Our world depends on clean natural gas to help meet growing energy needs. The International Energy Agency estimates gas use will grow over 50 percent through 2035, with demand in Asian economies especially strong. Developing more of this abundant and efcient resource is critical to help fuel the global economy, curb carbon emissions and enhance the quality of life worldwide. Chevron: Your Natural Gas Partner Chevron is an established, global leader in integrated, multi-partner natural gas projects, with multi-billion dollar developments under way in Africa, Australia, China, Indonesia, North America, Vietnam and other locations. We produce approximately 5 billion cubic feet per day from projects onshore and offshore, tight formations, and shale and we are a recognized leader in safely developing deep, high-pressure, high-temperature and sour reservoirs. Our operations supply pipeline gas to industry, power plants and consumers worldwide. By 2020 we will be one of the largest producers of liqueed natural gas (LNG) in the world and a major LNG shipper. Were also developing a major gas-to-liquids project in Nigeria. Today more than ever, successful natural gas developments require a clear focus on the entire value chain. Through our upstream and technology businesses, we offer world-class capability in exploration and resource development. Our Gas and Midstream organization links the wellhead to the marketplace with expert teams devoted to gas commercialization and marketing, shipping, pipelines, and power generation. Chevrons global commitment to the disciplined application of our Operational Excellence Management System ensures that every project maintains a constant focus on safety for employees, contractors and neighbors. Our culture and processes ensure that our facilities are designed and operated to deliver reliable supplies of clean natural gas safely and efciently, while protecting people and the environment. Fueling generations to come with natural gas requires nancially strong, experienced companies with superior technology and a commitment to safety and environmental stewardship. Most of all, natural gas development requires a focus on mutually benecial partnerships with host countries, customers, industry and local communities and a commitment to shared investment in a secure energy future. A proven partner and performer, Chevron sees tremendous opportunities for protable natural gas development throughout the world. Gas and Midstream | 1 Left: A central processing platform is moved into place at Platong II in the Gulf of Thailand. The natural gas project came online in the fall of 2011 and will help feed the growing demand for energy in Thailand. Far Left: The Angola LNG project has provided signicant local employment and skill development as well as signicant health, educational and economic infra- structure projects and programs located in Zaire Province. Cover: Chevrons $37 billion Gorgon liqueed natural gas project offshore Western Australia is our largest investment to date. Shown here is the materials ofoad- ing facility, an essential component of the infrastructure being built for the project at Barrow Island. Growing World Gas Supplies With Chevron 2 | Gas and Midstream With demonstrated capabilities across the natural gas value chain, Chevron is the premier gas partner, helping host countries increase natural gas production and use. As we work to produce our proved gas reserves of more than 29 trillion cubic feet (Tcf), we see great potential to develop our total unrisked resource base of more than 160 Tcf and to form new partnerships. Tight Gas: United States The Piceance Basin project in Colorado targets 3.5 Tcf of potentially recoverable gas. Gas-to-Liquids: Nigeria The Escravos GTL project will produce premium quality low-sulfur diesel fuel and naphtha, transforming formerly- stranded gas resources into valuable exports. Natural Gas from Shale: United States Since 2011, Chevron has acquired 1.5 million leased acres of natural gas from shale. With comprehensive drilling and appraisal programs, and future exploration potential, Chevron continues to grow its portfolio. Gas Commercialization: Nigeria Chevrons Escravos gas project in Nigeria is helping to end routine aring and provide new energy for regional markets and power plants. Deepwater: United States Major new Chevron projects in the Gulf of Mexico will produce oil and gas, with more exploration and projects on the horizon. Pipelines: Africa Chevron led multi-country negotiations and, with its partners, built the 421-mile (678-km) West Africa Gas Pipeline to supply Nigerian gas to neighboring countries. 