highlightsofoperations

highlights of operations

Headquartered in San Ramon, California, Chevron Corporation is the second-largest integrated energy company in the United States. Through our subsidiaries and affiliates, Chevron produces crude oil, natural gas and many other essential products.

Through our business and social investments, we boost economies in the areas where we operate by creating jobs, improving livelihoods and supporting local businesses.

Our products are sold in our nearly 8,000 Chevron® and Texaco® retail stations in the United States. We are also a major supplier of aviation fuel in the country.

Chevron’s four U.S. refineries have the combined capacity to process 931,000 barrels of oil per day.

Here are some other highlights of our U.S. operations:

  • Chevron was one of the largest hydrocarbon producers in the United States in 2016.
  • In 2016, Chevron again ranked No. 1 in net oil-equivalent production in California.
  • Chevron is one of the largest net acreage leaseholders and producers in the Permian Basin.
  • We are a leading developer, manufacturer and marketer of lubricant and fuel oil additives.
  • Chevron is a leading premium base oil producer.
  • Our Chevron Shipping Co. expects to take delivery of two more liquefied natural gas (LNG) tankers in 2017.
  • Through our 50 percent ownership of Chevron Phillips Chemical Company LLC (CPChem) and its affiliates, we’re one of the world’s leading producers of chemicals and plastics.
businessportfolio

business portfolio

exploration and production

Using the latest technology, Chevron continues to make major discoveries in the United States while maintaining strong production in mature fields.

Chevron is one of the largest hydrocarbon producers in the United States. In 2016, we produced an average of 691,000 barrels of net oil-equivalent per day, or 27 percent of the corporation’s worldwide total.

Our company’s major operations in the United States are primarily in the midcontinent region, the Gulf of Mexico, California and the Appalachian Basin.

At the end of 2016, Chevron was the largest leaseholder in the Gulf of Mexico.

Midcontinent
Chevron operates crude oil and natural gas fields in the midcontinental United States – primarily in Colorado, New Mexico and Texas. In 2016, the company’s net daily production in these areas averaged 123,000 barrels of crude oil, 576 million cubic feet of natural gas and 40,000 barrels of natural gas liquids (NGLs).

Chevron is among the largest net acreage leaseholders and producers in the Permian Basin of West Texas and southeastern New Mexico. Operations in the Permian date back to 1920, and total net production has surpassed 5 billion barrels of oil-equivalent. The Permian is composed of several basins, including the liquids-rich Midland and Delaware basins, and it offers opportunities for conventional resources as well as for shale and other tight resources. In the Midland and Delaware basins, horizontal drilling and multistage hydraulic fracturing yield considerable incremental potential. In the Central Basin Platform, production comes from primary development and the use of secondary and enhanced oil recovery methods, such as water and carbon dioxide flooding.

Chevron’s capital spending on exploration and development of the approximately 1.5 million net acres (6,070 sq km) of shale and other tight resources in the Midland and Delaware basins is focused on horizontal wells with multistage fracture stimulation.

The company has approximately 500,000 net acres (2,023 sq km) in the Midland Basin. At the end of 2016, four company-operated rigs were active, and 52 company-operated wells were drilled during the year. The company also participated in 50 nonoperated wells in 2016, with three nonoperated rigs active at year-end.

In the Delaware Basin, Chevron holds approximately 1 million net acres (4,047 sq km). A total of 41 company-operated wells were drilled in 2016, and six company-operated rigs were active at year-end. We also participated in 58 nonoperated wells in 2016, with two nonoperated rigs active at year-end.

Deepwater Gulf of Mexico
Chevron is one of the leading leaseholders in the deepwater Gulf of Mexico, with a long history of technical achievement and operational safety.

Average net daily production in 2016 was 128,000 barrels of crude oil, 87 million cubic feet of natural gas and 10,000 barrels of NGLs, primarily from the Caesar/Tonga, Jack, St. Malo, Mad Dog, Tahiti and Tubular Bells fields and the Perdido Regional Development.

Marine Well Containment Company LLC, a nonprofit company sponsored by Chevron and other major energy companies, commissioned its expanded containment system in 2015. The system provides increased capacity and compatibility with a wider range of well designs, flow rates and environmental conditions.

