our history

see where we’ve been

and where we’re going

chevron history

Our company has a long, robust

history that began when a group of

explorers and merchants established

the Pacific Coast Oil Co. on

September 10, 1879.

Since then, our company’s name has

changed more than once, but we’ve

always retained our founders’ spirit,

grit, innovation and perseverance.

chevron history

Chevron’s earliest predecessor, Pacific Coast Oil Co., was incorporated in 1879 in San Francisco. The first logo contained the company name against

a backdrop of wooden derricks set among the Santa Susana Mountains that loomed over Pico Canyon. This was the site of the company’s Pico No. 4

Field, California’s earliest commercial oil discovery.

leading the way

the quest for black gold

Spurred by memories of the gold rush, hordes of prospectors

descended on California in the 1860s, seeking another kind of

bounty – black gold, or oil. Their early efforts were fruitless.

Undeterred, petroleum pioneers Demetrius Scofield and

Frederick Taylor of the California Star Oil Works, a Chevron

predecessor, took aim at Pico Canyon, a remote portion of the

rugged Santa Susana Mountains. In September 1876, driller

Alex Mentry succeeded in striking oil in Pico No. 4.

The first successful oil well in California, Pico No. 4 launched

California as an oil-producing state and demonstrated the

spirit of innovation, ingenuity, optimism and risk-taking that

has marked the company ever since.

Lacking the capital it would need to seize marketing opportunities

in this growing area, California Star was acquired by the Pacific

Coast Oil Co. (PCO), which led to PCO’s new incorporation on

September 10, 1879.

Within the next year, PCO built its first refinery at Point Alameda

on San Francisco Bay; constructed a pipeline that linked Pico

1876–1911

Canyon with the Southern Pacific’s train station at Elayon

in Southern California; and undertook an extensive, largely

successful drilling program.

In 1895, the company initiated its enduring marine history when it

built California’s first steel tanker, the

George Loomis

, which could

ship 6,500 barrels of crude between Ventura and San Francisco.

a new force enters the region

In 1878, Standard Oil Co. opened a three-person, second-story

office in San Francisco. Despite its modest trappings, Standard

possessed marketing acumen, outstanding products, an

aggressive advertising philosophy and financial backing

from its New York parent.

By 1885, it consolidated its Western interests under its subsidiary,

the Standard Oil Co. (Iowa), which controlled distribution stations

throughout the West Coast.

Lacking Standard Iowa’s marketing savvy and financial clout, PCO

in 1900 agreed to be acquired by Standard Oil Co. (New Jersey),

while retaining the name of Pacific Coast Oil Co.

chevron history

richmond’s colossal refinery

After buying 500 acres of rolling lands on the northeast

shore of San Francisco Bay in 1901, the company completed

the Richmond Refinery a year later. To feed this new colossus

of West Coast refineries, it laid a pipeline from Richmond to

the prolific new oil fields at Kern River and Coalinga.

a new entity is born

As the company grew, it changed structurally. In 1906, a

consolidation between PCO and Standard Iowa created a

new entity, Standard Oil Co. (California), finalizing an

integration that had existed for six years.

The “new” company stepped up its marketing efforts, particularly

in gasoline sales, which nearly doubled between 1906 and

1910, and lubricants, which were marketed under the Calumet,

Diamond, Petrolite, Ruddy Harvester, Zerolene and Zone labels.

To meet the growing market for motor fuels, the company came

up with a revolutionary new sales mechanism – the world’s first

“service station,” started in Seattle by sales manager John McLean.

the first gusher

Until now, Standard had left the hunt for oil to others. In 1909, the

company decided to gamble on its ability to find its own oil. After

several initial failures, the drilling team had its first success on

January 22, 1910, when a gusher flowed in at 1,500 barrels a

day at the Midway-Sunset Field in Kern County, California.

going it alone

The company’s expertise in searching for oil became increasingly

important as a May 1911 Supreme Court decision separated

Standard Oil Co. (California) from its parent company, Standard

Oil Co. (New Jersey).

