Oil Providing Energy for Progress

The world has produced about 1 trillion barrels of oil to date. Over the next century or so, approximately 2 trillion barrels more are expected to be produced from conventional proved reserves and undiscovered conventional oil. Even more will be produced by Chevron and others from unconventional oil resources, such as extra-heavy oil in Venezuela, bitumen in Alberta and shale oil in the United States.

Oil and petroleum products have powered the world in the form of motor fuels for more than a century, and demand is expected to grow over the long term. Between now and 2030, global energy consumption is projected to increase about 33 percent, with oil and gas, along with coal, continuing to meet the largest part of that demand.

What Chevron Is Doing

Chevron has an exceptionally strong portfolio, with key operations in important oil and gas regions.

We are the largest private producer of oil in Kazakhstan, the top oil and natural gas producer in Thailand, the largest oil producer in Indonesia and the top leaseholder in the U.S. Gulf of Mexico.

In 2009, Chevron produced 2.7 million net oil-equivalent barrels per day from operations around the world.

We maximize the value of our base business assets and keep our operations safe by applying technology in efficient, cost-effective and innovative ways. Whether setting a record depth for a test in the deepwater U.S. Gulf of Mexico or enhancing the production of crude oil from a mature field, our technology and the skill of our employees allow us to bring new oil to market.

Developing Energy Sources Around the Globe

Since 2002, Chevron has added more than 9 billion barrels of oil-equivalent to its resource base. We have major capital projects around the world, strategically located in regions with some of the greatest upstream growth potential in the world.

Africa

In Africa, the company is engaged in exploration and production activities in Angola, Chad, Democratic Republic of the Congo, Nigeria and Republic of the Congo. Net oil-equivalent production of 433,000 barrels per day during 2009 in these countries represented 16 percent of the companywide total. Chevron is involved in several projects in different stages of development. Two recently reached important milestones.

Agbami Project, Nigeria – As one of the largest deepwater discoveries in Nigeria, Agbami reached maximum total liquids production rate of 250,000 barrels per day in August 2009.

Tombua and Landana, Angola – We announced first oil from Tombua-Landana in September 2009. Development drilling is expected to continue, and maximum total production is expected to reach 100,000 barrels of crude oil per day in 2011.

Asia

Major oil producing countries in the Asia region include Azerbaijan, Bangladesh, Indonesia, Kazakhstan, the Partitioned Zone located between Saudi Arabia and Kuwait, and Thailand. Net oil-equivalent production of more than 1 million barrels per day during 2009 in these countries represented more than about 40 percent of the companywide total.

Tengiz Sour Gas Injection and Second Generation Plant, Kazakhstan – In 2009, Tengizchevroil (TCO) continued to ramp up production from the Sour Gas Injection and Second Generation Plant facilities that were completed the year before. This significant expansion project increased total TCO production capacity by approximately 80 percent.

Duri Field Expansion, Indonesia – Already one of the world's largest steamflood developments, expansion of the Duri Field continues as projects are implemented to sustain production and increase oil recovery. The North Duri Development Area 12 achieved first steam injection in June 2009, and the ramp-up of steam injection is expected to continue through 2010.

Partitioned Zone Steamflood Project – In June 2009, the initial steam injection began at the Large-Scale Pilot Steamflood Project at the Wafra Field in the Partitioned Zone. The project is designed to determine the technical and economic viability of thermal-recovery projects in the carbonate reservoir and, if successful, could significantly increase recoverability of the heavy oil.

South America

In South America, Chevron has oil production in Argentina, Brazil and Venezuela.

Frade Project, Brazil – First production at Frade, Chevron's first operated deepwater development in Brazil, was announced in June 2009. With continuing development drilling, Frade is expected to achieve peak total production of 68,000 barrels of crude oil and 25 million cubic feet of natural gas per day.

North America

Chevron's U.S. portfolio is anchored by producing assets concentrated in California, the Gulf of Mexico, Louisiana, Texas, New Mexico, the Rocky Mountains and Alaska. The company was the third-largest hydrocarbon producer in the United States during 2009, with net oil-equivalent production averaging 717,000 barrels per day. Net oil-equivalent production in the United States during 2009 represented approximately one-fourth of the companywide total.

In Canada, Chevron has ownership interests in oil sands projects at Athabasca and Ells River in the province of Alberta, exploration and development projects offshore in the Atlantic region, and exploration and discovered resource interests in the Mackenzie Delta and Beaufort Sea region of Canada's western Arctic. Chevron's net daily production in 2009 from Canadian operations was 27,000 barrels of crude oil, 4 million cubic feet of natural gas and 26,000 barrels of bitumen from oil sands.

U.S. Gulf of Mexico Deepwater Projects – Chevron is one of the leading producers in the deepwater Gulf of Mexico, averaging net crude oil production of 97,000 barrels per day. In 2009, peak production rates were achieved at two significant new deep water developments — Blind Faith and Tahiti, which achieved first oil in May 2009. Blind Faith is the company's deepest operated offshore production facility, located in 6,500 feet (1,981 m) of water. Two major capital projects — Jack & St. Malo and Big Foot — have moved well into the front-end engineering and design phase, and first oil is expected in the first half 2010 at the nonoperated joint venture Perdido.

California, U.S. – Chevron is the largest producer of net oil-equivalent in California at 211,000 barrels per day, with heavy oil making up about 84 percent of production. The company applies thermal recovery techniques using steam to increase oil recovery. Heat management is a major operational focus in the recovery of these reserves, with emphasis on improved energy efficiency. At the San Ardo Field, the construction phase of a multi-year steamflood project designed to boost production was essentially completed.

Athabasca Oil Sands Expansion Project, Canada – This 100,000-barrel-per-day expansion is expected to increase the project's bitumen production capacity to more than 255,000 barrels per day in late 2010. Extracted from the mined oil sands, bitumen* is upgraded into synthetic crude.