Strategy: Execute with excellence through rigorous application of our operational excellence and capital stewardship systems and disciplined cost management.
We follow rigorous, systematic processes to ensure that we make disciplined decisions and deliver results the right way. These systems help ensure operational excellence so that we operate safely, reliably and efficiently. They encourage capital stewardship so that we select the best high-return projects and execute them with excellence. And they help us control costs so that we remain competitive regardless of the economic environment.
Operational Excellence
Given the scale of our investments, the importance of executing with excellence is critical. Our Operational Excellence Management System applies systematic processes across our operations to protect the safety and health of people, the integrity and reliability of assets, and the environment.
Chevron is an industry leader when it comes to safety. While we are encouraged by our performance, we will not be satisfied until we eliminate incidents that could harm people and the environment. To that end, we are working diligently to enhance process safety management. By integrating process safety into all facets of work—from the design and engineering phases of a project through construction, operations and maintenance—we further reduce the potential to cause harm to people, assets or the environment.
We put the highest priority on protecting the environment. In 2011, we had fewer spills than the year before. However, an incident with a development well in the deepwater Frade Field offshore Brazil resulted in a spill of approximately 2,400 barrels of crude oil. The spill was quickly contained. Studies began after the incident to determine its root causes and share them across the company.
Project Management
Chevron's Project Resources Company (PRC) was formed in 1997 as our center of excellence for capital project selection, development and execution. It helps ensure that our major capital projects are delivered safely, on budget and on time. During the year, PRC was recognized by the Engineering and Construction Contracting Association for its leadership in capital project execution. In 2012, we plan to spend a record $32.7 billion on projects that include ultra-deepwater developments, massive liquefied natural gas plants and technologically advanced crude oil recovery efforts.
Posted: April 2012