At Chevron, our goal is to be admired for world-class performance in protecting people and the environment. To achieve this, we follow a disciplined operational excellence management system. In 2005, an external audit verified that our system meets international quality assurance standards, including those of the International Standardization Organization and the Occupational Health and Safety Administration System.

Our commitment to operational excellence was demonstrated in a number of ways throughout the year. Despite the effects of storm damage to our operations, we showed improvement in both our safety and environmental performance.

Safety is our No. 1 priority, and 2005 was our safest year ever. The total on-the-job injury rate improved 20 percent from 2004, and the rate of injuries severe enough to require days away from work improved 30 percent. Our safety goal is zero incidents, and we will not be satisfied until we achieve it.

We have a long-term commitment toward reducing the energy we use in our day-to-day operations. By conserving energy, we can produce our products more cost-effectively for our customers and reduce the impact on the environment, including reducing greenhouse gas emissions as well as other air emissions. Since we began tracking our energy use in 1992, we have increased our energy efficiency by 24 percent. In addition to driving greater energy efficiencies through our own organization, we also are helping other businesses and institutions conserve energy in their operations.