Chevron 2013 Annual Report Download - page 5

Chevron Corporation 2013 Annual Report 3
In downstream and chemicals,
we continued to benefit from the
investments we have made in
our refining system and from our
competitive position in additives,
petrochemicals and lubricants. In
2013 we ranked No. 2 in earnings
per barrel relative to our peer group.
And we neared completion on the
construction of our Pascagoula Base
Oil Plant, which will position us as the
world’s leading supplier of premium
base oil when it starts up in 2014.
We also reached final investment
decision on Chevron Phillips Chemical
Company’s (CPChem) U.S. Gulf Coast
ethylene cracker and derivatives unit.
These projects allow CPChem to take
advantage of the growth in U.S. shale
gas and associated ethane.
Delivering results the right way is a
responsibility that our company takes
seriously. Our Operational Excellence
Management System guides us as we
seek to achieve increasingly higher
levels of safety, operational and
environmental performance. This
focus helped us deliver our lowest
number on record of serious process
safety-related loss-of-containment
events and liquid spills. In 2013 we
continued to be a leader in personal
safety as measured by injuries
requiring time away from work.
Despite statistically strong safety
performance, we are not yet incident-
free. In 2013 we undertook extensive
actions to enhance process safety to
prevent serious incidents. Chevron is
deeply committed to our goal of zero
incidents and achieving world-class
performance in all measures of safety.
Meeting the world’s long-term
demand for energy requires significant
investment. We enter 2014 with a
capital and exploratory budget of
$39.8 billion. This reflects the
company’s confidence in our
unparalleled queue of projects that
will help us deliver valuable growth.
Chevron’s capital investments enable
us to grow our production while
continuing to deliver industry-leading
performance. We anticipate that
2014 will be the peak year for spending
on our Australian LNG projects as we
move them closer to first production.
Overall, our long-term production
growth outlook is compelling, and we
are investing today in projects that
will deliver production, cash flow and
earnings growth to the end of the
decade.
Chevron’s business success is deeply
linked to society’s progress. We partner
with governments, nongovernmental
organizations and communities to build
beneficial and enduring relationships,
manage the impacts of our operations,
and invest in programs to create
measurable and lasting value. Our
business and social investments
boost local economies by creating
jobs, improving livelihoods and
supporting local businesses. Beyond
direct business investment and
taxes, over the past eight years we
contributed almost $1.5 billion to
local communities through social
investments that foster economic
growth, with a significant focus on
health, education and economic
development programs. You can
find more information in our 2013
Corporate Responsibility Report.
The men and women of Chevron
are committed to our vision of being
the global energy company most
admired for its people, partnership
and performance. We remain
focused on finding and producing the
affordable, reliable energy that drives
global economic growth and human
prosperity. And due to our unparalleled
project portfolio and proven business
strategies, I am confident that we are
strongly positioned to contribute to
these aspirations, as well as create
enduring value for our stockholders.
Thank you for investing in Chevron.
John S. Watson
Chairman of the Board and
Chief Executive Officer
February 21, 2014
Overall, our long-term production growth outlook is
compelling, and we are investing today in projects that
will deliver production, cash flow and earnings growth
to the end of the decade.