The Jack and St. Malo fields in the Walker Ridge area – in a water depth of 7,000 feet (2,134 m) – are being jointly developed with a host floating production unit centrally located between the two fields. Chevron has a 50 percent interest in the Jack Field and a 51 percent interest in the St. Malo Field and operates both. Production from the development is linked to the market by the Jack/St. Malo oil and gas export pipelines. Total daily production in 2016 averaged 94,000 barrels of liquids (47,000 net) and 14 million cubic feet of natural gas (7 million net). Production ramp-up and development drilling for the first development phase continued in 2016. The second phase of the development plan includes four more development wells, the first of which achieved startup in the third quarter of 2016. More development drilling is planned for 2017.

Production from the Jack/St. Malo development is expected to ramp up to a total daily production rate of 128,000 barrels of crude oil and 33 million cubic feet of natural gas. Total potentially recoverable oil-equivalent resources are estimated to exceed 500 million barrels.

Also in Walker Ridge is the 60 percent-owned and operated Big Foot project. The facility is designed with a capacity of 75,000 barrels of crude oil and 25 million cubic feet of natural gas per day. Fabrication of the replacement mooring tendons began in mid-2016, and we expect to resume installation of the tension-leg platform in late 2017. First oil is expected in the second half of 2018.

In 2016, net daily production at the 58 percent-owned and operated Tahiti Field averaged 31,000 barrels of crude oil, 13 million cubic feet of natural gas and 2,000 barrels of NGLs. In mid-2016, the final investment decision was made on the Tahiti Vertical Expansion Project. Four new wells have been drilled, and work toward completion is underway, with first oil expected in 2018.

Chevron has a 15.6 percent nonoperated working interest in the Mad Dog Field, where net daily production in 2016 averaged 8,000 barrels of liquids and 1 million cubic feet of natural gas. The final investment decision on the Mad Dog 2 Project was reached in February 2017. Plans call for a new floating production platform with a capacity of 140,000 barrels of crude oil per day. First oil is expected in 2021.

Stampede is a joint development of the Knotty Head and Pony fields, in Green Canyon. Chevron holds a 25 percent nonoperated working interest. The fields are in a water depth of 3,500 feet (1,067 m), with a reservoir depth of 30,000 feet (9,144 m). The development is designed for a capacity of 80,000 barrels of crude oil and 40 million cubic feet of natural gas per day. Fabrication and development drilling continued in 2016, with first oil expected in 2018.

Exploration
During 2016 and early 2017, the company participated in nine deepwater wells – five appraisal and four exploration. Two appraisal wells were successfully drilled at the Anchor discovery, one in the second quarter of 2016 and another in early 2017. In Keathley Canyon Chevron is the operator of an exploration and appraisal program and potential development named Tigris. The resource potential in this area may enable a deepwater hub development of multiple fields linked to a new central host. In 2016, two successful appraisal wells were drilled at the 41 percent-owned Tiber and 50 percent-owned Guadalupe discoveries. Chevron filed for Suspension of Production to hold the associated leases as the planned development concept matures.

Chevron acquired 10 new deepwater leases in the Gulf of Mexico in 2016.

California
At 171,000 barrels per day in 2016, Chevron is California’s largest producer in net oil-equivalent. We have 16,000 wells in operation, primarily in the San Joaquin Valley. Net daily production in 2016 averaged 159,000 barrels of crude oil, 54 million cubic feet of natural gas and 3,000 barrels of NGLs.

The majority of the production is from Chevron-operated leases that are part of three major crude oil fields in the San Joaquin Valley – Kern River, Midway Sunset and Cymric. We also operate and hold interests in the San Ardo, Coalinga and Lost Hills fields. Our expertise in steamflood operations – which makes the oil flow more easily – has resulted in a crude oil recovery rate at the Kern River Field of more than 60 percent.

Chevron continues to leverage leading-edge heat management capabilities in the recovery of these hydrocarbons, with emphasis on improved energy efficiency through new technology and processes.

Chevron also holds a nonoperated working interest of approximately 23 percent in four producing zones at the Elk Hills Field.

Appalachian Basin
The company is a significant leaseholder in the Marcellus Shale and the Utica Shale, primarily located in southwestern Pennsylvania, eastern Ohio and the West Virginia panhandle. In 2016, the company’s net daily production in these areas averaged 290 million cubic feet of natural gas, 5,000 barrels of NGLs and 3,000 barrels of condensate.

