Chevron 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 Chevron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

2010 Supplement
to the Annual Report

Table of contents

  • Page 1
    2010 Supplement to the Annual Report

  • Page 2
    ... Highlights United States Other Americas Africa Asia Australia Europe Gas Operating Data 47 48 50 50 51 52 53 Downstream Highlights Refining and Marketing Lubricants Trading Chemicals Transportation Operating Data 59 60 60 61 Other Businesses Technology Power Generation Chevron Energy Solutions...

  • Page 3
    ... Plant Project in Kazakhstan. The company also reached final investment decision on a number of major capital projects, including Jack/St. Malo, Big Foot and Tahiti 2 in the Gulf of Mexico; PapaTerra in Brazil; and expansion of the Caspian pipeline in Kazakhstan and Russia. Natural gas projects...

  • Page 4
    ...per-share amounts Year ended December 31 2010 2009 2008 2007 2006 $2.84 2.40 1.80 1.20 Net income attributable to Chevron Corporation Sales and other operating revenues Cash dividends - common stock Capital and exploratory expenditures Cash provided by operating activities Working capital...

  • Page 5
    ... dollars Year ended December 31 2010 2009 2008 2007 2006 Sales & Other Operating Revenues Billions of dollars 300.0 Revenues and Other Income Sales and Other OperatinU Revenues1,2 Gasoline Jet fuel Gas oil and kerosene Residual fuel oil Other refined products Total Refined Products Crude oil...

  • Page 6
    ... 09 10 Year ended December 31 Millions of dollars 2010 2009 2008 2007 2006 United States International Worldwide Downstream Earnings Billions of dollars 4.5 Balance at January 1 Net income attributable to Chevron Corporation Cash dividends Adoption of new accounting standard for stripping...

  • Page 7
    ...Consolidated Balance Sheet Millions of dollars At December 31 2010 2009 2008 2007 2006 Assets Cash and cash equivalents Time deposits Marketable securities Accounts and notes receivable, net Inventories Crude oil and petroleum products Chemicals Materials, supplies and other Total inventories...

  • Page 8
    ... Repayments of long-term debt and other financing obligations Net (purchases) sales of treasury shares Cash dividends - common stock Distributions to noncontrolling interests Net Cash Used for FinancinU Activities Effect of Exchange Rate Changes on Cash and Cash Equivalents Net ChanUe in Cash and...

  • Page 9
    ... Capital and Exploratory Expenditures (Includes equity share in affiliates) Millions of dollars Year ended December 31 Capital & Exploratory Expenditures* Billions of dollars 25.0 2010 2009 2008 2007 2006 United States Exploration Production Other Upstream1 Refining Marketing Chemicals Other...

  • Page 10
    ...$ 7,506 (275) 7,231 All Other Downstream Upstream 5 6 7 Includes reclassifications to/from other asset accounts. Includes reclassification adjustments for "Assets held for sale" in 2008. Includes net investment in unproved oil and gas properties: $ 5,081 $ 5,321 $ 5,367 $ 4,927 $ 5,218...

  • Page 11
    ... (net of excise taxes)/Average number of employees (beginning and end of year). 2006 to 2009 conformed to 2010 segment presentation. Includes a realignment of accounts receivable from Downstream to Upstream that reflects Upstream equity crude marketed by Downstream: United States International Total...

  • Page 12
    ... new legacy positions and commercialize the company's equity natural gas resource base while growing a high-impact global gas business. Photo: Natural gas/fuel-oil fired steam generators for the Large-Scale Steamflood Pilot at the First Eocene heavy-oil carbonate reservoir in the Partitioned Zone...

  • Page 13
    ... projects. Achieving superior exploration success. Growing and developing equity gas resource base. Identifying, capturing and effectively incorporating new core upstream businesses. 2010 Accomplishments Worldwide • Achieved a world-class safety record in the days-away-from-work performance...

