2008 Annual Meeting Remarks by David J. O'Reilly
David J. O'Reilly, Chairman and CEO
San Ramon, California, May 28, 2008
As you've seen, we're delivering on our commitments and moving in the right direction. 2007 was another great year.
Now let me talk about some of the key elements of our success — technology, partnerships and, most important, the people of Chevron.
Slide: Technology - Supporting World-Class Performance
Many people today think of Chevron as an "oil" company. But in many respects we're a "technology" company that produces energy. Technology creates opportunity for us by transforming not only how and where we produce energy, but also how much we produce.
Chevron's proven technology leadership in sour natural gas led to a new opportunity with the China National Petroleum Corporation. They sought our help in developing the Chuandongbei natural gas area in central China.
Sound technology strategies form the basis of superior performance and future business opportunities. And as mentioned, we opened two new Global Technology Centers to expand our research and development capability — one in Scotland and the other in Australia.
We also established alliances with government and academic institutions to pursue technology needed to convert nonfood sources into commercially viable biofuels. We are expanding this effort through our recently announced Catchlight Energy joint venture with Weyerhaeuser.
There's no doubt that our technology leadership helps distinguish us as a partner of choice. But it's only one ingredient. Our company has long been committed to creating social and economic value in countries where we do business. This month we published our sixth Corporate Responsibility Report, which underscores that commitment.
Slide: The Partner of Choice
No matter where we operate, Chevron's employees work to deliver world-class performance. They also work to build strong and lasting relationships with our host countries and local communities. As part of this pledge, we became the first Corporate Champion of the Global Fund to Fight AIDS, Tuberculosis and Malaria, contributing $30 million over three years to combat these diseases.
In 2007, we celebrated the fifth anniversary of the Angola Partnership Initiative, an example of what's possible in a public/private alliance dedicated to launching sustainable economic growth in developing countries.
In support of our Agbami project in Nigeria, we've instituted programs to train and develop Nigerian employees to international standards — from engineers to welders and fitters. By helping build Agbami's future workforce, we're also building human capacity in Nigeria.
Slide: The Partner of Choice (Global Fund)
We also continued to address climate change with the adoption of seven policy principles we feel are critical to develop flexible and economically sound climate change policies.
Slide: The Partner of Choice (7 Principles)
I was asked recently what the term "human energy" means to me. I think of 59,000 people — the men and women of Chevron — who commit their ingenuity and their integrity to produce safe and reliable energy around the globe every day.
Slide: Our People
We place special emphasis on our people because they are at the heart of our success.
The people of Chevron understand how important energy is to economic growth and human progress. And they take seriously the idea that with integrity and ingenuity there's no problem we can't solve and no challenge we can't overcome.
Slide: Energy Ingenuity
Since we met last year, we have had a very successful year.
We have the right strategies to create a strong platform for long-term growth — and to deliver value to our stockholders.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
This presentation of Chevron Corporation contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company's net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); the potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from pending or future litigation; the company's acquisition or disposition of assets; government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or restrictions on scope of company operations; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading "Risk Factors" beginning on page 31 of the company's 2006 Annual Report on Form 10-K. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on forward-looking statements.
U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources," "oil-equivalent resources," "oil in place," "recoverable reserves," and "recoverable resources," among others, may be used in this press release to describe certain oil and gas properties that are not permitted to be used in filings with the SEC.
Published: May 2008