Before the end of 1911, Standard Oil Co. (California) added to its

refining capacity with the completion of the El Segundo Refinery

in Southern California; formed the California Natural Gas Co. to

expand its search for natural gas in the San Joaquin Valley and

beyond; and constructed a second pipeline linking Richmond and

the Kern River Field.

chevron history

In this 1915 photo, a horse-drawn wagon loaded up at a Standard Oil Co. (California) station in Sausalito, California, for delivery of Red Crown Gasoline

and Pearl Oil to customers in the San Francisco Bay area. Throughout the early decades of the 20th century, the company’s quality product line

successfully served the U.S. West Coast market.

spirit of standard

a strong company in a dynamic market

Divested from its parent company in 1911, Standard Oil Co.

(California) had strong financial discipline, an impressive product

line, marketing savvy, a growing refining system, a flexible marine

fleet and an extensive pipeline network. One critical challenge

remained: finding the energy to meet spiraling demand in a

dynamic marketplace.

Fortunately, Standard had the right person for the job in Fred

Hillman, who became director of the Producing Department

in 1911. Within four years, Standard moved from sixth place to

first among California’s oil producers. And by 1919, Standard’s

production had grown to more than one quarter of the

state’s total.

Hillman’s earliest oil and gas exploration successes came at

Midway, where the company made seven discoveries in an

18-month period, including the largest, McNee No. 4, which

produced a record 30,000 barrels a day in April 1912.

1912–1926

new reserves to meet growing demand

After moving into the Los Angeles Basin, Hillman led his

exploration team in delivering five gushers at the Emery Field in

the West Coyote Hills between December 1912 and October 1913.

By 1917, Standard had added two other great Southern California

discoveries in the Montebello and Baldwin No. 3 fields.

The company’s efficiency and ability to find new reserves helped it

keep pace with the surging demand for energy products that was

fueled by the dramatic population growth and increased reliance

on automobiles throughout Standard’s marketing area. In January

1919, the company had the first of several discoveries in Elk Hills in

California’s San Joaquin Valley.

To serve markets in areas such as the Northwestern United States,

Standard more than doubled its oceangoing capacity between

1912 and 1916 by adding five tankers. By 1926, the fleet grew to 40

vessels, including 22 oceangoing tankers as well as stern wheelers,

launches, barges and tugs.

chevron history

coping with increased competition

Standard Oil Co. (California) also steadily expanded its service

station network. It became the Western leader by the end

of 1919 with a total of 218 stations, more than the next three

rivals combined. By 1926, the number of service stations in

the company’s five-state marketing area more than tripled

to 735 units.

Following upon the success of Red Crown automobile gasoline,

Standard introduced Red Crown aviation fuel in 1918, promoting

the product through advertisements and through wider

commitment to the growth of the aviation industry.

Standard excelled in developing new products, such as the line

of petrochemicals manufactured to support the Allied effort in

World War I.

Standard turned increasingly to international markets to

maintain its sales growth. Between 1911 and 1914, export

sales rose from 14% to 28% of the total business.

a new name for a growing company

In 1926, Standard boosted its production capacity by almost

50% when it acquired Pacific Oil Co., an organization that

handled the oil properties of Southern Pacific Railroad.

The company marked this achievement by creating a new

corporate structure with a new name – Standard Oil Co.

of California, or Socal.

One of the hallmarks of the newly named company continued to

be the respect and fairness with which it treated its employees.

This tradition of enlightened human relations dated back to the

company’s founders, who espoused favorable wages, hours and

working conditions for all company employees.

honoring the “standard oil spirit”

The fair treatment of company employees had a direct payoff

in morale. In 1919, 94% of the employees who had served in

World War I returned to work for the company at a time of high

employment and opportunities for workers.

Recognizing the cooperation and mutual confidence throughout

the company, President Kenneth Kingsbury in 1923 described this

all-important attribute as the “Standard Oil Spirit.”

chevron history

As the growing highway system encouraged longer car trips during the 1920s and 1930s, Standard service stations attracted motorists by adding such

amenities as clean, well-appointed restrooms and drinking fountains. With the introduction of the Standard Lubrication System, as well as Atlas tires,

headlight bulbs and standardized battery service, the stations offered a complete one-stop service.

in war and peace

a far-flung search for new reserves

With U.S. crude oil supplies depleted by the Allies’ military needs

during World War I, Socal began seeking oil and gas reserves

beyond U.S. shores in the postwar years. The long, intrepid quest

would take more than 10 years before the company made its first

international discovery in June 1932.