  • Page 14
    ... final investment decisions for the Big Foot, Jack/St. Malo and Tahiti 2 deepwater projects. - Added 42 offshore leases - 15 in the deep water and 27 on the shelf. • Reached agreement to acquire Atlas Energy, Inc. • Produced the company's 5 billionth barrel of net oil-equivalent production from...

  • Page 15
    .... - Nigeria - Continue drilling at Agbami to maintain plateau production. - Thailand - Achieve first production on the Platong Gas II Project. - United Kingdom - Reach final investment decision for the Clair Ridge development. - United States - Reach final investment decision for the Tubular Bells...

  • Page 16
    ...efficiency. The Kern River Field, a mature steamflood operation, had total average daily production from company-operated leases of 75,000 barrels of crude oil (74,000 net) and 2 million cubic feet of natural gas (2 million net). The company drilled 165 infill wells at Kern River in 2010 and planned...

  • Page 17
    ... company. Mississippi Texas Louisiana Houston New Orleans Pascagoula 15,000 feet (4,572 m), near producing infrastructure. A total of 27 new Outer Continental Shelf leases were added to the exploration portfolio following the Gulf of Mexico Lease Sale 213 (Central Planning Area) in further support...

  • Page 18
    ...FEED activities continued in 2010 and a final investment decision was reached in October 2010. The facility is planned to have a design capacity of 177,000 barrels of oil-equivalent per day to accommodate production from the Jack/St. Malo development, which is estimated at a maximum total daily rate...

  • Page 19
    ... (13-km) pipeline to transport the natural gas to a gathering system was completed in 2008, and construction of compression and dehydration facilities to process 65 million cubic feet per day of natural gas production was completed in 2009. The 2010 work plan focused on optimization of the existing...

  • Page 20
    ... synthetic oil using hydroprocessing technology. Expansion of the Scotford Upgrader, also part of the project, is expected to be completed in second quarter 2011. GREENLAND HUDSON BAY UNITED STATES Chevron Activity Highlight Crude Oil Field Oil Sands 18 Chevron Corporation 2010 Supplement...

  • Page 21
    ... barrels of crude oil (31,000 net) and 7 million cubic feet of natural gas (5 million net). In 2010, the company continued the development of El Trapial Field with sequential projects to reduce production declines. Brazil Chevron holds working interests in three deepwater fields in the Campos Basin...

  • Page 22
    ... reached in January 2010. Major construction contracts were awarded in 2010, and development drilling is expected to begin in the second-half 2011. First production is expected in 2013. When completed, the project would be Chevron's largest investment in Brazil. At the end of 2010, proved reserves...

  • Page 23
    ...South Nemba platform. Gas injection from the new platform is planned to start in 2014. Africa In Africa, the company is engaged in exploration and production activities in Angola, Chad, Democratic Republic of the Congo, Liberia, Nigeria and Republic of the Congo. Net daily oil-equivalent production...

  • Page 24
    ... Field in 2010 after a successful appraisal well was drilled in 2009. Infrastructure Shared by Blocks 0 and 14 Congo River Canyon Crossing Pipeline Chevron holds a 38.1 percent interest in the proposed pipeline designed to transport up to 250 million cubic feet per day of natural gas from Angola...

  • Page 25
    .... Work to lay a new pipeline to transport natural gas from Abiteye to the processing facilities at Escravos continued in 2010 with completion planned for fourth quarter 2011. The Dibi Long-Term Project is designed to integrate the existing Early Production System (EPS) facility, purchased in 2009...

  • Page 26
    ... per day. The project scope includes facilities required to develop the Sonam natural gas field in the Escravos area as well as expansion of the Escravos Gas Plant to include a third gas processing train. A final investment decision is expected in third quarter 2011. At the end of 2010, proved...

  • Page 27
    ...Chevron Interest Karachaganak Asia In Asia, Upstream activities are located in Azerbaijan, Bangladesh, Cambodia, China, Indonesia, Kazakhstan, Myanmar, the Partitioned Zone between Saudi Arabia and Kuwait, the Philippines, Russia, Thailand, Turkey, and Vietnam. Net daily oil-equivalent production...