Chevron has approximately 472,000 net acres (1,910 sq km) in the Marcellus Shale. During 2016, seven company-operated wells were drilled. Development is proceeding at a measured pace, focused on improving execution capability, well performance and cost effectiveness.

In the Utica Shale, Chevron has approximately 309,000 net acres (1,251 sq km). In 2016, we drilled one exploratory well and focused on acquiring data necessary for potential future development.

Pipeline
Our subsidiary Chevron Pipe Line Company transports crude oil, refined petroleum products, liquefied petroleum gas, natural gas, natural gas liquids and chemicals within the United States. Chevron also operates pipelines for its 50 percent-owned CPChem affiliate.

In the U.S. Gulf of Mexico, Chevron completed and commissioned a 136-mile (219-km), 24-inch (61-cm) crude oil pipeline from the Jack/St. Malo deepwater production facility to a platform in Green Canyon Block 19 on the U.S. Gulf of Mexico shelf, where there is a connection to pipelines that deliver crude oil into Texas and Louisiana. 

Shipping
Chevron Shipping Company LLC is based in San Ramon, California.

Our fleet uses a combination of single-voyage charters, short- and medium-term charters, and company-owned and bareboat-chartered vessels. Our fleet includes both U.S.- and foreign-flagged vessels. The U.S.-flagged vessels transport refined products, primarily in the coastal waters of the United States. The foreign-flagged vessels primarily transport crude, LNG, oil, and refined products and feedstocks to and from various locations worldwide. Four of the scheduled six new LNG carriers in support of the developing LNG portfolio are in service, with the final two scheduled for delivery in 2017. Chevron also owns a one-sixth interest in each of seven LNG carriers that transport cargoes for the North West Shelf Venture in Australia.

Power generation
Our subsidiary Chevron Power and Energy Management Company manages Chevron’s interest in our gas-fired and renewable power generation assets and provides comprehensive commercial, engineering and operational support services to improve the power reliability and energy efficiency of Chevron operations worldwide.

Gas-fired cogeneration facilities produce electricity and steam and use recovered waste heat to support enhanced oil recovery operations.

Our renewable operations consist of wind, geothermal and solar assets. We also maintain interests in geothermal and solar joint ventures in Arizona, California and Texas.

marketing and retail

Chevron manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives. We own four U.S. fuel refineries and have a network of Chevron® and Texaco® service stations.

Refining
Chevron has a crude refining capacity in the United States of 931,000 barrels per day. Refineries are in Richmond and El Segundo, California; Salt Lake City, Utah; and Pascagoula, Mississippi.

We continued to improve our refineries’ flexibility and their ability to process lower-cost crude oil. At the Richmond Refinery, the company is continuing construction work on a modernization project, which will replace some of the refinery’s processing equipment with more modern technology that is designed to meet or exceed the nation’s toughest applicable environmental and safety standards.

Chevron became a leader in premium base oil production with the startup of the lubricant base-oil facility at the Pascagoula Refinery in 2014. We have another base oil plant at the Richmond Refinery.

Americas products
Chevron’s fuel marketing efforts are managed by our Americas Products organization. Chevron has a network of nearly 8,000 Chevron® and Texaco® service stations in the United States.

The Chevron and Texaco brands, both of which contain our Techron® gasoline additive, are well known to consumers. Chevron’s award-winning ExtraMile® convenience stores operate at more than 750 company-owned and franchised sites in California, Oregon and Washington.

We are among the leading suppliers of jet and aviation fuels to commercial airlines, as well as a key supplier to the military. Chevron markets aviation fuel to commercial airlines at more than 30 airports in the United States and supplies many general aviation locations as well.

Lubricants
Chevron sells finished lubricants to commercial, industrial and retail customers nationwide. Our U.S. line of lubricant and coolant products includes our well-known Chevron Havoline® and Chevron Delo® motor oils.

The 25,000-barrel-per-day premium base oil facility at our Pascagoula Refinery began operations in July 2014. The $1.4 billion project made Chevron a leading producer of premium base oils.

Supply and Trading
Chevron’s Supply and Trading organization provides a critical link between Chevron’s Upstream and Downstream operations. Headquartered in Houston, Texas, with additional trading hubs in London, Singapore and San Ramon, California, it provides commercial support for crude oil and natural gas production operations and our refining and marketing network. The organization manages daily commodity transactions averaging 5 million barrels of liquids and 5 billion cubic feet of gas.

