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Chevron:
A Focused Leader
in Heavy Oil
Gary Luquette
President, North America Exploration and Production
May 5, 2008
JPMorgan Annual Energy Symposium: Heavy Oil
2008 Chevron Corporation
Cautionary Statement
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF
SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This presentation of Chevron Corporation contains forward-looking statements relating to Chevrons operations that are based on
managements current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words
such as anticipates, expects, intends, plans, targets, projects, believes, seeks, schedules, estimates, budgets and
similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance
and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The
reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless
legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil
and natural gas prices; refining margins and marketing margins; chemicals prices and margins; actions of competitors; timing of
exploration expenses; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of
operations and financial condition of equity affiliates; the inability or failure of the companys joint-venture partners to fund their share of
operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and
natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential
disruption or interruption of the companys net production or manufacturing facilities or delivery/transportation networks due to war,
accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of
Petroleum Exporting Countries); the potential liability for remedial actions or assessments under existing or future environmental
regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and
litigation; the potential liability resulting from pending or future litigation; the companys acquisition or disposition of assets; gains and
losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or
restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting
rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading Risk
Factors on pages 32 and 33 of the companys 2007 Annual Report on Form 10-K/A. In addition, such statements could be affected by
general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed in this presentation
could also have material adverse effects on forward-looking statements.
U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the
SEC. Certain terms, such as resources, undeveloped gas resources, oil in place, recoverable reserves, and recoverable resources,
among others, may be used in this presentation to describe certain oil and gas properties that are not permitted to be used in filings with
the SEC. In addition, SEC regulations define oil-sands reserves as mining-related and not a part of conventional oil and gas reserves.
Agenda
Global Heavy Oil
Resources
Chevrons Heavy Oil
Portfolio
Role of Technology
People and Processes
Conclusion
Global Heavy Oil Resources

Resources such as heavy oil, extra heavy oil and bitumen are
projected to play an increasing role in meeting energy demand in the
future
Alaska
Russia
Canada
U.K.
Netherlands
Mexico
Trinidad
1 Billion
10 Billion
100 Billion
Turkey
Iran
Jordan
Kuwait
Egypt
Saudi Arabia
Oman
Nigeria
Italy
USA Lower 48
Columbia
Ecuador
Peru
Eastern Europe
Venezuela
Brazil
Argentina
China
India
Indonesia
Angola
Madagascar
Australia
> 100 Billion

Chevrons Heavy Oil Portfolio
North Sea
Canada
Alberta
California
San Joaquin
China
Arabian Gulf
Partitioned Neutral Zone
Venezuela
Hamaca
Boscan
CHEVON
PORTFOLIO
Brazil
Chad
Angola
Indonesia
Duri
Thermal
Primary
Offshore
Mining
Strategic Asset Focus

In heavy oil since the early
1900s
About a third of Chevrons
proved oil reserves are

considered heavy
Chevron produces hundreds
of thousands of barrels of
heavy oil per day across five
continents
Heavy Oil Center of Excellence:

San Joaquin Valley
Kern River: great example of
breathing new life into an old

field
Managed production decline to
1 percent; now one of most

reliable and prolific producers
Recently celebrated 2 billion
barrel production milestone

Home to the International
Heavy Oil Center of Excellence

Leveraging a Competitive Advantage:

Ells River
New project with huge
resources
Builds new legacy position
in oil sands
Uses Steam Assisted
Gravity Drainage-SAGD
Adapting Chevron thermal
heavy oil best practices

and technologies to
bitumen
Unconventionals Can Benefit:

Athabasca Oil Sands Project
Long project life
Yields 155,000 barrels
of bitumen per day

Has recovered more
than 250 million

barrels of bitumen
Current focus is
mining expansions
A Global Presence
Venezuela: Hamaca Fields
horizontal wells produce about

190,000 b/d
Indonesia: Worlds largest steam
flood produces more than

190,000 b/d at giant Duri Field
Brazil: Investing approx $2.4
billion to develop the deepwater

Frade Field, targeting approx 200
- 300 million recoverable barrels
Others: North Sea, PNZ, Angola,
China
10
Technology Drives Opportunity

(and Production)
State-of-the-art technology:
steam flooding, 3D imaging,

fracing and smart oilfields
Use, transfer and adoption of
technology across value chain is

a must
Example: VRSH technology

converting HO resources into
high-value fuels
Robust portfolio of R&D alliances
11
Building Organizational Capability

International Heavy Oil Center
of Excellence in Bakersfield
Have designated heavy oil as
core competency in career

development
Continuous formalized
mentoring to build the next

generation of heavy oil experts
Centers and experts located
throughout the world

12
Conclusion
Heavy oil is a large,
global resource
Heavy oil is very
important to Chevron
Were positioning
ourselves as a leader
Questions?
13

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Chevron:

2008 Chevron Corporation

2008 Chevron Corporation

Global Heavy Oil Resources

> 100 Billion

Chevrons Heavy Oil Portfolio

Strategic Asset Focus

proved oil reserves are

2008 Chevron Corporation

Heavy Oil Center of Excellence:

breathing new life into an old

1 percent; now one of most

barrel production milestone

Heavy Oil Center of Excellence

Leveraging a Competitive Advantage:

heavy oil best practices

Unconventionals Can Benefit:

of bitumen per day

than 250 million

2008 Chevron Corporation

horizontal wells produce about

Indonesia: Worlds largest steam

flood produces more than

Brazil: Investing approx $2.4

billion to develop the deepwater

Others: North Sea, PNZ, Angola,

2008 Chevron Corporation

Technology Drives Opportunity

steam flooding, 3D imaging,

technology across value chain is

Example: VRSH technology

Robust portfolio of R&D alliances

2008 Chevron Corporation

Building Organizational Capability

core competency in career

mentoring to build the next

throughout the world

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