A Message From Our CEO

The men and women of Chevron, our "human energy," have a pioneering, ingenious and collaborative spirit that enables the company to succeed. They understand the importance of energy to global economic growth and human progress and are committed to securing the energy the world needs through innovation and value creation. They are also the means by which we integrate corporate responsibility into our operations worldwide.

Chevron continued to deliver energy safely and reliably in 2006. We posted strong financial results and earned attractive returns for our stockholders. Our 2006 Annual Report, titled Managing the Energy Portfolio, details these successes and explains our investments across the energy spectrum to meet the world's growing demand for energy. At the same time, we continued to advance our corporate responsibility objectives and results.

We remained focused on our target of zero incidents. Chevron is moving solidly toward world-class performance. We set a new safety record in 2006, our fifth consecutive year. However, 12 people died last year working on behalf of Chevron. The lessons we have learned from these and all incidents will enhance the safety of our operations going forward.

In 2006, our business investments produced economic benefits for our employees, business partners and the communities where we operate. We also invested nearly $91 million to help people improve their lives through education, training and local business development. These community engagement investments spanned the globe. We partnered on a new polytechnic school in Indonesia; supported learning centers in Venezuela; engaged with governments, communities and nongovernmental organizations to reach common development goals in Angola and Nigeria; and launched the Energy for Learning initiative to support public schools on the U.S. Gulf Coast.

Chevron improved its practices for assessing environmental, social and health impacts associated with its capital projects - before the projects even start. We have now defined and deployed an assessment process for virtually all new projects that will identify ways to create greater value from these projects in local communities and mitigate potential impacts. Chevron is committed to protecting human rights. Last year, we articulated our intentions in a Human Rights Statement and began employee training.

Chevron posted better-than-targeted results for both greenhouse gas emissions and energy efficiency. In addition, our statement on climate change has been expanded to build on our Fourfold Plan of Action on Climate Change. The statement conveys the company's views on the principles of economically sound climate policies. These principles recognize, among other things, the need for national frameworks and global engagement by the top emitting countries of the world; broad, equitable treatment of all emitting sectors of the economy; and actions to enable technology, maximize conservation and ensure energy security. Given the potential widespread impacts to society, the costs, risks, trade-offs and uncertainties associated with climate policies must be thoughtfully assessed and openly communicated.

The approximately 56,000 people of Chevron work every day to meet the challenge of providing the world with the energy it needs to support human progress – and we do so in the right way. We strive for world-class performance across every aspect of our business – from our technical and financial capabilities to our social and environmental performance. We are optimistic about our future. To succeed today and meet the challenges of tomorrow, we harness the greatest source of energy in the world – human energy.

Sincerely,

Dave O'Reilly
April 2007