The Crude Supply and Trading group buys, sells and transports all major grades of crude oil and secures the best prices for selling Chevron’s Upstream production and for purchasing crudes used by our refineries.

The Product Supply and Trading group manages global supply, trading and logistics for feedstocks, fuels, and refined products like gasoline, naphtha, diesel, jet fuel, heavy fuels, biofuels, coke, sulfur, ammonia, asphalt and other products for the manufacturing and marketing network.

The Gas Supply and Trading (GSAT) group helps maximize the value of Chevron’s equity natural gas, liquefied petroleum gas (LPG), NGLs and LNG globally. GSAT markets and manages transportation for Chevron’s equity natural gas production. It also manages all LPG and NGL trading, including supplying refineries and marketing NGLs produced by Chevron’s refineries and Upstream assets.

chemicals

Chevron is one of the world’s top producers of commodity petrochemicals, through the 50 percent-owned joint venture Chevron Phillips Chemical Company LLC. Based in The Woodlands, Texas, CPChem manufactures building-block chemicals – olefins, polyolefins, aromatics, styrenics and specialty products – used to make consumer and industrial products.

CPChem continues construction of its U.S. Gulf Coast Petrochemicals Project in Texas. The $6 billion project includes an ethane cracker at the Cedar Bayou plant, with an annual design capacity of 1.5 million metric tons of ethylene, and two polyethylene units in Old Ocean, each with an annual design capacity of 500,000 metric tons. The polyethylene units are expected to start up in mid-2017, and the ethane cracker, in late 2017.

In March 2016, CPChem approved expansion of the polyalphaolefins capacity at its Cedar Bayou plant by 22 million pounds per year, or 20 percent. The expansion will enable CPChem to meet the increasing demand for high-performance lubricants. The expansion is expected to start up by mid-2017.

In 2016, CPChem completed its state-of-the-art polyethylene pilot plant at its research and technology facility in Bartlesville, Oklahoma. The testing site will provide leading-edge polyethylene research, including new catalyst and polymer development as well as polymer performance enhancements.

Oronite, a Chevron subsidiary headquartered in San Ramon, California, develops and manufactures fuel and lubricant additives and chemicals designed to enhance the performance of all types of transportation and industrial equipment. Additional facilities in the United States include:

  • A technology center, in Richmond, California.
  • A manufacturing plant, in Belle Chasse, Louisiana.
  • The sales headquarters for the Americas region in Houston, Texas.

technology

Chevron has three technology companies that support the company’s businesses. The work that these companies do is integrated across Chevron. The groundbreaking technologies we are developing – many in the United States – are deployed throughout the company.

Chevron’s Mid-Continent business unit is developing an Integrated Operations Center (IOC) at its Midland, Texas, office. The IOC will enable engineers and operations personnel working in the office to see real-time production as it’s happening in the field. The information obtained will result in better prioritization as well as improved communication between experts in the field and experts in the office, which will help them troubleshoot more efficiently.

Chevron’s industry-leading nuclear magnetic resonance (NMR) laboratory in Houston, Texas, completed in 2015, was made fully operational in 2016. Using NMR technology in oil field applications enables Chevron to calibrate and interpret subsurface data and conduct chemical analysis and structural determination at the molecular level.

In the U.S. Gulf of Mexico, the Blind Faith floating production unit is one of the first to take advantage of Chevron’s Floating Systems Integrity Management (FSIM) Support Center. The FSIM gathers, manages and trends critical component performance to help assure safe operating margins on the company’s floating systems.

More than 25 years of residuum and hydrocracking research conducted at the Richmond Technology Center in California is furthering the commercialization of Chevron’s LC-SLURRY™ high-conversion residuum processing technology. The company has signed a letter of intent with Preem/Beowulf to evaluate licensing the first LC-SLURRY™ residue hydrocracking unit at Preem’s refinery in Lysekil, Sweden.