Undeterred, Socal focused on the Middle East, an area with

no history of discoveries and no obvious petroleum prospects.

The company gained its first foothold in the region in 1928 when

Gulf Oil Corporation offered its Bahrain concession to Socal.

After surveying the island, geologist Fred Davies and producing

superintendent William Taylor selected a 12-mile-long oval-

shaped depression called Jabal ad Dukhan, or the “Hill of

Smoke,” because its 453-foot mound was the highest point

on the island. Working in searing heat, the team met with

success on June 1, 1932.

next stop, Saudi Arabia

Also in June 1932, Socal began a year-long series of

negotiations with the Saudi government before the two

sides signed a concession agreement providing the company

1927–1946

with exploration rights for the next 60 years over an area of about

360,000 square miles.

After geologists surveyed the concession area, they identified a

promising site and named it Dammam No. 1, after a nearby village.

Over the next three years, the drillers were unsuccessful in making

a commercial strike, but chief geologist Max Steineke persevered.

He urged the team to drill deeper, even when Dammam No. 7

was plagued by cave-ins, stuck drill bits and other problems,

before the drillers finally struck pay dirt on March 3, 1938.

the birth of caltex

Socal already had a potential market for its Middle Eastern oil by

creating a historic partnership with Texaco in 1936.

The joint venture, which became known as the California Texas

Oil Company, or Caltex, melded the company’s Middle Eastern

exploration and production rights with Texaco’s extensive

marketing network in Africa and Asia.

The joint-venture partners also agreed to share exploration rights

in Central Sumatra, Java and Dutch New Guinea, which had been

granted to Socal in 1935.

chevron history

During the prewar years, Socal’s aggressive exploration program

extended to the Southeastern United States, where the California

Company, a Socal subsidiary, made its first discovery at Bayou

Barataria, Louisiana, in 1939.

moving forward in difficult times

To offset the Great Depression’s dramatic impact on earnings,

the company stimulated sales by bringing out solidly researched

new products, including Standard Gasoline in 1931, DELO oils in

1935 and RPM Motor Oil in 1936.

fueling the war effort

With the entry of the United States into World War II in December

1941, Socal became a key supplier of crude oil and refined

products for the Allies in the Pacific.

Meeting a key need for a more efficient aviation fuel, the company

spent more than $57 million to expand 100-octane plants at

the Richmond and El Segundo refineries and converted the

Bakersfield Refinery almost exclusively to 100-octane production.

World War II also created a boom in petrochemical demand. Socal

invested more than $9 million to boost production of synthetic

toluene – the second “T” in TNT.

During this time, women broke new ground, playing increasingly

important roles in offices, laboratories, refineries, service stations

and, occasionally, oil fields.

The efforts of employees received much praise from U.S. military

and government leaders, such as General Douglas MacArthur,

who wrote: “To the men and women of Standard Oil of California:

We, the soldiers of the firing line, give thanks to you soldiers

on the production line for the sinews of war that [made] our

victory possible.”

chevron history

A Standard Oil geologist examined a rock specimen in the Venezuelan Andes in 1958, where there was an effort to build on the discovery of oil at

the country’s Boscan Field a decade earlier. During the years following World War II, the company mounted an aggressive exploration program,

which led to discoveries as far ranging as the U.S. Gulf of Mexico, Canada, Saudi Arabia and Indonesia.

a new identity

focusing on worldwide exploration

The resumption of peace following World War II infused Socal

with new energy, new opportunities and an enterprising quest

for new oil and gas resources.

And the company’s high exploration success rate helped to

maintain its position as the third-largest oil producer in the

United States and the No. 1 producer in California. Particularly

encouraging news came from the jungles of Sumatra, where the

company learned that the Japanese occupying force had actually

struck oil at Minas No. 1, using a rig left behind by Caltex Pacific

Indonesia when crews vacated the area in 1941.

