Chevron 2013 10K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-00368
Chevron Corporation
(Exact name of registrant as specified in its charter)

Delaware 94-0890210 6001 Bollinger Canyon Road,
San Ramon, California 94583-2324
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
(Address of principal executive offices)
(Zip Code)
Registrants telephone number, including area code (925) 842-1000
Securities registered pursuant to Section 12 (b) of the Act:

Title of Each Class Name of Each Exchange
on Which Registered
Common stock, par value $.75 per share New York Stock Exchange, Inc.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any,
every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( 232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K ( 229.405 of this chapter)
is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting
company in Rule 12b-2 of the Exchange Act.

Large accelerated filer Accelerated filer Non-accelerated filer
(Do not check if a smaller
reporting company)
Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). Yes No
Aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the
price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last
business day of the registrants most recently completed second fiscal quarter $228,635,687,380 (As of J une 28, 2013)
Number of Shares of Common Stock outstanding as of February 10, 2014 1,909,130,328
DOCUMENTS INCORPORATED BY REFERENCE
(To The Extent Indicated Herein)
Notice of the 2014 Annual Meeting and 2014 Proxy Statement, to be filed pursuant to Rule 14a-6(b) under the Securities
Exchange Act of 1934, in connection with the companys 2014 Annual Meeting of Stockholders (in Part III)

THIS PAGE INTENTIONALLY LEFT BLANK
1
TABLE OF CONTENTS
ITEM PAGE NO.
PART I
1. Business ............................................................................................................................................................................................................. 3
General Development of Business .............................................................................................................................................................. 3
Description of Business and Properties ....................................................................................................................................................... 4
Capital and Exploratory Expenditures ................................................................................................................................................. 4
Upstream ............................................................................................................................................................................................... 4
Downstream ......................................................................................................................................................................................... 24
Other Businesses ................................................................................................................................................................................... 26
Website Access to SEC Reports ................................................................................................................................................................... 27
1A. Risk Factors ....................................................................................................................................................................................................... 27
1B. Unresolved Staff Comments ............................................................................................................................................................................. 29
2. Properties........................................................................................................................................................................................................... 29
3. Legal Proceedings ............................................................................................................................................................................................. 29
4. Mine Safety Disclosures .................................................................................................................................................................................... 31

PART II
5. Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ............................... 31
6. Selected Financial Data .................................................................................................................................................................................... 31
7. Managements Discussion and Analysis of Financial Condition and Results of Operations .......................................................................... 31
7A. Quantitative and Qualitative Disclosures About Market Risk ....................................................................................................................... 31
8. Financial Statements and Supplementary Data ................................................................................................................................................ 32
9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure ....................................................................... 32
9A. Controls and Procedures .................................................................................................................................................................................. 32
9B. Other Information ........................................................................................................................................................................................... 32

PART III
10. Directors, Executive Officers and Corporate Governance ............................................................................................................................... 33
11. Executive Compensation .................................................................................................................................................................................. 34
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...................................................... 34
13. Certain Relationships and Related Transactions, and Director Independence ............................................................................................... 34
14. Principal Accounting Fees and Services ........................................................................................................................................................... 34

PART IV
15. Exhibits, Financial Statement Schedules .......................................................................................................................................................... 35
Schedule II Valuation and Qualifying Accounts ........................................................................................................................................ 36
Signatures .......................................................................................................................................................................................................... 37
2
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Tis Annual Report on Form 10-K of Chevron Corporation 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.
Tese statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors,
many of which are beyond the companys control and are difcult to predict. Terefore, actual outcomes and results may difer
materially from what is expressed or forecasted in such forward-looking statements. Te reader should not place undue reliance
on these forward-looking statements, which speak only as of the date of this report. 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 difer materially from those in the forward-looking statements
are: changing crude oil and natural gas prices; changing refning, marketing and chemicals 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 fnancial 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
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 litigation;
signifcant investment or product changes required by 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-
specifc taxes, changes in fscal terms or restrictions on scope of company operations; foreign currency movements compared
with the U.S. dollar; the efects 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 27 through 29 in this report. In addition,
such results could be afected by general domestic and international economic and political conditions. Other unpredictable or
unknown factors not discussed in this report could also have material adverse efects on forward-looking statements.

3
Part I
Item 1. Business
General Development of Business
Summary Description of Chevron
Chevron Corporation,* a Delaware corporation, manages
its investments in subsidiaries and afliates and provides
administrative, fnancial, management and technology
support to U.S. and international subsidiaries that engage
in fully integrated petroleum operations, chemicals
operations, mining operations, and power and energy
services. Upstream operations consist primarily of exploring
for, developing and producing crude oil and natural gas;
processing, liquefaction, transportation and regasifcation
associated with liquefed natural gas; transporting crude oil
by major international oil export pipelines; transporting,
storage and marketing of natural gas; and a gas-to-liquids
project. Downstream operations consist primarily of refning
crude oil into petroleum products; marketing of crude oil
and refned products; transporting crude oil and refned
products by pipeline, marine vessel, motor equipment and
rail car; and manufacturing and marketing of commodity
petrochemicals, plastics for industrial uses and fuel and
lubricant additives.
A list of the companys major subsidiaries is presented
on page E-4. As of December 31, 2013, Chevron had
approximately 64,600 employees (including about 3,200
service station employees). Approximately 32,000 employees
(including about 3,000 service station employees), or
50 percent, were employed in U.S. operations.
Overview of Petroleum Industry
Petroleum industry operations and proftability are
infuenced by many factors. Prices for crude oil, natural
gas, petroleum products and petrochemicals are generally
determined by supply and demand. Te members of the
Organization of Petroleum Exporting Countries (OPEC)
are typically the worlds swing producers of crude oil and
their production levels are a major factor in determining
worldwide supply. Demand for crude oil and its products
and for natural gas is largely driven by the conditions of
local, national and global economies, although weather
patterns and taxation relative to other energy sources also
play a signifcant part. Laws and governmental policies,
particularly in the areas of taxation, energy and the
environment afect where and how companies conduct their
operations and formulate their products and, in some cases,
limit their profts directly.
Strong competition exists in all sectors of the petroleum
and petrochemical industries in supplying the energy, fuel
and chemical needs of industry and individual consumers.
Chevron competes with fully integrated, major global
petroleum companies, as well as independent and national
petroleum companies, for the acquisition of crude oil
and natural gas leases and other properties and for the
equipment and labor required to develop and operate those
properties. In its downstream business, Chevron competes
with fully integrated, major petroleum companies and
other independent refning, marketing, transportation and
chemicals entities and national petroleum companies in
the sale or acquisition of various goods or services in many
national and international markets.
Operating Environment
Refer to pages FS-2 through FS-8 of this Form 10-K
in Managements Discussion and Analysis of Financial
Condition and Results of Operations for a discussion of the
companys current business environment and outlook.
Chevrons Strategic Direction
Chevrons primary objective is to create shareholder value
and achieve sustained fnancial returns from its operations
that will enable it to outperform its competitors. In the
upstream, the companys strategies are to grow proftably
in core areas and build new legacy positions. In the
downstream, the strategies are to deliver competitive returns
and grow earnings across the value chain. Te company
also continues to apply commercial excellence to enable
the success of the upstream and downstream strategies, to
utilize technology across all its businesses to diferentiate
performance, and to invest in proftable renewable energy
and energy efciency solutions.
* Incorporated in Delaware in 1926 as Standard Oil Company of California, the company adopted the name Chevron Corporation in 1984 and ChevronTexaco Corporation in 2001. In 2005,
ChevronTexaco Corporation changed its name to Chevron Corporation. As used in this report, the term Chevron and such terms as the company, the corporation, our, we and us
may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole, but unless stated otherwise they do not include afliates of Chevron i.e.,
those companies accounted for by the equity method (generally owned 50 percent or less) or investments accounted for by the cost method. All of these terms are used for convenience only
and are not intended as a precise description of any of the separate companies, each of which manages its own afairs.
4
Description of Business and Properties
Te upstream and downstream activities of the company
and its equity afliates are widely dispersed geographically,
with operations and projects* in North America, South
America, Europe, Africa, Asia and Australia. Tabulations of
segment sales and other operating revenues, earnings and
income taxes for the three years ending December 31, 2013,
and assets as of the end of 2013 and 2012 for the United
States and the companys international geographic areas
are in Note 11 to the Consolidated Financial Statements
beginning on page FS-35. Similar comparative data for the
companys investments in and income from equity afliates
and property, plant and equipment are in Notes 12 and 13
on pages FS-37 through FS-39.
Capital and Exploratory Expenditures
Total expenditures for 2013 were $41.9 billion, including
$2.7 billion for the companys share of equity-afliate
expenditures. In 2012 and 2011, expenditures were
$34.2 billion and $29.1 billion, respectively, including the
companys share of afliates expenditures of $2.1 billion in
2012 and $1.7 billion in 2011.
Of the $41.9 billion in expenditures for 2013,
90 percent, or $37.9 billion, was related to upstream
activities. Approximately 89 percent was expended for
upstream operations in both 2012 and 2011. International
upstream accounted for about 78 percent of the worldwide
upstream investment in 2013, about 72 percent in 2012
and about 68 percent in 2011. Tese amounts exclude the
acquisition of Atlas Energy, Inc. in 2011.
In 2014, the company estimates capital and exploratory
expenditures will be $39.8 billion, including $4.8 billion of
spending by afliates. Approximately 90 percent of the total,
or $35.8 billion, is budgeted for exploration and production
activities, with $27.9 billion, or about 78 percent, of this
amount for projects outside the United States.
Refer also to a discussion of the companys capital and
exploratory expenditures on page FS-12.
Upstream
Te table on the following page summarizes the net
production of liquids and natural gas for 2013 and 2012
by the company and its afliates. Worldwide oil-equivalent
production of 2.597 million barrels per day in 2013 was
essentially unchanged from 2012. Te benefts of lower
maintenance-related downtime and higher reliability at the
Tengizchevroil facilities in Kazakhstan, and ramp-ups at the
Usan Project in Nigeria, in the Marcellus Shale in western
Pennsylvania and in the Delaware Basin in New Mexico
were ofset by normal feld declines. Refer to the Results of
Operations section beginning on page FS-6 for a detailed
discussion of the factors explaining the 2011 through 2013
changes in production for crude oil and natural gas liquids,
and natural gas.
Te company estimates its average worldwide oil-
equivalent production in 2014 will be approximately 2.610
million barrels per day based on an average Brent price of
$109 per barrel in 2013. Tis estimate is subject to many
factors and uncertainties, including quotas that may be
imposed by OPEC, price efects on entitlement volumes,
changes in fscal terms or restrictions on the scope of
company operations, delays in project start-ups and ramp-
ups, fuctuations in demand for natural gas in various
markets, weather conditions that may shut in production,
civil unrest, changing geopolitics, delays in completion of
maintenance turnarounds, greater-than-expected declines
in production from mature felds, or other disruptions
to operations. Te longer-term outlook for production
levels is also afected by the size and number of economic
investment opportunities and, for new, large-scale projects,
the time lag between initial exploration and the beginning
of production. Refer to the Review of Ongoing Exploration
and Production Activities in Key Areas, beginning on page
9, for a discussion of the companys major crude oil and
natural gas development projects.
* As used in this report, the term project may describe new upstream development activity, individual phases in a multiphase development, maintenance activities, certain existing assets, new
investments in downstream and chemicals capacity, investments 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 specifc governmental law or regulation.
5
Net Production of Crude Oil and Natural Gas Liquids and Natural Gas
1
Components of Oil-Equivalent
Oil-Equivalent
(Tousands of
Barrels per Day)
Crude Oil & Natural
Gas Liquids (Tousands
of Barrels per Day)
Natural Gas
(Millions of Cubic
Feet per Day)
2013 2012 2013 2012 2013 2012
United States 657 655 449 455 1,246 1,203
Other Americas
Argentina 19 22 18 21 6 4
Brazil 6 6 5 6 2 2
Canada 71 69 70 68 9 4
Colombia 36 36 216 216
Trinidad and Tobago 29 29 173 173
Total Other Americas 161 162 93 95 406 399
Africa
Angola 127 137 118 128 52 53
Chad 19 23 18 22 4 6
Democratic Republic of the Congo 3 3 2 2 1 1
Nigeria 268 269 238 242 182 165
Republic of the Congo 14 19 13 17 10 13
Total Africa 431 451 389 411 249 238
Asia
Azerbaijan 28 28 26 26 10 10
Bangladesh 113 94 2 2 663 550
China 20 21 19 20 6 9
Indonesia 193 198 156 158 225 236
Kazakhstan 57 61 34 37 135 139
Myanmar 16 16 96 94
Partitioned Zone
2
87 90 84 86 19 21
Philippines 23 24 3 4 119 120
Tailand 229 243 62 67 1,003 1,060
Total Asia 766 775 386 400 2,276 2,239
Australia 96 99 26 28 421 428
Europe
Denmark 28 36 19 24 55 74
Netherlands 9 9 2 2 41 42
Norway 2 3 2 3 1 1
United Kingdom 55 66 40 46 94 122
Total Europe 94 114 63 75 191 239
Total Consolidated Companies 2,205 2,256 1,406 1,464 4,789 4,746
Afliates
3
392 354 325 300 403 328
Total Including Afliates
4
2,597 2,610 1,731 1,764 5,192 5,074
1
Includes synthetic oil: Canada, net 43 43 43 43
Venezuelan afliate, net 25 17 25 17
2
Located between Saudi Arabia and Kuwait.
3
Volumes represent Chevrons share of production by afliates, including Tengizchevroil in Kazakhstan; Petroboscan, Petroindependiente and Petropiar in Venezuela; and Angola LNG in Angola.
4
Volumes include natural gas consumed in operations of 524 million and 522 million cubic feet per day in 2013 and 2012, respectively. Total as sold natural gas volumes were 4,668 million and
4,552 million cubic feet per day for 2013 and 2012, respectively.
6
Average Sales Prices and Production Costs per Unit of Production
Refer to Table IV on page FS-64 for the companys average sales price per barrel of crude oil, condensate and natural gas liquids
and per thousand cubic feet of natural gas produced, and the average production cost per oil-equivalent barrel for 2013, 2012
and 2011.
Gross and Net Productive Wells
Te following table summarizes gross and net productive wells at year-end 2013 for the company and its afliates:
Productive Oil and Gas Wells at December 31, 2013
Productive Oil Wells Productive Gas Wells
Gross Net Gross Net
United States 50,533 33,068 14,217 7,740
Other Americas 1,042 690 60 37
Africa 2,608 870 17 7
Asia 13,530 11,693 3,318 1,953
Australia 808 428 69 12
Europe 373 95 173 42
Total Consolidated Companies 68,894 46,844 17,854 9,791
Afliates 1,364 476 7 2
Total Including Afliates 70,258 47,320 17,861 9,793
Multiple completion wells included above 952 677 413 372
Reserves
Refer to Table V beginning on page FS-64 for a tabulation of the companys proved net crude oil and natural gas reserves by
geographic area, at the beginning of 2011 and each year-end from 2011 through 2013. Reserves governance, technologies used in
establishing proved reserves additions, and major changes to proved reserves by geographic area for the three-year period ended
December 31, 2013, are summarized in the discussion for Table V. Discussion is also provided regarding the nature of, status of
and planned future activities associated with the development of proved undeveloped reserves. Te company recognizes reserves
for projects with various development periods, sometimes exceeding fve years. Te external factors that impact the duration of
a project include scope and complexity, remoteness or adverse operating conditions, infrastructure constraints, and contractual
limitations.
Te net proved reserve balances at the end of each of the three years 2011 through 2013 are shown in the following table.
Net Proved Reserves at December 31
2013 2012 2011
Liquids Millions of barrels
Consolidated Companies 4,303 4,353 4,295
Afliated Companies 2,042 2,128 2,160
Total Liquids 6,345 6,481 6,455
Natural Gas Billions of cubic feet
Total Natural Gas 29,146 29,195 28,683
Oil-Equivalent Millions of barrels
Total Oil-Equivalent 11,203 11,347 11,236

7
Acreage
At December 31, 2013, the company owned or had under lease or similar agreements undeveloped and developed crude oil
and natural gas properties throughout the world. Te geographical distribution of the companys acreage is shown in the
following table.
Acreage at December 31, 2013
(Thousands of Acres)

Undeveloped*

Developed
Developed and
Undeveloped
Gross Net Gross Net Gross Net
United States 6,237 5,125 7,381 4,714 13,618 9,839
Other Americas 26,898 15,397 1,389 384 28,287 15,781
Africa 15,490 8,995 3,286 1,362 18,776 10,357
Asia 31,897 15,485 1,498 871 33,395 16,356
Australia 19,418 13,655 912 236 20,330 13,891
Europe 5,205 4,045 489 73 5,694 4,118
Total Consolidated Companies 105,145 62,702 14,955 7,640 120,100 70,342
Afliates 935 429 262 103 1,197 532
Total Including Afliates 106,080 63,131 15,217 7,743 121,297 70,874
*Te gross undeveloped acres that will expire in 2014, 2015 and 2016 if production is not established by certain required dates are 2,627, 2,430 and 701, respectively.
Delivery Commitments
Te company sells crude oil and natural gas from its producing operations under a variety of contractual obligations. Most
contracts generally commit the company to sell quantities based on production from specifed properties, but some natural gas
sales contracts specify delivery of fxed and determinable quantities, as discussed below.
In the United States, the company is contractually committed to deliver to third parties 285 billion cubic feet of natural
gas through 2016. Te company believes it can satisfy these contracts through a combination of equity production from the
companys proved developed U.S. reserves and third-party purchases. Tese commitments include a variety of pricing terms,
including both indexed and fxed-price contracts.
Outside the United States, the company is contractually committed to deliver a total of 871 billion cubic feet of natural
gas to third parties from 2014 through 2016 from operations in Australia, Colombia, Denmark, the Netherlands and the
Philippines. Tese sales contracts contain variable pricing formulas that are generally referenced to the prevailing market price
for crude oil, natural gas or other petroleum products at the time of delivery. Te company believes it can satisfy these contracts
from quantities available from production of the companys proved developed reserves in these countries.
8
Development Activities
Refer to Table I on page FS-59 for details associated with the companys development expenditures and costs of proved property
acquisitions for 2013, 2012 and 2011.
Te following table summarizes the companys net interest in productive and dry development wells completed in each of
the past three years, and the status of the companys development wells drilling at December 31, 2013. A development well
is a well drilled within the proved area of a crude oil or natural gas reservoir to the depth of a stratigraphic horizon known to
be productive.
Development Well Activity
Wells Drilling Net Wells Completed
at 12/31/13 2013 2012 2011
Gross Net Prod. Dry Prod. Dry Prod. Dry
United States 134 75 1,101 4 941 6 909 9
Other Americas 60 39 127 50 37
Africa 9 3 20 1 23 29
Asia 77 42 535 5 566 6 549 6
Australia 4 2
Europe 3 3 9 6
Total Consolidated Companies 287 161 1,786 10 1,589 12 1,530 15
Afliates 30 13 25 26 25
Total Including Afliates 317 174 1,811 10 1,615 12 1,555 15
Exploration Activities
Refer to Table I on page FS-59 for detail on the companys exploration expenditures and costs of unproved property acquisitions
for 2013, 2012 and 2011.
Te following table summarizes the companys net interests in productive and dry exploratory wells completed in each of the
last three years, and the number of exploratory wells drilling at December 31, 2013. Exploratory wells are wells drilled to fnd
and produce crude oil or natural gas in unproved areas and include delineation and appraisal wells, which are wells drilled to fnd
a new reservoir in a feld previously found to be productive of crude oil or natural gas in another reservoir or to extend a known
reservoir beyond the proved area.
Exploratory Well Activity
Wells Drilling Net Wells Completed
at 12/31/13 2013 2012 2011
Gross Net Prod. Dry Prod. Dry Prod. Dry
United States 10 7 17 2 4 5 1
Other Americas 3 1 12 2 8 1
Africa 2 1 1 2 1
Asia 4 3 13 4 12 3 10 1
Australia 2 1 3 3 4 1
Europe 2 2 2 1 2 1
Total Consolidated Companies 23 13 47 10 29 7 21 4
Afliates 1
Total Including Afliates 23 13 47 10 29 7 22 4
9
Review of Ongoing Exploration and Production Activities
in Key Areas
Chevrons 2013 key upstream activities, some of which are
also discussed in Managements Discussion and Analysis of
Financial Condition and Results of Operations, beginning
on page FS-6, are presented below. Te comments include
references to total production and net production, which
are defned under Production in Exhibit 99.1 on page E-10.
Te discussion that follows references the status of
proved reserves recognition for signifcant long-lead-time
projects not on production and for projects recently placed
on production. Reserves are not discussed for exploration
activities or recent discoveries that have not advanced to a
project stage, or for mature areas of production that do not
have individual projects requiring signifcant levels of capital
or exploratory investment. Amounts indicated for project
costs represent total project costs, not the companys share of
costs for projects that are less than wholly owned.
Chevron has exploration and production activities in
most of the worlds major hydrocarbon basins. Te map
above indicates Chevrons primary areas for exploration and
production.
United States
Upstream activities in the United States are concentrated
in California, the Gulf of Mexico, Colorado, Louisiana,
Michigan, New Mexico, Ohio, Oklahoma, Pennsylvania,
Texas, West Virginia and Wyoming. Average net oil-
equivalent production in the United States during 2013 was
657,000 barrels per day.
