press release

ChevronTexaco Chairman & CEO David O'Reilly Addresses World Petroleum Congress

Asserts Strong Partnerships are Essential to Effectively Address "The Challenge of Change"

RIO DE JANEIRO, BRAZIL, Sept. 4, 2002 -- ChevronTexaco Chairman and CEO David J. O'Reilly today urged the energy industry to face the "challenge of change" through strong partnerships. Speaking to more than 3,000 delegates at the 17th World Petroleum Congress in Rio de Janeiro, Brazil, O'Reilly challenged the industry to be more effective in addressing global issues.

"The next ten years will bring changes to the energy industry as dramatic as any decade in our history," said O'Reilly. Globalization and the countervailing forces of nationalism, the changing role of national oil companies, growing world population and the increasing influence of a variety of stakeholders were among the many challenges he outlined.

"Success is no longer determined solely by traditional financial or operational metrics," O'Reilly said. "Today we are held to new standards for corporate citizenship, human rights and the environment, that are no less rigorous than the financial requirements of the investment community."

"Real solutions require real dialogue, and real leadership. Simply declaring that your company won't do business in places where there are contentious issues isn't leadership, and doesn't solve the problem.

"International oil companies should be leading by example," O'Reilly said. "We have a crucial role in raising difficult issues directly with our partners -- issues from good governance to transparency to the equitable sharing of revenue -- issues on which the world community is demanding action be taken by both governments and business. What is needed is a more effective dialogue with our partners; a true dialogue, not dictating terms."

"Amid all this change," O'Reilly continued, "there's one constant: and that is the demand for energy As the world's population continues to soar -- adding three billion people over the next half century -- we will see a corresponding rise in energy demand, and in basic aspirations. In my view -- whether you're in business or government -- this will be the defining challenge of the 21st century."

One solution, O'Reilly said, "is to responsibly develop the resources and supply the energy that the world needs to grow. Developing these resources will take capital, expertise, sound management, creativity and technology -- but, increasingly, it will take partnership."

O'Reilly detailed a broad definition of partnership, which includes industry, governments, host communities and nongovernmental organizations. "When done right, it (partnership) is a pragmatic way to confront challenges that are too big, and risks that are too complex," O'Reilly said.

Continuing, he said, "But you just can't bring a few parties together, sign a sheet of paper and call it a partnership. For a partnership to succeed, it has to be built on a foundation of trust, integrity and accountability. For a partnership to endure, it has to be mutually beneficial and sustainable, then it can be a driver for success."

The business case for partnership is increasingly clear and so are the benefits for developing countries, O'Reilly said. "The revenues and ripple effects from oil and gas production can fuel social and economic development long after the closure of an oil well. Petroleum may be finite, but progress doesn't have to be."

The payoff of effective partnership, he concluded, is significant. "If we get this right, if we apply our expertise and experience toward shared goals -- the net benefits will be enormous," O'Reilly said.

About ChevronTexaco:

ChevronTexaco is a leader in the global energy business with wide-ranging activities in more than 180 countries. ChevronTexaco is the third-largest energy company in terms of global oil and gas reserves (more than 11 billion barrels of oil and gas equivalent) and fourth largest in global oil and natural gas production (2.7 million barrels of oil and gas equivalent per day). It has the capacity to refine more than 2 million barrels per day, sells more than 5 million barrels of fuel and products daily and owns or has interest in more than 25,000 retail outlets under Chevron, Texaco and Caltex brands. It is the fourth largest company in the global lubricants business, is an industry leader in the power and gasification businesses and has extensive technology operations, ranging from core business research and development to e-business and venture capital activities.

Updated: September 2002