In late 1949, when Caltex Pacific finally resumed development of

the field, the company realized that Minas was an oil giant, which

would yield 1 billion barrels over a 17-year period, from 1952 to 1969.

In the decade following the war, Socal’s major U.S. discoveries

included the Kelly-Snyder Field in West Texas; the Main Pass,

Bay Marchand and Romere Pass fields in the offshore waters of

the Gulf of Mexico, where the company became the largest oil

producer as of 1949; and the Rangely Field in the Rockies

of Colorado.

1947–1979

pioneering in petrochemicals

In the postwar period, the company built on its position as a

major supplier of petrochemicals by developing a wide array

of new products.

In 1951, the company created the Oronite Chemical Co. to

market a growing output of petrochemicals. Three years

later, the Richmond Refinery became the nation’s first unit to

manufacture paraxylene, a basic material for making Dacron®

and other synthetic fibers.

an era of growth

Reflecting Socal’s growth in these postwar years, revenues

surpassed $1 billion for the first time in 1951. This growth

continued, initially topping $2 billion in 1961 and climbing to

almost $6 billion by 1969.

Throughout this period, Socal developed a wide range of new

products, including Chevron and Chevron Supreme Gasoline,

introduced in 1945; RPM motor oils in 1950; and Chevron Custom

Supreme, the first three-grade gasoline in the West, in 1959.

*Dacron® is a federally registered trademark of E.I. Du Pont de

Nemours and Company.

chevron history

extending the market

Socal’s marketing reach now extended far beyond the original

five-state base in the Western United States. After acquiring the

Perth Amboy Refinery in New Jersey in 1945, the company used it

as a manufacturing base a couple of years later when it launched

an expanded marketing network in 12 Eastern states through

its subsidiary, California Oil Co.

U.S. expansion continued in 1961 when the company merged

with Standard Oil Co. (Kentucky), the market leader in petroleum

products in five Southeastern states. To serve this market

with crude oil from fields in the Gulf of Mexico, the company

constructed the 100,000-barrel-a-day refinery in Pascagoula,

Mississippi, in 1963.

a new presence in Europe

In Western Europe, Socal agreed to dissolve the Caltex structure

in that area and split its operations between the two parent

companies, Socal and Texaco.

Paralleling the growth in marketing and producing operations,

the company enlarged and diversified its manufacturing

capabilities in the Eastern and Western hemispheres. At the

Richmond Refinery in 1965, the company launched the world’s

largest Isomax hydrocracking complex, which converted heavy

petroleum oils to light stocks used to make gasoline and

other products.

overcoming political disruptions

During the 1970s, the petroleum industry was confronted by many

political issues – from the 1973 oil embargo to the nationalization

of company assets by Libya, Venezuela and other oil producers.

Nevertheless, the decade was marked by numerous milestones,

including major discoveries ranging from the West Pembina Field

in Alberta, Canada, to the Ninian Field in the United Kingdom

North Sea.

chevron history

In 1993, Chevron became the first major Western oil company to enter the newly independent Kazakhstan. Chevron CEO Ken Derr and Kazakhstan

President Nursultan Nazarbayev signed an agreement creating the Tengizchevroil joint venture to develop the giant Tengiz Field.

market expansion

As Socal began its second century, it had become a major

company in the United States and the Chevron brand was

becoming familiar around the world. The company had ownership

in 50 refineries, with a production capacity of almost 3 million

barrels per day, and featured the third-largest fleet among oil

companies worldwide.

The company experienced strong results during the early 1980s,

such as major discoveries and large acquisitions of offshore

acreage in the U.S. Gulf of Mexico, a $1 billion modernization of

its Pascagoula Refinery and the introduction of new Chevron

Supreme Unleaded Gasoline with Techroline.

And yet the larger picture was unsettling, prompting the

company to conclude that its normal business strategies

simply wouldn’t be enough.

The company’s chance to expand came virtually overnight.