In California, the company has signifcant production
in the San Joaquin Valley. In 2013, net daily production
averaged 162,000 barrels of crude oil, 69 million cubic feet of
natural gas and 4,000 barrels of natural gas liquids (NGLs).
Approximately 86 percent of the crude oil production is
considered heavy oil (typically with API gravity lower than
22 degrees).
During 2013, net daily production for the companys
combined interests in the Gulf of Mexico averaged 143,000
barrels of crude oil, 347 million cubic feet of natural gas and
15,000 barrels of NGLs.
Chevron was engaged in various exploration and
development activities in the deepwater Gulf of Mexico
during 2013. Te Jack and St. Malo felds are being jointly
developed with a host foating production unit (FPU)
located between the two felds. Chevron has a 50 percent
interest in the Jack Field and a 51 percent interest in the
St. Malo Field. Both felds are company-operated. Chevrons
interest in the production host facility was reduced to
40.6 percent in 2013, after the owners of a third-party
oil feld acquired an interest in the host. Te facility has
a design capacity of 170,000 barrels of crude oil and 42
million cubic feet of natural gas per day to accommodate
production from the Jack/St. Malo development and third-
party tiebacks. Development drilling activities continued
during the year, and the FPU was moored at the ofshore
location in fourth quarter 2013. At the end of 2013, project
activities were 74 percent complete and frst oil is expected
in late 2014. Total project costs for the initial phase of
development are estimated at $7.5 billion. Proved reserves
have been recognized for this project.
In 2013, work continued on the evaluation of additional
development opportunities for the Jack and St. Malo
felds. Stage 2, the frst phase of future development work,
is expected to include four additional development wells,
two each at the Jack and the St. Malo felds. Front-end
engineering and design (FEED) activities began in mid-
2013, and a fnal investment decision is expected in 2015. At
the end of 2013, proved reserves had not been recognized for
the Jack/St. Malo Stage 2 Project.
Production from the Jack/St. Malo development is
expected to ramp up to a total daily rate of 94,000 barrels of
crude oil and 21 million cubic feet of natural gas. Te Jack
and St. Malo felds have an estimated production life of 30
years.
Upstream Portfolio Overview
Production Exploration Focus Areas
Perdido Regional
Development
Alabama
Louisiana
New Orleans
Mississippi
Pascagoula
Genesis
Blind
Faith
Tubular Bells
Stampede
Petronius
Great White
Tobago
Silvertip
Tahiti
Big Foot
Mad Dog
Caesar/Tonga
St. Malo Jack
GULF OF
MEXICO
Texas
Houston
Buckskin
DEEP WATER
SHELF
Coronado
Moccasin
Chevron Activity Highlight
10
Fabrication continued in 2013 for the 60 percent-
owned and operated Big Foot Project. Te development plan
includes a 15-slot drilling and production platform with
water injection facilities and a design capacity of 75,000
barrels of crude oil and 25 million cubic feet of natural
gas per day. At the end of 2013, project activities were 84
percent complete, and the platform is expected to be towed
to the location in third quarter 2014. Total project costs are
estimated at $5.1 billion, and frst production is anticipated
in 2015. Te feld has an estimated production life of 20
years. Proved reserves have been recognized for this project.
Tahiti 2 is the second development phase for the 58
percent-owned and operated Tahiti Field, and is designed
to increase recovery from the main producing interval by
adding two production wells, three water injection wells and
water injection facilities. Start-up of the frst production well
occurred in fourth quarter 2013. Additional infll drilling
is scheduled for the Tahiti Field from 2014 through 2016.
Te next development phase, the Tahiti Vertical Expansion
Project, is being planned, with FEED expected in 2015. At
the infll drilling or the Tahiti Vertical Expansion Project.
Te Tahiti Field has an estimated production life of 30
years.
Te company has a 42.9 percent nonoperated working
interest in the Tubular Bells Field. Development drilling
continued during 2013, and plans include three producing
and two injection wells, with a subsea tieback to a third-
party production facility. First oil is planned for third
quarter 2014, with total production expected to reach
44,000 barrels of oil-equivalent per day. Te feld has an
estimated production life of 25 years. Proved reserves have
been recognized for this project.
Te company has a 15.6 percent nonoperated working
interest in the Mad Dog Field. Te next development phase,
the Mad Dog II Project, is planned to develop the southern
portion of the Mad Dog Field. Te project was recycled in
2013 and is expected to reenter FEED in late 2014. At the
end of 2013, proved reserves had not been recognized for
this project.
Chevron holds a 20 percent nonoperated working
interest in the Stampede Project, which includes the joint
development of the Knotty Head and Pony felds. Te
development plans include a tension leg platform with
a planned design capacity of 80,000 barrels of crude oil
and 40 million cubic feet of natural gas per day. Te
project entered FEED in second quarter 2013, and a fnal
investment decision is expected in fourth quarter 2014. At
this project.
Pre-FEED activities continue at the 55 percent-owned
and operated Buckskin Project. Te project is expected to
enter FEED in 2015. Te Moccasin discovery, located 12
miles from Buckskin, is a potential tieback opportunity into
Buckskin.
Deepwater exploration activities in 2013 included
participation in six exploratory wells three appraisal
and three wildcat. Drilling of the frst appraisal well at the
43.8 percent-owned and operated Moccasin discovery was
completed in third quarter 2013. Drilling of an appraisal
well at the Buckskin discovery is expected to be completed
in second quarter 2014. Drilling at the 40 percent-owned
and operated Coronado prospect resulted in a crude oil
discovery in the Lower Tertiary Wilcox formation in frst
quarter 2013. Drilling commenced on the frst Coronado
appraisal well in December 2013. Te company also
completed drilling a wildcat well at the 30 percent-owned
and operated Rio Grande prospect in December 2013 and
at the 67.5 percent-owned and operated Oceanographer
prospect in January 2014.
Chevron added eight leases to its deepwater portfolio as
a result of awards from the central Gulf of Mexico lease sale
held in frst quarter 2013. In addition, Chevron acquired
three deepwater leases from the western Gulf of Mexico
lease sale held in third quarter 2013.
Company activities in the midcontinental United States
include operated and nonoperated interests in properties
primarily in Colorado, New Mexico, Oklahoma, Texas and
Wyoming. During 2013, the companys net daily production
in these areas averaged 96,000 barrels of crude oil, 610
million cubic feet of natural gas and 28,000 barrels of
NGLs.
In West Texas, the company continues to pursue
development of shale and tight resources in the Midland
Basins Wolfcamp play and several plays in the Delaware
Basin through use of advanced drilling and completion
technologies. Additional production growth is expected
from interests in these formations in future years. In June
2013, the company reached a joint development agreement
covering 104,000 total acres in the Delaware Basin. In East
Texas, the company continued development, at a managed
pace, of multiple stacked reservoirs, including the Travis
Peak, Cotton Valley, Bossier and Haynesville zones, during
2013.
Midland Basin
Delaware
Basin
Texas
New
Mexico
Chevron Interest Permian Basin
11
Te company holds leases in the Marcellus Shale
and the Utica Shale, primarily located in southwestern
Pennsylvania, eastern Ohio, and the West Virginia
panhandle, and in the Antrim Shale and Collingwood/
Utica Shale in Michigan. During 2013, the companys net
daily production in these areas averaged 220 million cubic
feet of natural gas. In 2013, development of the Marcellus
Shale continued at a measured pace, focused on improving
execution capability and reservoir understanding. Activities
in the Utica Shale during 2013 included drilling seven
exploratory wells. Tis initial activity was focused on
acquiring data necessary for potential future development.
Other Americas
Other Americas is composed of Argentina, Brazil, Canada,
Colombia, Greenland, Suriname, Trinidad and Tobago,
and Venezuela. Net oil-equivalent production from these
countries averaged 226,000 barrels per day during 2013.
Canada: Chevron has interests in oil sands projects and
shale acreage in Alberta; shale acreage and a liquefed
natural gas (LNG) project in British Columbia; exploration,
development and production projects ofshore in the Atlantic
region; and exploration and discovered resource interests
in the Beaufort Sea region of the Northwest Territories.
Average net oil-equivalent production during 2013 was
71,000 barrels per day, composed of 27,000 barrels of crude
oil, 9 million cubic feet of natural gas and 43,000 barrels of
synthetic oil from oil sands.
Te company holds a 20 percent nonoperated working
interest in the Athabasca Oil Sands Project (AOSP). Oil
sands are mined from both the Muskeg River and the
Jackpine mines, and bitumen is extracted from the oil
sands and upgraded into synthetic oil. Construction work
progressed during 2013 on the Quest Project, a carbon
capture and sequestration project that is designed to capture
and store more than one million tons of carbon dioxide
produced annually by bitumen processing at the AOSP by
2015.
In February 2013, Chevron acquired a 50 percent-owned
and operated interest in the Kitimat LNG and Pacifc Trail
Pipeline projects, and a 50 percent nonoperated working
interest in 644,000 total acres in the Horn River and Liard
shale gas basins in British Columbia. Te Kitimat LNG
Project is planned to include a two-train, 10.0 million-metric-
ton-per-year LNG facility. Te total production capacity for
the project is expected to be 1.6 billion cubic feet of natural
gas per day. Activities during 2013 included FEED, early site
preparation and LNG marketing activities.
Chevron holds a 26.9 percent nonoperated working
interest in the Hibernia Field and a 23.6 nonoperated working
interest in the unitized Hibernia Southern Extension (HSE)
areas ofshore Atlantic Canada. Te HSE development is
expected to increase the economic life of the Hibernia Field.
During 2013, two subsea water injection wells began drilling,
and installation of subsea equipment was initiated. Full
production start-up is expected in 2015. Proved reserves have
been recognized for this project.
Te company holds a 26.6 percent nonoperated working
interest in the heavy oil Hebron Field, also ofshore Atlantic
Canada. Te development plan includes a concrete, gravity-
based platform with a design capacity of 150,000 barrels of
crude oil per day. Procurement and construction activities
progressed in 2013. Project costs are estimated at $14 billion.
Te project has an expected economic life of 30 years,
and frst oil is expected in 2017. Proved reserves have been
recognized for this project.
In 2013, the company acquired 86,000 total additional
acres in the Duvernay shale formation in Alberta. Drilling for
these tight resources continued in 2013, with completion of a
Michigan
Ohio
West
Virginia
CANADA
Pennsylvania
Marcellus Shale
Utica Shale
Antrim
Shale
Chevron Interest
AOSP
Duvernay
Flemish
Pass
Basin
Terra Nova
Hebron
Hibernia
Northwest
Territories
Northern
Canada
Exploration
BEAUFORT
SEA
Newfoundland
& Labrador
Alberta
British
Columbia
UNITED STATES
GREENLAND
Kitimat
LNG
CANADA
HUDSON
BAY
Liard
Horn River
Crude Oil Field Chevron Activity Highlight Oil Sands Terminal
12
multiwell program. Nine wells were completed and tied into
production facilities by early 2014.
Te company also holds a 40 percent nonoperated
working interest in exploration rights for two blocks in the
Flemish Pass Basin ofshore Newfoundland. During 2013,
the company relinquished its license in the Orphan Basin
located ofshore Newfoundland and Exploration License
1109 located ofshore Labrador. Te company also holds
two exploration licenses in the Beaufort Sea region of the
Northwest Territories and a 40 percent nonoperated working
interest in the Amauligak discovery.
In addition, Chevron holds interests in the Aitken
Creek and Alberta Hub natural gas storage facilities, which
have aggregate total capacity of approximately 100 billion
cubic feet. Tese facilities are located in western Canada
near the Duvernay, Horn River, Liard and Montney shale
gas plays.
Greenland: In December 2013, Chevron acquired a
29.2 percent interest in and operatorship of two blocks
located in the Kanumas Area, ofshore the northeast coast
of Greenland. Blocks 9 and 14 cover 1.2 million acres. Te
acquisition of seismic data is planned for 2014.
Argentina: Chevron holds operated interests in four
concessions in the Neuquen Basin, with working interests
ranging from 18.8 percent to 100 percent, and a 50 percent
nonoperated working interest in one concession. Net oil-
equivalent production in 2013 averaged 19,000 barrels
per day, composed of 18,000 barrels of crude oil and 6
million cubic feet of natural gas. During 2013, the company
completed four exploratory wells in El Trapial concession,
targeting oil and gas in the Vaca Muerta Shale. Chevron
plans to continue production testing the wells during 2014.
El Trapial concession expires in 2032.
In addition, Chevron signed agreements during 2013
to advance the Loma Campana Project to develop the Vaca
Muerta Shale. In 2013, 109 wells were drilled, and the
drilling plan includes more than 140 wells in 2014.
Brazil: Chevron holds working interests in three deepwater
felds in the Campos Basin: Frade (51.7 percent-owned
and operated), Papa-Terra and Maromba (37.5 percent and
30 percent nonoperated working interests, respectively). Net
oil-equivalent production in 2013 averaged 6,000 barrels per
day, composed of 5,000 barrels of crude oil and 2 million
cubic feet of natural gas.
In second quarter 2013, the company received
regulatory approval to partially resume production at the
Frade Field. A plan to resume production from additional
existing wells has been submitted for regulatory approval.
Te concession that includes the Frade Field expires in 2025.
First production from the initial well occurred in fourth
quarter 2013 for the Papa-Terra Project. Te project includes
a foating production, storage and ofoading vessel (FPSO)
and a tension leg wellhead platform, with a design capacity
of 140,000 barrels of crude oil and 35 million cubic feet of
natural gas per day. Te concession that contains the Papa-
Terra Field expires in 2032. Additional development drilling
is planned for 2014.
Evaluation of the feld development concept for
Maromba continues. At the end of 2013, proved reserves
had not been recognized for this project. Te concession
containing the Maromba Field expires in 2032.
In May 2013, Chevron was awarded a 50 percent
interest in and operatorship of Block CE-M715. Te
deepwater block covers 81,000 total acres and is located in
the Cear Basin ofshore equatorial Brazil. Acquisition of
seismic data is planned for 2014.
ATLANTIC OCEAN
BRAZIL
ARGENTINA
PARAGUAY
CHILE
Papa-Terra Maromba
Frade
Block
CE-M715
El Trapial
Loma Campana
URUGUAY
13
Colombia: Te company operates the ofshore Chuchupa
and the onshore Ballena and Riohacha natural gas felds
and receives 43 percent of the production for the remaining
life of each feld and a variable production volume based on
prior Chuchupa capital contributions. Daily net production
averaged 216 million cubic feet of natural gas in 2013.
Suriname: Chevron holds a 50 percent nonoperated
working interest in Blocks 42 and 45 ofshore Suriname.
In 2013, seismic data was acquired for Block 45. Te data
is being processed in 2014 to plan for the drilling of an
exploration well in 2015.
Trinidad and Tobago: Te company has a 50 percent
nonoperated working interest in three blocks in the East
Coast Marine Area ofshore Trinidad, which includes the
Dolphin and Dolphin Deep producing natural gas felds and
the Starfsh development. Net production in 2013 averaged
173 million cubic feet of natural gas per day. Development
of the Starfsh Field continued during 2013, and frst gas is
expected in 2015. Natural gas from the project is planned to
supply existing contractual commitments. Proved reserves
have been recognized for this project. Chevron also holds
a 50 percent-owned and operated interest in the Manatee
Area of Block 6(d), where the Manatee discovery comprises
a single cross-border feld with Venezuelas Loran Field
in Block 2. In 2013, cross-border agreements were signed
between the governments of Trinidad and Tobago and
Venezuela, and work continued on maturing commercial
development concepts.
Venezuela: Chevrons production activities are performed
by two afliates in western Venezuela and one afliate in
the Orinoco Belt. Chevron has a 30 percent interest in
the Petropiar afliate that operates the Hamaca heavy oil
production and upgrading project located in Venezuelas
Orinoco Belt, a 39.2 percent interest in the Petroboscan
afliate that operates the Boscan Field in western Venezuela,
and a 25.2 percent interest in the Petroindependiente
afliate that operates the LL-652 Field in Lake Maracaibo.
Te companys share of net oil-equivalent production during
2013 from these operations averaged 65,000 barrels per day,
composed of 61,000 barrels of liquids and 26 million cubic
feet of natural gas.
Chevron holds a 34 percent interest in the
Petroindependencia afliate that is working toward
commercialization of Carabobo 3, a heavy oil project
located within the Carabobo Area of the Orinoco Belt.
Project activities in 2013 focused on assessing development
alternatives.
Te company operates and holds a 60 percent interest
in Block 2 and a 100 percent interest in Block 3 in the
Plataforma Deltana area ofshore eastern Venezuela. Te
Loran Field in Block 2 and the Manatee Field in Trinidad
and Tobago form a single, cross-border feld that lies along
the maritime border of Venezuela and Trinidad and Tobago.
During 2013, cross-border agreements were signed between
the governments of Venezuela and Trinidad and Tobago,
and work continued on maturing commercial development
concepts.
Africa
In Africa, the company is engaged in upstream activities in
Angola, Chad, Democratic Republic of the Congo, Liberia,
Morocco, Nigeria, the Republic of the Congo, Sierra Leone
and South Africa. Net oil-equivalent production in Africa
averaged 437,000 barrels per day during 2013.
Angola: Chevron holds company-operated working interests
in ofshore Blocks 0 and 14 and nonoperated working
interests in ofshore Block 2 and the onshore Fina Sonangol
Texaco (FST) concession area. In addition, Chevron has
a 36.4 percent interest in Angola LNG Limited. Net
production from these operations in 2013 averaged 133,000
barrels of oil-equivalent per day.
TRINIDAD
& TOBAGO
Starfish
Dolphin Deep
Loran
Manatee
Dolphin
Plataforma
Deltana Block 3
Block 42
Block 45
CARIBBEAN SEA
Ballena
Chuchupa
Riohacha
VENEZUELA
LL-652
Boscan
Caracas Hamaca
Carabobo 3
GUYANA
SURINAME
COLOMBIA
Area A
Area B
Malongo
BLOCK 14
BLOCK 0
N'Dola
Tombua
Lucapa
Gabela
Negage
Limba Kungulo
Bomboco
Sanha
Kokongo
Vuko
Nemba
Lomba
Numbi
Takula
Banzala
Wamba
Nsano
Lifua
Nkossa
Nsoko
Tomboco
Benguela
Moho-Bilondo
Libwa
Mafumeira
Kambala
Tshiala
East
LIANZI
UNITIZATION
ZONE
Lobito
Kuito
Belize
Malange
Landana
Lianzi
Longui
Moho Nord
REPUBLIC
OF THE
CONGO
ANGOLA
(Cabinda)
DRC
Djeno
Terminal
Malongo
Terminal
Angola LNG
ANGOLA
ATLANTIC OCEAN
Vanza
Crude Oil Field Chevron Activity Highlight Terminal
14
Te company operates the 39.2 percent-owned Block 0,
which averaged 90,000 barrels per day of net liquids
production in 2013. Te Block 0 concession extends
through 2030.
Construction activities on Mafumeira Sul, the second
development stage for the Mafumeira Field in Block 0,
progressed in 2013. Development plans include a central
processing facility, two wellhead platforms, subsea pipelines,
and 34 producing and 16 water injection wells. Te facility
has a design capacity of 150,000 barrels of liquids and 350
million cubic feet of natural gas per day. First production
is planned for 2015, and ramp-up to full production is
expected to continue until 2017. Te project is estimated to
cost $5.6 billion. Proved reserves have been recognized for
this project.
A project to develop the Greater Longui Area of Block
0 is expected to enter FEED in frst-half 2014. FEED
activities progressed during 2013 on the south extension of
the NDola Field development and work continues toward
a fnal investment decision. Te facility is planned to have a
design capacity of 28,000 barrels of crude oil and 50 million
cubic feet of natural gas per day. At the end of 2013, proved
reserves had not been recognized for these projects.
Work continued in 2013 on the Nemba Enhanced
Secondary Recovery Stage 1 & 2 Project in Block 0.
Installation of the platform was completed in early 2014,
and project start-up is expected in 2015. Total daily
production is expected to be 12,000 barrels of crude oil.
Proved reserves have been recognized for this project.
Also in Block 0, drilling of an exploration well in Area
A was completed in early 2013 and resulted in a discovery in
the post-salt Vermelha interval. Plans for future development
are under evaluation. Drilling of an appraisal well in the
Minzu Pinda reservoir commenced in late 2013 and is
planned to be completed in second quarter 2014. A pre-salt
exploration well in Area A is planned for frst-half 2014.
Te company operates and holds a 31 percent interest in
a production-sharing contract (PSC) for deepwater Block 14.
Net production in 2013 averaged 27,000 barrels of liquids
per day. Development and production rights for the various
producing felds in Block 14 expire between 2023 and 2028.
Planning continues on the multireservoir, deepwater
Lucapa Field in Block 14, located on the north rim of the
Congo River Canyon. Te project was recycled in 2013
to conduct additional subsurface studies over a 12-month
period. During the year, development alternatives were
evaluated for the Malange Field, and the project is expected
to enter FEED in early 2014. At the end of 2013, proved
reserves had not been recognized for these projects.
In addition to the exploration and production activities
in Angola, Chevron has a 36.4 percent interest in Angola
LNG Limited, which operates an onshore natural gas
liquefaction plant in Soyo, Angola. Te plant has a capacity
to process 1.1 billion cubic feet of natural gas per day, with
expected average total daily sales of 670 million cubic feet
of natural gas and up to 63,000 barrels of NGLs. Tis is the
worlds frst LNG plant supplied with associated gas, where
the natural gas is a by-product of crude oil production.