5 1 6 2 7 3 Sour Gas: China Chevron is building the $4.7 billion Chuandongbei project in Chengdu, China, leveraging our experience in safely developing sour gas in the United States and Kazakhstan. 9 LNG: Angola A joint venture with Chevron, Sonangol Angolas national oil company and other partners, Angola LNG will commercialize natural gas that otherwise might have been re-injected or ared. 8 Pipelines: United States Chevron is a leading developer of essential gas gathering and transport systems in the United States, as well as supporting pipeline projects for new oil and gas projects in deepwater Gulf of Mexico. 4 Power Generation Chevron provides power plant development expertise, including technical, regulatory, commercial and operational capabilities, in support of power projects around the world. Gas and Midstream | 3 Exploration: Australia Chevron has a highly successful exploration program offshore Western Australia, adding to our extensive natural gas resource base. Gas-to-Power: Vietnam Block B Chevrons Block B gas project is designed to supply natural gas from the Malay Basin to existing and proposed power plants in southern Vietnam. Deepwater Gas: Indonesia Gendalo-Gehem, Indonesias rst ultra-deepwater project, is expected to produce more than 1 billion cubic feet (Bcf) of natural gas per day. 10 11 12 LNG: Australia The Chevron-led Gorgon project, which includes the worlds largest CO 2 sequestration system, and the Wheatstone LNG and domestic natural gas projects, will enhance Asia-Pacic and Western Australia energy supplies for decades. 13 Conventional Natural Gas Production We have ongoing signicant natural gas production in Australia, Bangladesh, Colombia, Gulf of Thailand, Indonesia, Kazakhstan, Trinidad and Tobago, the United States, and Venezuela. Natural Gas from Shale: Exploration In Canada and in parts of Central Europe, Chevron has various stages of exploration activities under way for potential development of gas resources. 8 3 4 11 9 1 2
Photo: In 2011, Chevron added 1.2 Tcf of proved reserves in the Marcellus Shale. 13 12 5 6 7 10 Chevron: The Proven Global Gas Partner 4 | Gas and Midstream As the leading international oil company in Asia-Pacic, Chevron deploys a full range of technical capabilities to help increase the natural gas supplies essential to growing economies. In Australia, Chevron is the operator of the giant Gorgon and Wheatstone LNG and domestic natural gas projects, which are posi- tioning Australia to become one of the worlds largest LNG exporters and a key, long-term energy partner to Asian economies. Representing a combined capital investment of $66 billion, with the initial phases designed to export around 24 million tons of LNG per year. Anchored by long-term supply contracts with Japan and other key Asian markets, the projects are expected to tap tens of trillions of cubic feet of offshore reserves, create thousands of jobs, help drive the regional economy and contribute billions of dollars in revenue to the government in the decades ahead. We continue to explore for new gas supplies offshore, employing state-of-the-art subsurface mapping technologies to pinpoint and evaluate targets and new elds, drilling more than one dozen major discoveries since 2009. Were also a partner in the North West Shelf Venture, which has exported LNG since 1989. Focused on the full natural gas value chain, Chevron is a proven, long-term partner in gas development. We combine exploration, development, transportation and market strategies to nd new resources and ensure long-term project stability and growth potential. Gas and Midstream | 5 In other parts of Asia-Pacic, weve become the largest gas producer in Thailand, and our Platong II project, started up in 2011, will increase the countrys gas pro- duction by 10 percent. Chevron is also the largest gas producer in Bangladesh, fueling that nations power plants. Were applying our expertise in sour gas development to Chinas Chuandongbei project, and in Vietnam, were working to develop offshore elds to supply needed gas for power. The Gendalo-Gehem deepwater gas project in Indonesia is expected to support both LNG exports and domestic supply. In North America, Chevron is a top U.S. natural gas supplier, marketer and pipeline operator, producing around 1.3 billion cubic feet per day from California, Colorado, Texas, the U.S. Gulf of Mexico and other areas. Were a leader in deep- water gas development in the Gulf of Mexico; deep gas exploration and produc- tion on the Gulf of Mexico shelf; and safe production and processing of sour gas. Our company is a major developer of natural gas from the vast Marcellus Shale in the Appalachian region