Gulf Oil Corp., the nation’s fifth-largest petroleum company,

had warded off a takeover bid, prompting Gulf’s board of

directors to offer the company up for sale.

1980–2001

On March 5, 1984, Socal Chairman George Keller made a bid

of $80 per share, roughly $13.3 billion, and hours later received

a phone call from Gulf Chairman James Lee, telling him that

Socal had won the bidding.

With a price tag of $13.3 billion, it was the largest merger

in corporate history at the time – and a strong marriage of

assets, corporate philosophy and the varied talents of two

organizations’ employees.

By acquiring Gulf, Socal nearly doubled its worldwide

proved oil and gas reserves overnight.

Through the merger, Socal added major exploration and

production operations in areas where it was already strong,

such as the U.S. Gulf of Mexico, Canada and the North Sea.

In West Africa, Gulf’s foreign reserves suddenly lifted the

company to a leading position.

With the merger came a new name for the company: Chevron

Corporation – the name by which gasoline and other products

had been known for decades in the United States and under

which the company operated in many non-U.S. locations.

chevron history

a smooth integration

Through the Gulf merger, Chevron became the No. 1 U.S. refiner

and marketer as well as the nation’s market leader in gas liquids.

By 1988, when the company acquired $2.5 billion in properties

from Tenneco, Chevron became the leading oil and gas producer

in the U.S. Gulf of Mexico.

shifting priorities

In the early 1990s, as U.S. exploration opportunities shrank,

Chevron shifted its emphasis increasingly toward international

projects, such as the development of the huge Tengiz Field

in Kazakhstan after forming a partnership with that country’s

government in 1993.

The company’s strategies clearly were paying off. In 1996,

earnings hit an all-time high of $2.6 billion, and production

of more than 1 million barrels a day was the highest in 11 years.

Chevron’s ability to grow through alliances was an important

factor in its success – and an acknowledgment that the industry’s

best opportunities often involved mega-projects that required

the resources of more than a single corporation.

a long affiliation

After forming a corporate Mergers and Acquisitions group in

January 1998, Chevron began evaluating other companies that

might best complement its own. Based on a long affiliation

with Texaco dating back to the 1936 formation of a joint-venture

company, Caltex, Chevron rated Texaco high as a potential

merger partner.

In 1999, Chevron initiated a series of talks with Texaco, which

proved unsuccessful.

The following year, Chevron renewed talks with Texaco. On

October 16, 2000, the two companies announced that they

had reached an agreement to merge. Nearly one year later, on

October 9, 2001, the shareholders of Chevron and Texaco voted

to approve the merger, and ChevronTexaco Corp. began doing

business that same day.

The company became the second largest U.S.-based energy

company, with more than 11 billion barrels of oil and equivalent

gas reserves and 2.4 million barrels per day of refining capacity.

chevron history

Chevron began production from its Tahiti Field, the deepest producing field in the U.S. Gulf of Mexico, in May 2009. One of the largest crude oil and

natural gas reservoirs in the gulf, the field was developed after the company used 3D imaging signals to penetrate 2-mile-high layers of salt and

visualize the full extent of the field.

a new era of energy

In the months that followed the creation of ChevronTexaco,

the new company found itself looking for resources in ever-

more-difficult environments – deeper, more remote and

increasingly complex fields and underground reservoirs

with more challenging characteristics.

“The era of easy oil is over,” said then Chairman and CEO

David J. O’Reilly.

From 2002 to 2007, the company earned close to $72 billion.

During that same period, the company invested roughly the

same amount to bring new energy supplies to market.

The company remained a leader among its peers, averaging

a 42% success rate for exploration wells from 2002 through

2007. Chevron’s exploration program added approximately

1 billion barrels to its resource base over that same time period.

adding unocal

In 2005, the company changed its name to Chevron Corp. and

then acquired Unocal Corp., further enhancing its position as a

leading energy provider. The acquisition was a strong strategic

2002–2019

fit, strengthening the company’s exploration and production

portfolio in the Asia-Pacific, the U.S. Gulf of Mexico and the

Caspian region. The addition of Unocal provided a deep source

of talent and leading-edge technology that Chevron quickly

integrated throughout its organization.