Feedstock for the plant originates from multiple felds and
operators. Te frst LNG shipment from the plant occurred
in second quarter 2013. Commissioning and testing of
the plant continued through the end of 2013. Due to
the variability in the associated gas that supplies Angola
LNG, the plant is expected to operate at approximately
50 percent of capacity until permanent plant modifcations
are completed in 2015, allowing Angola LNG to consistently
produce at full capacity. Total daily production in 2013
averaged 83 million cubic feet of natural gas (30 million
net) and 2,000 barrels of NGLs (1,000 net). Te anticipated
economic life of the project is in excess of 20 years.
Te company also holds a 38.1 percent interest in
the Congo River Canyon Crossing Pipeline project that is
designed to transport up to 250 million cubic feet of natural
gas per day from Block 0 and Block 14 to the Angola LNG
plant. Construction on the project continued in 2013, with
project completion targeted for 2015.
Angola-Republic of the Congo Joint Development Area:
Chevron operates and holds a 31.3 percent interest in the
Lianzi Unitization Zone, located in an area shared equally
by Angola and the Republic of the Congo. Te project scope
includes four producing wells and three water injection wells
with a subsea tieback to an existing platform in Block 14.
Te project has a design capacity of 46,000 barrels of crude
oil per day. First production is planned for 2015. Proved
reserves have been recognized for this project.
Democratic Republic of the Congo: Chevron has a
17.7 percent nonoperated working interest in an ofshore
concession. Daily net production in 2013 averaged 2,000
barrels of crude oil.
Republic of the Congo: Chevron has a 31.5 percent
nonoperated working interest in the ofshore Haute Mer
permit areas (Nkossa, Nsoko and Moho-Bilondo). Te
licenses for Nsoko, Nkossa and Moho-Bilondo expire in
2018, 2027 and 2030, respectively. In September 2013, the
company sold its nonoperated interest in the Kitina permit
area. Net production averaged 13,000 barrels of liquids per
day in 2013.
A fnal investment decision was reached in frst quarter
2013 for the Moho Nord Project, located in the Moho-
Bilondo development area. Te $10 billion project includes a
new facilities hub and a subsea tieback to the existing Moho-
Bilondo FPU. First production is expected in 2015, and total
daily production of 140,000 barrels of crude oil is expected
in 2017. Te initial recognition of proved reserves occurred
in 2013.
15
Chad/Cameroon: Chevron has a 25 percent nonoperated
working interest in crude oil producing operations in southern
Chad and an approximate 21 percent interest in two afliates
that own an export pipeline that transports crude oil to the
coast of Cameroon. Average daily net crude oil production
from the Chad felds in 2013 was 18,000 barrels. Te Chad
producing operations are conducted under a concession that
expires in 2030.
Nigeria: Chevron holds a 40 percent interest in 13 operated
concessions, predominantly in the onshore and near-ofshore
regions of the Niger Delta. Te company also owns varying
interests in three operated and six nonoperated deepwater
blocks. In 2013, the companys net oil-equivalent production
in Nigeria averaged 268,000 barrels per day, composed of
233,000 barrels of crude oil, 182 million cubic feet of natural
gas and 5,000 barrels of liquefed petroleum gas (LPG).
Chevron operates and holds a 67.3 percent interest in
the Agbami Field, located in deepwater Oil Mining Lease
(OML) 127 and OML 128. During 2013, drilling continued
on a 10-well, Phase 2 development program, Agbami 2,
that is expected to ofset feld decline and maintain plateau
production. Drilling is expected to continue through 2015.
Te third development phase, Agbami 3, is a fve-well
drilling program expected to ofset feld decline. Te project
entered FEED in early 2014, and a fnal investment decision
is expected in second-half 2014. Drilling is scheduled to
continue through 2017. Te leases that contain the Agbami
Field expire in 2023 and 2024.
Chevron holds a 30 percent nonoperated interest in the
deepwater Usan Field in OML 138. Ramp-up continued
during 2013, and additional development drilling is planned
for 2014 through 2017.
Also in the deepwater area, the Aparo Field in OML 132
and OML 140 and the third-party-owned Bonga SW Field in
OML 118 share a common geologic structure and are planned
to be jointly developed. Te proposed development plan
involves subsea wells tied back to an FPSO with a planned
design capacity of 225,000 barrels of crude oil per day. Te
project achieved FEED in second quarter 2013, and a fnal
investment decision is expected in late 2014. At the end of
2013, no proved reserves were recognized for this project.
In the Niger Delta region, the company reached a fnal
investment decision in 2013 on the Dibi Long-Term Project
that is designed to rebuild the Dibi facilities and replace the
Early Production System facility. Te facilities have a design
capacity of 70,000 barrels of crude oil per day, and start-up
is expected in 2016.
Also in the Niger Delta region, ramp-up activity
continued at the Escravos Gas Plant (EGP). During 2013,
construction continued on Phase 3B of the EGP project,
which is designed to gather 120 million cubic feet of natural
gas per day from eight near-shore felds and to compress and
transport the natural gas to onshore facilities. Te Phase 3B
project is expected to be completed in 2016. Proved reserves
associated with this project have been recognized.
Construction activities progressed during 2013 on the
40 percent-owned and operated Sonam Field Development
Project, which is designed to process natural gas through
EGP, deliver 215 million cubic feet of natural gas per day to
the domestic market and produce a total of 30,000 barrels of
liquids per day. First production is expected in 2016. Proved
reserves have been recognized for the project.
Chevron is the operator of and has a 75 percent
interest in this 33,000-barrel-per-day gas-to-liquids facility
at Escravos. Te facility is designed to process 325 million
cubic feet per day of natural gas. Production is scheduled to
commence in frst-half 2014, and the frst product shipment
is expected to occur in second-half 2014. Te estimated cost
of the project is $10 billion.
In deepwater exploration, Chevron operates and holds a
100 percent interest in OML 132, where an exploration well
at Aparo North is planned for 2014. In addition, Chevron
operates and holds a 95 percent interest in the deepwater
Nsiko discovery in OML 140, where additional exploration
activities are planned for 2014.
Shallow-water exploration activities to identify and
evaluate potential deep hydrocarbon targets are ongoing.
Reprocessing of 3-D seismic data over OML 49 and regional
mapping activities over OML 86 and OML 88 continued in
2013.
With a 36.7 percent interest, Chevron is the largest
shareholder in the West African Gas Pipeline Company
Limited afliate, which owns and operates the 421-mile
West African Gas Pipeline. Te pipeline supplies Nigerian
natural gas to customers in Benin, Ghana and Togo for
industrial applications and power generation and has the
capacity to transport 170 million cubic feet per day.
Liberia: Chevron holds a 45 percent interest in and operates
three deepwater blocks of the coast of Liberia. In 2014, the
company plans additional drilling based on the evaluation of
3-D seismic data and 2012 drilling results.
OML 53
OML 49
OML 128
Escravos
(EGTL and EGP)
NIGERIA
Lagos
GULF OF GUINEA
GHANA
TOGO
BENIN
Port Harcourt
OML 127
OML 89
OML 91
OML 140
OPL 214
OML 83
OML 129
OML 132
OPL 223
OML 139
OML 138
OML 90
OML 86
OML 55
OML 88
OML 85
OML 52
OML 51
OML 95
CAMEROON
CENTRAL
AFRICAN
REPUBLIC
NIGER
CHAD
Doba
Kribi Marine
Export Terminal
OPL 223
Warri
Ewan
Meta
Mejo
Oloye
Omuro
Opolo
Nedum
Olomu
Gbokoda
Opuekeba Benin River
Ruta
Parabe
Shango
Gbadudu
Malu
Meren
Tapa
Mefa
Meji Mesan
Abiteye
Utonana
Delta
Dibi
Delta South
Makaraba
Abigborodo
Escravos
Bime
Olure Hely Creek
Awodi
Sonam
West Isan
Obokun
Offe
Konko Kudo
Okan
Ojumole
Mina Isan
Kito
Ekura
West African Gas Pipeline Crude Oil Pipeline
Chevron Interest Swamp Areas Crude Oil Field
Terminal
Natural Gas Field
16
Morocco: In early 2013, the company acquired a 75 percent-
owned and operated interest in three deepwater areas
ofshore Morocco. Te areas, Cap Rhir Deep, Cap Cantin
Deep and Cap Walidia Deep, encompass approximately 7.2
million acres. Te acquisition of seismic data is planned for
2014.
Sierra Leone: Te company holds a 55 percent interest in
and operates a concession of the coast of Sierra Leone. Te
concession contains two deepwater blocks, with a combined
area of approximately 1.4 million acres. Interpretation of
2-D seismic data is planned for 2014.
South Africa: In 2013, the company continued seeking
shale gas exploration opportunities in the Karoo Basin in
South Africa under an agreement that allows Chevron and
its partner to work together to obtain exploration permits in
the 151 million-acre basin.
Asia
In Asia, the company is engaged in upstream activities
in Azerbaijan, Bangladesh, Cambodia, China, Indonesia,
Kazakhstan, the Kurdistan Region of Iraq, Myanmar, the
Partitioned Zone located between Saudi Arabia and Kuwait,
the Philippines, Russia, Tailand, and Vietnam. During
2013, net oil-equivalent production averaged 1,087,000
barrels per day.
Azerbaijan: Chevron holds an 11.3 percent nonoperated
working interest in the Azerbaijan International Operating
Company (AIOC), which produces crude oil from the
Azeri-Chirag-Gunashli (ACG) felds. Te companys daily
net production averaged 28,000 barrels of oil-equivalent in
2013. AIOC operations are conducted under a PSC that
expires in 2024.
In January 2014, production commenced on the next
development phase of the ACG project, which further
develops the Chirag and Deepwater Gunashli felds. Te
project has an incremental design capacity of 183,000 barrels
of crude oil and 285 million cubic feet of natural gas per
day.
Chevron also has an 8.9 percent interest in the Baku-
Tbilisi-Ceyhan (BTC) afliate, which owns and operates a
crude oil export pipeline from Baku, Azerbaijan, through
Georgia to Mediterranean deepwater port facilities at
Ceyhan, Turkey. Te BTC pipeline has a capacity of
1 million barrels per day and transports the majority of
ACG production. Another production export route for crude
oil is the Western Route Export Pipeline, which is operated
by AIOC, with capacity to transport 100,000 barrels per
day from Baku, Azerbaijan, to a marine terminal at Supsa,
Georgia.
Kazakhstan: Chevron participates in two major upstream
developments in western Kazakhstan. Te company holds
a 50 percent interest in the Tengizchevroil (TCO) afliate,
which is operating and developing the Tengiz and Korolev
crude oil felds under a concession that expires in 2033.
Chevrons net oil-equivalent production in 2013 from
these felds averaged 321,000 barrels per day, composed
of 243,000 barrels of crude oil, 347 million cubic feet of
natural gas and 20,000 barrels of NGLs. During 2013,
the majority of TCOs crude oil production was exported
through the Caspian Pipeline Consortium (CPC) pipeline
that runs from Tengiz in Kazakhstan to tanker-loading
facilities at Novorossiysk on the Russian coast of the Black
Sea. Te balance of production was exported by rail to Black
Sea ports and via the BTC pipeline to the Mediterranean.
In 2013, FEED continued for three projects. Te
Wellhead Pressure Management Project (WPMP) is
designed to maintain production capacity and extend the
production plateau from existing assets. Te Capacity and
Reliability (CAR) Project is designed to reduce facility
bottlenecks and increase plant efciency and reliability.
Te Future Growth Project (FGP) is designed to increase
total daily production by 250,000 to 300,000 barrels of
oil-equivalent and to increase ultimate recovery from the
reservoir. Te project plans to expand the utilization of
sour gas injection technology proven in existing operations.
During 2013, the company and the government of
Kazakhstan signed a memorandum of understanding that
establishes the framework and mutual commitments to
progress the FGP and the WPMP. Te fnal investment
decision on the CAR Project was made in February 2014.
Te fnal investment decisions on the WPMP and the FGP
are planned for second-half 2014. At the end of 2013, proved
reserves have been recognized for the WPMP and the CAR
Project.
BLACK SEA
CASPIAN
SEA
Novorossiysk
RUSSIA
Tengiz
Korolev
ACG
Atyrau
Karachaganak
GEORGIA
TURKEY
SYRIA
IRAQ
UKRAINE
IRAN
Baku
KAZAKHSTAN
AZERBAIJAN
Ceyhan
ARMENIA
Supsa
Chevron Interest CPC Pipeline Terminal Crude Oil Field
KarachaganakAtyrau Transportation System BTC Pipeline WREP
17
Te company holds an 18 percent nonoperated working
interest in the Karachaganak Field under a PSC that expires
in 2038. During 2013, Karachaganak net oil-equivalent
production averaged 57,000 barrels per day, composed
of 34,000 barrels of liquids and 135 million cubic feet
of natural gas. Access to the CPC and Atyrau-Samara
(Russia) pipelines enabled 32,000 net barrels per day of
Karachaganak liquids to be exported and sold at world-
market prices during 2013. Te remaining liquids were sold
into local and Russian markets. In 2013, work continued
on identifying the optimal scope for future expansion of
the feld. At the end of 2013, proved reserves had not been
recognized for a future expansion.
Kazakhstan/Russia: Chevron has a 15 percent interest
in the CPC afliate. During 2013, CPC transported an
average of 706,000 barrels of crude oil per day, including
635,000 barrels per day from Kazakhstan and 71,000
barrels per day from Russia. In 2013, work continued on the
670,000-barrel-per-day expansion of the pipeline capacity
with completion of the ofshore loading system. Te project
is being implemented in phases, with capacity increasing
progressively until reaching maximum capacity of 1.4
million barrels per day in 2016. Te incremental capacity is
expected to reach 400,000 barrels per day by year-end 2014,
with the frst increase expected to be realized by March
2014. Te expansion is expected to provide additional
transportation capacity that accommodates a portion of the
future growth in TCO production.
Bangladesh: Chevron holds a 99 percent interest in two
operated PSCs covering Block 12 (Bibiyana Field) and
Blocks 13 and 14 (Jalalabad and Moulavi Bazar felds).
Te rights to produce from Jalalabad expire in 2024, from
Moulavi Bazar in 2028 and from Bibiyana in 2034. Net
oil-equivalent production from these operations in 2013
averaged 113,000 barrels per day, composed of 663 million
cubic feet of natural gas and 2,000 barrels of condensate.
Te Bibiyana Expansion Project includes installation of
two gas processing trains, additional development wells and
an enhanced liquids recovery facility, and has an incremental
design capacity of 300 million cubic feet of natural gas and
4,000 barrels of condensate per day. First production is
expected in late 2014. Proved reserves have been recognized
for this project.
Cambodia: Chevron owns a 30 percent interest in and
operates the 1.2 million-acre Block A, located in the Gulf
of Tailand. In 2013, the company continued discussions
on the production permit and commercial terms for
development of Block A. Te planned development consists
of a wellhead platform and a foating storage and ofoading
vessel (FSO). A fnal investment decision is pending
resolution of commercial terms. At the end of 2013, proved
reserves had not been recognized for the project.
Myanmar: Chevron has a 28.3 percent nonoperated
working interest in a PSC for the production of natural
gas from the Yadana and Sein felds, within Blocks M5
and M6, in the Andaman Sea. Te PSC expires in 2028.
Te company also has a 28.3 percent nonoperated interest
in a pipeline company that transports most of the natural
gas to the Myanmar-Tailand border for delivery to power
plants in Tailand. Te companys average net natural gas
production in 2013 was 96 million cubic feet per day.
Thailand: Chevron has operated and nonoperated working
interests in multiple ofshore blocks in the Gulf of Tailand.
Te companys net oil-equivalent production in 2013
averaged 229,000 barrels per day, composed of 62,000
barrels of crude oil and condensate and 1 billion cubic feet
of natural gas. Te companys natural gas production is sold
to the domestic market under long-term sales agreements.
Te company holds operated interests in the Pattani
Basin with ownership interests ranging from 35 percent to
80 percent. Concessions for producing areas within this
basin expire between 2020 and 2035. Chevron also has a
16 percent nonoperated working interest in the Arthit Field
located in the Malay Basin. Concessions for the producing
areas within this basin expire between 2036 and 2040.
In the Pattani Basin, the Ubon Project entered FEED
in second quarter 2013, and a fnal investment decision
is expected in 2015. Te facilities have a planned design
capacity of 35,000 barrels of liquids and 115 million cubic
feet of natural gas per day. At the end of 2013, proved
reserves had not been recognized for this project.
During 2013, the company drilled fve exploration
wells in the Pattani Basin, and three were successful. Te
company also holds exploration interests in the Tailand-
Cambodia overlapping claim area that are inactive, pending
resolution of border issues between Tailand and Cambodia.
ANDAMAN
SEA
CAMBODIA
VIETNAM
THAILAND
MYANMAR
Bangkok
Yangon
LAOS
Phnom Penh
Ho Chi
Minh City
Myanmar Blocks
GULF OF
THAILAND
Cambodia Block A
Vietnam Blocks
B, 48/95 and
52/97
Thailand-Cambodia
Overlapping
Claim Area Blocks
Thailand
Blocks
Chevron Interest Natural Gas Pipeline
18
Vietnam: Chevron is the operator of two PSCs in the Malay
Basin of the southwest coast of Vietnam. Te company has
a 42.4 percent interest in a PSC that includes Blocks B and
48/95, and a 43.4 percent interest in a PSC for Block 52/97.
Te Block B Gas Development Project includes
installation of wellhead and hub platforms, an FSO, a
central processing platform and a pipeline to shore. Te
facilities have a design capacity of 640 million cubic feet
of natural gas and 21,000 barrels of liquids per day. A
fnal investment decision for the development is pending
resolution of commercial terms. Concurrent with the
commercial negotiations, the company is also evaluating
these assets for possible divestment. At the end of 2013,
proved reserves had not been recognized for the development
project.
China: Chevron has operated and nonoperated working
interests in several areas in China. Te companys net oil-
equivalent production in 2013 averaged 20,000 barrels per
day, composed of 19,000 barrels of crude oil and condensate
and 6 million cubic feet of natural gas.
Te company operates and holds a 49 percent
interest in the Chuandongbei PSC, located onshore in the
Sichuan Basin. Te full development includes two sour
gas processing plants connected by a natural gas gathering
system to fve felds. During 2013, the company continued
construction on both natural gas processing plants. Te frst
plants initial three trains have a design outlet capacity of
258 million cubic feet per day, with the frst train targeted
for mechanical completion in 2014. Start-up is scheduled for
2015. Te total design outlet capacity for the project is 558
million cubic feet per day. Te total project cost is estimated
to be $6.4 billion. Proved reserves have been recognized for
this project. Te PSC for Chuandongbei expires in 2038.
Te company holds a 59.2 percent-owned and operated
interest in deepwater Block 42/05 in the South China Sea.
In late 2013 and early 2014, an exploratory well was drilled
in Block 42/05 and was unsuccessful. Chevron also has a
100 percent-owned and operated interest in shallow-water
Blocks 15/10 and 15/28. In 2013, the company acquired
two 3-D seismic surveys in these blocks. Processing of this
seismic data is ongoing.
During 2013, the company drilled two exploratory
wells for shale gas in the Qiannan Basin, and both were
unsuccessful.
Te company also has nonoperated working interests
of 24.5 percent in the QHD 32-6 Field and 16.2 percent
in Block 11/19 in the Bohai Bay and 32.7 percent in Block
16/19 in the Pearl River Mouth Basin.
Philippines: Te company holds a 45 percent nonoperated
working interest in the Malampaya natural gas feld. Net
oil-equivalent production in 2013 averaged 23,000 barrels
per day, composed of 119 million cubic feet of natural gas
and 3,000 barrels of condensate. Te Malampaya Phase
2 Project is designed to maintain capacity. During 2013,
work progressed with two infll wells being completed. First
production is expected to commence in frst quarter 2014
with compression facilities to follow in 2015. Proved reserves
have been recognized for this project.
EAST
CHINA
SEA
Chuandongbei Natural Gas Area
Qiannan Basin
Block 42/05
CHINA
VIETNAM
PHILIPPINES
LAOS
SOUTH CHINA SEA
Block 15/10
Block 15/28
BOHAI
BAY
Block 11/19
NORTH
KOREA
SOUTH
KOREA
Beijing
QHD 32-6
San Martin
Malampaya
Manila
Batangas
Mak-Ban
Kalinga
Tiwi
CAMBODIA
THAILAND
Block 16/19
Chevron Interest
Geothermal Field
Natural Gas Field
Terminal
Crude Oil Field
Joint Study
19
Chevron holds a 40 percent interest in an afliate
that develops and produces geothermal resources in
southern Luzon, which supplies steam to third-party power
generation facilities with a combined operating capacity
of 692 megawatts. During 2013, the afliate secured a
renewable energy service contract for an additional 25 years.
Chevron also has a 90 percent-owned and operated interest
in the Kalinga geothermal prospect area in northern Luzon.
In 2013, Chevron held negotiations to sell down equity to
comply with local law and to secure a 25-year term for a
renewable energy service contract. Negotiations are planned
to continue into 2014. Te company continues to assess the
prospect area.
Indonesia: Chevron holds operated and nonoperated
working interests in Indonesia. In Sumatra, the company
holds a 100 percent-owned and operated interest in the
Rokan PSC. Te Siak PSC expired in November 2013.
Chevron also operates four PSCs in the Kutei Basin, located
ofshore eastern Kalimantan. Tese interests range from
62 percent to 92.5 percent. Chevron also has a 25 percent
nonoperated working interest in a joint venture in Block B
in the South Natuna Sea and a 51 percent operated working
interest in two exploration blocks in western Papua, West
Papua I and West Papua III.