and is exploring for shale gas on more than 250,000 acres in western Canada. In Africa, were partnering with Sonangol on the development of the rst LNG export project in Angola. This complex of offshore and onshore facilities is reducing gas aring, optimizing gas-enhanced oil production and increasing gas commercialization. In Nigeria, weve had upstream operations for more than 50 years. Currently, Chevron supplies gas domestically and also to neighboring countries through the West Africa Gas Pipeline. In 2013, we expect to start up our 33,000 barrel-per-day Escravos gas-to-liquids plant. In Latin America, Chevron is the top natural gas producer in Colombia, with more than 640 million cubic feet of daily production, and has interests in producing gas elds offshore Trinidad and Tobago. In Venezuela, Chevron has discovered signicant offshore gas resources. In Europe, Chevron is exploring for gas from shale formations in areas of Central Europe, aiming to develop this vast resource with safe fracturing technologies proved in the United States. The company is a long-time oil and gas producer in the U.K. North Sea, contributing signicant volumes to Britains gas supply. In Eurasia, complex gas re-injection facilities enhance liquids production at our Kazakhstan projects, where we have developed industry-leading capability in managing sour, high-pressure reservoirs. Above: The Chuandongbei Gas Project, one of the largest onshore energy projects in Asia-Pacic, will include two sour-gas processing plants connected to ve natural gas elds. Left: Shown here are processing facilities under construction on Barrow Island. First deliveries of LNG are expected in late 2014. Chevron is the largest holder of natural gas resources in Australia. Chevron Natural Gas (CNG) markets natural gas to wholesale and large end-use consumers and develops strong partnerships with utility and industrial customers and pipeline operators, and ranks among the leading marketers of natural gas in North America. CNG maximizes the value of Chevrons equity gas and sustains Chevrons competitive North American/U.K. natural gas position. Gas Commercialization and CNG negotiate supply commitments to ensure commer- cial viability and long-term protability with gas and LNG sales and trading ofces in Houston, London, Perth, Singapore and Tokyo that continually link Chevron gas to the best, long-term and spot-market opportunities. Chevron Shipping Company and Chevron Pipe Line provide decades of experience in the transportation and distribution of Chevrons gas and oil assets connecting our upstream developments to end-users throughout the global marketplace. The Chevron Gas and Midstream organization encompasses ve business units that together integrate knowledge, experience and skill to ensure that Chevron creates strong, competitive value chains for all our gas developments. Within Gas and Midstream, the Gas Commercialization group works closely with upstream operating companies globally to maximize the value of the companys equity gas resource base while growing a high-impact global gas business. The group provides LNG marketing and trading services, contracts and negotiation support, decision and economic analysis, re-gasication technical services, and market analysis to evaluate and support natural gas business opportunities. Structured for Value Chain Success Chevron Natural Gas is headquartered in Houston, Texas, where employees and support personnel ensure that our wholesale, pipeline, utility and industrial customers receive industry- leading service. 6 | Gas and Midstream Chevron Shipping Company (CSC) is responsible for carrying 1 billion barrels of crude oil and natural gas annually and enjoys an unbeaten record of marine safety management. CSC operates more than two dozen ships from conventional crude and product carriers, to high-technology dynamic positioning vessels and LNG carriers. It provides marine solutions from concept to operations. Key current activities include providing technical, commercial and operational support to projects such as Angola LNG, Gorgon and Wheatstone. In the United States, we own or operate more than 10,000 miles (16,000 km) of pipelines, and approximately 100 billion cubic feet of natural gas storage capacity in Canada. Chevron Pipe Line is partnering to provide deepwater pipeline trans- portation in the Gulf of Mexico that will provide access to major trading hubs and reneries. Through a subsidiary, we operate the Henry Hub, a major natural gas trading hub, interconnecting with nine interstate and four intrastate pipelines and serving as the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange.