Technology offered a key advantage in the search for new

energy supplies. Fully integrated across the company – from

exploration to product delivery – Chevron’s technology success

derived from a combination of proprietary capabilities and

strong partnerships.

Chevron demonstrated its expertise in employing deepwater

exploration technology in the U.S. Gulf of Mexico. In 2006,

the Jack well test set more than half-a-dozen world records for

pressure, depth and duration in deep water. Five miles deep, it

was the deepest well ever tested in the gulf. And these records

were achieved without a single safety or environmental incident.

Also in the U.S. Gulf of Mexico, Chevron achieved first oil

from the Tahiti Field in May 2009. In approximately 4,100 feet

(1,250 meters) of water, Tahiti featured the deepest producing

well in the gulf.

chevron history

Three-dimensional visualization technology gives geologists

a virtual tour through the rock, deep underground, and allows

them to “see” potential reservoirs. This technology was employed

at the Tahiti Field and at the Tengiz and Karachaganak fields

in Kazakhstan.

The company used its expertise in reservoir management

to complete a major expansion project that nearly doubled

production capacity from the giant Tengiz Field in Kazakhstan.

The project – called the Sour Gas Injection/Second Generation

Plant – took five years and $7 billion to complete.

The Tengiz expansion and the ramp-up of the deepwater Agbami

Field offshore Nigeria were two projects that added significant

production volumes in 2009. Discovered in 1998, the Agbami

Field is a subsea development with wells tied back to a floating

production, storage and offloading vessel.

focusing on long-term upstream growth

The development of a substantial queue of major capital projects

was central to Chevron’s focus on long-term growth and creating

significant shareholder value for decades to come. This trend

continued with the startup of four major capital projects in 2012:

the deepwater Usan Field and Agbami 2 offshore Nigeria and

Caesar/Tonga and Tahiti 2 in the U.S. Gulf of Mexico. Consistent

with the company’s record of previous technological firsts,

Tahiti 2 set several individual records for increasing deepwater

production through the use of water injection, an effective

method of enhancing reservoir pressure to reach additional oil.

In pursuit of its long-term focus, Chevron continued to advance its

two world-class liquefied natural gas (LNG) projects in Western

Australia, Gorgon and Wheatstone. The Gorgon Project achieved

key construction milestones and delivered first gas in April 2016.

Gorgon’s progress continued, with the first delivery of gas at

Train 3 in March 2017. And by 2019, Chevron Australia completed

the Carbon Dioxide (CO2) Injection Project, which involved the

design, construction and operation of facilities to inject CO2 into

a deep reservoir more than two kilometers beneath Barrow Island.

By permanently trapping the CO2, Chevron expects to reduce

greenhouse gas (GHG) emissions from the Gorgon Project by

approximately 40%, or more than 100 million tonnes over the

life of the injection project.

Meanwhile, the achievement of several commercial milestones

helped lead to the startup of the Wheatstone Project in October

2017. “First LNG production is a significant milestone and is a credit

to our partners, contractors and the many thousands of people

who collaborated to deliver this legacy asset,” said then Chairman

and CEO John Watson.

The large queue of discoveries in Australia’s Carnarvon Basin

contributes to the resources available to sustain Chevron’s LNG

projects in the region.

Across the globe, Chevron continued progress on the company’s

development projects to deliver future production growth. In

2015, Chevron achieved first production at the Lianzi Project in the

Angola–Republic of the Congo Joint Development Area, the Moho

Bilondo Phase 1b Project in Republic of the Congo and the Agbami

3 Project in Nigeria.

In 2016, Chevron ramped up production at the Jack/St. Malo

Project in the U.S. Gulf of Mexico. Jack and St. Malo are two of the

largest oil and gas fields ever discovered in the deepwater gulf,

with reservoirs more than 26,000 feet (7,925 meters) deep, under

7,000 feet (2,134 meters) of water. With a capacity of 177,000 barrels

of oil equivalent per day, the Jack/St. Malo floating production unit

is the largest operation that Chevron has in the Gulf of Mexico.