Te companys net oil-equivalent production in 2013
from its interests in Indonesia averaged 193,000 barrels per
day, composed of 156,000 barrels of liquids and 225 million
cubic feet of natural gas. Te largest producing feld is Duri,
located in the Rokan PSC. Duri has been under steamfood
since 1985 and is one of the worlds largest steamfood
developments. Te company continues to implement projects
designed to sustain production from existing reservoirs.
Te company progressed construction on the Duri Area 13
expansion project during 2013. First production occurred
in second-half 2013, and ramp-up of production is expected
through 2016. Te Rokan PSC expires in 2021.
During 2013, two natural gas deepwater development
projects in the Kutei Basin progressed under a single plan
of development. Collectively, these projects are referred to
as the Indonesia Deepwater Development. One of these
projects, Gendalo-Gehem, includes two separate hub
developments, each with its own FPU, subsea drill centers,
natural gas and condensate pipelines, and an onshore
receiving facility. Te project has a planned design capacity
of 1.1 billion cubic feet of natural gas and 47,000 barrels
of condensate per day. During 2013, the company received
bids for all major contracts. A fnal investment decision is
planned for 2014, but is subject to the timing of government
approvals. Te companys working interest is approximately
63 percent. At the end of 2013, proved reserves had not been
recognized for this project.
Te other project, Bangka, includes a subsea tieback
to the West Seno FPU, with a planned design capacity
of 115 million cubic feet of natural gas and 4,000 barrels
of condensate per day. Te companys working interest is
62 percent. Bids were received on all major contracts during
2013. A fnal investment decision is planned for 2014, but
is subject to the timing of government approvals. At year-
end 2013, proved reserves had not been recognized for this
project.
In Sumatra, three exploration wells were drilled with
one discovery. Further exploration and appraisal drilling is
planned for 2014. In the West Papua exploration blocks,
which are in close proximity to a third-party LNG facility,
2-D seismic data acquisition and processing was completed
for West Papua III in 2013.
In West Java, the company operates and holds a
95 percent interest in the Darajat geothermal feld, which
supplies steam to a power plant with a total operating
capacity of 270 megawatts. Chevron also operates and holds
a 100 percent interest in the Salak geothermal feld in West
Java, which supplies steam to a power plant with a total
operating capacity of 377 megawatts. In the Suoh-Sekincau
prospect area of South Sumatra, the company holds a
95 percent-owned and operated interest in a license to
explore and develop a geothermal prospect.
MALAYSIA
PHILIPPINES
MALAYSIA
Sulawesi
Kutei
Basin
Java
Sumatra
South Natuna Sea
Block B
Jakarta
Rokan
Block
Maluku
West Papua I & III
Blocks
West
Papua
PACIFIC
OCEAN
Darajat
Salak
Suoh-Sekincau
INDIAN
OCEAN
Kalimantan
Chevron Interest Geothermal Field
20
Kurdistan Region of Iraq: Te company operates and
holds an 80 percent interest in two PSCs covering the Rovi
and Sarta blocks. In June 2013, the company acquired the
operatorship and an 80 percent interest in the Qara Dagh
Block. Te blocks cover a combined area of 444,000 acres.
In second-half 2013, Chevron commenced exploration
drilling in the Rovi and Sarta blocks, and drilling on two
wells is expected to be completed in frst quarter 2014.
Acquisition of seismic data and further exploration drilling
is planned during 2014.
Partitioned Zone (PZ): Chevron holds a concession to
operate the Kingdom of Saudi Arabias 50 percent interest
in the hydrocarbon resources in the onshore area of the PZ
between Saudi Arabia and Kuwait. Te concession expires
in 2039.
During 2013, the companys average net oil-equivalent
production was 87,000 barrels per day, composed of 84,000
barrels of crude oil and 19 million cubic feet of natural gas.
During 2013, the company continued a steam injection
pilot project in the First Eocene carbonate reservoir and
achieved thermal maturity. A project to expand the steam
injection pilot to the Second Eocene reservoir entered FEED
in September 2013. Development planning also continued
on a full-feld steamfood application in the Wafra Field.
Te Wafra Steamfood Stage 1 Project has a planned design
capacity of 80,000 barrels of crude oil per day and is
expected to enter FEED in late 2014. At the end of 2013,
proved reserves had not been recognized for any of these
steamfood developments.
Also in 2013, FEED activities continued on the Central
Gas Utilization Project. Te project is intended to increase
natural gas utilization and eliminate routine faring. A fnal
investment decision is expected in late 2014. At year-end
2013, proved reserves had not been recognized for this
project.
Australia
In Australia, the companys upstream eforts are
concentrated of the northwest coast. During 2013, the
average net oil-equivalent production from Australia was
96,000 barrels per day.
Chevron holds a 47.3 percent ownership interest across
most of the Greater Gorgon Area and is the operator of
the Gorgon Project, which includes the development of
the Gorgon and nearby Jansz-Io natural gas felds. Te
development includes a three-train, 15.6 million-metric-ton-
per-year LNG facility, a carbon dioxide injection facility and
a domestic natural gas plant. Te total production capacity
for the project is expected to be approximately 2.6 billion
cubic feet of natural gas and 20,000 barrels of condensate
per day. Gorgon plant start-up and frst cargo is planned for
mid-2015. Total estimated project costs for the frst phase
of development are $54 billion. Proved reserves have been
recognized for this project. Te projects estimated economic
life exceeds 40 years from the time of start-up.
Work on the Gorgon project continued during 2013
with approximately 75 percent of the project activities
complete at year-end. Trough early 2014, 20 of 21 Train
1 LNG plant modules had been delivered and installed at
Barrow Island, with the fnal module expected to arrive by
mid-year. In addition, installation activities were completed
for the domestic gas pipeline from Barrow Island to the
mainland, enabling delivery of commissioning gas. Progress
continued on the construction of the LNG tanks and jetty,
with completion of LNG Tank 1 expected in second-half
2014. Start-up of the frst gas turbine generator, allowing
frst natural gas into the LNG plant, is planned for late
2014.
BROWSE
BASIN
Crown
Barrow
Island
Thevenard
Island
North West Shelf LNG
Gorgon LNG
Wheatstone LNG
Western
Australia
NORTH WEST
SHELF
Perseus
Geryon
Urania
Goodwyn
Goodwyn South
Rankin Dockrell
Wheatstone
Dixon
Orthrus
Lambert
Persephone
Montague
Egret
Wanaea
Hermes
Angel
Cossack
Maenad
Eurytion
Echo Yodel
Chandon
Chrysaor
West
Tryal
Rocks
Acme/
Acme
West
North Rankin
Jansz-Io
Iago
Dionysus
Clio
Sappho
Wilcox
Lady Nora
GREATER
GORGON
Satyr
Achilles
Pinhoe
Pontus
Arnhem
Elfin
Kentish Knock
South
Kentish Knock
Brederode
Vos
Yellowglen
INDIAN OCEAN
Gorgon
Chevron Interest Natural Gas Field Crude Oil Field Terminal
Partitioned
Zone
SAUDI ARABIA
IRAN
TURKEY
SYRIA
JORDAN
KUWAIT
IRAQ
ARABIAN
GULF
Rovi
Sarta
Qara Dagh
Chevron Interest Crude Oil Field
21
Construction of the upstream facilities also advanced
with 14 of the 18 subsea wells drilled and completed. Te
ofshore pipelines from both felds to Barrow Island were
completed in 2013. Infeld fow lines and subsea structures
continue to be installed in 2014. Perforation of all eight
development wells in the Gorgon Field and completion of
the Jansz-Io drilling program are expected in late 2014.
Chevron has signed binding, long-term LNG Sales and
Purchase Agreements with six Asian customers for delivery
of about 4.8 million metric tons of LNG per year, which
brings delivery commitments to 65 percent of Chevrons
share of LNG from this project. Discussions continue with
potential customers to increase long-term sales to around
80 percent of Chevrons net LNG oftake. Chevron also
has binding long-term agreements for delivery of about
65 million cubic feet per day of natural gas to Western
Australian natural gas consumers starting in 2015, and
the company continues to market additional natural gas
quantities from the Gorgon Project.
Te evaluation of expansion options to increase the
production capacity of Gorgon is planned to continue in
2014.
Chevron is the operator of the Wheatstone Project,
which includes a two-train, 8.9 million-metric-ton-per-year
LNG facility and a domestic gas plant located at Ashburton
North, on the coast of Western Australia. Te company
plans to supply natural gas to the facilities from three
company-operated licenses containing the Wheatstone and
Iago felds. Chevron holds a 64.1 percent interest in the
LNG facilities and an 80.2 percent interest in the ofshore
licenses. Total production capacity for the Wheatstone
and Iago felds and nearby third-party felds is expected to
be approximately 1.6 billion cubic feet of natural gas and
30,000 barrels of condensate per day. Start-up of the frst
train is expected in 2016. Total estimated costs for the
foundation phase are $29 billion. Proved reserves have been
recognized for this project. Te projects estimated economic
life exceeds 30 years from the time of start-up.
In 2013, construction and fabrication activities
progressed, with a focus on delivering site infrastructure
to enable efcient plant construction. Ofshore dredging,
pipeline installation and drilling of development wells
commenced during the year. Fabrication also progressed on
key upstream components, including the ofshore platform
and subsea equipment. Delivery of the frst Train 1 LNG
plant modules is expected in second-half 2014, along with
the installation of the ofshore platform steel gravity-based
structure, completion of the natural gas export trunkline
and completion of the LNG Tank 1 foundation. Te project
was approximately 25 percent complete at year-end.
Te company also executed binding long-term Sales
and Purchase Agreements with two Asian customers for the
delivery of additional LNG. As of year-end 2013, 85 percent
of Chevrons equity LNG oftake is committed under long-
term agreements with customers in Asia. In addition, the
company continues to market its equity share of natural gas
to Western Australia consumers.
During 2013, the company announced two natural gas
discoveries in the Carnarvon Basin. Tese include natural
gas discoveries at the 50 percent-owned and operated
Kentish Knock South prospect in Block WA-365-P and
the 50 percent-owned and operated Elfn prospect in Block
WA-268-P. Tese discoveries are expected to contribute
to potential expansion opportunities at company-operated
LNG projects.
Chevron has a 16.7 percent nonoperated working
interest in the North West Shelf (NWS) Venture in Western
Australia. Daily net production in 2013 averaged 19,000
barrels of crude oil and condensate, 419 million cubic feet
of natural gas, and 3,000 barrels of LPG. Approximately
70 percent of the natural gas was sold in the form of LNG to
major utilities in Asia, primarily under long-term contracts.
Te remaining natural gas was sold to the Western Australia
domestic market. Te concession for the NWS Venture
expires in 2034.
Production commenced at the North Rankin 2 Project
in fourth quarter 2013. Te project is designed to recover
remaining low-pressure natural gas from the North Rankin
and Perseus felds to meet gas supply needs and maintain
NWS daily production of about 2 billion cubic feet of
natural gas and 39,000 barrels of condensate. Te projects
estimated economic life exceeds 20 years from the time of
start-up.
Te company holds nonoperated working interests
ranging from 24.8 percent to 50 percent in three blocks in
the Browse Basin.
In 2013, the company acquired nonoperated working
interests in two onshore blocks covering 810,000 total
acres in the Nappamerri Trough, located in the Cooper
Basin region in central Australia. Te acquisition includes
a 30 percent interest in PEL 218 in South Australia and an
18 percent interest in ATP 855 in Queensland. Pending
favorable results of an exploration drilling program, Chevron
could earn nonoperated working interests of 60 percent in
PEL 218 and 36 percent in ATP 855.
In October 2013, the company acquired exploration
interests in ofshore Blocks EPP44 and EPP45, which span
more than 8 million acres in the Bight Basin of the South
Australian coast. Chevron is the operator and holds a
100 percent interest.
22
Europe
In Europe, the company is engaged in upstream activities in
Bulgaria, Denmark, Lithuania, the Netherlands, Norway,
Poland, Romania, Ukraine and the United Kingdom. Net
oil-equivalent production in Europe averaged 94,000 barrels
per day during 2013.
Denmark: Chevron holds a 12 percent nonoperated
working interest in the Danish Underground Consortium
(DUC), which produces crude oil and natural gas from
13 felds in the Danish North Sea. Net oil-equivalent
production in 2013 from DUC averaged 28,000 barrels per
day, composed of 19,000 barrels of crude oil and 55 million
cubic feet of natural gas. Te concession expires in 2042.
Netherlands: Chevron operates and holds interests ranging
from 23.5 percent to 80 percent in 11 blocks in the Dutch
sector of the North Sea. In 2013, the companys net oil-
equivalent production was 9,000 barrels per day, composed
of 2,000 barrels of crude oil and 41 million cubic feet of
natural gas. Te company is evaluating these assets for
possible divestment.
Norway: Te company holds a 7.6 percent nonoperated
working interest in the Draugen Field. Te companys net
production averaged 2,000 barrels of oil-equivalent per
day during 2013. Te company is evaluating this asset for
possible divestment. Chevron is the operator and has a
40 percent working interest in exploration licenses PL 527
and PL 598. Both licenses are in the deepwater portion of the
Norwegian Sea.
United Kingdom: Te companys average net oil-equivalent
production in 2013 from nine ofshore felds was 55,000
barrels per day, composed of 40,000 barrels of liquids and
94 million cubic feet of natural gas. Most of the production
was from three felds: the 85 percent-owned and operated
Captain Field, the 23.4 percent-owned and operated Alba
Field, and the 32.4 percent-owned and jointly operated
Britannia Field.
At the 73.7 percent-owned and operated Alder Project,
FEED activities were completed and a fnal investment
decision was made in late 2013. Te project is proceeding
as a single subsea well tied back to the existing Britannia
platform and has a design capacity of 14,000 barrels of
condensate and 110 million cubic feet of natural gas per
day. First production is scheduled for 2016. Te initial
recognition of proved reserves occurred in 2013 for this
project.
Procurement and fabrication activities continued
during 2013 for the Clair Ridge Project, located west of the
Shetland Islands, in which the company has a 19.4 percent
nonoperated working interest. Te project is the second
development phase of the Clair Field. Total design capacity
is 120,000 barrels of crude oil and 100 million cubic feet of
natural gas per day. Te total estimated cost of the project is
$7 billion. Production is scheduled to begin in 2016, and the
projects estimated economic life exceeds 40 years from the
time of start-up. Proved reserves have been recognized for
the Clair Ridge Project.
At the 40 percent-owned and operated Rosebank
Project northwest of the Shetland Islands, the company
continues to assess alternatives for the optimum development
of the Rosebank Field. At the end of 2013, proved reserves
had not been recognized for this project.
An exploration well was drilled in License P1189, and
the results of this well are under evaluation. In License
P1191, 3-D seismic data was acquired to map the area
southwest of the Rosebank Field. In the North Sea, an
exploration well to further delineate the southern extension
of the Jade Field was drilled in second-half 2013, and the
results are under evaluation.
UNITED
KINGDOM
Clair
Rosebank
Jade
A/B
Erskine
Alba
DUC
Captain
Elgin/Franklin
Brodgar
Callanish
Valdemar
NORTH SEA
IRELAND
NETHERLANDS
GERMANY
FAROE
ISLANDS
DENMARK
ICELAND
NORWAY
Shetland
Islands
Britannia
Alder
Tyra
Halfdan
Dan
Draugen
NORWEGIAN SEA
PL 527
PL 598
Chevron Interest Natural Gas Field Crude Oil Field
23
operated and comprise a total of 1.1 million acres. In 2013,
the frst exploration wells were drilled in the Zwierzyniec
and Krasnik concessions. A 3-D seismic survey is under
way on the Grabowiec concession and is planned to be
completed in second quarter 2014. Exploration activities are
planned to continue during 2014.
Romania: Te company holds a 100 percent interest in and
operates the 1.6 million-acre Barlad Shale concession in
northeast Romania. Drilling of the frst exploration well is
planned to commence in second quarter 2014. In addition,
Chevron holds a 100 percent interest in and operates three
concessions covering 670,000 acres in southeast Romania. In
October 2013, the company commenced acquisition of 2-D
seismic data across two of the three concessions.
Ukraine: In November 2013, Chevron signed a PSC with
the government of Ukraine for a 50 percent interest in and
operatorship of the 1.6 million acre Oleska Shale block in
western Ukraine. As of early 2014, the Joint Operating
Agreement terms were being negotiated.
Sales of Natural Gas and Natural Gas Liquids
Te company sells natural gas and natural gas liquids from
its producing operations under a variety of contractual
arrangements. In addition, the company also makes third-
party purchases and sales of natural gas and natural gas
liquids in connection with its trading activities.
During 2013, U.S. and international sales of natural
gas were 5.5 billion and 4.3 billion cubic feet per day,
respectively, which includes the companys share of equity
afliates sales. Outside the United States, substantially all of
the natural gas sales from the companys producing interests
are from operations in Australia, Bangladesh, Canada,
Europe, Kazakhstan, Indonesia, Latin America, Myanmar,
Nigeria, the Philippines and Tailand.
U.S. and international sales of natural gas liquids were
142,000 and 88,000 barrels per day, respectively, in 2013.
Substantially all of the international sales of natural gas
liquids from the companys producing interests are from
operations in Africa, Kazakhstan, Indonesia and the United
Kingdom.
Refer to Selected Operating Data, on page FS-10
Condition and Results of Operations, for further
information on the companys sales volumes of natural
gas and natural gas liquids. Refer also to Delivery
Commitments on page 7 for information related to the
companys delivery commitments for the sale of crude oil
and natural gas.
Bulgaria: In 2011, the Bulgarian government advised that
Chevron had submitted a winning tender for an exploration
permit in northeast Bulgaria. However, prior to execution
of the license agreement, the government announced the
withdrawal of the decision as the Bulgarian parliament
imposed a ban on hydraulic fracturing. Chevron continues
to work with the government of Bulgaria to provide the
necessary assurances that shale hydrocarbons can be
developed safely and responsibly.
Lithuania: Chevron holds a 50 percent interest in a
Lithuanian exploration and production company. In 2013,
two exploration wells were drilled in the 394,000-acre
Rietavas Block, and the results of the wells are under
evaluation. Drilling of a third exploration well commenced
in January 2014 and is planned to be completed during
second quarter 2014.
Poland: Chevron holds four shale concessions in southeast
Poland (Frampol, Grabowiec, Krasnik and Zwierzyniec).
All four exploration licenses are 100 percent-owned and
Oleska
Kiev
Vilnius
POLAND
ROMANIA
BULGARIA
BELARUS
UKRAINE
SERBIA
CROATIA
HUNGARY
MOLDOVA
SLOVAKIA
CZECH
REPUBLIC
AUSTRIA
LATVIA
LITHUANIA
Krasnik
Frampol
Zwierzyniec
RUSSIA
RUSSIA
Barlad
Block 17
Block 18
Grabowiec
Rietavas
Warsaw
Bucharest
ADRIATIC
SEA
BALTIC
SEA
BLACK
SEA
Block 1
Sofia
Block 19
SLOVENIA
BOSNIA &
HERZEGOVINA
Chevron Interest Successful Bidder
24
During 2013, work continued on projects to improve
refnery fexibility and enhance the capability to process
lower cost feedstocks. In early 2013, start-up was achieved
on a project at the Pascagoula Refnery that provides
additional fexibility to process a broader range of crudes. A
project to improve fexibility at the Salt Lake City Refnery
is scheduled to be completed by mid-2014.
Outside the United States, GS Caltex, a 50 percent-
owned afliate, started commercial operations of a
53,000-barrel-per-day gas oil fuid catalytic cracking unit at
the Yeosu Refnery in South Korea in second quarter 2013.
In 2013, Caltex Australia Ltd., a 50 percent-owned afliate,
progressed its plans to convert the Kurnell, Australia,
refnery to an import terminal in 2014. In February 2014,
Singapore Refning Company, Chevrons 50 percent-owned
joint venture, reached a fnal investment decision to install
a gasoline clean fuels facility and cogeneration plant.
Addition of the facilities is expected to increase the refnerys
capability to produce higher value gasoline and improve
energy efciency.
Downstream
Refining Operations
At the end of 2013, the company had a refning network
capable of processing nearly 2 million barrels of crude oil
per day. Operable capacity at December 31, 2013, and daily
refnery inputs for 2011 through 2013 for the company and
afliate refneries are summarized in the table below.
Average crude oil distillation capacity utilization during
2013 was 84 percent, compared with 88 percent in 2012. At
the U.S. refneries, crude oil distillation capacity utilization
averaged 81 percent in 2013, compared with 87 percent
in 2012. Chevron processes both imported and domestic
crude oil in its U.S. refning operations. Imported crude oil
accounted for about 76 percent and 77 percent of Chevrons
U.S. refnery inputs in 2013 and 2012, respectively.
At the Pascagoula Refnery, construction progressed
during 2013 on a facility to produce approximately 25,000
barrels per day of premium base oil. Mechanical completion
of the plant is expected in frst quarter 2014, and ramp up to
full production is planned during second quarter 2014.