Globally, our shipping and pipeline experts have been instrumental in devising efcient LNG transportation strategies for Australian and Angolan LNG projects, and in negotiating terms and plans for cross-border, multi-party gas pipelines in West Africa and in the United States among others. Chevron Global Power Company supports gas projects to connect to new gas-to-power facilities in markets throughout the world. It also delivers self- generation and cogeneration power solutions for Chevrons oil and gas projects and reneries worldwide, and provides commercial development and technical support. The group manages Chevrons interests in 12 joint-venture power facilities, primarily cogeneration, in the United States, Thailand and Korea, and owns a 16.5 megawatt wind farm in the United States. Gas and Midstream | 7 The Sonangol Sambizanga, one of three LNG carriers owned by Angolas national oil company, Sonangol, and managed by Chevron Shipping Company. Chevron and Sonangol mariners serve side-by-side on the three vessels. Technologies for Every Gas Challenge 8 | Gas and Midstream Chevron provides its natural gas projects with superior technologies and top technical support at every link in the gas value chain, ensuring maximum resource recovery and safe, reliable and efcient operations worldwide. We focus specialists, teams and research on key areas such as exploration; deep-water ow assurance; sour-gas processing; high-pressure wells; tight and shale-formation fracturing; gas-to-liquids conversion; carbon capture and storage; gas processing and treating; and LNG liquefaction, storage, transportation and re-gasication. Our unique, integrated approach combines seasoned scientists and engineers with strategic research, proprietary technologies, university research partnerships and technical alliances with top service companies and government institutions. Around the world, our technology companies and research centers in Australia, the United States and the United Kingdom provide strong support for our gas projects and future technology needs. And our major gas projects are equipped with new information technologies to enhance reservoir surveillance and management, automate production systems and connect eld operations to central technical support centers around the clock. To strengthen relationships and help build new generations of energy professionals, Chevron shares our technical expertise with long-term country partners, providing training, knowledge transfer and technology transfer. Helping to see gas deep beneath Earths surface, Chevron uses three-dimensional visualization models that enable drilling in complex environments. Tri Energy Company is a Chevron jointly owned 700 megawatt combined-cycle power plant facility in Ratchaburi, Thailand, that supplies electrical power to Thailands National Power Authority under a power purchase agreement. Building Communities; Supporting Local Economies Partnership means investing in people to develop strong, sustainable local economies with healthy, thriving populations. Chevron natural gas projects contribute to host communities by creating jobs, purchasing goods and services, paying taxes and royalties, and creating economic opportunities. We are committed to hiring, training and promoting the local workforce and providing opportunities to gain experience in Chevrons global operations. We work with local leaders and nongovernmental organizations to support schools and universities, job training, health and small-business development programs. Our comprehensive Environmental, Social and Health Impact Assessment process identies, analyzes and develops ways to enhance gas project benets and mitigate environmental, social and health issues. Protecting the health and safety of our workforce and the environment is a core value at Chevron. Our Operational Excellence Management System guides our work in safety, health, environment, reliability and efciency. We promote safety in the eld, among contractors, on the road and in the ofce everywhere we operate.
Protecting people is not just the way we do business, its part of our values who we are as individuals and collectively as a company. Our goal is zero incidents always. Chevron, in partnership with the govern- ment of Indonesia and others, helped build the Aceh Polytechnic to provide vocational training in applied technology elds and meet the needs of local industry. of alternate-energy sources or product substitutes; technological developments; the results of operations and nan- cial condition of equity afliates; the inability or failure of the companys 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 companys 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 the Organization of Petroleum Exporting Countries; the potential liability for remedial actions or assessments under existing or future environmental regulations and litiga- tion; signicant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from other pending or future litigation; the companys future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specic taxes, changes in scal 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 29 through 31 of the companys 2011 Annual Report on Form 10-K. In addition, such statements could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on forward-looking statements. Certain terms, such as unrisked resources, unrisked resource base, recoverable resources, and oil in place, among others, may be used in this presentation to describe certain aspects of the companys portfolio and oil and gas properties beyond the proved reserves. For denitions of, and further information regarding, these and other terms, see the Glossary of Energy and Financial Terms on pages 58 and 59 of the companys 2011 Supplement to the Annual Report and available at Chevron.com. Cautionary Statement Relevant to Forward-Looking Information for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: This brochure contains forward-looking statements relating to Chevrons operations that are based on managements current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as anticipates, expects, intends, plans, targets, forecasts, projects, believes, seeks, schedules, estimates, budgets, outlook 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 companys control and are difcult 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: changing crude oil and natural gas prices; changing rening, marketing and chemical margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA 94583, USA www.chevron.com Produced by Chevron Gas and Midstream
2012 Chevron Corporation. All rights reserved. (03/12-R) 5M 913-0449 (03/12-R) 100% Recyclable 010% Recycled Located in the Permian Basin production region in West Texas, the Keystone Gas Storage facility is a high-deliverability salt-cavern storage facility that connects to the El Paso Natural Gas, Transwestern Gas Company and Northern Natural Gas Company pipeline systems.
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The International Research Center for Energy and Economic Development (ICEED)