  • Page 28
    ... total daily crude oil production by 250,000 to 300,000 barrels. FEED is scheduled for the second-half 2011, with a final investment decision anticipated in 2012. At the end of 2010, proved reserves had not been recognized for this expansion project. Karachaganak The Karachaganak Field is located in...

  • Page 29
    ... working interest in a PSC for the production of natural gas from the Yadana and Sein fields in the Andaman Sea. The company also has a 28.3 percent nonoperated interest in a pipeline company that transports the natural gas from Yadana to the Myanmar-Thailand border for delivery to power plants...

  • Page 30
    ...natural gas from the two Malay Basin PSCs for delivery to state-owned Petrovietnam. The project includes installation of wellhead and hub platforms, an FSO, field pipelines, a living quarters platform, and a central processing platform. The offshore development project entered FEED in 2010. Targeted...

  • Page 31
    ... In addition, the company operates two geothermal fields in West Java and a cogeneration plant in Sumatra. Chevron holds a nonoperated working interest in the offshore South Natuna Sea Block B, located northeast of the island of Sumatra. PHILIPPINES Total daily production in 2010 from all producing...

  • Page 32
    ... stored crude oil is either exported by tanker or transported by pipeline to the state-owned Balikpapan Refinery. The natural gas is transported by pipeline for use as fuel gas at the Balikpapan Refinery. The East Kalimantan PSC expires in 2018. The remaining production came from the deepwater West...

  • Page 33
    ... the end of 2011, Chevron expects to sign a 25-year renewable-energy contract with the government for the continued operation of the steam fields and to supply steam to the two geothermal power plants. IRAQ IRAN KUWAIT Partitioned Zone SAUDI ARABIA ARABIAN GULF Chevron Interest Crude Oil Field...

  • Page 34
    ... nearby Io/Jansz Field as one large-scale project. Development Construction and other activities for the Gorgon Project on Barrow Island progressed during 2010 with the awarding of approximately $25 billion of contracts for materials and services, clearing of the plant site, completion of the first...

  • Page 35
    ... domestic gas plant, both located at Ashburton North, along the West Pilbara coast. The company plans to supply natural gas to the facilities from two Chevron-operated licenses, comprising the majority of the Wheatstone Field and the nearby Iago Field. The maximum total daily production is expected...

  • Page 36
    ... for this discovery. Norway Production Chevron holds a 7.6 percent nonoperated working interest in the Draugen Field. Total daily average production in 2010 was 44,000 barrels of crude oil (3,000 net). Exploration In 2010, Chevron processed data from a 2-D seismic survey acquired over the PL 527...

  • Page 37
    .... In February 2010, the company sold its 10 percent interest in the nonoperated Laggan/Tormore discovery. In June 2010, Chevron relinquished its equity in the Torridon natural gas discovery. The 3-D seismic acquisition and processing was completed over the Clair Field Unit area, and interpretation...

  • Page 38
    Upstream Gas Gas Chesron's gas strategy is to commercialize the company's equity natural gas resource base while growing a high-impact global gas business. Significant progress was made in 2010 in reaching key milestones for the Gorgon and Wheatstone projects. In Africa, construction continued at ...

  • Page 39
    ... - 1,410 2011 Agbami 2 Platong Gas II 2012 Angola LNG Plant Chuandongbei Usan 2013 EGTL Papa-Terra North Rankin 2 2014-2016 Big Foot Block B Gas Development Gas Supply Expansion Project Gendalo-Gehem Gorgon LNG Trains 1-3 Jack/St. Malo12 Mafumeira Sul Wheatstone LNG Trains 1-2 1 The projects in...

  • Page 40
    ... Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Other Total Equity Share in Affiliates Total Worldwide Affiliates Europe Australia Asia Africa Other Americas United States *BOE (barrels of oil-equivalent) 2010 and 2009...

  • Page 41
    ... 82 109 2,667 United States Kazakhstan Nigeria Indonesia Thailand Angola Australia United Kingdom Partitioned Zone Others 25.6% 13.5% 9.2% 8.2% 7.8% 5.8% 4.0% 3.5% 3.5% 18.8% *Includes equity share in affiliates. Net Oil-Equivalent Production* Thousands of barrels per day 3000 2,763 2500 2000...

