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For the latest figures, view the 2013 Supplement to the Annual Report (4.7 MB).

Chevron is involved in every phase of natural gas development. We are leasing land and exploring for natural gas. We are conducting pilot projects to test technologies and evaluate gas shales for future projects. We are drilling and completing new wells. And we are producing, processing and distributing natural gas from shale, which, like other dense or "tight" rock formations, can also produce oil and natural gas liquids.

Chevron produces natural gas from the Marcellus Shale, which underlies a large area of the eastern United States, and the company is drilling to substantially increase production there. In addition, we successfully tested gas wells in the Haynesville Shale in East Texas and are evaluating additional prospects in this area. Since 2009, Chevron has added leases for about 6 million net acres of land that may contain both oil and gas in the United States, Canada, Poland, Romania, Argentina and China.

Areas of Opportunity

Marcellus Shale-Northeast U.S.

Chevron holds 700,000 net acres in the Marcellus Shale, North America's largest and richest shale gas resource and is pursuing a robust drilling program to grow its Marcellus production.

Haynesville Shale-Texas

Chevron is conducting a pilot drilling program in the Haynesville Shale in Texas, where we hold 70,000 net acres.

Duvernay Shale-Canada

Chevron holds 220,000 net acres in western Alberta's Duvernay Shale and has developed a three-year exploration program to evaluate the resource.

Eastern Europe

Chevron has acquired more than 4 million acres of leases in Bulgaria, Poland and Romania for shale gas exploration and evaluation.

Argentina

Chevron is exploring for shale gas in the El Trapial Field in Argentina.

China

Chevron is exploring for shale gas in China's Qiannan Basin.

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United States

In the U.S., Chevron produces—or is working to produce—natural gas from shale formations in Michigan, New Mexico, Ohio, Texas and Pennsylvania. Chevron is one of the largest leaseholders in Pennsylvania, with more than 700,000 net acres of leases in the Marcellus Shale. The Marcellus is one of North America's largest and richest shale gas resources. It runs beneath large swathes of New York, Pennsylvania, West Virginia and eastern Ohio and dips into neighboring states. Chevron is undertaking a robust drilling program to grow its Marcellus production.

Chevron also has a strong position in the Utica Shale, an undeveloped formation beneath the Marcellus. In 2012, we acquired regional seismic data in eastern Ohio to identify core areas and began drilling four exploratory wells.

We also are evaluating prospects in about 380,000 net acres of the Antrim Shale and other gas shales in Michigan. In 2013, we began drilling a Collingwood/Utica Shale exploratory well.

In East Texas, we continued development of the multiple stacked reservoirs in the area, including the Travis Peak, Cotton Valley, Bossier and Haynesville zones. In 2010, Chevron completed a pilot drilling program in the Haynesville Shale that identified 2 trillion cubic feet of potentially recoverable natural gas. In 2012, the Haynesville Shale appraisal continued with two wells drilled in Panola and Nacodoches counties. Chevron holds more than 70,000 net acres in the Haynesville Shale beneath mature conventional oil and gas fields. To further evaluate the Haynesville and other rock layers in the area, we conducted a 3-D seismic survey across Panola County. That data is being interpreted to improve the company's understanding of the reservoirs in the area.

Canada

Chevron holds about 250,000 net acres in western Alberta's Duvernay Shale formation and approximately 200,000 overlying acres in the Montney tight rock formation. In 2012, we conducted a multiwell drilling program. Initial production to permanent facilities was achieved in late 2012. Chevron also has a 50 percent nonoperated working interest in 644,000 acres in the Horn River and Liard shale gas basins in British Columbia.

Eastern Europe

Chevron holds four shale concessions in Poland—Frampol, Grabowiec, Krasnik and Zwierzyniec—which total approximately one million acres. In the Grabowiec concession, drilling of the first well was completed in March 2012, followed by a diagnostic fracture integrity test in December 2012. A first well also was drilled in the Frampol concession in 2012. In the Zwierzyniec concession, drilling began in December 2012. Continued exploration drilling is planned for 2013.

Chevron holds more than 2 million acres in Romania, including a 1.6-million-acre concession in the Barlad Shale. We plan to drill an exploration well in 2013. We hold three additional concession agreements covering 670,000 acres in southeast Romania. Acquisition of 2-D seismic data across these concessions is expected to begin in 2013.

Chevron successfully bid for the right to exclusively negotiate with the government of Ukraine for the Oleska Block. The company is expected to operate and hold a 50 percent interest in the 1.6 million-acre concession.

China

During 2012, Chevron drilled an initial exploratory well for shale gas in China's Qiannan Basin, in the southwestern province of Guizhou. In 2013, we continue to evaluate the well and plan additional drilling.

Argentina

In 2012, Chevron drilled two exploratory wells in the Vaca Muerta formation in Argentina's El Trapial crude oil field. We are evaluating the results. We began drilling a third exploratory well in 2013 and are planning three additional appraisal wells. We have been producing oil at El Trapial for many years, but the concession now also has potential for shale gas production.

Updated: July 2013

Cautionary Statement

Shale Gas Facts

Find out more about Chevron's operations in the United States.

Shale Gas in Europe

Chevron is developing natural gas in Eastern Europe.

Operational Excellence

Operational Excellence

Chevron strives to continually improve environmental performance.

What We're Doing