press release

Chevron Press Release - Cost Reductions Proposed For Chevron Productions San Joaquin Valley

BAKERSFIELD, Calif., Feb.17, 1999 -- Chevron U.S.A. Production Co.'s San Joaquin Valley Business Unit announced today it will reduce expenses by approximately 10 to 15 percent in 1999 through elimination of approximately 14 to 17 percent of its jobs and further oil production efficiency improvements in an effort to meet business needs in a protracted low crude oil price environment.

Gary Luquette, vice president of the business unit, announced a streamlined organizational structure and the proposed job reductions to the unit's 550 employees yesterday.

"Taking actions which eliminate jobs is always difficult, but is what we must do to remain competitive during these tough times," said Luquette. "Chevron is committed to working through this difficult period with fairness to, and compassion for, our employees," he added.

No specific positions have yet been identified for elimination. Reductions will occur at each Chevron office in the area, but all will remain open. Chevron's San Joaquin Valley production offices are located in Bakersfield, Taft, Lost Hills and Coalinga, and at the Kern River and Cymric oil fields. The reductions will affect all categories of employees, and will occur over the next two to three months.

"No one should imply from these actions that Chevron is reducing its long-standing commitment to production in the San Joaquin Valley," said Luquette. "The San Joaquin Valley remains a key part of Chevron's portfolio, and Chevron remains committed to doing business in the San Joaquin Valley."

These actions are part of a Chevron-wide effort to cut $500 million in costs this year. The reductions are intended to ensure Chevron's competitiveness in the fiscally tight oil and gas industry. In recent months crude oil prices have dropped to historically low levels.

Updated: February 1999