  • Page 42
    ... per day Year ended December 31 2010 2009 2008 2007 2006 United States Kazakhstan Nigeria Indonesia Angola Partitioned Zone Thailand United Kingdom Others 25.4% 15.1% 12.4% 9.7% 7.9% 4.9% 3.6% 3.3% 17.5% Consolidated Companies United States Alaska - Onshore - Offshore California Colorado...

  • Page 43
    ... Congo Nigeria Republic of the Congo Total Africa Asia Azerbaijan Bangladesh China Indonesia Kazakhstan Myanmar Partitioned Zone Philippines Thailand Total Asia Total Australia Europe Denmark Netherlands Norway United Kingdom Total Europe Total Consolidated Companies Equity Share in Affiliates TCO...

  • Page 44
    ...am OperatinU Data Gross Oil-Equivalent Production1 Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior...

  • Page 45
    ...dollars 80 Year ended December 31 2010 2009 2008 2007 2006 70 United States Exploration Development Other Americas Exploration Development Africa Exploration Development Asia Exploration Development Australia Exploration Development Europe Exploration Development Total Consolidated Companies...

  • Page 46
    ...Azerbaijan Bangladesh Cambodia China Georgia Indonesia Kazakhstan Myanmar Partitioned Zone Philippines Thailand Turkey Vietnam Total Asia Total Australia Europe Denmark Faroe Islands Germany Netherlands Norway Poland United Kingdom Total Europe Total Consolidated Companies Equity Share in Affiliates...

  • Page 47
    ... Crude Oil Net Productive Wells1,2 2010 2009 2008 2007 At December 31 2006 Consolidated Companies United States Oil Gas Total United States International Oil Gas Total International Total Consolidated Companies Equity Share in Affiliates Oil Gas Total Equity Share in Affiliates Total Worldwide...

  • Page 48
    Downstream Improve returns and grow earnings across the value chain. Photo: Continuous catalytic reformer, completed during 2010, at the Pascagoula, Mississippi, refinery.

  • Page 49
    ... at year-end (Thousands of barrels per day) U.S. gasoline and jet fuel yields (Percent of U.S. refinery production) Refined product sales (Thousands of barrels per day) Motor gasoline sales (Thousands of barrels per day) Natural gas liquids (NGLs) sales (Thousands of barrels per day) Number of...

  • Page 50
    ...refined product sales directly from Chevron's refineries. During 2010, the company discontinued sales of Chevron- and Texaco-branded motor fuels in the District of Columbia, Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia...

  • Page 51
    ... premium quality Caltex- and Texaco-branded fuel products to commercial and industrial, wholesale, aviation, and retail customers in Europe, Africa, the Middle East and the Asia-Pacific region. Serving the Crude-to-Customer Value Chain The International Products portfolio includes nine refineries...

  • Page 52
    ...-per-day premium base-oil facility at the company's Pascagoula, Mississippi, refinery. The final investment decision was reached in first quarter 2011 on the $1.4 billion project, and construction is scheduled to be completed by year-end 2013. This addition to Chevron's base-oil production capacity...

  • Page 53
    ... Chemical Company LLC (CPChem) and Chevron Oronite Company (Oronite). CPChem CPChem is a 50 percent-owned affiliate and is one of the world's leading producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals and piping. At year-end 2010...

  • Page 54
    ...from California refineries to other U.S. West Coast locations, Alaska and Hawaii. The foreign-flagged vessels are engaged in transporting crude oil from the Middle East, Asia, the Black Sea, Mexico and West Africa to ports in the United States, Europe, Australia and Asia, as well as refined products...

  • Page 55
    ... Crude Distillation Utilization1 (Includes equity share in affiliates) Percentage of average capacity Year ended December 31 Worldwide Refinery Utilization* Percent of capacity 100 2010 2009 2008 2007 2006 United States Africa-Pakistan Asia-Pacific Europe Other Worldwide 94.6 63.6 92.0 100...

