Chevron Credit Suisse 2008 Offshore Technology Conference

© 2008 Chevron Corporation

Pursuing Offshore Pursuing Offshore OpportunitiesOpportunities

Paul SiegelePaul SiegeleVice President Vice President -- Strategic PlanningStrategic PlanningChevron CorporationChevron Corporation

May 6, 2008May 6, 2008Credit Suisse 2008 Offshore Technology ConferenceCredit Suisse 2008 Offshore Technology Conference

2© 2008 Chevron Corporation

Cautionary Statement

CAUTIONARY STATEMENTS RELEVANT TO FORWARDCAUTIONARY STATEMENTS RELEVANT TO FORWARD--LOOKING INFORMATION FOR THE PURPOSE OF LOOKING INFORMATION FOR THE PURPOSE OF

““SAFE HARBORSAFE HARBOR”” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995995

This presentation of Chevron Corporation contains forwardThis presentation of Chevron Corporation contains forward--looking statements relating to Chevronlooking statements relating to Chevron’’s operations that are based on managements operations that are based on management’’s s current expectations, estimates and projections about the petrolcurrent expectations, estimates and projections about the petroleum, chemicals and other energyeum, chemicals and other energy--related industries. Words such as related industries. Words such as ““anticipates,anticipates,””““expects,expects,”” ““intends,intends,”” ““plans,plans,”” ““targets,targets,”” ““projects,projects,”” ““believes,believes,”” ““seeks,seeks,”” ““schedules,schedules,”” ““estimates,estimates,”” ““budgetsbudgets”” and similar expressions are intended to and similar expressions are intended to identify such forwardidentify such forward--looking statements. These statements are not guarantees of futurlooking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties e performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results maydifficult to predict. Therefore, actual outcomes and results may differ materially differ materially from what is expressed or forecasted in such forwardfrom what is expressed or forecasted in such forward--looking statements. The reader should not place undue reliance olooking statements. The reader should not place undue reliance on these forwardn these forward--looking looking statements, which speak only as of the date of this presentationstatements, which speak only as of the date of this presentation. Unless legally required, Chevron undertakes no obligation to u. Unless legally required, Chevron undertakes no obligation to update publicly any pdate publicly any forwardforward--looking statements, whether as a result of new information, futulooking statements, whether as a result of new information, future events or otherwise. re events or otherwise.

Among the important factors that could cause actual results to dAmong the important factors that could cause actual results to differ materially from those in the forwardiffer materially from those in the forward--looking statements are crude oil and looking statements are crude oil and natural gas prices; refining margins and marketing margins; chemnatural gas prices; refining margins and marketing margins; chemicals margins; actions of competitors; timing of exploration expicals margins; actions of competitors; timing of exploration expenses; the enses; the competitiveness of alternate energy sources or product substitutcompetitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and fies; technological developments; the results of operations and financial condition of nancial condition of equity affiliates; the inability or failure of the companyequity affiliates; the inability or failure of the company’’s joints joint--venture partners to fund their share of operations and developmeventure partners to fund their share of operations and development activities; the nt activities; the potential failure to achieve expected net production from existipotential failure to achieve expected net production from existing and future crude oil and natural gas development projects; pong and future crude oil and natural gas development projects; potential delays in the tential delays in the development, construction or startdevelopment, construction or start--up of planned projects; the potential disruption or interruptionup of planned projects; the potential disruption or interruption of the companyof the company’’s net production or s net production or manufacturing facilities or delivery/transportation networks duemanufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weathto war, accidents, political events, civil unrest, severe weather or crudeer or crude--oil oil production quotas that might be imposed by OPEC (Organization ofproduction quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); the potential liability for remPetroleum Exporting Countries); the potential liability for remedial actions or edial actions or assessments under existing or future environmental regulations aassessments under existing or future environmental regulations and litigation; significant investment or product changes under end litigation; significant investment or product changes under existing or future xisting or future environmental statutes, regulations and litigation; the potentiaenvironmental statutes, regulations and litigation; the potential liability resulting from pending or future litigation; the coml liability resulting from pending or future litigation; the companypany’’s acquisition or s acquisition or disposition of assets; gains and losses from asset dispositions disposition of assets; gains and losses from asset dispositions or impairments; governmentor impairments; government--mandated sales, divestitures, recapitalizations, mandated sales, divestitures, recapitalizations, industryindustry--specific taxes, changes in fiscal terms or restrictions on scopespecific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared withof company operations; foreign currency movements compared with the the U.S. dollar; the effects of changed accounting rules under generU.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by ruleally accepted accounting principles promulgated by rule--setting bodies; and the setting bodies; and the factors set forth under the heading factors set forth under the heading ““Risk FactorsRisk Factors”” on pages 32 and 33 of the companyon pages 32 and 33 of the company’’s 2007 Annual Report on Form 10s 2007 Annual Report on Form 10--K/A. In addition, such K/A. In addition, such statements could be affected by general domestic and internationstatements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown al economic and political conditions. Unpredictable or unknown factors not factors not discussed in this presentation could also have material adverse discussed in this presentation could also have material adverse effects on forwardeffects on forward--looking statements.looking statements.