Chevron’s development of oil and natural gas from shale and

tight rock formations intensified when the company entered the

Marcellus Shale through its acquisition of Atlas Energy in 2011.

By 2017, the company was also developing tight oil or liquids-rich

gas shales in the Permian Basin of the Southwestern United States,

the Vaca Muerta Shale in Argentina and the Duvernay Shale in

Canada. Production from our shale and tight rock activity in the

chevron history

Permian Basin exceeded expectations, driven by innovations

in well design, applications of new technology, continued

improvement in well drilling and completions, and an increase

in long-lateral well inventory. With approximately 2.2 million net

acres of resources in the Permian Basin, Chevron was one of the

basin’s largest net acreage holders. By the end of the decade,

the Permian Basin was forecast to reach one million barrels of

oil-equivalent production per day in 2025.

Across Chevron’s asset base, the Upstream business continued

to grow. In 2018, the company reported a highest-ever worldwide

net production of more than 2.9 million oil-equivalent barrels

per day, up more than 7% from 2017 and 12% from 2016.

Production increases were driven by Permian Basin growth,

startups in the Gulf of Mexico and Australia, continued ramp-up

of LNG operations in Australia, and a high level of reliability

at Tengizchevroil (TCO) in Kazakhstan. The company added

approximately 1.46 billion barrels of net oil-equivalent proved

reserves, replacing 136% of production, and had a five-year

reserve replacement ratio of 117%.

In 2019, Chevron’s Upstream business delivered record

production once again even as the company streamlined its

operational and geographic footprint. Chevron produced

3.06 million oil-equivalent barrels per day in 2019, up more

than 4% from 2018. And the company embarked on changes to

enhance its ability to compete in any price environment by driving

efficiencies, evolving its portfolio and optimizing the value chain.

downstream and chemicals reimagined

The global restructuring of the company’s Downstream &

Chemicals (DS&C) business has delivered greater value from a

more tightly focused portfolio. From 2010 through 2015, Chevron

ranked No. 1 or No. 2 among its peers in earnings per barrel and

return on capital employed. In 2015, Chevron’s Downstream

segment reported its best year on record, with $7.6 billion

in earnings. The company has also become a leading global

producer of premium base oil since the 2014 completion of

a base oil facility at the Pascagoula, Mississippi, refinery.

DS&C ended the decade on a strong note, strengthening its

position in key markets. Chevron Phillips Chemical Company

announced agreements with Qatar Petroleum to jointly develop

new petrochemical plants. Chevron enhanced its U.S. Gulf Coast

value chain by purchasing the Pasadena Refinery, enabling the

company to process Permian crude. And Chevron signed an

agreement to acquire Puma Energy (Australia) Holdings Pty Ltd.

When the acquisition was completed in 2020, Chevron added

a network of more than 360 company- and retailer-owned

service stations, a commercial and industrial fuels business,

and owned and leased seaboard import terminals and fuel

distribution depots.

delivering energy around the globe

Transportation is an essential part of Chevron’s operations.

Chevron Pipeline and Power and Chevron Shipping Company

manage safe, reliable, flexible and efficient systems that

deliver energy to Chevron’s customers around the globe.

In 2017, Chevron’s Midstream organization achieved a significant

milestone by delivering the first LNG cargo from Wheatstone

to customers in Japan. The company also completed the largest

shipbuilding and fleet modernization program in recent Chevron

history, taking delivery of its fifth and sixth LNG carriers. And in

2018, Chevron’s Shipping organization supported the safe and

successful delivery of the first modular component of oil field

equipment to the Future Growth Project in Kazakhstan, a major

expansion of the Tengiz Field, due to start up in late 2022.

chevron history

Chevron Shipping Company employees inspect a liquefied natural gas (LNG) storage tank under construction in South Korea during the company’s

largest shipbuilding and fleet modernization program in corporate history. The program included delivery of seven new ships to support growing

LNG operations.

2020–present

leading the future of energy

The 2020s have brought interlocking challenges, driven by

a pandemic and the major fall in energy prices. Fortunately,

Chevron was prepared to respond.