In 2016, Chevron achieved a U.S. patent pending status for an innovative oleophilic bio-barrier (OBB) used to control petroleum sheens on water surfaces. In its initial demonstration, the OBB promoted natural aerobic deterioration of hydrocarbons while also saving hundreds of thousands of dollars compared with traditional cleanup methods.

inthecommunity

in the community

Wherever Chevron operates, the company strives to build lasting relationships to create prosperity now and for decades to come. We contribute to the economic and social well-being of the communities where we operate by creating jobs, supporting local businesses and training the workforce of the future. 

investing in education

Over the past three years, Chevron has invested more than $170 million in education partnerships and programs in the United States. We work with education organizations, government officials, nonprofit organizations and community leaders to create and strengthen education opportunities and offer career and technical training for students and workers. We invest in partnerships at every stage—from early education through employment—all with a special focus on cultivating programs in science, technology, engineering and math (STEM). 

Chevron supports a broad range of programs across the United States:

  • Chevron partners with the Fab Foundation to bring Fab Labs – fabrication laboratories – to areas where Chevron operates. The Fab Foundation provides access to tools and technology to educate, innovate and invent. The first Chevron-sponsored Fab Lab opened in 2014 at California State University, Bakersfield. Since then, Fab Labs have been added in Richmond, California; Pittsburgh and Grindstone, Pennsylvania; and Washington, D.C. In 2017, Chevron partnered with Odessa College to open Fab Lab Permian Basin. The on-campus facility is the first Chevron-sponsored Fab Lab in Texas. Fab Labs are open both to students and to the community.
  • Chevron supports Project SEED as part of our commitment to preparing students for careers in engineering, research and technology. This eight-week internship offers high school students in Richmond the chance to learn about science by working in a laboratory setting, which includes the labs at our Chevron Richmond Technology Center campus.
  • With Chevron’s help, Project Lead the Way (PLTW) has brought rigorous, project-based engineering curricula to 40,000 students in more than 100 schools in California, Louisiana, Mississippi, Ohio, Pennsylvania, Texas and West Virginia. Chevron was the first corporation to support PLTW’s National Grow Campaign, with a $6 million pledge in 2013.
  • Fuel Your School is an innovative collaboration with DonorsChoose.org that makes it easy for people to help public school teachers obtain classroom resources.
  • The mission of Techbridge is to inspire girls to discover a passion for technology, science and engineering through hands-on learning. Techbridge empowers the next generation of female innovators and leaders.
  • Chevron supports the Robotics Academy, the Summer Robotics Camp and the Aquatic Robotics Summer Camp. These Gulf Coast programs give students the opportunity to build working robots while honing their STEM skills.
  • Chevron is a sponsor of the Richmond High School Robotics Program. Students in the program learn critical life and work-related skills by working side by side with professionals who mentor the students through the process of building a robot for the FIRST (For Inspiration and Recognition of Science and Technology) Robotics Competition.
  • JASON Learning is a national nonprofit program that inspires students to pursue careers in STEM fields through award-winning curricula developed with the National Geographic Society and the National Oceanic and Atmospheric Administration. Chevron funds the project in 10 Houston-area school districts, where more than 1,000 teachers have received professional development training. More than 135,000 students participate in the program. 
  • In 2014, Chevron invested more than $4.7 million to support STEM programs and job-training initiatives as part of the Appalachia Partnership Initiative in the Marcellus Shale and Utica Shale operating areas of Pennsylvania, Ohio and West Virginia. Programs include the Carnegie Science Center’s Chevron STEM Center, PLTW, Fab Labs for K–12 students and ShaleNET. We also support Service to Opportunity programs focused on preparing residents and veterans for energy and manufacturing jobs in the region.

improving career and technical training

Chevron supports career and technical training programs that provide a foundation for long-term economic development.

In partnership with Casa de Amigos, Chevron supports the Take2 job skills program in the Permian Basin. The program helps equip low-income women and men with the skills to obtain high-paying jobs. In 2016, the program offered training to 184 people.

Among several Gulf Coast initiatives, Chevron partnered with GNO, Inc., and Delgado Community College to use the annual Technical Skills Expo to introduce more than 800 high school students to industry opportunities, career pathways and training available at their schools. Chevron also helped create curricula for workforce development programs at Mississippi Gulf Coast Community College. Since those programs began, our Pascagoula Refinery has hired 134 graduates.

Chevron sponsors the Contra Costa County Office of Education’s Regional Occupational Program (ROP). This program offers courses that provide free job training and equip residents with the skills to compete for well-paying jobs, including technical jobs at the Richmond Refinery. ROP courses help students develop strong communication skills, strengthen their analytical skills, and learn how to work productively, both independently and as part of a team.