Petroleum Refineries: Locations, Capacities and Inputs
(Crude-unit capacities and crude oil inputs in thousands of barrels per day; includes equity share in affiliates)
December 31, 2013 Refnery Inputs
Locations Number Operable Capacity 2013 2012 2011
Pascagoula Mississippi 1 330 304 335 327
El Segundo California 1 269 235 265 244
Richmond California 1 257 153 142 192
Kapolei Hawaii 1 54 39 46 47
Salt Lake City Utah 1 45 43 45 44
Total Consolidated Companies United States 5 955 774 833 854
Pembroke
1
United Kingdom 122
Map Ta Phut
2
Tailand 1 165 161 95
Cape Town
3
South Africa 1 110 78 79 77
Burnaby, B.C. Canada 1 55 42 49 43
Total Consolidated Companies International 3 330 281 223 242
Afliates
2
Various Locations 6 675 583 646 691
Total Including Afliates International 9 1,005 864 869 933
Total Including Afliates Worldwide 14 1,960 1,638 1,702 1,787
1
Pembroke was sold in August 2011.
2
As of June 2012, Star Petroleum Refning Company crude input volumes are reported on a consolidated basis. Prior to June 2012, crude volumes refect a 64 percent equity interest and are reported in
afliates.
3
Chevron holds a controlling interest in the shares issued by Chevron South Africa (Pty) Limited, which owns the Cape Town Refnery. A consortium of South African partners owns preferred shares
ultimately convertible to a 25 percent equity interest in Chevron South Africa (Pty) Limited.
25
Marketing Operations
Te company markets petroleum products under the
principal brands of Chevron, Texaco and Caltex
throughout many parts of the world. Te following table
identifes the companys and afliates refned products sales
volumes, excluding intercompany sales, for the three years
ended December 31, 2013.
Refined Products Sales Volumes
(Thousands of Barrels per Day)
2013 2012 2011
United States
Gasoline 613 624 649
Jet Fuel 215 212 209
Gas Oil and Kerosene 195 213 213
Residual Fuel Oil 69 68 87
Other Petroleum Products
1
90 94 99
Total United States 1,182 1,211 1,257
International
2
Gasoline 398 412 447
Jet Fuel 245 243 269
Gas Oil and Kerosene 510 496 543
Residual Fuel Oil 179 210 233
Other Petroleum Products
1
197 193 200
Total International 1,529 1,554 1,692
Total Worldwide
2
2,711 2,765 2,949
1
Principally naphtha, lubricants, asphalt and coke.
2
Includes share of afliates sales: 471 522 556
In the United States, the company markets under the
Chevron and Texaco brands. At year-end 2013, the company
supplied directly or through retailers and marketers
approximately 8,050 Chevron- and Texaco-branded motor
vehicle service stations, primarily in the southern and
western states. Approximately 400 of these outlets are
company-owned or -leased stations.
Outside the United States, Chevron supplied directly
or through retailers and marketers approximately 8,600
branded service stations, including afliates. In British
Columbia, Canada, the company markets under the
Chevron brand. Te company markets in Latin America
using the Texaco brand. In the Asia-Pacifc region, southern
Africa, Egypt and Pakistan, the company uses the Caltex
brand. Te company also operates through afliates under
various brand names. In South Korea, the company operates
through its 50 percent-owned afliate, GS Caltex, and in
Australia through its 50 percent-owned afliate, Caltex
Australia Limited.
Chevron markets commercial aviation fuel at
approximately 115 airports worldwide. Te company also
markets an extensive line of lubricant and coolant products
under the product lines Havoline, Delo, Ursa, Meropa,
Rando, Clarity and Taro in the United States and worldwide
under the three brands: Chevron, Texaco and Caltex.
Chemicals Operations
Chevron owns a 50 percent interest in its Chevron Phillips
Chemical Company LLC (CPChem) afliate. At the end of
2013, CPChem owned or had joint-venture interests in 35
manufacturing facilities and two research and development
centers around the world.
During 2013, CPChem progressed construction of a
1-hexene plant at the companys Cedar Bayou complex in
Baytown, Texas, with a design capacity of 250,000 metric
tons per year. Start-up is expected in second quarter 2014.
In October 2013, CPChem announced a fnal investment
decision on its U.S. Gulf Coast Petrochemicals Project,
which is expected to capitalize on advantaged feedstock
sourced from shale gas development in North America. Te
$6 billion project includes an ethane cracker with an annual
design capacity of 1.5 million metric tons of ethylene to be
located at the Cedar Bayou complex in Baytown, Texas,
and two polyethylene facilities to be located in Old Ocean,
Texas, each with an annual design capacity of 500,000
metric tons.
Chevrons Oronite brand lubricant and fuel additives
business is a leading developer, manufacturer and marketer
of performance additives for lubricating oils and fuels. Te
company owns and operates facilities in Brazil, France,
Japan, the Netherlands, Singapore and the United States
and has equity interests in facilities in India and Mexico.
Oronite lubricant additives are blended with refned base
oil to produce fnished lubricants, used primarily in engine
applications such as passenger cars, heavy-duty diesel trucks,
buses, ships, locomotives and motorcycles. Additives for
fuels are blended to improve engine performance and extend
engine life. In 2013, construction continued on a project to
expand the capacity of the existing additives plant on Jurong
Island in Singapore. Commercial operations are expected
to begin by third quarter 2014. Upon start-up, the plant is
expected to double its capacity since it was commissioned in
1999. In Gonfreville, France, a project to expand dispersant
production by more than 25 percent was completed in third
quarter 2013, and a project to efectively double detergent
capacity began construction with expected completion in
late 2014.
26
Transportation
Pipelines: Chevron owns and operates an extensive network
of crude oil, natural gas, natural gas liquid, refned product
and chemical pipelines and other infrastructure assets in
the United States. Te company also has direct and indirect
interests in other U.S. and international pipelines. Te
companys ownership interests in pipelines are summarized
in the following table.
Pipeline Mileage at December 31, 2013
Net Mileage
1,2
United States
Crude Oil 1,883
Natural Gas 2,638
Petroleum Products 4,395
Total United States 8,916
International
Crude Oil 667
Natural Gas 199
Petroleum Products 290
Total International 1,156
Worldwide 10,072
1
Includes companys share of pipeline mileage owned by equity afliates.
2
Excludes gathering pipelines relating to the crude oil and natural gas production function.
Te company is leading the construction of a 136-mile,
24-inch crude oil pipeline from the planned 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 an interconnect to pipelines delivering crude oil into
Texas and Louisiana. In early 2014, the company completed
laying the pipe, which included the installation of two
subsea connections for future tie-ins. All remaining work on
the pipeline is expected to be completed by start-up of the
production facility in late 2014.
In June 2013, the company completed the sale of
the 100 percent-owned and operated Northwest Products
System.
Refer to pages 15, 16 and 17 in the Upstream section
for information on the Chad/Cameroon pipeline, the West
African Gas Pipeline, the Baku-Tbilisi-Ceyhan Pipeline, the
Western Route Export Pipeline and the Caspian Pipeline
Consortium.
Shipping: All tankers in Chevrons controlled seagoing
feet were utilized during 2013. During 2013, the company
had 58 deep-sea vessels chartered on a voyage basis, or for a
period of less than one year. Te following table summarizes
the capacity of the companys controlled feet.
Controlled Tankers at December 31, 2013
1
U.S. Flag Foreign Flag
Number Cargo
Capacity
(Millions of
Barrels)
Number Cargo
Capacity
(Millions of
Barrels)
Owned 1 1.0
Bareboat-Chartered 4 1.4 17 25.0
Time-Chartered
2
3 1.0 9 8.5
Total 7 2.4 27 34.5
1
Consolidated companies only. Excludes tankers chartered on a voyage basis, those with dead-
weight tonnage less than 25,000 and those used exclusively for storage.
2
Tankers chartered for more than one year.
Te companys U.S.-fagged feet is engaged primarily
in transporting refned products in the coastal waters of the
United States.
Te foreign-fagged vessels are engaged primarily in
transporting crude oil from the Middle East, Southeast
Asia, the Black Sea, South America, Mexico and West
Africa to ports in the United States, Europe, Australia and
Asia. Te companys foreign-fagged vessels also transport
refned products and feedstocks to and from various
locations worldwide.
In 2013, the company took delivery of two vessels that
included one bareboat charter VLCC and a dynamically
positioned shuttle tanker. Progress continued on contracts in
place for bareboat charters and new builds, to modernize the
feet and increase LNG coverage. Te company also owns a
one-sixth interest in each of seven LNG carriers transporting
cargoes for the North West Shelf Venture in Australia.
Other Businesses
Mining: Chevron owns and operates the Questa
molybdenum mine in New Mexico. At year-end 2013,
Chevron had 160 million pounds of proven molybdenum
reserves at Questa. Production and underground
development at Questa continued at reduced levels in 2013
in response to weak prices for molybdenum.
Power and Energy Services: In 2014, Chevron Energy
Solutions is being combined with Chevron Global Power
Company. As the companys power and energy services
provider, this business delivers comprehensive commercial,
engineering and operational support services to improve
power reliability and energy efciency of Chevron operations
worldwide. Te responsibilities also include developing and
building sustainable energy projects for the production of
renewable power and to reduce energy costs that beneft
third parties and the environment.
27
Tis business also manages Chevrons interest in a
variety of gas-fred and renewable power generation assets.
Te gas-fred cogeneration facilities produce electricity
and steam and utilize recovered waste heat to support
enhanced oil recovery operations. Te renewable facilities
consist of wind, geothermal, photovoltaic and solar-to-steam
production assets.
Chevron also has major geothermal operations in
Indonesia and the Philippines and is evaluating several
advanced solar technologies for use in oil feld operations
as part of its renewable energy strategy. For additional
information on the companys geothermal operations and
renewable energy projects, refer to page 19 in the Upstream
section and Research and Technology below.
Research and Technology: Te companys energy
technology organization supports Chevrons upstream
and downstream businesses by conducting research,
developing and qualifying technology, providing technical
services, and providing competency development in earth
sciences; reservoir and production engineering; drilling
and completions; facilities engineering; manufacturing;
process technology; catalysis; technical computing;
and health, environment and safety disciplines. Te
information technology organization integrates computing,
telecommunications, data management, security and
network technology to provide a standardized digital
infrastructure and enable Chevrons global operations and
business processes.
Chevrons technology ventures group manages
investments in venture capital and projects in emerging
energy technologies and their integration into Chevrons
core businesses. As of the end of 2013, the ventures group
continued to explore technologies such as next-generation
biofuels, advanced solar and enhanced pipeline inspection
methods, and made investments in the primary carbon
market.
Chevrons research and development expenses were
$750 million, $648 million and $627 million for the years
2013, 2012 and 2011, respectively.
Some of the investments the company makes in the
areas described above are in new or unproven technologies
and business processes, and ultimate technical or
commercial successes are not certain.
Environmental Protection: Te company designs, operates
and maintains its facilities to avoid potential spills or leaks
and minimize the impact of those that may occur. Chevron
requires its facilities and operations to have operating
standards and processes and emergency response plans that
address all credible and signifcant risks identifed through
site-specifc risk and impact assessments. Chevron also
requires that sufcient resources be available to execute these
plans. In the unlikely event that a major spill or leak occurs,
Chevron also maintains a Worldwide Emergency Response
Team comprised of employees who are trained in various
aspects of emergency response, including post-incident
remediation.
To complement the companys capabilities, Chevron
maintains active membership in international oil spill
response cooperatives, including the Marine Spill Response
Corporation, which operates in U.S. territorial waters, and
Oil Spill Response, Ltd. (OSRL), which operates globally.
Te company is a founding member of the Marine Well
Containment Company, whose primary mission is to
expediently deploy containment equipment and systems to
capture and contain crude oil in the unlikely event of a future
loss of control of a deepwater well in the Gulf of Mexico.
In addition, the company is a member of the Subsea Well
Response Project (SWRP). SWRPs objective is to further
develop the industrys capability to contain and shut in subsea
well control incidents in diferent regions of the world.
Refer to Managements Discussion and Analysis of
Financial Condition and Results of Operations on page
FS-15 for additional information on environmental matters
and their impact on Chevron, and on the companys 2013
environmental expenditures. Refer to page FS-15 and
Note 23 on page FS-55 for a discussion of environmental
remediation provisions and year-end reserves. Refer also
to Item 1A. Risk Factors on pages 27 through 29 for a
discussion of greenhouse gas regulation and climate change.
Website Access to SEC Reports
Te companys website is www.chevron.com. Information
contained on the companys website is not part of this
Annual Report on Form 10-K. Te companys Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and any amendments to these
reports fled or furnished pursuant to Section 13(a) or 15(d)
of the Securities Exchange Act of 1934 are available free
of charge on the companys website soon after such reports
are fled with or furnished to the Securities and Exchange
Commission (SEC). Te reports are also available on the
SECs website at www.sec.gov.
Item 1A. Risk Factors
Chevron is a global energy company with a diversifed
business portfolio, a strong balance sheet, and a history of
generating sufcient cash to pay dividends and fund capital
and exploratory expenditures. Nevertheless, some inherent
risks could materially impact the companys fnancial results
of operations or fnancial condition.
Chevron is exposed to the effects of changing commodity
prices: Chevron is primarily in a commodities business that
has a history of price volatility. Te single largest variable
that afects the companys results of operations is the price
of crude oil, which can be infuenced by general economic
conditions, industry inventory levels, production quotas
imposed by the Organization of Petroleum Exporting
Countries (OPEC), weather-related damage and disruptions,
competing fuel prices, and geopolitical risk. Chevron accepts
28
the risk of changing commodity prices as part of its business
planning process. As such, an investment in the company
carries signifcant exposure to fuctuations in global crude oil
prices.
During extended periods of historically low prices for
crude oil, the companys upstream earnings and capital and
exploratory expenditure programs will be negatively afected.
Upstream assets may also become impaired. Te impact
on downstream earnings is dependent upon the supply and
demand for refned products and the associated margins on
refned product sales.
The scope of Chevrons business will decline if the
company does not successfully develop resources: Te
company is in an extractive business; therefore, if Chevron
is not successful in replacing the crude oil and natural gas
it produces with good prospects for future production or
through acquisitions, the companys business will decline.
Creating and maintaining an inventory of projects depends
on many factors, including obtaining and renewing rights to
explore, develop and produce hydrocarbons; drilling success;
ability to bring long-lead-time, capital-intensive projects to
completion on budget and on schedule; and efcient and
proftable operation of mature properties.
The companys operations could be disrupted by natural
or human factors: Chevron operates in both urban areas
and remote and sometimes inhospitable regions. Te
companys operations and facilities are therefore subject to
disruption from either natural or human causes beyond its
control, including hurricanes, foods and other forms of
severe weather, war, civil unrest and other political events,
fres, earthquakes, system failures, cyber threats and terrorist
acts, any of which could result in suspension of operations or
harm to people or the natural environment.
The companys operations have inherent risks and
hazards that require significant and continuous
oversight: Chevrons results depend on its ability to identify
and mitigate the risks and hazards inherent to operating in
the crude oil and natural gas industry. Te company seeks to
minimize these operational risks by carefully designing and
building its facilities and conducting its operations in a safe
and reliable manner. However, failure to manage these risks
efectively could result in unexpected incidents, including
releases, explosions or mechanical failures resulting in
personal injury, loss of life, environmental damage, loss of
revenues, legal liability and/or disruption to operations.
Chevron has implemented and maintains a system of
corporate policies, behaviors and compliance mechanisms
to manage safety, health, environmental, reliability and
efciency risks; to verify compliance with applicable laws
and policies; and to respond to and learn from unexpected
incidents. In certain situations where Chevron is not the
operator, the company may have limited infuence and
control over third parties, which may limit its ability to
manage and control such risks.
Chevrons business subjects the company to liability
risks from litigation or government action: Te company
produces, transports, refnes and markets materials with
potential toxicity, and it purchases, handles and disposes
of other potentially toxic materials in the course of its
business. Chevrons operations also produce byproducts,
which may be considered pollutants. Often these operations
are conducted through joint ventures over which the
company may have limited infuence and control. Any of
these activities could result in liability or signifcant delays
in operations arising from private litigation or government
action, either as a result of an accidental, unlawful discharge
or as a result of new conclusions about the efects of the
companys operations on human health or the environment.
In addition, to the extent that societal pressures or political
or other factors are involved, it is possible that such liability
could be imposed without regard to the companys causation
of or contribution to the asserted damage, or to other
mitigating factors.
For information concerning some of the litigation in
which the company is involved, including information
relating to Ecuador matters, see Note 14 to the Consolidated
Financial Statements, beginning on page FS-39.
The company does not insure against all potential losses,
which could result in significant financial exposure:
Te company does not have commercial insurance or third-
party indemnities to fully cover all operational risks or
potential liability in the event of a signifcant incident or
series of incidents causing catastrophic loss. As a result, the
company is, to a substantial extent, self-insured for such
events. Te company relies on existing liquidity, fnancial
resources and borrowing capacity to meet short-term
obligations that would arise from such an event or series of
events. Te occurrence of a signifcant incident or unforeseen
liability for which the company is not fully insured or for
which insurance recovery is signifcantly delayed could
have a material adverse efect on the companys results of
operations or fnancial condition.
Political instability and significant changes in the
regulatory environment could harm Chevrons business:
Te companys operations, particularly exploration and
production, can be afected by changing economic,
regulatory and political environments in the various
countries in which it operates. As has occurred in the past,
actions could be taken by governments to increase public
ownership of the companys partially or wholly owned
businesses or to impose additional taxes or royalties.
In certain locations, governments have imposed or
proposed restrictions on the companys operations, export
and exchange controls, burdensome taxes, and public
disclosure requirements that might harm the companys
competitiveness or relations with other governments or third
parties. In other countries, political conditions have existed
that may threaten the safety of employees and the companys
continued presence in those countries, and internal unrest,
29
acts of violence or strained relations between a government
and the company or other governments may adversely afect
the companys operations. Tose developments have, at
times, signifcantly afected the companys related operations
and results and are carefully considered by management
when evaluating the level of current and future activity in
such countries. At December 31, 2013, 21 percent of the
companys net proved reserves were located in Kazakhstan.
Te company also has signifcant interests in OPEC-member
countries, including Angola, Nigeria and Venezuela, and
in the Partitioned Zone between Saudi Arabia and Kuwait.
Twenty-one percent of the companys net proved reserves,
including afliates, were located in OPEC countries at
December 31, 2013.
Regulation of greenhouse gas emissions could increase
Chevrons operational costs and reduce demand for
Chevrons products: Continued political attention to issues
concerning climate change, the role of human activity
in it, and potential mitigation through regulation could
have a material impact on the companys operations and
fnancial results.
International agreements and national or regional
legislation and regulatory measures to limit greenhouse
emissions are currently in various stages of discussion
or implementation. Tese and other greenhouse gas
emissions-related laws, policies and regulations may result in
substantial capital, compliance, operating and maintenance
costs. Te level of expenditure required to comply with
these laws and regulations is uncertain and is expected to
vary depending on the laws enacted in each jurisdiction, the
companys activities in it and market conditions. Greenhouse
gas emissions that could be regulated include those arising
from the companys exploration and production of crude
oil and natural gas; the upgrading of production from oil
sands into synthetic oil; power generation; the conversion
of crude oil and natural gas into refned products; the
processing, liquefaction and regasifcation of natural gas; the
transportation of crude oil, natural gas and related products
and consumers or customers use of the companys products.
Some of these activities, such as consumers and customers
use of the companys products, as well as actions taken by
the companys competitors in response to such laws and
regulations, are beyond the companys control.
Te efect of regulation on the companys fnancial
performance will depend on a number of factors including,
among others, the sectors covered, the greenhouse gas
emissions reductions required by law, the extent to which
Chevron would be entitled to receive emission allowance
allocations or would need to purchase compliance
instruments on the open market or through auctions, the
price and availability of emission allowances and credits,
and the impact of legislation or other regulation on the
companys ability to recover the costs incurred through the
pricing of the companys products. Material price increases
or incentives to conserve or use alternative energy sources
could reduce demand for products the company currently
sells and adversely afect the companys sales volumes,
revenues and margins.
Changes in managements estimates and assumptions
may have a material impact on the companys
consolidated financial statements and financial or
operational performance in any given period:
In preparing the companys periodic reports under the
Securities Exchange Act of 1934, including its fnancial
statements, Chevrons management is required under
applicable rules and regulations to make estimates and
assumptions as of a specifed date. Tese estimates and
assumptions are based on managements best estimates and
experience as of that date and are subject to substantial
risk and uncertainty. Materially diferent results may
occur as circumstances change and additional information
becomes known. Areas requiring signifcant estimates and
assumptions by management include measurement of beneft
obligations for pension and other postretirement beneft
plans; estimates of crude oil and natural gas recoverable
reserves; accruals for estimated liabilities, including
litigation reserves; and impairments to property, plant and
equipment. Changes in estimates or assumptions or the
information underlying the assumptions, such as changes in
the companys business plans, general market conditions or
changes in commodity prices, could afect reported amounts
of assets, liabilities or expenses.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Te location and character of the companys crude oil,
natural gas and mining properties and its refning,
marketing, transportation and chemicals facilities are
described on page 3 under Item 1. Business. Information
required by Subpart 1200 of Regulation S-K (Disclosure by
Registrants Engaged in Oil and Gas Producing Activities)
is also contained in Item 1 and in Tables I through VII on
pages FS-59 through FS-71. Note 13, Properties, Plant and
Equipment, to the companys fnancial statements is on
page FS-39.
Item 3. Legal Proceedings
Ecuador: Information related to Ecuador matters is
included in Note 14 to the Consolidated Financial
Statements under the heading Ecuador, beginning on page
FS-39.
