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Oil

Providing Energy for Progress

The world has produced 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, unconventional resources and as-yet-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 continues to grow. Between now and 2030, global energy consumption is projected to jump more than 50 percent, with oil and gas, along with coal, continuing to meet the largest part of that demand.

What a Barrel of Crude Oil Makes

Oil is a key ingredient in making thousands of products that make our lives easier.

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*Includes both home heating oil and diesel fuel

**Heavy oils used as fuels in industry, marine transportation, and for electric power generation

Figures are based on average yields for U.S. refineries in 2005. One barrel contains 42 gallons of crude oil. The total volume of products made is 2.7 gallons greater than the original 42 gallons of crude oil. This represents "processing gain."

Source: API.org

What Chevron Is Doing

Chevron has an exceptionally strong portfolio, with key operations in important oil and gas regions. Combined assets give us a world-class position in resources, reserves and production.

We are the largest private producer of oil and gas in Kazakhstan and Thailand, and we are the top crude producer in Indonesia. In Australia, we are the largest leaseholder of undeveloped natural gas resources. We also are a top leaseholder in the Gulf of Mexico.

At the end of 2007, Chevron's worldwide net proved crude oil and natural gas reserves were 10.8 billion barrels of oil-equivalent. During the year, we produced 2.62 million barrels per day of oil-equivalent from more than 20 different countries 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 well test in the deepwater U.S. Gulf of Mexico or enhancing the production of crude oil from a mature field, our cutting-edge technology enables us to bring new volumes of oil to the marketplace.

Developing Energy Sources Around the Globe

Chevron is aggressively capitalizing on recent discoveries. For the past six years, we have added an average of approximately 1 billion barrels of oil-equivalent per year to our resource base through our exploration program. We have about 40 major capital projects around the world with a net Chevron investment exceeding $1 billion each and more than 35 projects that exceed $200 million each. These projects are strategically located in regions with some of the greatest upstream growth potential in the world.

Africa

Angola LNG – The liquefied natural gas (LNG) project, in which Chevron has a 36.4 percent interest, will collect and transport natural gas located offshore Angola to an onshore liquefaction plant located in the country's Soyo region. The project is designed with the capacity to process 1 billion cubic feet of natural gas a day and produce approximately 5.2 million metric tons a year of LNG and related gas liquids products. First LNG production is anticipated in 2012.

Agbami Project, Nigeria – First production is slated for the third quarter of 2008. Maximum total daily production of approximately 250,000 barrels of crude oil and natural gas liquids is anticipated within one year after startup.

Asia-Pacific

Tengiz Sour Gas Injection and Second Generation Plant, Kazakhstan – The first phase of these expansion projects occurred in 2007, increasing crude-oil production capacity by 90,000 barrels per day, to approximately 400,000. These projects are expected to have a total cost of about $7.2 billion and are designed to increase gross production capacity to 540,000 barrels of oil equivalent per day in the second half of 2008. In addition, daily capacities of natural gas and natural liquids production are expected to increase to 760 million cubic feet and 46,000 barrels, respectively. Chevron holds a 50 percent interest in the project.

Chuandongbei Natural Gas Area, China – In 2007, Chevron signed a 30-year production-sharing contract for the development of the Chuandongbei natural gas area in the onshore Sichuan Basin. The area has an estimated resource base of 5 trillion cubic feet of natural gas. Design capacity at the proposed gas plants is expected to be 740 million cubic feet of natural gas per day. Chevron will take over the role of operator and hold a 49 percent interest in the project.

Greater Gorgon Area Development, Australia – Chevron holds significant equity interests in the large natural-gas resource of the Greater Gorgon Area, off the northwest coast of Australia. The company holds a 50 percent interest across most of the area and is the operator of the Gorgon development. The project's updated design includes plans for a three-train, 15 million-metric-ton-per-year LNG configuration.

South America

Frade Project, Brazil – Subsea installation activities began in early 2008 on this $2.8 billion deepwater project, our first offshore development in the country. Chevron holds a 51.7 percent operated interest in the project. Estimated maximum total daily production of 85,000 barrels of crude oil and 300 million cubic feet of natural gas is anticipated in 2011.

North America

Tahiti Deepwater Project, United States – The Tahiti field, discovered off the coast of Louisiana, is believed to be one of the Gulf of Mexico's largest deepwater discoveries, with potentially recoverable volumes of 400 million to 500 million oil-equivalent barrels. This $4.7 billion project is anticipated to create a peak production of 125,000 barrels of oil per day and 70 million cubic feet of natural gas. First oil is expected in 2009. Chevron holds a 58 percent operated interest.

Blind Faith Project, United States – Blind Faith is estimated to contain more than 100 million potentially recoverable oil-equivalent barrels and will be Chevron's deepest offshore producing facility. Chevron holds a 75 percent interest in and is the operator of the project.

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 2010. Extracted from the mined oil sands, bitumen¹ is upgraded into synthetic crude. Chevron is a 20 percent partner in the project.