For more than a dozen years, our Richmond Refinery has supported RichmondBUILD, a pre-apprenticeship program focused on developing talent and skill in the high-growth, high-wage construction and renewable energy fields. All RichmondBUILD participants come from low-income households in the local community and graduate with an industry-recognized certificate.

recordofachievement

record of achievement

Chevron’s story dates back to an 1876 oil discovery at Pico Canyon in the Santa Susana Mountains, north of Los Angeles. The find led to the 1879 formation of Chevron’s earliest predecessor, the Pacific Coast Oil Co.

Another part of our history begins with the 1901 founding of The Texas Fuel Co. (later Texaco) and its historic oil discovery two years later at Sour Lake, Texas. These companies and other members of the Chevron family have been instrumental in transforming the oil business into today’s global energy industry.

Throughout the 20th century, Chevron and Texaco experienced dynamic growth in the United States and internationally. In 1984, Standard Oil Co. of California, Chevron’s immediate predecessor, acquired Gulf Corporation in a $13.3 billion merger. At the time, it was the largest acquisition in corporate history. That same year, Texaco purchased Getty Oil and gained 1.9 billion barrels in proved reserves of crude oil and 2.8 trillion cubic feet of natural gas reserves.

Chevron and Texaco formed a number of partnerships, most notably Caltex Corp. in 1936. The 2001 merger of Chevron and Texaco was a natural outgrowth of a successful history of teamwork. In 2005, Chevron acquired Unocal Corp. In 2011, we acquired Atlas Energy, Inc., which added natural gas resources and shale acreage, primarily in southwestern Pennsylvania and northern Michigan.

health and safety

Chevron continues to demonstrate its commitment to advancing health initiatives, protecting the environment and promoting safety. We use our Operational Excellence Management System to systematically drive continuous improvement throughout our organization.

We are instituting a standard Contractor Health and Safety Management process across the company to help ensure that workers can do their jobs without risk to themselves, others or the environment and to help contract workers be aware of the safe work practices that apply to the work they are doing. For example, our San Joaquin Valley Upstream business unit works with key contractors to raise their awareness about safeguards to prevent and mitigate incidents.

Chevron was selected as the Best of the Best among the 2014 IHS SPECTRUM Excellence Award winners based on our innovative use of information systems to achieve environmental, health, safety and sustainability business goals.

In addition, our Piceance Basin operation, in northwestern Colorado, has initiated a multiyear research study of wildlife and habitat conducted by Colorado State University’s Warner College of Natural Resources.

In 2015, the Center for Offshore Safety awarded Chevron North America Exploration and Production its Safety Leadership Award in recognition of the Greater Gulf of Mexico’s Field Competency Program. Chevron was the only operator to receive the award, which recognizes outstanding contributions by an operator to improving safety management and sharing that knowledge with the industry.

In 2016, the American Petroleum Institute honored Chevron Pipe Line Company with the Distinguished Safety and Environmental Award for large operators, the organization’s highest safety and environmental performance award for pipeline operators.

contactus

contact us

Chevron Headquarters
6001 Bollinger Canyon Rd.
San Ramon, CA 94583, U.S.A.
Telephone: +1 925.842.1000
Send an Email

disclosure;forward-lookingstatements

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Site 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 or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “focus,” “on schedule,” “on track,” “goals,” “objectives,” “strategies” 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, many 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 issued. 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: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; 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 the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; 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 operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or the delay or failure of such transactions to close based on required closing conditions set forth in the applicable transaction agreements; the potential for 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; material reductions in corporate liquidity and access to debt markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 22 of the company’s 2016 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements.

Certain terms, such as "unrisked resources," "unrisked resource base," "recoverable resources," “potentially recoverable volumes” and "original oil in place," among others, may be used to describe certain aspects of the company's portfolio and oil and gas properties beyond the proved reserves. For definitions of, and further information regarding, these and other terms, see the "Glossary of Energy and Financial Terms" on pages 50 and 51 of the company's 2016 Supplement to the Annual Report. As used in this report, the term "project" may describe new upstream development activity, including phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investment in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term "project" as it relates to any specific government law or regulation.

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