U.S. Securities and Exchange Commission (SEC) rules permit oil aU.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filinnd gas companies to disclose only proved reserves in their filings with the SEC. gs with the SEC. Certain terms, such as Certain terms, such as ““resources,resources,”” ““undeveloped gas resources,undeveloped gas resources,”” ““oil in place,oil in place,”” ““recoverable reserves,recoverable reserves,”” and and ““recoverable resources,recoverable resources,”” among others, among others, may be used in this presentation to describe certain oil and gasmay be used in this presentation to describe certain oil and gas properties that are not permitted to be used in filings with thproperties that are not permitted to be used in filings with the SEC. In addition, e SEC. In addition, SEC regulations define oilSEC regulations define oil--sands reserves as miningsands reserves as mining--related and not a part of conventional oil and gas reserves.related and not a part of conventional oil and gas reserves.


Today’s Operating Environment

A NewA NewEnergy Energy

EquationEquation

Constrained Constrained SupplySupply

Growth in Growth in Energy DemandEnergy Demand

ChallengedChallengedNew ResourcesNew Resources

Geopolitical Geopolitical DynamicsDynamics


Conventional Energy is Critical to Meeting Future Demand

Global demand will rise Global demand will rise roughly 50% through 2030roughly 50% through 2030

Quadrillion BTUQuadrillion BTU

0

730

2004 2020 2030

Global Energy DemandGlobal Energy Demand

Crude Oil Crude Oil

Natural GasNatural Gas

CoalCoal

NuclearNuclearOtherOther

Source: EIASource: EIA


The Era of Easy Oil is Over

Limited AccessLimited Access

Remote Locations Remote Locations

Technical ChallengesTechnical Challenges

Escalating Costs Escalating Costs


World’s Deepwater Basins Provide Attractive Opportunities

Potential Deepwater Reserves Potential Deepwater Reserves –– Top Ten CountriesTop Ten Countries

Source: Wood Mackenzie

(Billion BOE)(Billion BOE)

11

22

33

44

55

U.S. U.S. (GOM)(GOM)

MexicoMexico BrazilBrazil NigeriaNigeria AngolaAngola EgyptEgypt AustraliaAustralia NorwayNorway IndonesiaIndonesia CongoCongo

Yet to Find ReservesYet to Find Reserves

Remaining ReservesRemaining Reserves


Focused Offshore Exploration Program in 2008

AustraliaAustralia

DeepwaterDeepwaterGulf of MexicoGulf of Mexico

NigeriaNigeria

AngolaAngola

ThailandThailand

BrazilBrazil

VenezuelaVenezuela CongoCongo

Deepwater ExplorationDeepwater Exploration

Other Offshore ExplorationOther Offshore Exploration

Exploring the top Exploring the top deepwater areas deepwater areas


Leader in Exploration Results

Reserve* Replacement Through Exploration 2002-2006

2020

4040

6060

8080

100100

120120

*Wood Mackenzie reserve replacement metric does not reflect the Company’s reported proved reserves.

BP TOTRDS

XOMCOP

Percent

Average Exploration success rate for 2002Average Exploration success rate for 2002––2007 is 2007 is 45%45%

Billions of Barrels of Oil EquivalentBillions of Barrels of Oil Equivalent

Cumulative Resources Added Cumulative Resources Added From ExplorationFrom Exploration

2

4

6

8

2002 2003 2004 2005 2006 2007


Moving Resources to Reserves -A Leading Portfolio of Oil & Gas Projects

AzerbaijanAzerbaijan

Kazakhstan (3)Kazakhstan (3)Canada Tar Sands (2)Canada Tar Sands (2)

Angola (3)Angola (3)

U.S. RockiesU.S. Rockies

Australia (3)Australia (3)

Atlantic CanadaAtlantic Canada

Venezuela (2)Venezuela (2) VietnamVietnam

ChinaChina

Deepwater Gulf Deepwater Gulf of Mexico (7)of Mexico (7)

Nigeria (7)Nigeria (7)

Arctic CanadaArctic Canada

Indonesia (2)Indonesia (2)

United KingdomUnited Kingdom

Deepwater Deepwater Brazil (2)Brazil (2)

40 Projects Costing More than $1 Billion Each (CVX share)40 Projects Costing More than $1 Billion Each (CVX share)

ThailandThailandCongoCongo

Includes OffshoreIncludes Offshore


Sea LevelSea Level

40,00040,000’’

8,0008,000’’

16,00016,000’’

24,00024,000’’

32,00032,000’’

Salt CanopySalt Canopy

SedimentSediment

SedimentSediment

Gulf of MexicoGulf of MexicoEmpire State BldgEmpire State Bldg

Target ZoneTarget Zone

Extensive salt canopyExtensive salt canopy

Structural complexityStructural complexity

Strong currentsStrong currents

Pressure differentialsPressure differentials

High temperaturesHigh temperatures

Unpredictable conditions Unpredictable conditions

Deepwater Projects are Among the World’s Most Challenging

Deepwater Gulf of MexicoDeepwater Gulf of Mexico


Applying Best-In-Class Seismic Technologies to “See” Under Salt

SALTSALT

Chevron Pre-Stack Depth Migration

SALTSALT

SALTSALT

An industry leader in using An industry leader in using subsub--salt technologysalt technology

BestBest--inin--class subclass sub--salt presalt pre--stack depth migration stack depth migration imaging toolimaging tool

Enhanced subEnhanced sub--salt discovery salt discovery success ratesuccess rateSUB-SALT DISCOVERY

TAHITI FIELD


Leveraging Latest Generation Deepwater Drillship Technology

Dynamically positioned

Double hulled

Two drilling systems in a single derrick

Single trip multiple zone completions

Maximum drill depth of 40,000 feet

Maximum water depth of 12,000 feet Transocean’s Discoverer Clear Leader


Using Innovative Solutions to Resolve Deepwater Downhole Issues

SingleSingle DualDual

Dual Gradient

Same Bottom Hole Pressure

Conventional

MudMud WaterWater

Mud Mud LiftLift

9 casing strings

5 casing strings

Differential pressures in deepwater wells raise blowout riskDifferential pressures in deepwater wells raise blowout risk

Dual gradient system reduces risk without excessive casing strinDual gradient system reduces risk without excessive casing strings gs

Enables higher production flow ratesEnables higher production flow rates

Lowers project costs and minimizes nonLowers project costs and minimizes non--productive downtimeproductive downtime

Conventional Dual Gradient


Commercializing Deepwater Resources Through Adaptive Technologies

Subsea IssuesSubsea Issues

ReliabilityReliability

Flow AssuranceFlow Assurance

Long Distance Long Distance TiebacksTiebacks

SeparationSeparation

BoostingBoosting

Intervention Intervention VesselsVessels


Mitigating Rising Costs To Find and Produce Oil & Gas

Industry Exploration & Production Industry Exploration & Production Capital Cost IndexCapital Cost Index

100100

140140

180180

220220

20002000 20022002 20042004 20062006 20082008Source: CERASource: CERA

Standardized equipment and designsStandardized equipment and designs

ModularizationModularization

Technology advancesTechnology advances

Effective contractingEffective contracting


100

200

300

400

500

2003 2004 2005 2006 2007 2008Forecast

Market Average RateMarket Average Rate

Chevron Avg. Contract RateChevron Avg. Contract Rate

Mitigating Rising Deepwater Rig Rates

Drilling units rated for >7,500 ft water depthMarket data sources for similar type of rig: GDC, Fearnley Offshore, Rig Logix

Worldwide Deepwater Rig Rates Worldwide Deepwater Rig Rates $Thousands/Day$Thousands/Day


Offshore Gulf Offshore Gulf of Mexicoof Mexico


AppraisalAppraisal

Moving Exploratory Efforts Forward

Miocene TrendMiocene Trend

Blind FaithBlind FaithTubular BellsTubular Bells

PerdidoPerdido

St. MaloSt. Malo

TahitiTahiti

JackJack

Knotty HeadKnotty Head

Big FootBig FootPumaPuma

TongaTonga

ExplorationExploration

Wilcox TrendWilcox Trend

Major Capital ProjectMajor Capital Project

Top leaseholder in Gulf of Mexico Top leaseholder in Gulf of Mexico

Jack/St. Jack/St. MaloMalo appraisals continue in 2008appraisals continue in 2008


Miocene Trend Development

Blind Faith (75.0%WI)Blind Faith (75.0%WI)

Deep draft semiDeep draft semi--submersiblesubmersible

Mooring operations underwayMooring operations underway

Startup in 2008Startup in 2008

Peak production of 70 MBOEDPeak production of 70 MBOED

Tahiti (58.0%WI)Tahiti (58.0%WI)

TrussTruss--spar floating productionspar floating production

Spar hull and topsides towedSpar hull and topsides towed

Awaiting new shackles to install Awaiting new shackles to install




Wilcox Trend Development - Perdido

PerdidoPerdido Regional Development Regional Development --(37.5% WI in host)(37.5% WI in host)

Operated by ShellOperated by Shell

WorldWorld’’s deepest spar facilitys deepest spar facility



Courtesy of Shell Courtesy of Shell

PerdidoPerdido Subsea DevelopmentSubsea Development


Jack # 2Jack # 2

Jack Field Perimeter

Houston, Texas from 29,000 feet

Jack # 1Jack # 1

1 Mile

Jack Jack -- 11stst appraisal wellappraisal well6 MBD test flowrate (40% of net pay)Record depths, pressures, duration

Jack Jack -- 22ndnd appraisal wellappraisal wellCompletion expected mid-2008

Jack Jack -- 33rdrd appraisal wellappraisal wellPlanned to begin drilling in 2008 Planned to begin drilling in 2008

Wilcox Trend Evaluation - Jack


Offshore Offshore West AfricaWest Africaand Braziland Brazil


Nigeria Deepwater Development

AgbamiAgbami (68.2%WI)(68.2%WI)

One of largest FPSO in the worldOne of largest FPSO in the world

Drilling & completion operations underwayDrilling & completion operations underway


Peak production of 250 MBD in 2009Peak production of 250 MBD in 2009


Angola & Congo Deepwater Development

MohoMoho BilondoBilondo –– Congo (31.5%WI)Congo (31.5%WI)

Floating production unitFloating production unit

Achieved first oil April 2008


TombuaTombua LandanaLandana –– Angola (31.0%WI)Angola (31.0%WI)

Compliant piled tower platform hubCompliant piled tower platform hub

Tower & subsea fabrication underwayTower & subsea fabrication underway




Campos Basin Development

FradeFrade (51.7%WI)(51.7%WI)

FPSO under construction

Subsea installation in progress

Startup in 2009

Peak production of 90 MBOED in 2011


Strong Offshore Project Portfolio Will Improve Returns and Reserves

20082008

20082008

20082008

20082008

20082008

20082008

20092009

20092009

20092009

20102010

AgbamiAgbami StartupStartup

Blind Faith StartupBlind Faith Startup

NWS Train 5 StartupNWS Train 5 Startup

ACG III StartupACG III Startup

Jack Appraisal Well 2Jack Appraisal Well 2

MohoMoho--BilondoBilondo StartupStartup

Tahiti StartupTahiti Startup

FradeFrade StartupStartup

TombuaTombua--LandanaLandana StartupStartup

PerdidoPerdido StartupStartup

Chevron Credit Suisse 2008 Offshore Technology Conference

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