Downstream At a Glance

In 2005, Chevron processed approximately 2 million barrels of crude oil per day and averaged approximately 3.8 million barrels per day of refined products sales worldwide. Our major areas of operations are in Asia, on the U.S. West Coast, on the U.S. Gulf Coast extending to Latin America and in sub-Saharan Africa. We market under the Chevron, Texaco and Caltex motor fuel brands. Products are sold through a network of approximately 26,500 retail stations, including those of affiliate companies.

Chevron's downstream comprises refining, fuels and lubricants marketing, supply and trading, and transportation. It is a global and diverse organization with interests in 19 fuel refineries and a marketing presence in approximately 175 countries. Our downstream strategy is to improve returns by focusing on areas of market and supply strength.

Refining

Our refineries are well positioned to meet demand in some of the world's most significant product growth markets — Asia and North America. They have the flexibility to respond to market opportunities when they arise and can run significant volumes of lower-quality, lower-priced crude oil to improve profitability.

During the year, we continued our efforts to lower refinery operating and maintenance costs, primarily by achieving greater energy efficiency and improving maintenance procedures. We also are systematically addressing our reliability performance in order to enhance refinery utilization rates.

Marketing

We market petroleum products under three of the industry's most trusted brands — Chevron, Texaco and Caltex. To offer our customers unsurpassed fuels, we have begun a phased introduction of our gasoline additive, Techron, to international Texaco and Caltex products. We continue to upgrade our marketing portfolio by selling nonstrategic retail sites. Since 2003, we have divested more than 2,300 such sites, many of which continue to market company-branded fuels. We will pursue additional sales and acquisitions based on favorable market opportunities.

• Resumed planned levels of operations at the Pascagoula, Mississippi, refinery two weeks earlier than estimated following Hurricanes Katrina and Rita; employees shut down facilities, evacuated, returned and resumed operations — all safely and with no harm to the environment
• Completed expansion at the El Segundo, California, refinery to increase production of gasoline and other light products; began similar expansion at the Pascagoula Refinery
• Began phased introduction of our gasoline additive, Techron, to Texaco and Caltex products
• Divested nonstrategic fuel marketing assets and high-graded retail network
• Approved project at our affiliate refinery in Yeosu, South Korea, to add conversion units to run heavy crude oil and improve yield of high-value products