Certain Governmental Proceedings:
As initially disclosed in the frst quarter 2011 Form
10-Q, the Environmental Protection Agency (EPA) indicated
that it would assess the companys Salt Lake City Refnery
a civil penalty for alleged violations of federal requirements
and Utahs air quality laws. Tese alleged violations were
30
the subject of an August 20, 2008, EPA Notice of Violation
(NOV) for which no penalty was assessed at the time. On
October 21, 2013, the U.S. District Court in Utah entered
a Consent Decree resolving the NOV. Pursuant to the
Consent Decree, Chevron paid a penalty of $384,000 and
agreed to implement certain other measures.
On August 6, 2012, a piping failure and fre occurred
at the Chevron U.S.A. Inc. refnery in Richmond,
California. Various federal, state, and local agencies initiated
investigations as a result of the incident. Based on its civil
investigation, the United States EPA issued a Finding of
Violations (FOV) to Chevron on December 17, 2013,
which includes 62 fndings of alleged noncompliance at
the refnery. Te majority of these fndings relate to the
August 2012 fre and alleged violations of chemical-accident-
prevention laws, but the FOV also addresses a number of
release-reporting issues, some of which are unrelated to the
fre. Resolution of the alleged violations may result in the
payment of a civil penalty of $100,000 or more.
In July 2009, the Hawaii Department of Health
(DOH) alleged that Chevron is obligated to pay stipulated
civil penalties in conjunction with commitments Chevron
undertook to install and operate certain air emission control
equipment at its Hawaii Refnery pursuant to a Clean
Air Act settlement with the United States EPA and the
DOH. Te company has disputed many of the allegations.
Resolution of the alleged violations may result in the
payment of a civil penalty of $100,000 or more.
As initially disclosed in the 2012 Form 10-K, in
September and November 2012, Chevrons Richmond
Refnery received from the Bay Area Air Quality
Management District (BAAQMD) proposals to resolve
47 alleged NOVs related to air quality regulations. In
December 2012, a settlement agreement was fnalized
covering 28 of those NOVs for payment of $145,600 in civil
penalties. Te company reached a settlement agreement with
BAAQMD and paid $190,000 in civil penalties to resolve 17
of the remaining NOVs, and the BAAQMD has informed
the company that it will not seek penalties for the last two
remaining NOVs.
On June 10, 2013, the company received
correspondence from the California Air Resources Board
regarding an alleged violation of Californias Regulation for
the Mandatory Reporting of Greenhouse Gas Emissions
based on alleged delay in the reporting of emissions data for
Chevrons San Joaquin Valley Business Unit. Chevron has
reached an agreement-in-principle with the California Air
Resources Board under which the company would pay a
$328,500 civil penalty to resolve the alleged violations.
Te California Air Resources Board (CARB) has alleged
that greenhouse gas (GHG) emissions reported by Chevrons
El Segundo Refnery for the 2011 calendar year contained
an error in violation of Californias GHG reporting
regulation, and that the reporting error resulted in an over-
allocation of GHG allowances. Te company has reached
an agreement-in-principle with the CARB under which
Chevron would pay a $364,500 civil penalty to resolve the
alleged violations.
As initially disclosed in the third quarter 2013 Form
10-Q, in July 2013, Chevron Products Company, a division
of Chevron U.S.A. Inc., received a NOV from the CARB
for the Richmond and Montebello (California) terminals
alleging the selling or ofering for sale of gasoline containing
more than the maximum allowable ethanol content.
Resolution of the alleged violation may result in the payment
of a civil penalty of $100,000 or more.
On October 18, 2013, the CARB issued a Notice of
Violation alleging that Chevrons San Diego terminal sold
gasoline with less than the required detergent content for
34 months from 2010 to 2012. Resolution of the alleged
violation may result in the payment of a civil penalty of
$100,000 or more.
On December 18, 2013, EPA declared certain renewable
fuel credits (also referred to as Renewable Identifcation
Numbers or RINs) generated by E-Biofuel to be invalid.
Te company previously submitted RINs generated by
E-Biofuel for 2012 compliance with federal renewable fuels
requirements. Under current EPA policy, the companys
earlier submittal of those now-invalid RINs generated by
E-Biofuel may result in the payment of a civil penalty of
$100,000 or more.
As previously disclosed in the third quarter 2013 Form
10-Q, Chevron U.S.A. Inc. has participated in settlement
discussions and received a proposed settlement agreement
from the South Coast Air Quality Management District to
resolve alleged violations of the El Segundo Refnerys Clean
Air Act Title V Operating Permit. Resolution of the alleged
violations may result in the payment of a civil penalty of
$100,000 or more.
Te State of New Mexico provided to Chevron a NOV
on December 11, 2013, alleging that the faring of fuel gas
that occurred during periodic compressor purging events
at the Chevron Buckeye CO2 plant resulted in hourly air
emissions during these events in excess of the plant permit
limits and alleging that the company had failed to timely
report these excess emissions. Te resolution of this NOV
may result in the payment of a civil penalty of $100,000 or
more.
As initially disclosed in the second quarter 2013 Form
10-Q, Chevron Pipe Line Company (CPL) received a
NOV from the Utah Division of Water Quality (DWQ)
in April 2013 alleging state law violations resulting from
a pipeline spill near Willard Bay State Park, Utah. CPL
has concluded a settlement agreement with the DWQ and
the Utah Department of Natural Resources, State Parks
and Recreation Division to resolve these alleged violations,
which includes a monetary penalty of $350,000 as well as
$5 million for environmentally benefcial mitigation projects
and for lost use damages.
31
Item 4. Mine Safety Disclosures
Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 C.F.R. 229.104) is included in Exhibit 95 of
this Annual Report on Form 10-K.
Part II
Item 5. Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Te information on Chevrons common stock market prices, dividends, principal exchanges on which the stock is traded and
number of stockholders of record is contained in the Quarterly Results and Stock Market Data tabulations, on page FS-19.
Chevron Corporation Issuer Purchases of Equity Securities
Period Total Number
of Shares
Purchased
1, 2
Average
Price Paid
per Share
Total Number of Shares
Purchased as Part of Publicly
Announced Program
Maximum Number of Shares
Tat May Yet be Purchased
Under the Program
2
Oct. 1 Oct. 31, 2013 3,936,342 $ 119.22 3,935,677
Nov. 1 Nov. 30, 2013 4,700,264 120.10 4,699,917
Dec. 1 Dec. 31, 2013 1,739,623 124.34 1,739,623
Total Oct. 1 Dec. 31, 2013 10,376,229 $ 120.48 10,375,217
1
Includes common shares repurchased from company employees for required personal income tax withholdings on the exercise of the stock options and shares delivered or attested to in satisfaction of
the exercise price by holders of the employee stock options. Te options were issued to and exercised by management under Chevron long-term incentive plans and Unocal stock option plans.
2
In July 2010, the Board of Directors approved an ongoing share repurchase program with no set term or monetary limits, under which common shares would be acquired by the company through
open market purchases or in negotiated transactions at prevailing prices, as permitted by securities laws and other legal requirements and subject to market conditions and other factors. As of
December 31, 2013, 139,340,805 shares had been acquired under this program (some pursuant to a Rule 10b5-1 plan and some pursuant to accelerated share repurchase plans) for $15 billion at an
average price of approximately $108 per share.
Item 6. Selected Financial Data
Te selected fnancial data for years 2009 through 2013 are
presented on page FS-58.
Item 7. Managements Discussion and Analysis of
Financial Condition and Results of Operations
Te index to Managements Discussion and Analysis
of Financial Condition and Results of Operations,
Consolidated Financial Statements and Supplementary Data
is presented on page FS-1.
Item 7A. Quantitative and Qualitative Disclosures
About Market Risk
Te companys discussion of interest rate, foreign
currency and commodity price market risk is contained
Condition and Results of Operations Financial and
Derivative Instrument Market Risk, beginning on page
FS-13 and in Note 10 to the Consolidated Financial
Statements, Financial and Derivative Instruments,
beginning on page FS-34.
32
Item 8. Financial Statements and Supplementary Data
Te index to Managements Discussion and Analysis,
Consolidated Financial Statements and Supplementary Data
is presented on page FS-1.
Item 9. Changes in and Disagreements With
Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
(a) Evaluation of Disclosure Controls and
Procedures
Te companys management has evaluated, with
the participation of the Chief Executive Ofcer and the
Chief Financial Ofcer, the efectiveness of the companys
disclosure controls and procedures (as defned in Rule
13a-15(e) and 15d-15(e) under the Securities Exchange Act
of 1934 (the Exchange Act)) as of the end of the period
covered by this report. Based on this evaluation, the Chief
Executive Ofcer and the Chief Financial Ofcer concluded
that the companys disclosure controls and procedures were
efective as of December 31, 2013.
(b) Managements Report on Internal Control Over
Financial Reporting
Te companys management is responsible for
establishing and maintaining adequate internal control over
fnancial reporting, as such term is defned in Exchange
Act Rule 13a-15(f ). Te companys management, including
the Chief Executive Ofcer and the Chief Financial
Ofcer, conducted an evaluation of the efectiveness of the
companys internal control over fnancial reporting based
on the Internal Control Integrated Framework (1992)
issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). Based on the results of
this evaluation, the companys management concluded that
internal control over fnancial reporting was efective as of
December 31, 2013.
Te efectiveness of the companys internal control
over fnancial reporting as of December 31, 2013, has been
audited by PricewaterhouseCoopers LLP, an independent
registered public accounting frm, as stated in its report
included on page FS-21.
(c) Changes in Internal Control Over Financial
Reporting
During the quarter ended December 31, 2013, there
were no changes in the companys internal control over
fnancial reporting that have materially afected, or are
reasonably likely to materially afect, the companys internal
control over fnancial reporting.
On May 14, 2013, COSO published an updated
Internal Control Integrated Framework (2013) and related
illustrative documents. As of December 31, 2013, the
company is utilizing the original framework published
in 1992. Te transition period for adoption of the updated
framework ends December 15, 2014.
Item 9B. Other Information
None.
33
Part III
Item 10. Directors, Executive Officers and Corporate Governance
Executive Officers of the Registrant at February 21, 2014
Te Executive Ofcers of the Corporation consist of the Chairman of the Board, the Vice Chairman of the Board and such other
ofcers of the Corporation who are members of the Executive Committee.
Name Age Current and Prior Positions (up to fve years) Current Areas of Responsibility
J.S. Watson 57 Chairman of the Board and Chief Executive Ofcer (since 2010) Chief Executive Ofcer
Vice Chairman of the Board (2009)
Executive Vice President (2008 to 2009)
G.L. Kirkland 63 Vice Chairman of the Board and Executive Vice President
(since 2010)
Vice Chairman of the Board and
Executive Vice President
Executive Vice President (2005 through 2009)
M.K. Wirth 53 Executive Vice President (since 2006) Worldwide Refning, Marketing and Lubricants;
Chemicals
R.I. Zygocki 56 Executive Vice President (since 2011) Strategy and Planning; Health, Environment and
Safety; Policy, Government and Public Afairs;
Mining
Vice President, Policy, Government and Public Afairs
(2007 through 2011)
J.C. Geagea 54 Senior Vice President, Technology, Projects and Services (since 2014) Technology; Project Resources Company;
Procurement
Corporate Vice President and President, Gas and Midstream
(2012 through 2013)
Managing Director, Asia South Business Unit (2008 through 2011)
J.W. Johnson 54 Senior Vice President, Upstream (since 2014) Worldwide Exploration and Production Activities
President, Europe, Eurasia and Middle East Exploration and
Production (2011 through 2013)
Managing Director, Eurasia Business Unit
(2008 to 2011)
P.R. Breber 49 Corporate Vice President and President, Gas and Midstream
(since 2014)
Worldwide Natural Gas Commercialization; Supply
and Trading Activities, including Natural Gas
Trading; Shipping; Pipeline; and Power and Energy
Services
Managing Director, Asia South Business Unit (2012 through 2013)
Deputy Managing Director, Asia South Business Unit (2011)
Vice President and Treasurer (2009 to 2011)
P.E. Yarrington 57 Vice President and Chief Financial Ofcer (since 2009) Finance
R.H. Pate 51 Vice President and General Counsel (since 2009) Law, Governance and Compliance
Partner and Head of Global Competition Practice of Hunton
& Williams LLP, a major U.S. law frm (2005 to 2009)
34
Te information about directors required by Item 401
(a), (d), (e) and (f ) of Regulation S-K and contained under
the heading Election of Directors in the Notice of the
2014 Annual Meeting and 2014 Proxy Statement, to be fled
pursuant to Rule 14a-6(b) under the Securities Exchange
Act of 1934 (the Exchange Act), in connection with the
companys 2014 Annual Meeting of Stockholders (the 2014
Proxy Statement), is incorporated by reference into this
Annual Report on Form 10-K.
Te information required by Item 405 of Regulation
S-K and contained under the heading Stock Ownership
Information Section 16(a) Benefcial Ownership
Reporting Compliance in the 2014 Proxy Statement is
incorporated by reference into this Annual Report on
Form 10-K.
S-K and contained under the heading Corporate
Governance Business Conduct and Ethics Code in the
2014 Proxy Statement is incorporated by reference into this
Te information required by Item 407(d)(4) and
(5) of Regulation S-K and contained under the heading
Corporate Governance Board Committees in the
Tere were no changes to the process by which
stockholders may recommend nominees to the Board of
Directors during the last fscal year.
Item 11. Executive Compensation
S-K and contained under the headings Executive
Compensation and Director Compensation in the 2014
Proxy Statement is incorporated by reference into this
Te information required by Item 407(e)(4) of
Regulation S-K and contained under the heading
Corporate Governance Board Committees in the
Te information required by Item 407(e)(5) of
Regulation S-K and contained under the heading
Corporate Governance Management Compensation
Committee Report in the 2014 Proxy Statement is
incorporated herein by reference into this Annual Report
on Form 10-K. Pursuant to the rules and regulations of
the SEC under the Exchange Act, the information under
such caption incorporated by reference from the 2014 Proxy
Statement shall not be deemed to be soliciting material, or
to be fled with the Commission, or subject to Regulation
14A or 14C or the liabilities of Section 18 of the Exchange
Act nor shall it be deemed incorporated by reference into
any fling under the Securities Act of 1933.
Item 12. Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder
Matters
S-K and contained under the heading Stock Ownership
Information Security Ownership of Certain Benefcial
Owners and Management in the 2014 Proxy Statement
is incorporated by reference into this Annual Report on
Form 10-K.
Te information required by Item 201(d) of
Regulation S-K and contained under the heading Equity
Compensation Plan Information in the 2014 Proxy
Statement is incorporated by reference into this Annual
Report on Form 10-K.
Item 13. Certain Relationships and Related
Transactions, and Director Independence
Te information required by Item 404 of Regulation S-K
and contained under the heading Corporate Governance
Transactions with Related Parties in the 2014 Proxy
Te information required by Item 407(a) of Regulation
S-K and contained under the heading Corporate
Governance Director Independence in the 2014 Proxy
Item 14. Principal Accounting Fees and Services
Te information required by Item 9(e) of Schedule 14A
and contained under the heading Board Proposal to
Ratify the Appointment of the Independent Registered
Public Accounting Firm in the 2014 Proxy Statement
is incorporated by reference into this Annual Report on
Form 10-K.
35
Part IV
Item 15. Exhibits, Financial Statement Schedules
(a) The following documents are filed as part of this report
(1) Financial Statements:
Page(s)
Report of Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP FS-21
Consolidated Statement of Income for the three years ended December 31, 2013 FS-22
Consolidated Statement of Comprehensive Income for the three years ended December 31, 2013 FS-23
Consolidated Balance Sheet at December 31, 2013 and 2012 FS-24
Consolidated Statement of Cash Flows for the three years ended December 31, 2013 FS-25
Consolidated Statement of Equity for the three years ended December 31, 2013 FS-26
Notes to the Consolidated Financial Statements FS-27 to FS-57
(2) Financial Statement Schedules:
Included on page 36 is Schedule II Valuation and Qualifying Accounts.
(3) Exhibits:
Te Exhibit Index on pages E-1 through E-2 lists the exhibits that are fled as part of this report.
36
Schedule II Valuation And Qualifying Accounts (Millions Of Dollars)
Year Ended December 31
2013 2012 2011
Employee Termination Benefts
Balance at January 1 $ 30 $ 63 $ 145
(Reductions) additions charged to expense (6) 3
Payments (10) (36) (82)
Balance at December 31 $ 14 $ 30 $ 63
Allowance for Doubtful Accounts
Additions (reductions) to expense 1 (4) 4
Bad debt write-ofs (61) (8) (76)
Deferred Income Tax Valuation Allowance*
Balance at January 1 $ 15,443 $ 11,096 $ 9,185
Additions to deferred income tax expense 2,665 5,471 2,216
Reduction of deferred income tax expense (937) (1,124) (305)
Balance at December 31 $ 17,171 $ 15,443 $ 11,096
* See also Note 15 to the Consolidated Financial Statements, beginning on page FS-43.
37
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 21st day of February, 2014.
Principal Executive Ofcers (and Directors)
/s/JOHN S. WATSON
John S. Watson, Chairman of the Board
and Chief Executive Ofcer
/s/GEORGE L. KIRKLAND
George L. Kirkland, Vice Chairman of the Board
Principal Financial Ofcer
/s/PATRICIA E. YARRINGTON
Patricia E. Yarrington, Vice President and
Chief Financial Ofcer
Principal Accounting Ofcer
/s/MATTHEW J. FOEHR
Matthew J. Foehr, Vice President and Comptroller
*By: /s/LYDIA I. BEEBE
Lydia I. Beebe, Attorney-in-Fact
Directors
LINNET F. DEILY*
Linnet F. Deily
ROBERT E. DENHAM*
Robert E. Denham
ALICE P. GAST*
Alice P. Gast
ENRIQUE HERNANDEZ, JR.*
Enrique Hernandez, Jr.
JON M. HUNTSMAN, JR.*
Jon M. Huntsman, Jr.
CHARLES W. MOORMAN*
Charles W. Moorman
KEVIN W. SHARER*
Kevin W. Sharer
JOHN G. STUMPF*
John G. Stumpf
RONALD D. SUGAR*
Ronald D. Sugar
CARL WARE*
Carl Ware
Chevron Corporation
By: /s/ JOHN S. WATSON
John S. Watson, Chairman of the Board and
Chief Executive Ofcer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons
on behalf of the Registrant and in the capacities indicated on the 21st day of February, 2014.
38
THIS PAGE INTENTIONALLY LEFT BLANK
FS-1
Financial Table of Contents
Managements Discussion and Analysis of
Key Financial Results FS-2
Earnings by Major Operating Area FS-2
Business Environment and Outlook FS-2
Operating Developments FS-5
Results of Operations FS-6
Consolidated Statement of Income FS-9
Selected Operating Data FS-10
Liquidity and Capital Resources FS-11
Financial Ratios FS-13
Guarantees, Off-Balance-Sheet Arrangements and Contractual
Obligations, and Other Contingencies FS-13
Financial and Derivative Instrument Market Risk FS-13
Transactions With Related Parties FS-14
Litigation and Other Contingencies FS-14
Environmental Matters FS-15
Critical Accounting Estimates and Assumptions FS-15
New Accounting Standards FS-18
Quarterly Results and Stock Market Data FS-19
Notes to the Consolidated Financial Statements
Note 1 Summary of Significant Accounting Policies FS-27
Note 2 Changes in Accumulated Other Comprehensive Losses FS-29
Note 3 Noncontrolling Interests FS-30
Note 4 Information Relating to the Consolidated
Statement of Cash Flows FS-30
Note 5 Summarized Financial Data Chevron U.S.A. Inc. FS-31
Note 6 Summarized Financial Data
Chevron Transport Corporation Ltd. FS-31
Note 7 Summarized Financial Data Tengizchevroil LLP FS-32
Note 8 Lease Commitments FS-32
Note 9 Fair Value Measurements FS-32
Note 10 Financial and Derivative Instruments FS-34
Note 11 Operating Segments and Geographic Data FS-35
Note 12 Investments and Advances FS-37
Note 13 Properties, Plant and Equipment FS-39
Note 14 Litigation FS-39
Note 15 Taxes FS-43
Note 16 Short-Term Debt FS-45
Note 17 Long-Term Debt FS-46
Note 18 New Accounting Standards FS-46
Note 19 Accounting for Suspended Exploratory Wells FS-46
Note 20 Stock Options and Other Share-Based Compensation FS-47
Note 21 Employee Benefit Plans FS-48
Note 22 Equity FS-54
Note 23 Other Contingencies and Commitments FS-54
Note 24 Asset Retirement Obligations FS-56
Note 25 Other Financial Information FS-57
Note 26 Assets Held for Sale FS-57
Note 27 Earnings Per Share FS-57
Five-Year Financial Summary FS-58
Supplemental Information on Oil and Gas Producing Activities FS-59
Consolidated Financial Statements
Reports of Management FS-20
Report of Independent Registered Public Accounting Firm FS-21
Consolidated Statement of Income FS-22
Consolidated Statement of Comprehensive Income FS-23
Consolidated Balance Sheet FS-24
Consolidated Statement of Cash Flows FS-25
Consolidated Statement of Equity FS-26
FS-2 FS-27
FS-20
FS-1
FS-2
Key Financial Results
Millions of dollars, except per-share amounts 2013 2012 2011
Net Income Attributable to
Chevron Corporation $ 21,423 $ 26,179 $ 26,895
Per Share Amounts:
Chevron Corporation
Basic $ 11.18 $ 13.42 $ 13.54
Diluted $ 11.09 $ 13.32 $ 13.44
Dividends $ 3.90 $ 3.51 $ 3.09
Sales and Other
Operating Revenues $ 220,156 $ 230,590 $ 244,371
Return on:
Capital Employed 13.5% 18.7% 21.6%
Stockholders Equity 15.0% 20.3% 23.8%
Earnings by Major Operating Area
Millions of dollars 2013 2012 2011
Upstream
United States $ 4,044 $ 5,332 $ 6,512
International 16,765 18,456 18,274
Total Upstream 20,809 23,788 24,786
Downstream
United States 787 2,048 1,506
International 1,450 2,251 2,085
Total Downstream 2,237 4,299 3,591
All Other (1,623) (1,908) (1,482)
Chevron Corporation
1,2
$ 21,423 $ 26,179 $ 26,895
1
Includes foreign currency efects: $ 474 $ (454) $ 121
2
Income net of tax, also referred to as earnings in the discussions that follow.