“Even before COVID-19, we were preparing to lead in a future

marked by change,” said Chairman and CEO Mike Wirth.

“Our actions were proactive and disciplined – simplifying

and modernizing work; integrating teams, processes and

value chains across business units and geographies; elevating

leadership capabilities; advancing digital solutions; and

empowering our workforce to make decisions quickly,

safely and with greater accountability.”

When market conditions deteriorated in 2020, Chevron

swiftly reduced capital spending by 35% from 2019 and

reduced operating costs, reflecting a commitment to both

capital and cost discipline. In the Permian Basin, the company

demonstrated its flexibility to cut short-cycle capital. Chevron

also undertook internal transformation efforts to become more

agile, cost efficient and streamlined.

The 2020 acquisition of Noble Energy added complementary

high-quality assets in Texas’s Permian Basin, Colorado’s

DJ Basin and the Eastern Mediterranean. Portfolio

additions in 2020 included approximately 5.67 million

net exploration acres.

Chevron added 832 million barrels of net oil-equivalent

proved reserves in 2020, with the largest net additions coming

from the Noble Energy acquisition. Portfolio growth included

36 exploration blocks in various regions in the U.S. Gulf of Mexico,

Egypt, Canada, Colombia and Cyprus in 2020 and early 2021.

Production in the Permian Basin increased 29% over the prior

year to 574,000 barrels of oil-equivalent per day. And despite

the challenges presented by the COVID-19 pandemic, TCO

advanced construction of the Future Growth Project/

Wellhead Pressure Management Project.

During that period, the company sold a range of assets,

extending from its Central North Sea United Kingdom

upstream assets to the company’s operations in Azerbaijan.

chevron history

In addition to acquiring Puma Energy, DS&C also marked the

new decade with several highlights. The company advanced

construction on the alkylation retrofit project at the Salt Lake

City Refinery. GS Caltex, the company’s non-operated joint

venture, progressed its olefins mixed-feed cracker project

at the Yeosu Refinery in South Korea. And Chevron Phillips

Chemical Company advanced its projects to develop

petrochemical complexes in Qatar and the U.S. Gulf Coast.

what’s next for chevron?

In the decades ahead, the world will need all the energy that can

be produced from every available source, including natural gas,

crude oil, coal, renewables and nuclear. Chevron is committed

to working safely and responsibly to help develop that energy

through an unmatched array of major capital projects.

In 2020, Chevron developed an energy transition strategy to

achieve a lower-carbon future, which will involve leveraging

the company’s capabilities, assets and expertise to deliver

measurable progress that is good for investors and good for

society. Chevron’s actions are focused on lowering the company’s

carbon intensity cost-efficiently, increasing renewables and

offsets in support of Chevron’s business, and investing in

low-carbon technologies to enable commercial solutions.

Chevron’s New Energies organization, formed in 2021, is focused

on areas where the company can build competitive advantages

and that target sectors of the economy that cannot be easily

electrified. Hydrogen, as well as carbon capture, utilization

and storage, and offsets are at the core of this strategy. These

businesses support Chevron’s efforts to reduce its greenhouse

gas emissions and are also expected to become high-growth

opportunities with the potential to generate substantial returns.

Some examples of Chevron’s lower-carbon projects, partnerships

and collaborations, all established in 2021, include a collaboration

agreement with Caterpillar to develop hydrogen demonstration

projects in transportation and stationary power applications,

including prime power; a partnership agreement with

Schlumberger New Energy, Microsoft and Clean Energy Systems

to develop ground-breaking bioenergy with a carbon capture

and sequestration project designed to produce carbon negative

power in Mendota, California; and the expansion of Brightmark

RNG Holdings LLC, a previously announced joint venture with

Brightmark LLC, to own projects across the United States to

produce and market dairy biomethane, a renewable natural gas.

To deliver on the expectations of today while working to

transform the energy system of tomorrow, Chevron’s strategy

is clear: leverage its capabilities, assets and customers to

deliver lower carbon energy to a growing world.

chevron history

Corporate Affairs

www.chevron.com

Bluehouse 0723-2887200

Chevron History Magazine

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