Chevron 2014 Annual Report Download - page 5

also see additional production from
ramp-ups at Tubular Bells in the Gulf
of Mexico, the Bibiyana expansion in
Bangladesh and our Escravos gas-to-
liquids facility in Nigeria, all of which
started up in 2014. We also expect
the startup in 2015 of our Gorgon
liquefied natural gas project offshore
Western Australia, and we will ramp
up production from our Permian
Basin assets in the United States.
In exploration we’re positioning
ourselves for growth. We had a
successful year in 2014
, including
two significant Gulf of Mexico
discoveries in the deep water —
Guadalupe and Anchor — as well as
promising discoveries in Australia,
Canada and the Permian Basin.
In downstream and chemicals we
ranked No. 1 in earnings per barrel
relative to our peers. We are benefiting
from improved reliability and targeted
growth efforts. We made reliability
investments at several refineries,
including in El Segundo, California,
and Salt Lake City, Utah. We started
up the Pascagoula, Mississippi, base
oil facility this year, making Chevron
the world’s largest premium base
oil producer. Oronite completed a
major expansion in Singapore, which,
when combined with earlier growth
initiatives, doubled the plant’s original
additives production capacity. Chevron
Phillips Chemical, our joint venture,
started up a new 1-hexene plant in
Texas, where it also broke ground
on a new ethane cracker and two
polyethylene facilities.
We enter 2015 with the financial
strength to meet the challenges of a
volatile crude oil price environment.
We have significant efforts underway
to manage to a lower cost structure
and capital spend rate. We announced
a 2015 capital and exploratory budget
of $35 billion. The 2015 budget is 13
percent lower than total investments
for 2014, reflecting our focus on being
more selective with our investments in
the current lower-price environment.
We remain committed to delivering
world-class safety, operational and
environmental performance in our
businesses. In 2014 we delivered our
best overall year in personal safety,
as measured by recordable injuries
and injuries requiring time away
from work, and in process safety
as measured by loss of containment
incidents. We also had record lows
in our process fires, petroleum spill
volume and motor vehicle crash rate.
In the last decade our Days Away
From Work Rate has declined by
83 percent, our Total Recordable
Incident Rate has improved by 55
percent, and our Motor Vehicle Crash
Rate has declined by 50 percent.
We are just as determined to maintain
our strong social performance,
recognizing that healthy businesses
require healthy communities. We
will continue to invest in projects
and local goods and services, create
jobs, and generate revenues for the
communities in which we work. Beyond
our direct business investments and
taxes, we will continue strategic social
investments. Over the past nine years
we have contributed approximately
$1.7 billion in social investments, with
a special focus on three core areas —
health, education and economic
development — to develop skilled
workers, improve access to health
care, and boost local and regional
economies. More details about these
investments are available in the 2014
Corporate Responsibility Report.
As always, The Chevron Way provides
a roadmap for how we conduct our
business, setting our vision to be
the global energy company most
admired for its people, partnership
and performance. It establishes
the values by which we deliver our
results, including acting with integrity,
promoting diversity, and protecting
people and the environment. By
following The Chevron Way we will
continue to create enduring value
for the communities where we
operate and for our stockholders.
The progress we made this past year is
due to the hard work and determination
of our workforce. All of us at Chevron
are committed to excellence in
everything we do. The end result is
the strong performance we delivered
in 2014.
Thank you for investing in Chevron.
John S. Watson
Chairman of the Board and
Chief Executive Officer
February 20, 2015
John
S
Watson
We enter 2015 with the financial strength to meet the
challenges of a volatile crude oil price environment. We have
significant efforts underway to manage to a lower cost
structure and capital spend rate.
Chevron Corporation 2014 Annual Report 3