Refer to the Results of Operations section beginning
on page FS-6 for a discussion of fnancial results by major
operating area for the three years ended December 31, 2013.
Business Environment and Outlook
Chevron is a global energy company with substantial busi-
ness activities in the following countries: Angola, Argentina,
Australia, Azerbaijan, Bangladesh, Brazil, Cambodia,
Canada, Chad, China, Colombia, Democratic Republic of
the Congo, Denmark, Indonesia, Kazakhstan, Myanmar, the
Netherlands, Nigeria, Norway, the Partitioned Zone between
Saudi Arabia and Kuwait, the Philippines, Republic of the
Congo, Singapore, South Africa, South Korea, Tailand,
Trinidad and Tobago, the United Kingdom, the United
States, Venezuela, and Vietnam.
Earnings of the company depend mostly on the proft-
ability of its upstream and downstream business segments.
Te biggest factor afecting the results of operations for
the company is the price of crude oil. In the downstream
business, crude oil is the largest cost component of refned
products. Seasonality is not a primary driver of changes in
the companys quarterly earnings during the year.
To sustain its long-term competitive position in the
upstream business, the company must develop and replenish
an inventory of projects that ofer attractive fnancial returns
for the investment required. Identifying promising areas for
exploration, acquiring the necessary rights to explore for and
to produce crude oil and natural gas, drilling successfully,
and handling the many technical and operational details in
a safe and cost-efective manner are all important factors in
this efort. Projects often require long lead times and large
capital commitments.
Te companys operations, especially upstream, can also
be afected by changing economic, regulatory and political
environments in the various countries in which it operates,
including the United States. From time to time, certain
governments have sought to renegotiate contracts or impose
additional costs on the company. Governments may attempt
to do so in the future. Civil unrest, acts of violence or
strained relations between a government and the company or
other governments may impact the companys operations or
investments. Tose developments have at times signifcantly
afected the companys operations and results and are care-
fully considered by management when evaluating the level of
current and future activity in such countries.
Te company continually evaluates opportunities to
dispose of assets that are not expected to provide sufcient
long-term value or to acquire assets or operations comple-
mentary to its asset base to help augment the companys
fnancial performance and growth. Refer to the Results of
Operations section beginning on page FS-6 for discussions
of net gains on asset sales during 2013. Asset dispositions and
restructurings may also occur in future periods and could
result in signifcant gains or losses.
Te company closely monitors developments in the
fnancial and credit markets, the level of worldwide economic
activity, and the implications for the company of movements
in prices for crude oil and natural gas. Management takes
these developments into account in the conduct of daily
operations and for business planning.
Comments related to earnings trends for the companys
major business areas are as follows:
Upstream Earnings for the upstream segment are
closely aligned with industry prices for crude oil and natural
gas. Crude oil and natural gas prices are subject to external
factors over which the company has no control, including
product demand connected with global economic conditions,
industry inventory levels, production quotas imposed by the
Organization of Petroleum Exporting Countries (OPEC),
weather-related damage and disruptions, competing fuel
prices, and regional supply interruptions or fears thereof that
may be caused by military conficts, civil unrest or politi-
cal uncertainty. Any of these factors could also inhibit the
FS-3
companys production capacity in an afected region. Te
company closely monitors developments in the countries in
which it operates and holds investments, and seeks to manage
risks in operating its facilities and businesses. Te longer-term
trend in earnings for the upstream segment is also a func-
tion of other factors, including the companys ability to fnd
or acquire and efciently produce crude oil and natural gas,
changes in fscal terms of contracts, and changes in tax laws
and regulations.
Te company continues to actively manage its schedule
of work, contracting, procurement and supply-chain activities
to efectively manage costs. However, price levels for capital
and exploratory costs and operating expenses associated with
the production of crude oil and natural gas can be subject
to external factors beyond the companys control. External
factors include not only the general level of infation, but
also commodity prices and prices charged by the indus-
trys material and service providers, which can be afected
by the volatility of the industrys own supply-and-demand
conditions for such materials and services. In recent years,
Chevron and the oil and gas industry generally experienced
an increase in certain costs that exceeded the general trend of
infation in many areas of the world. Capital and exploratory
expenditures and operating expenses can also be afected by
damage to production facilities caused by severe weather or
civil unrest.
Te chart above shows the trend in benchmark prices for
Brent crude oil, West Texas Intermediate (WTI) crude oil
and U.S. Henry Hub natural gas. Te Brent price averaged
$109 per barrel for the full-year 2013, compared to $112 in
2012. As of mid-February 2014, the Brent price was $109 per
barrel. Te majority of the companys equity crude produc-
tion is priced based on the Brent benchmark. Te WTI price
averaged $98 per barrel for the full-year 2013, compared to
$94 in 2012. As of mid-February 2014, the WTI price was
$100 per barrel. WTI continued to trade at a discount to
Brent in 2013 due to historically high inventories stemming
from strong growth in domestic production and limitations
on outbound pipeline capacity from the U.S. midcontinent.
After narrowing during the frst six months of 2013, the
WTI discount slowly widened into the fourth quarter as
seasonal refnery turnarounds contributed to surplus supply
conditions for WTI, while Brent prices were supported by
supply disruptions due to international events.
A diferential in crude oil prices exists between high-
quality (high-gravity, low-sulfur) crudes and those of lower
quality (low-gravity, high-sulfur). Te amount of the diferen-
tial in any period is associated with the supply of heavy crude
versus the demand, which is a function of the capacity of
refneries that are able to process this lower quality feedstock
into light products (motor gasoline, jet fuel, aviation gasoline
and diesel fuel). During 2013, the diferential between North
American light and heavy crude oil remained below historical
norms due to growth in U.S. light sweet crude production in
the midcontinent region and pipeline capacity constraints at
Cushing. Outside of North America, the light-heavy crude
diferential narrowed modestly in 2013 as supply disruptions
in key producing countries tightened light sweet crude mar-
kets and additional heavy crude oil conversion capacity came
online.
Chevron produces or shares in the production of heavy
crude oil in California, Chad, Indonesia, the Partitioned
Zone between Saudi Arabia and Kuwait, Venezuela and in
certain felds in Angola, China and the United Kingdom
sector of the North Sea. (See page FS-10 for the companys
average U.S. and international crude oil realizations.)
In contrast to price movements in the global market
for crude oil, price changes for natural gas in many regional
markets are more closely aligned with supply-and-demand
conditions in those markets. In the United States, prices at
Henry Hub averaged $3.70 per thousand cubic feet (MCF)
during 2013, compared with $2.71 during 2012. As of mid-
February 2014, the Henry Hub spot price was $5.53 per
WTI Crude Oil, Brent Crude Oil and Henry Hub Natural Gas Spot Prices
Quarterly Average
0
60
150
120
90
30
0
10
25
20
15
5
#009 Crude Oil Prices 2011 through 2013 v1
1Q 2Q 3Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q
WTI/Brent
$/bbl
HH
$/mcf
2011 2012 2013
Brent
WTI
HH
#011B Net Natural Gas Production v3
0
5500
4400
1100
2200
3300
Net natural gas production increased
2 percent in 2013 mainly due to new
production from the Marcellus Shale
(U.S.) and Angola.
* Includes equity in afliates.
Net Natural Gas Production*
Millions of cubic feet per day
United States
International
10 09 11 12 13
5,192
0
2000
1600
1200
800
400
#10B Net Crude Oil & Nat Gas
Liquids Production (back) v2
Net Liquids Production*
Thousands of barrels per day
United States
International
Net liquids production decreased
2 percent in 2013 mainly due to
normal field declines.
10 09 11 12 13
1,731
FS-4
MCF. Fluctuations in the price of natural gas in the United
States are closely associated with customer demand relative to
the volumes produced in North America.
Outside the United States, price changes for natural gas
depend on a wide range of supply, demand and regulatory
circumstances. In some locations, Chevron is investing in
long-term projects to install infrastructure to produce and
liquefy natural gas for transport by tanker to other markets.
International natural gas realizations averaged $5.91 per MCF
during 2013, compared with $5.99 per MCF during 2012.
(See page FS-10 for the companys average natural gas realiza-
tions for the U.S. and international regions.)
Te companys worldwide net oil-equivalent production
in 2013 averaged 2.597 million barrels per day. About one-
ffth of the companys net oil-equivalent production in 2013
occurred in the OPEC-member countries of Angola, Nigeria,
Venezuela and the Partitioned Zone between Saudi Arabia
and Kuwait. OPEC quotas had no efect on the companys
net crude oil production in 2013 or 2012. At their December
2013 meeting, members of OPEC supported maintaining the
current production quota of 30 million barrels per day, which
has been in efect since December 2008.
Te company estimates that oil-equivalent production
in 2014 will average approximately 2.610 million barrels per
day, based on an average Brent price of $109 per barrel for
the full-year 2013. Tis estimate is subject to many factors
and uncertainties, including quotas that may be imposed
by OPEC; price efects on entitlement volumes; changes in
fscal terms or restrictions on the scope of company opera-
tions; delays in construction, start-up or ramp-up of projects;
fuctuations in demand for natural gas in various markets;
weather conditions that may shut in production; civil unrest;
changing geopolitics; delays in completion of maintenance
turnarounds; greater-than-expected declines in production
from mature felds; or other disruptions to operations. Te
outlook for future production levels is also afected by the
size and number of economic investment opportunities and,
for new, large-scale projects, the time lag between initial
exploration and the beginning of production. Investments in
upstream projects generally begin well in advance of the start
of the associated crude oil and natural gas production. A sig-
nifcant majority of Chevrons upstream investment is made
outside the United States.
Refer to the Results of Operations section on pages
FS-6 through FS-8 for additional discussion of the companys
upstream business.
Refer to Table V beginning on page FS-64 for a tabu-
lation of the companys proved net oil and gas reserves by
geographic area, at the beginning of 2011 and each year-end
from 2011 through 2013, and an accompanying discussion of
major changes to proved reserves by geographic area for the
three-year period ending December 31, 2013.
On November 7, 2011, while drilling a development
well in the deepwater Frade Field about 75 miles ofshore
Brazil, an unanticipated pressure spike caused oil to migrate
from the well bore through a series of fssures to the sea foor,
emitting approximately 2,400 barrels of oil. Te source of
the seep was substantially contained within four days and the
well was plugged and abandoned. On March 14, 2012, the
company identifed a small, second seep in a diferent part
of the feld. No evidence of any coastal or wildlife impacts
0.0
12.5
7.5
5.0
10.0
2.5
Net proved reserves for
consolidated companies and
affiliated companies decreased
1 percent in 2013.
Net Proved Reserves
Billions of BOE*
United States
Other Americas
Africa
Asia
Australia
Europe
Affiliates
#14A Net Proved Reserves (front) v2
11.2
09 10 11 12 13
Net Proved Reserves
Liquids vs. Natural Gas
Billions of BOE
10 09 11 12 13
11.2
Natural Gas
Liquids
12.5
7.5
0.0
10.0
5.0
2.5
Reserve replacement rate in 2013
was 85 percent. Five-year average
reserve replacement rate was
100 percent.
#014B Net Proved Reserves Liquids vs. Nat Gas v3
FS-5
related to these seeps have emerged. A Brazilian federal district
prosecutor fled two civil lawsuits seeking $10.7 billion in
damages for each of the two seeps. On October 1, 2013,
the Court dismissed the two civil lawsuits and approved a
settlement under which Chevron and its consortium partners
agreed to spend approximately $43 million on social and
environmental programs. On November 11, 2013, the Court
announced that the settlement is fnal. Te federal district
prosecutor also fled criminal charges against Chevron and
eleven Chevron employees. On February 19, 2013, the court
dismissed the criminal matter, and on appeal, the appellate
court reinstated two of the ten allegations, specifcally those
charges alleging environmental damage and failure to provide
timely notifcation to authorities. Te company is assessing its
legal options. Te companys ultimate exposure related to the
incident is not currently determinable, but could be signifcant
to net income in any one period.
Downstream Earnings for the downstream segment are
closely tied to margins on the refning, manufacturing and
marketing of products that include gasoline, diesel, jet fuel,
lubricants, fuel oil, fuel and lubricant additives, and petro-
chemicals. Industry margins are sometimes volatile and can
be afected by the global and regional supply-and-demand bal-
ance for refned products and petrochemicals and by changes
in the price of crude oil, other refnery and petrochemical
feedstocks, and natural gas. Industry margins can also be
infuenced by inventory levels, geopolitical events, costs of
materials and services, refnery or chemical plant capacity uti-
lization, maintenance programs, and disruptions at refneries
or chemical plants resulting from unplanned outages due to
severe weather, fres or other operational events.
Other factors afecting proftability for downstream opera-
tions include the reliability and efciency of the companys
refning, marketing and petrochemical assets, the efectiveness
of its crude oil and product supply functions, and the volatility
of tanker-charter rates for the companys shipping operations,
which are driven by the industrys demand for crude oil and
product tankers. Other factors beyond the companys control
include the general level of infation and energy costs to oper-
ate the companys refning, marketing and petrochemical
assets.
Te companys most signifcant marketing areas are the
West Coast of North America, the U.S. Gulf Coast, Asia and
southern Africa. Chevron operates or has signifcant ownership
interests in refneries in each of these areas.
Refer to the Results of Operations section on pages
FS-6 through FS-8 for additional discussion of the companys
downstream operations.
All Other consists of mining operations, power and energy
services, worldwide cash management and debt fnancing activi-
ties, corporate administrative functions, insurance operations,
real estate activities, alternative fuels, and technology companies.
Operating Developments
Key operating developments and other events during 2013
and early 2014 included the following:
Upstream
Angola First shipment of liquefed natural gas was made
from the Angola LNG Project.
Argentina Signed agreements advancing the Loma
Campana Project to develop the Vaca Muerta Shale.
Australia Signed binding long-term LNG Sales and
Purchase Agreements with two Asian customers. Binding
long-term agreements now cover 85 percent of Chevrons
equity LNG oftake from the Wheatstone Project.
Announced two natural gas discoveries in the Carnarvon
Basin. Tese include discoveries at the 50 percent-owned and
operated Kentish Knock South prospect in Block WA-365-P
and the 50 percent-owned and operated Elfn prospect in
Block WA-268-P.
Reached agreement to acquire interests in two onshore
natural gas blocks in the Cooper Basin region of central Aus-
tralia.
Acquired exploration interests in two blocks located in
the deepwater Bight Basin ofshore South Australia.
Brazil Confrmed the start of crude oil production from
the Papa-Terra Field.
Awarded participation in a deepwater block in the Cear
Basin.
Canada Announced an agreement to acquire additional,
complementary acreage in the Duvernay Shale.
Announced the successful conclusion of the initial
twelve-well exploration drilling program in the liquids-rich
portion of the Duvernay Shale located in western Canada.
Kurdistan Region of Iraq Announced the acquisition
of an 80 percent interest and operatorship of the Qara Dagh
Block.
Republic of the Congo Announced the fnal investment
decision on the deepwater Moho Nord Project.
United States Announced a joint development agree-
ment for additional Delaware Basin acreage and access to
related infrastructure.
Announced a crude oil discovery at the Coronado pros-
pect in the deepwater Gulf of Mexico.
Announced a successful production test of a St. Malo
well in the deepwater Gulf of Mexico.
FS-6
Downstream
South Korea Te companys 50 percent-owned GS Caltex
afliate started commercial operations of its gas oil fuid cata-
lytic cracking unit at the Yeosu Refnery.
United States Te companys 50 percent-owned
Chevron Phillips Chemical Company LLC (CPChem)
announced a fnal investment decision on its U.S. Gulf Coast
Petrochemicals Project. Tis project will include an ethane
cracker with an annual design capacity of 1.5 million metric
tons per year and two polyethylene facilities, each with an
annual design capacity of 500,000 metric tons per year.
CPChem announced plans to expand annual ethylene
production by 200 million pounds at its Sweeny complex in
Old Ocean, Texas.
Other
Common Stock Dividends Te quarterly common stock
dividend was increased by 11.1 percent in April 2013 to
$1.00 per common share, making 2013 the 26th consecutive
year that the company increased its annual dividend pay-
ment.
Common Stock Repurchase Program Te company
purchased $5.0 billion of its common stock in 2013 under its
share repurchase program. Te program began in 2010 and
has no set term or monetary limits.
Results of Operations
Major Operating Areas Te following section presents the
results of operations and variances on an after-tax basis for
the companys business segments Upstream and
Downstream as well as for All Other. Earnings are also
presented for the U.S. and international geographic areas of
the Upstream and Downstream business segments. Refer to
Note 11, beginning on page FS-35, for a discussion of the
companys reportable segments. Tis section should also be
read in conjunction with the discussion in Business
Environment and Outlook on pages FS-2 through FS-5.
U.S. Upstream
Earnings $ 4,044 $ 5,332 $ 6,512
U.S. upstream earnings of $4.0 billion in 2013 decreased
$1.3 billion from 2012, primarily due to higher operating,
depreciation and exploration expenses of $420 million, $350
million, and $190 million, respectively, and lower crude oil
production of $170 million. Higher natural gas realizations of
approximately $200 million were mostly ofset by lower crude
oil realizations of $170 million.
U.S. upstream earnings of $5.3 billion in 2012 decreased
$1.2 billion from 2011, primarily due to lower natural gas and
crude oil realizations of $340 million and $200 million,
respectively, lower crude oil production of $240 million, and
lower gains on asset sales of $180 million.
Te companys average realization for U.S. crude oil and
natural gas liquids in 2013 was $93.46 per barrel, compared
with $95.21 in 2012 and $97.51 in 2011. Te average natural
gas realization was $3.37 per thousand cubic feet in 2013,
compared with $2.64 and $4.04 in 2012 and 2011,
respectively.
Net oil-equivalent production in 2013 averaged 657,000
barrels per day, essentially unchanged from 2012 and down
3 percent from 2011. Between 2013 and 2012, new produc-
tion in the Marcellus Shale in western Pennsylvania and the
Delaware Basin in New Mexico, along with the absence of
weather-related downtime in the Gulf of Mexico, was largely
ofset by normal feld declines. Te decrease in production
between 2012 and 2011 was associated with normal feld
declines and an absence of volumes associated with Cook
Inlet, Alaska, assets sold in 2011. Partially ofsetting this
decrease was a ramp-up of projects in the Gulf of Mexico and
Marcellus Shale and improved operational performance in the
Gulf of Mexico. Te net liquids component of oil-equivalent
production for 2013 averaged 449,000 barrels per day, down
1 percent from 2012 and 3 percent from 2011. Net natural
gas production averaged 1.2 billion cubic feet per day in 2013,
up approximately 4 percent from 2012 and down about 3 per-
cent from 2011. Refer to the Selected Operating Data table
on page FS-10 for a three-year comparative of production vol-
umes in the United States.
FS-7
International Upstream
Earnings* $ 16,765 $ 18,456 $ 18,274
*Includes foreign currency efects: $ 559 $ (275) $ 211
International upstream earnings were $16.8 billion
in 2013 compared with $18.5 billion in 2012. Te
decrease was mainly due to the absence of 2012 gains of
approximately $1.4 billion on an asset exchange in Australia
and $600 million on the sale of an equity interest in the
Wheatstone Project, lower crude oil prices of $500 million,
and higher operating expenses of $400 million. Partially
ofsetting these efects were lower income tax expenses of
$430 million. Foreign currency efects increased earnings
by $559 million in 2013, compared with a decrease of
$275 million a year earlier.
International upstream earnings were $18.5 billion in
2012 compared with $18.3 billion in 2011. Te increase was
mainly due to the gain of approximately $1.4 billion on an
asset exchange in Australia, higher natural gas realizations of
about $610 million and the nearly $600 million gain on sale
of an equity interest in the Wheatstone Project. Mostly
ofsetting these efects were lower crude oil volumes of
$1.3 billion and higher exploration expenses of $430 million.
Foreign currency efects decreased earnings by $275 million
in 2012, compared with an increase of $211 million a year
earlier.
Te companys average realization for international crude
oil and natural gas liquids in 2013 was $100.26 per barrel,
compared with $101.88 in 2012 and $101.53 in 2011. Te
average natural gas realization was $5.91 per thousand cubic
feet in 2013, compared with $5.99 and $5.39 in 2012 and
2011, respectively.
International net oil-equivalent production of 1.94 mil-
lion barrels per day in 2013 decreased 1 percent from 2012
and decreased 3 percent from 2011. Project ramp-ups in Nige-
ria and Angola in 2013 were more than ofset by normal feld
declines. Te decline between 2012 and 2011 was a result of
new production in Tailand and Nigeria in 2012 being more
than ofset by normal feld declines, the shut-in of the Frade
Field in Brazil and a major planned turnaround at
Tengizchevroil.
