Chevron 2011 Annual Report Download - page 5

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Chevron Corporation 2011 Annual Report 3
We continued to build on our explo-
ration success in 2011. The success
rate of our exploration wells was
nearly 70 percent, exceeding our
10-year average, which is among the
best in our peer group. We added crude
oil and natural gas resources through
discoveries in six countries and added
1.7 billion barrels of net oil-equivalent
proved reserves, replacing 171 percent
of production in 2011.
In our global downstream and chemicals
business, we ranked No. 1 in earnings
per barrel in 2011, refl ecting a strategic
focus on reshaping our global portfolio
to improve effi ciency, enhance market
focus and grow returns. We also ranked
No. 1 in refi nery utilization for the third
straight biennial Solomon Associates
refi nery benchmark study. We advanced
work on our Pascagoula Base Oil Plant
that, when completed in 2013, will
make us the world’s leading supplier
of premium base oil. We also made
progress on the expansion of our
Oronite additives plant in Singapore.
Underpinning our operations is a focus
on developing new technologies that
create business value and competitive
advantage. We advanced a breakthrough
dual-gradient drilling technology to
improve access to deepwater assets
and elevate deepwater drilling safety
and environmental standards that is
on track for initial deployment on the
Big Foot project in 2012. In the
Partitioned Zone, between Kuwait and
Saudi Arabia, we progressed a pilot
project to enhance production of heavy
oil through industry-leading steamfl ood
technology, building on our success in
Indonesia and the San Joaquin Valley
in California. We continue to pursue a
variety of next-generation technologies
with partners that include businesses,
universities and national laboratories.
Over the past decade, we’ve gone
from trailing the industry in safety
to becoming one of its leaders as a
result of our broader commitment to
operational excellence — the safety
of our people, the reliability of our
operations and environmental
stewardship. To achieve our goal of
zero incidents, we have deployed
systems and processes that helped
drive down injury rates to industry-
leading levels. We take pride in what
we’ve achieved, but we expect continual
improvement in how we manage risk.
Even with this emphasis, we are not
incident-free. We rigorously investigate
all incidents to strengthen our ability to
recognize and reduce risk and achieve
what we strive for — doing things the
right way every time. I am committed
to meeting our world-class standards
in safety and operational excellence,
and I know that the men and women of
Chevron join me in that commitment.
Meeting the world’s long-term demand
for energy requires signifi cant invest-
ments. We move into 2012 with a
$32.7 billion capital and exploratory
budget. This refl ects our confi dence
in an unparalleled project queue and
is supported by our strong fi nancial
position and operational performance.
Also important to our future are
the investments we make in the
communities where we operate. Our
business generates immense value
by creating jobs and supporting local
business development. We also make
strategic social investments focused on
building stronger communities through
partnerships in the areas of health,
education and economic development.
One of our larger social investments in
2011 was a $20 million commitment to
eliminate mother-to-child transmission
of HIV in Angola, Nigeria and South
Africa. All told, we deployed nearly
$1 billion in worldwide community
investments over the past six years.
I encourage you to read more about
these investments in our companion
publication, the 2011 Corporate
Responsibility Report.
Affordable energy underpins economies
and generates progress
and prosperity.
The people of Chevron
remain focused
on fi nding and producing affordable
energy safely, reliably and effi ciently.
This is a responsibility that our company
takes seriously. We are committed to
growing our business, contributing to
global economic expansion, building
stronger communities and creating
enduring value for our stockholders.
Thank you for investing in Chevron.
John S. Watson
Chairman of the Board and
Chief Executive Offi cer
February 23, 2012
John S. WatsonJohn S. Watson