The world has produced about 1 trillion barrels of oil to date. Over the next century or so, approximately 2 trillion barrels more are expected to be produced from conventional proved reserves and undiscovered conventional oil. Even more will be produced by Chevron and others from unconventional oil resources, such as extra-heavy oil in Venezuela, bitumen in Alberta and shale oil in the United States.
Oil and petroleum products have powered the world in the form of motor fuels for more than a century, and demand is expected to grow over the long term. Between now and 2030, global energy consumption is projected to increase between 40 and 45 percent, with oil and gas, along with coal, continuing to meet the largest part of that demand.
What a Barrel of Crude Oil Makes
Oil is a key ingredient in thousands of products that make our lives easier.
See the Products
What Chevron Is Doing
Chevron has an exceptionally strong portfolio, with key operations in important oil and gas regions.
We are the largest private producer of oil in Kazakhstan and the top oil and natural gas producer in Thailand. We produce nearly half of Indonesia's crude oil and are the top leaseholder in the U.S. Gulf of Mexico.
In 2008, Chevron added approximately 1.34 billion barrels of oil-equivalent to our proved reserves. During the year, we produced on average 2.53 million barrels per day of net oil-equivalent from more than 20 different countries around the world.
We maximize the value of our base business assets and keep our operations safe by applying technology in efficient, cost-effective and innovative ways. Whether setting a record depth for a test in the deepwater U.S. Gulf of Mexico or enhancing the production of crude oil from a mature field, our technology and the skill of our employees allow us to bring new oil to market.
Developing Energy Sources Around the Globe
For the past seven years, Chevron has added an average of 1 billion barrels of oil-equivalent per year to our resource base through our exploration program. We have major capital projects around the world, strategically located in regions with some of the greatest upstream growth potential in the world.
Africa
In Africa, the company is engaged in exploration and production activities in Angola, Chad, Democratic Republic of the Congo, Libya, Nigeria and Republic of the Congo. Net oil-equivalent production of 352,000 barrels per day during 2008 in these countries represented 15 percent of the companywide total, including oil sands.
Agbami Project, Nigeria – First production from one of the largest deepwater discoveries in Nigeria occurred in July 2008. Maximum total daily production of approximately 250,000 barrels of crude oil and natural gas liquids is anticipated by the end of 2009.
Tombua and Landana, Angola – Installation of offshore processing facilities began in late 2008. Production from the Landana North reservoir is utilizing the Benguela Belize–Lobito Tomboco infrastructure. The maximum total production from Tombua and Landana of 100,000 barrels of crude oil per day is expected to occur in 2011.
Asia-Pacific
Major producing countries in the Asia-Pacific region include Australia, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, the Partitioned Neutral Zone located between Saudi Arabia and Kuwait, and Thailand. Net oil-equivalent production of 883,000 barrels per day during 2008 in these countries represented more than a third of the companywide total, including oil sands.
Tengiz Sour Gas Injection and Second Generation Plant, Kazakhstan – In 2008, Tengizchevroil completed the Sour Gas Injection and Second Generation Plant project. This expansion project increased total TCO production capacity to 540,000 barrels of oil, 760 million cubic feet of natural gas and 46,000 barrels of natural gas liquids per day. Chevron holds a 50 percent interest in the project.
Duri Field Expansion, Indonesia – Already one of the world’s largest steamflood projects, the development plan for Duri calls for the sequential development of two expansion areas, North Duri Development Area 12 and North Duri Development Area 13. The first expansion, Area 12, achieved first production in November 2008.
South America
Frade Project, Brazil – Frade is among the largest deepwater heavy-oil projects in the world. Subsea wells are tied back to a floating production, storage and offloading vessel. First production at Frade, Chevron's first operated deepwater development in Brazil, was announced in June 2009. Chevron holds a 51.7 percent operated interest in the estimated $3 billion project. With continuing development drilling, Frade is expected to achieve peak production of 90,000 barrels of crude oil and natural gas liquids per day in 2011.
North America
Chevron's U.S. portfolio is anchored by producing assets concentrated in California, the Gulf of Mexico, Louisiana, Texas, New Mexico, the Rocky Mountains and Alaska. The company was the third-largest hydrocarbon producer in the United States during 2008, with net oil-equivalent production averaging 671,000 barrels per day. This oil-equivalent volume was composed of 421,000 barrels of crude oil and natural-gas liquids and 1.5 billion cubic feet of natural gas. Net oil-equivalent production in the United States during 2008 represented 26 percent of the companywide total, including oil sands.
In Canada, Chevron has ownership interests in oil sands projects at Athabasca and Ells River in the province of Alberta, exploration and development projects offshore in the Atlantic region, and exploration and discovered resource interests in the Mackenzie Delta and Beaufort Sea region of Canada's western Arctic. Chevron's net daily production in 2008 from Canadian operations was 36,000 barrels of crude oil, 4 million cubic feet of natural gas and 27,000 barrels of bitumen from oil sands.
Tahiti Deepwater Project, United States – The Tahiti Field is believed to be one of the Gulf of Mexico's largest deepwater discoveries, with potentially recoverable volumes of 400 million to 500 million oil-equivalent barrels. In 2008, the spar and topsides modules were installed. First oil was achieved in May 2009. Daily production is expected to ramp up to125,000 barrels of oil and 70 million cubic feet of natural gas before the end of the year. Chevron holds a 58 percent operated interest.
Blind Faith Project, United States – Blind Faith is estimated to contain more than 100 million potentially recoverable oil-equivalent barrels. It is Chevron's deepest offshore production facility, located in 6,500 feet (1,981 m) of water, with subsea wells located in 7,000 feet (2,134 m) of water. Chevron holds a 75 percent interest in and is the operator of the project. Production began in the fourth quarter of 2008. At the end of the year, the facility's total production capacity was 62,000 barrels of liquids per day and 50 million cubic feet of natural gas.
Athabasca Oil Sands Expansion Project, Canada – This 100,000-barrel-per-day expansion is expected to increase the project's bitumen production capacity to more than 255,000 barrels per day in 2010. Extracted from the mined oil sands, bitumen1 is upgraded into synthetic crude. Chevron is a 20 percent partner in the project.
Europe
Chevron has interests in 11 offshore producing fields in the United Kingdom, including five operated fields (Alba 23.4 percent, Caledonia 27.4 percent, Captain 85 percent, Erskine 50 percent and Strathspey 67 percent), one jointly operated field (Britannia 32.4 percent) and five partner-operated fields. The company also has interests in Denmark, the Netherlands and Norway.
Alder – The Alder high-temperature, high-pressure oil and gas discovery, located approximately 17 miles (27 km) to the west of the Britannia Field, was being evaluated in early 2009 as a potential subsea development. The company operates and holds a 70 percent interest in the project, which is expected to start up in 2012 and reach maximum total daily production rates of 9,000 barrels of crude oil and 80 million cubic feet of natural gas the following year.
Brodgar-Callanish Project – First oil occurred in 2008 on the Britannia satellite fields, Callanish and Brodgar, in which Chevron holds 16.5 percent and 25 percent nonoperated working interests, respectively. These fields together sustained a total maximum daily production of 50,000 barrels of crude oil and 225 million cubic feet of natural gas in late 2008.
Updated: July 2009
1The U.S. Securities and Exchange Commission's definition of oil and gas reserves does not include reserves extracted through the bitumen-mining process. U.S. investors should refer to disclosures in Chevron's Annual Report on Form 10-K for the year ended December 31, 2008.