2009 Annual Meeting Remarks by David J. O'Reilly
David J. O'Reilly, Chairman and CEO
San Ramon, California, May 27, 2009
As you've seen, we're delivering on our commitments, focusing on long-term growth, managing our costs and getting results.
Now, I'd like to talk about succeeding through time, getting results the right way and, most important, the people of Chevron.
Today, the world is mired in recession. Like everyone else, we're feeling the effects. Demand for energy is slack. But eventually, world economies will grow. Population growth, industrialization and the demand for rising living standards all but ensure it.
Experts say that by 2030, energy demand will grow as much as 30 to 40 percent.
And when the world starts growing, it will need all the energy it can get. That means both fossil fuels and renewables. And that means using all of it efficiently.
We'll be there to supply it — not only through our growing production of conventional fuels, but through our interests in renewables and unconventional energy as well.
We're the world's largest producer of geothermal energy. We're one of California's largest installers of solar panels. And through our Catchlight joint venture, we're developing biofuels from nonfood plant sources.
Chevron's been in business for 130 years — through 13 major recessions. It's no accident we're still in business today. We look past the downturns to keep our focus on long-term growth.
We focus on another constant, too. And that's our values. Our values are embodied in The Chevron Way. It's a single document, a set of principles that does not change.
Distilled to a phrase, The Chevron Way is about getting results the right way. It embodies how we think, how we act. It drives how we work with each other, with partners and with communities. And it makes a difference.
We have many examples. Here are a few:
We're the first Corporate Champion of The Global Fund to Fight AIDS, Tuberculosis and Malaria. This public-private partnership was created by the United Nations. We fund programs to eradicate these diseases in the Philippines, Thailand, Indonesia, Angola, Nigeria and South Africa. And our health care staff of 700 helps implement these programs.
We bring education to remote villages. Our partnership with the Discovery Channel supports 55 learning centers in Angola, Venezuela, South Africa and Nigeria. We created two polytechnic institutes in Indonesia that provide job training and livelihoods to thousands. Our latest, opened in Banda Aceh four years after the tsunami, is a partnership with the USAID.
And in 2004, we and our partners launched the NovoBanco microlending bank to spur entrepreneurship among Angola's low-income households. The bank is very successful: It serves more than 31,000 customers and, last year, made more than $10 million in loans.
These community partnerships, and many more I haven't mentioned, share two things in common: They seek results the right way, and they seek results that are sustainable.
As you've heard, this year Chevron celebrates its 130th year in operation. That's a rare achievement. It has been accomplished by generations of Chevron people. They have been innovators, problem solvers and partners. They've looked into the future to grasp what the world needs. Then they've turned that vision into reality.
That's 130 years of getting results the right way.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release 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 the company's 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 press release. 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, marketing and chemical margins; actions of competitors or regulators; timing of exploration expenses; timing of crude-oil liftings; 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 or assessments 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; gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S.dollar; 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" on pages 30 and 31 of the company's 2008 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 press release 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," "undeveloped gas resources," "oil in place," "recoverable reserves," and "recoverable resources," among others, may be used in this presentation to describe certain oil and gas properties that are not permitted to be used in filings with the SEC. In addition, SEC regulations define oil-sands reserves as mining-related and not a part of conventional oil and gas reserves.
Updated: May 2009