  • Page 56
    ...day At December 31, 2010 Year ended December 31 Chevron Share of Refinery Inputs 2.2 2.0 2010 2009 2008 2007 2006 1.5 1.0 United States - Fuel Refineries/Asphalt Plant El Segundo, California Kapolei, Hawaii Pascagoula, Mississippi Perth Amboy, New Jersey1 Richmond, California Salt Lake City...

  • Page 57
    ... Chevron Share of Capacity1 Catalytic Cracking 3 Hydrocracking 4 Residuum Conversion 5 Lubricants 6 Thousands of barrels per day United States - Fuel Refineries/Asphalt Plant El Segundo, California Kapolei, Hawaii Pascagoula, Mississippi Perth Amboy, New Jersey7 Richmond, California Salt Lake City...

  • Page 58
    ... gasoline, jet fuel, gas oils and kerosene. Other Residual Fuel Oil Gas Oil & Kerosene Jet Fuel Gasoline *Includes equity in affiliates. Natural Gas Liquids Sales (Includes equity share in affiliates) Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 United States...

  • Page 59
    ... operated or leased to a dealer. Other outlets consist of all remaining branded outlets that are owned by others and supplied with branded products. 5000 0 Vessels - Crude Oil and Refined Product Tankers by Type, Dead-WeiUht TonnaUe1 2010 U.S. Int'l. U.S. At December 31 06 07 08 09 10 2009 Int...

  • Page 60
    Other Businesses 58 Photo: One of seven next-generation, Chevron Corporation 2010 Supplement to the Annual Report precommercial solar panel technologies installed at a solar evaluation project, Bakersfield, California.

  • Page 61
    ... improve operational efficiency in refining, production and reservoir recovery. Biofuels/Hydrogen • Completed a pilot project that utilized Chevron's hydroprocessing and Isodewaxing technologies to refine nonedible bio-oils into renewable fuel that meets road diesel specifications. • Concluded...

  • Page 62
    ... to optimize the use of a decommissioned refinery site for delivery of clean, renewable energy to the local utility provider. The global power organization also provides comprehensive technical services, utilizing state-of-the-art tools and technology, benefiting the company's power-generation...

  • Page 63
    ... the McKinley Mine in New Mexico. Coal Reserves Millions of tons 250 CANADA Youngs Creek Kemmerer UNITED STATES Questa McKinley North River MEXICO U.S. Coal Fields Mines - Coal Mine - Molybdenum ATLANTIC OCEAN 200 189 150 100 50 • Shared the 2010 Safety Innovator of the Year at the Questa...

  • Page 64
    ... crude oil and natural gas fields. Exploration Searching for crude oil and/or natural gas by utilizing geological and topographical studies, geophysical and seismic surveys, and drilling of wells. Gas-to-Liquids A process that converts natural gas into and asphalt refineries for the year expressed...

  • Page 65
    ... of Chevron Intellectual Property LLC. Investor Information If you have any questions regarding the data included herein, please contact: Chevron Corporation Investor Relations 6001 Bollinger Canyon Road, A3064 San Ramon, CA 94583-2324 925 842 5690 Email: [email protected] Chevron Corporation 2010...

  • Page 66
    ... Kazakhstan West Africa Worldwide United States Worldwide United States Worldwide Worldwide United States Affiliates Angola LNG Limited (36.4%) The Baku-Tbilisi-Ceyhan Pipeline Company (8.9%) Caltex Australia Limited (50%) Caspian Pipeline Consortium (15%) Catchlight Energy LLC (50%) Chevron...

  • Page 67
    ...exploration and production interests of the two companies in the Middle East and Indonesia and provide an outlet for crude oil through The Texas Compang's European markets. 1947 Acquired Signal Oil Compang, obtaining the Signal brand name and adding 2,000 retail stations in the western United States...

  • Page 68
    Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA 94583-2324 USA www.chevron.com Recycled Recyclable 912-0957