of the company's business...

  • Page 91
    ...ect increasing costs to abandon onshore and offshore wells, equipment and facilities, including an aggregate of $1,804 for 2006 through 2008 for the estimated costs to dismantle and abandon wells and facilities damaged by hurricanes in the U.S. Gulf of Mexico in 2005 and 2008. The long-term portion...

  • Page 92
    ..., 2008, the company classified $252 of net properties, plant and equipment as "Assets held for sale" on the Consolidated Balance Sheet. Assets in this category related to groups of service stations, aviation facilities, lubricants blending plants, and commercial and industrial fuels business. These...

  • Page 93
    Five-Year Financial Summary Unaudited Millions of dollars, except per-share amounts 2008 2007 2006 2005 2004 Statement of Income Data Revenues and Other Income Total sales and other operating revenues1 2 Income from equity affiliates and other income Total Revenues and Other Income Total ...

  • Page 94
    ... Summary Unaudited Worldwide - Includes Equity in Affiliates Thousands of barrels per day, except natural gas data, which is millions of cubic feet per day 2008 2007 2006 2005 2004 United States Gross production of crude oil and natural gas liquids1 Net production of crude oil and natural gas...

  • Page 95
    ...Asia-Pacific Costs Incurred in Exploration, Property Acquisitions and Development 1 Consolidated Companies United States International Africa AsiaPacific Indonesia Other Total Int'l. Affi liated Companies Total TCO Other Millions of dollars Calif. Gulf of Mexico Other Total U.S. Year Ended...

  • Page 96
    ... of the company's major equity affiliates. Capitalized Costs Related to Oil and Gas Producing Activities Consolidated Companies United States International Africa AsiaPacific Indonesia Other Total Int'l. Affiliated Companies Total TCO Other Millions of dollars Calif. Gulf of Mexico Other...

  • Page 97
    ... Related to Oil and Gas Producing Activities - Continued Consolidated Companies United States International Africa AsiaPacific Indonesia Other Total Int'l. Affiliated Companies Total TCO Other Millions of dollars Calif. Gulf of Mexico Other Total U.S. At Dec. 31, 2006 Unproved properties...

  • Page 98
    ...filiated Companies Total TCO Other Millions of dollars Calif. Gulf of Mexico Other Total U.S. Year Ended Dec. 31, 2008 Revenues from net production Sales $ 226 Transfers 6,405 Total 6,631 Production expenses excluding taxes (1,385) Taxes other than on income (107) Proved producing properties...

  • Page 99
    ... States International Africa AsiaPacific Indonesia Other Total Int'l. Affiliated Companies Total TCO Other Millions of dollars Calif. Gulf of Mexico Other Total U.S. Year Ended Dec. 31, 2006 Revenues from net production Sales $ 308 $ 1,845 $ 2,976 $ 5,129 $ 2,377 $ 4,938 Transfers 4,072...

  • Page 100
    ...RAC) that is chaired by the corporate reserves manager, who is a member of a corporate department that reports directly to the executive vice president responsible for the company's worldwide exploration and production activities. All of the RAC members are knowledgeable in SEC guidelines for proved...

  • Page 101
    ... trends. Apart from acquisitions, the company's ability to add proved reserves is affected by, among other things, events and circumstances that are outside the company's control, such as delays in government permitting, partner approvals of development plans, declines in oil and gas prices, OPEC...

  • Page 102
    ... and natural gas proved reserves, Chevron has a 20 percent nonoperated working interest in the Athabasca oil-sands project in Canada. As of year-end 2008, SEC regulations defined oil-sands reserves as mining-related and not a part of conventional oil and gas reserves. Net proved oil-sands reserves...

  • Page 103
    ...Great White Field in the deepwater Perdido Fold Belt area. In 2007, extensions and discoveries increased liquids volumes by 60 million barrels worldwide. The largest additions were 25 million barrels in the U.S. Gulf of Mexico, mainly for the deepwater Tahiti and Mad Dog fields. In 2008, extensions...

  • Page 104
    ...Table V Reserve Quantity Information - Continued Net Proved Reserves of Natural Gas Consolidated Companies United States International Africa AsiaPacific Indonesia Other Total Int'l. Affiliated Companies Total TCO Other Billions of cubic feet Calif. Gulf of Mexico Other Total U.S. Reserves...

  • Page 105
    ... of which was related to South Texas and the Piceance Basin, and the Gulf of Mexico added 111 BCF, partly due to the initial booking of reserves at the Great White Field in the deepwater Perdido Fold Belt area. In 2007, extensions and discoveries accounted for an increase of 518 BCF worldwide. The...

  • Page 106
    ... Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves - Continued Consolidated Companies United States International Africa AsiaPacific Indonesia Other Total Int'l. Affiliated Companies Total TCO Other Gulf of Mexico Total U.S. Millions of dollars Calif. Other...

  • Page 107
    ... the timing of production are included with "Revisions of previous quantity estimates." Consolidated Companies Affiliated Companies 2008 2007 2006 Millions of dollars 2008 2007 2006 Present Value at January 1 Sales and transfers of oil and gas produced net of production costs Development costs...

  • Page 108
    ...the Board since April 2009. Respon sible for business development; mergers and acquisitions; strategic planning; corporate compliance; policy, govern ment and public affairs; procurement; and the Project Resources Company. Previously Executive Vice President, Strategy and Development; Corporate Vice...

  • Page 109
    ... companies: Energy Technology, Information Technology and Technology Ventures. Previously Corporate Vice President, Strategic Planning; President and Managing Director, Chevron Upstream Europe, Chevron Overseas Petroleum Inc.; and Vice President, Gulf of Mexico Offshore Division, Texaco Exploration...

  • Page 110
    ...com/ cvx/index.html . Investor Information Securities analysts, portfolio managers and representatives of financial institutions may contact: Investor Relations Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA 94583-2324 925 842 5690 Email: [email protected] Publications and Other News...

  • Page 111
    ... Road, A2177 San Ramon, CA 94583-2324 Details of the company's political contributions for 2008 are available on the company's Web site, Chevron.com, or by writing to: Policy, Government and Public Affairs Chevron Corporation 6001 Bollinger Canyon Road, A2132 San Ramon, CA 94583-2324 Information...

  • Page 112
    ... Acquire Lease Start Construction Perform Technical Studies Make Investment Decision Conduct Exploratory Drilling Conduct Front-End Engineering and Design Confirm Discovery Select Development Plan Evaluate Development Options Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA...