Improved energy efficiency within our operations clearly demonstrates the link between business and environmental success. Energy efficiency, which applies to all areas of our business, remained a key focus in 2003, with two milestones achieved.

First, we met our 2003 energy efficiency target, with the ChevronTexaco Energy Index (CTEI) ending the year at 78. This represents total energy consumption for the assets we operate of approximately 880 trillion Btus in 2003. ChevronTexaco established the CTEI in 1991 to track its energy usage on a consistent basis. The CTEI initially included only our North American operations, but has since been expanded globally.

Our 2003 performance represents our highest efficiency level to date and a 22 percent decrease in energy consumption per unit of output since we established the CTEI. It also produced a saving of around US$28 million over the course of the year. For 2004, our CTEI target remains constant at 78.

Second, we met our objective to complete the full integration of assets into the CTEI in 2003 by incorporating the remaining international upstream and legacy Caltex and Texaco assets into the index.