Te net liquids component of international oil-equivalent
production was 1.3 million barrels per day in 2013, a decrease
of approximately 2 percent from 2012 and a decrease of
approximately 7 percent from 2011. International net natural
gas production of 3.9 billion cubic feet per day in 2013 was
up 2 percent from 2012 and up 8 percent from 2011.
Refer to the Selected Operating Data table, on FS-10,
for a three-year comparative of international production vol-
umes.
U.S. Downstream
Earnings $ 787 $ 2,048 $ 1,506
U.S. downstream operations earned $787 million in 2013,
compared with $2.0 billion in 2012. Te decrease was mainly
due to lower margins on refned product sales of $860 million
and higher operating expenses of $600 million refecting
repair and maintenance activities at the companys refneries.
Te decrease was partially ofset by higher earnings of
$150 million from the 50 percent-owned CPChem.
U.S. downstream operations earned $2.0 billion in 2012,
compared with $1.5 billion in 2011. Te increase was mainly
due to higher margins on refned product sales of $520 mil-
lion and higher earnings of $140 million from CPChem.
Tese benefts were partly ofset by higher operating expenses
of $130 million.
0
2000
1600
1200
800
400
Exploration Expenses
Millions of dollars (B/T)
United States
International
Exploration expenses increased
8 percent from 2012 mainly due
to higher dry hole expense in
the U.S.
#016 Exploration Expenses v3
10 09 11 12 13
$1,861
0.0
28.0
14.0
21.0
7.0
#017 Worldwide Upstream
Earnings v4

Worldwide Upstream Earnings
Billions of dollars
Earnings decreased in 2013 mainly
due to lower crude oil production
volume and prices, higher
operating expenses, and lower
gains on asset sales.
United States
International
10 09 11 12 13
$20.8
FS-8
Refned product sales of 1.18 million barrels per day
in 2013 declined 2 percent, mainly refecting lower gas oil,
kerosene and gasoline sales. Sales volumes of refned products
were 1.21 million barrels per day in 2012, a decrease of 4 per-
cent from 2011, mainly refecting lower gasoline and fuel oil
sales. U.S. branded gasoline sales of 517,000 barrels per day in
2013 were essentially unchanged from 2012 and 2011.
Refer to the Selected Operating Data table on FS-10
for a three-year comparison of sales volumes of gasoline and
other refned products and refnery input volumes.
International Downstream
Earnings* $ 1,450 $ 2,251 $ 2,085
*Includes foreign currency efects: $ (76) $ (173) $ (65)
International downstream earned $1.5 billion in 2013,
compared with $2.3 billion in 2012. Earnings decreased
due to lower gains on asset sales of $540 million and higher
income tax expenses of $110 million. Foreign currency efects
decreased earnings by $76 million in 2013, compared to
$173 million a year earlier.
International downstream earned $2.3 billion in 2012,
compared with $2.1 billion in 2011. Earnings increased due
to a favorable change in efects on derivative instruments of
$190 million and higher margins on refned product sales of
$100 million. Foreign cur-
rency efects decreased
earnings by $173 million in
2012, compared with a
decrease of $65 million a
year earlier.
Total refned product
sales of 1.53 million barrels
per day in 2013 declined
2 percent from 2012, mainly
refecting lower fuel oil and
gasoline sales. Sales of
1.55 million barrels per day
in 2012 declined 8 percent
from 2011, primarily related
to the third quarter 2011 sale
of the companys refning
and marketing assets in the
United Kingdom and Ire-
land. Excluding the impact
of 2011 asset sales, sales vol-
umes were fat between the
comparative periods.
Refer to the Selected
Operating Data table,
on FS-10 for a three-year
comparison of sales volumes of gasoline and other refned
products and refnery input volumes.
All Other
Net charges* $ (1,623) $ (1,908) $ (1,482)
*Includes foreign currency efects: $ (9) $ (6) $ (25)
All Other includes mining operations, power and energy
services, worldwide cash management and debt fnancing
activities, corporate administrative functions, insurance
operations, real estate activities, alternative fuels, and tech-
nology companies.
Net charges in 2013 decreased $285 million from 2012,
mainly due to lower corporate tax items and other corporate
charges.
Net charges in 2012 increased $426 million from 2011,
mainly due to higher environmental reserve additions, corpo-
rate tax items and other corporate charges, partially ofset by
lower employee compensation and benefts expenses.
0
2250
1800
1350
900
450
#020 Intl. Gasoline & Other
Refined v2
International Gasoline &
Other Refined Product
Sales*
Sales volumes of refined products
were down 2 percent from 2012
mainly due to lower fuel oil and
gasoline sales.
*Includes equity in afliates.
Gasoline
Jet Fuel
Gas Oils & Kerosene
Residual Fuel Oil
Other
10 09 11 12 13
1,529
Downstream earnings decreased
in 2013 due to lower U.S. margins,
higher operating expenses and
lower gains on assets sales.
*Includes equity in afliates.
United States
International
(1.0)
5.0
3.5
0.5
2.0
Worldwide Downstream
Earnings*
Billions of dollars
$2.2
10 09 11 12 13
#019 WW Downstream
Earnings v2
0
1600
1200
800
400
#018 U.S. Gas & Other Refined
Prod Sales v2
U.S. Gasoline & Other
Refined Product Sales
Gasoline
Jet Fuel
Gas Oils & Kerosene
Residual Fuel Oil
Other
Rened product sales volumes
decreased 2 percent from 2012
mainly reflecting lower gas oil,
kerosene and gasoline sales.
1,182
10 09 11 12 13
FS-9
Consolidated Statement of Income
Comparative amounts for certain income statement catego-
ries are shown below:
Sales and other operating revenues $ 220,156 $ 230,590 $ 244,371
Sales and other operating revenues decreased in 2013
mainly due to lower refned product prices and lower crude
oil volumes and prices. Te decrease between 2012 and 2011
was mainly due to the 2011 sale of the companys refning
and marketing assets in the United Kingdom and Ireland,
and lower crude oil volumes.
Income from equity afliates $ 7,527 $ 6,889 $ 7,363
Income from equity afliates increased in 2013 from
2012 mainly due to higher upstream-related earnings from
Tengizchevroil in Kazakhstan and Petropiar in Venezuela,
and higher earnings from CPChem, partially ofset by 2013
impairments of power-related afliates.
Income from equity afliates decreased in 2012 from
2011 mainly due to lower upstream-related earnings from
Tengizchevroil in Kazakhstan as a result of lower crude oil
production, and higher operating expenses at Angola LNG
Limited and Petropiar in Venezuela. Downstream-related
earnings were higher between comparative periods, primarily
due to higher margins at CPChem.
Refer to Note 12, beginning on page FS-37, for a discus-
sion of Chevrons investments in afliated companies.
Other income $ 1,165 $ 4,430 $1,972
Other income of $1.2 billion in 2013 included net gains
from asset sales of $710 million before-tax. Other income in
2012 and 2011 included net gains from asset sales of $4.2
billion and $1.5 billion before-tax, respectively. Interest
income was $136 million in 2013, $166 million in 2012 and
$145 million in 2011. Foreign currency efects increased
other income by $103 million in 2013, while decreasing other
income by $207 million in 2012 and increasing other income
by $103 million in 2011.
Purchased crude oil and products $ 134,696 $ 140,766 $ 149,923
Crude oil and product purchases of $134.7 billion were
down in 2013 mainly due to lower prices for refned products
and lower volumes for crude oil, partially ofset by higher
refned product volumes. Crude oil and product purchases
in 2012 decreased by $9.2 billion from the prior year mainly
due to the 2011 sale of the companys refning and marketing
assets in the United Kingdom and Ireland and lower natural
gas prices.
Operating, selling, general and
administrative expenses $ 29,137 $ 27,294 $ 26,394
Operating, selling, general and administrative expenses
increased $1.8 billion between 2013 and 2012 due to higher
employee compensation and benefts costs of $720 million,
construction and maintenance expenses of $590 million, and
professional services costs of $500 million.
Operating, selling, general and administrative expenses
increased $900 million between 2012 and 2011 mainly due
to higher contract labor and professional services of $590
million, and higher employee compensation and benefts of
$280 million.
Exploration expense $ 1,861 $ 1,728 $ 1,216
Exploration expenses in 2013 increased from 2012
mainly due to higher charges for well write-ofs.
Exploration expenses in 2012 increased from 2011
mainly due to higher geological and geophysical costs and
well write-ofs.
Depreciation, depletion and
amortization $ 14,186 $ 13,413 $ 12,911
Te increase in 2013 from 2012 was mainly due to higher
depreciation rates for certain oil and gas producing felds,
higher upstream impairments and higher accretion expense,
partially ofset by lower production levels. Te increase in 2012
from 2011 was mainly due to higher depreciation rates for cer-
tain oil and gas producing felds, partially ofset by lower
production levels.
Taxes other than on income $ 13,063 $ 12,376 $ 15,628
Taxes other than on income increased in 2013 from 2012
mainly due to the consolidation of the 64 percent-owned Star
Petroleum Refning Company, beginning June 2012, and
higher consumer excise taxes in the United States. Taxes other
than on income decreased in 2012 from 2011 primarily due
to lower import duties in the United Kingdom refecting the
sale of the companys refning and marketing assets in the
United Kingdom and Ireland in 2011. Partially ofsetting the
decrease were excise taxes associated with consolidation of
Star Petroleum Refning Company beginning June 2012.
FS-10
Income tax expense $ 14,308 $ 19,996 $ 20,626
Efective income tax rates were 40 percent in 2013,
43 percent in 2012 and 43percent in 2011. Te decrease in
the efective tax rate between 2013 and 2012 was primarily
due to a lower efective tax rate in international upstream
operations. Te lower international upstream efective tax
rate was driven by a greater portion of equity income in 2013
than in 2012 (equity income is included as part of before-tax
income and is generally recorded net of income taxes) and
foreign currency remeasurement impacts.
Te rate was unchanged between 2012 and 2011. Te
impact of lower efective tax rates in international upstream
operations was ofset by foreign currency remeasurement
impacts between periods. For international upstream, the
lower efective tax rates in the 2012 period were driven pri-
marily by the efects of asset sales, one-time tax benefts and
reduced withholding taxes, which were partially ofset by a
lower utilization of tax credits during the year.
Selected Operating Data
1,2
2013 2012 2011
U.S. Upstream
Net Crude Oil and Natural Gas
Liquids Production (MBPD) 449 455 465
Net Natural Gas Production (MMCFPD)
3
1,246 1,203 1,279
Net Oil-Equivalent Production (MBOEPD) 657 655 678
Sales of Natural Gas (MMCFPD) 5,483 5,470 5,836
Sales of Natural Gas Liquids (MBPD) 17 16 15
Revenues From Net Production
Liquids ($/Bbl) $ 93.46 $ 95.21 $ 97.51
Natural Gas ($/MCF) $ 3.37 $ 2.64 $ 4.04
International Upstream
Net Crude Oil and Natural Gas
Liquids Production (MBPD)
4
1,282 1,309 1,384
Net Natural Gas Production (MMCFPD)
3
3,946 3,871 3,662
Net Oil-Equivalent Production
(MBOEPD)
4
1,940 1,955 1,995
Sales of Natural Gas (MMCFPD) 4,251 4,315 4,361
Revenues From Liftings
Liquids ($/Bbl) $ 100.26 $ 101.88 $ 101.53
Natural Gas ($/MCF) $ 5.91 $ 5.99 $ 5.39
Worldwide Upstream
Net Oil-Equivalent Production
(MBOEPD)
4
United States 657 655 678
Total 2,597 2,610 2,673
U.S. Downstream
Gasoline Sales (MBPD)
5
613 624 649
Other Rened Product Sales (MBPD) 569 587 608
Total Refned Product Sales (MBPD) 1,182 1,211 1,257
Renery Input (MBPD) 774 833 854
International Downstream
Gasoline Sales (MBPD)
5
398 412 447
Other Rened Product Sales (MBPD) 1,131 1,142 1,245
Total Refned Product Sales (MBPD)
6
1,529 1,554 1,692
Refnery Input (MBPD)
7
864 869 933
1
Includes company share of equity afliates.
2
MBPD thousands of barrels per day; MMCFPD millions of cubic feet per day;
MBOEPD thousands of barrels of oil-equivalents per day; Bbl Barrel; MCF
Tousands of cubic feet. Oil-equivalent gas (OEG) conversion ratio is 6,000 cubic
feet of natural gas = 1 barrel of oil.
3
Includes natural gas consumed in operations (MMCFPD):
United States
8
72 65 69
International
8
452 457 447
4
Includes: Canada synthetic oil 43 43 40
Venezuela afliate synthetic oil 25 17 32
5
Includes branded and unbranded gasoline.
6
Includes sales of afliates (MBPD): 471 522 556
7
As of June 2012, Star Petroleum Refning Company crude-input volumes are
reported on a 100 percent consolidated basis. Prior to June 2012, crude-input vol-
umes refect a 64 percent equity interest.
8
2012 and 2011 conform to 2013 presentation.
FS-11
Liquidity and Capital Resources
Cash, Cash Equivalents, Time Deposits and Marketable
Securities Total balances were $16.5 billion and $21.9
billion at December 31, 2013 and 2012, respectively. Cash
provided byoperating activities in 2013 was $35.0 billion,
compared with $38.8 billion in 2012 and $41.1 billion in
2011. Cash provided by operating activities was net of
contributions to employee pension plans of approximately
$1.2 billion, $1.2 billion and $1.5 billion in 2013, 2012 and
2011, respectively. Cash provided by investing activities
included proceeds and deposits related to asset sales of
$1.1 billion in 2013, $2.8 billion in 2012, and $3.5billion
in 2011.
Restricted cash of $1.2 billion and $1.5 billion at December
31, 2013 and 2012, respectively, was held in cash and short-term
marketable securities and recorded as Deferred charges and
other assets on the Consolidated Balance Sheet. Tese amounts
are generally associated with tax payments, upstream abandon-
ment activities, funds held in escrow for asset acquisitions and
capital investment projects.
Dividends Dividends paid to common stockhold-
ers were $7.5 billion in 2013, $6.8 billion in 2012 and $6.1
billion in 2011. In April 2013, the company increased its
quarterly dividend by 11.1 percent to $1.00 per common
share.
Debt and Capital Lease Obligations Total debt and
capital lease obligations were $20.4 billion at December 31,
2013, up from $12.2 billion at year-end 2012.
Te $8.2 billion increase in total debt and capital lease
obligations during 2013 included a $6 billion bond issuance
in June 2013, timed in part to take advantage of histori-
cally low interest rates. Te companys debt and capital lease
obligations due within one year, consisting primarily of
commercial paper, redeemable long-term obligations and
the current portion of long-term debt, totaled $8.4 billion at
December 31, 2013, compared with $6.0 billion at year-end
2012. Of these amounts, $8.0 billion and $5.9 billion were
reclassifed to long-term at the end of each period, respec-
tively. At year-end 2013, settlement of these obligations was
not expected to require the use of working capital in 2014, as
the company had the intent and the ability, as evidenced by
committed credit facilities, to refnance them on a long-term
basis.
Chevron has an automatic shelf registration statement
that expires in November 2015 for an unspecifed amount
of nonconvertible debt securities issued or guaranteed by the
company.
Te major debt rating agencies routinely evaluate the
companys debt, and the companys cost of borrowing can
increase or decrease depending on these debt ratings. Te
company has outstanding public bonds issued by Chevron
Corporation and Texaco Capital Inc. All of these securities
are the obligations of, or guaranteed by, Chevron Corpora-
tion and are rated AA by Standard & Poors Corporation
and Aa1 by Moodys Investors Service. Te companys U.S.
commercial paper is rated A-1+ by Standard & Poors and P-l
by Moodys. All of these ratings denote high-quality, invest-
ment-grade securities.
Te companys future debt level is dependent primar-
ily on results of operations, the capital program and cash
that may be generated from asset dispositions. Based on its
high-quality debt ratings, the company believes that it has
substantial borrowing capacity to meet unanticipated cash
requirements. Te company also can modify capital spending
plans during any extended periods of low prices for crude oil
and natural gas and narrow margins for refned products and
commodity chemicals to provide fexibility to continue pay-
ing the common stock dividend and maintain the companys
high-quality debt ratings.
Committed Credit Facilities Information related to
committed credit facilities is included in Note 16 to the Con-
solidated Financial Statements, Short-Term Debt, beginning
on page FS-45.
Common Stock Repurchase Program In July 2010,
the Board of Directors approved an ongoing share repurchase
program with no set term or monetary limits. Te company
expects to repurchase between $500 million and $2 billion
of its common shares per quarter, at prevailing prices, as
permitted by securities laws and other legal requirements
and subject to market conditions and other factors. During
2013, the company purchased 41.6 million common shares
for $5.0 billion. From the inception of the program through
2013, the company had purchased 139.3 million shares for
$15.0 billion.
0.0
45.0
18.0
27.0
9.0
36.0
#022B Cash Provided by Operating
Activities (back) v2
Cash Provided by
Operating Activities
Billions of dollars
Operating cash flows were $3.8
billion lower than 2012, primarily
reflecting lower earnings.
10 09 11 12 13
$35.0
0.0
25.0
20.0
5.0
10.0
15.0
0.0
1.5
1.2
0.9
0.6
0.3
#023 Total Interest Expense and
Total Debt at Year-End v1
Total Interest Expense &
Total Debt at Year-End
Billions of dollars
Total Interest Expense
(right scale)
Total Debt (left scale)
Total debt increased $8.2 billion
during 2013 to $20.4 billion. All
interest expense was capitalized
as part of the cost of major
projects in 2013, 2012 and 2011.
$20.4
10 09 11 12 13
FS-12
Capital and Exploratory Expenditures Total expendi-
tures for 2013 were $41.9 billion, including $2.7 billion for the
companys share of equity-afliate expenditures, which did not
require cash outlays by the company. In 2012 and 2011, expen-
ditures were $34.2 billion and $29.1 billion, respectively,
including the companys share of afliates expenditures of
$2.1 billion and $1.7 billion, respectively.
Expenditures for 2013 include approximately $4 billion
for major resource acquisitions in Argentina, Australia, the
Permian Basin and the Kurdistan Region of Iraq, along with
additional acreage in the Duvernay Shale and interests in the
Kitimat LNG Project in Canada. In addition, work progressed
on a number of major capital projects, particularly two Austra-
lian LNG projects and two deepwater Gulf of Mexico projects.
Of the $41.9 billion of expenditures in 2013, 90 percent,
or $37.9 billion, was related to upstream activities. Approxi-
mately 89 percent was expended for upstream operations in
2012 and 2011. International upstream accounted for 78 per-
cent of the worldwide upstream investment in 2013,
72percent in 2012 and 68 percent in 2011. Tese amounts
exclude the acquisition of Atlas Energy, Inc. in 2011.
Te company estimates that 2014 capital and exploratory
expenditures will be $39.8 billion, including $4.8 billion of
spending by afliates. Approximately 90 percent of thetotal,
or $35.8 billion, is budgeted for exploration and production
activities. Approximately $27.9 billion, or 78 percent, of this
amount is for projects outside the United States. Spending in
2014 is primarily focused on major development projects in
Angola, Argentina, Australia, Canada, Kazakhstan, Nigeria,
Republic of the Congo, Russia, the United Kingdom and the
U.S. Also included is funding for enhancing recovery and miti-
gating natural feld declines for currently-producing assets, and
for focused exploration and appraisal activities.
Worldwide downstream spending in 2014 is estimated at
$3.1 billion, with $1.8 billion for projects in the United States.
Major capital outlays include projects under construction
at refneries in the United States and expansion of additives
production capacity in Singapore. Additional investments are
expected to be funded by CPChem for chemicals projects in
the United States.
Investments in technology companies, power and energy
services, and other corporate businesses in 2014 are budgeted
at $1 billion.
Noncontrolling Interests Te company had noncon-
trolling interests of $1.3 billion at both December 31, 2013
and 2012. Distributions to noncontrolling interests totaled
$99 million and $41 million in 2013 and 2012, respectively.
Pension Obligations Information related to pension
plan contributions is included on page FS-53 in Note 21 to
the Consolidated Financial Statements under the heading
Cash Contributions and Beneft Payments.
0.0
16.0
12.0
4.0
8.0
Percent
#024 Debt Ratio v3
The ratio increased to 12.1 percent
at the end of 2013 due to higher
debt, partially offset by an increase
in stockholders equity.
Ratio of Total Debt to Total
Debt-Plus-Chevron Corporation
Stockholders Equity
10 09 11 12 13
12.1%
0.0
40.0
20.0
30.0
10.0
#015 Exp & Prod Cap & Exploratory
Expend v2
Upstream
Capital & Exploratory
Expenditures*
Billions of dollars
United States
International
Exploration and production
expenditures were 24 percent
higher than 2012.
Excludes the acquisition of Atlas
Energy, Inc. in 2011.
10 09 11 12 13
$37.9
Capital and Exploratory Expenditures
2013 2012 2011
Millions of dollars U.S. Intl. Total U.S. Intl. Total U.S. Intl. Total
Upstream
1
$ 8,480 $ 29,378 $ 37,858 $ 8,531 $ 21,913 $ 30,444 $ 8,318 $ 17,554 $ 25,872
Downstream 1,986 1,189 3,175 1,913 1,259 3,172 1,461 1,150 2,611
All Other 821 23 844 602 11 613 575 8 583
Total $ 11,287 $ 30,590 $ 41,877 $ 11,046 $ 23,183 $ 34,229 $ 10,354 $ 18,712 $ 29,066
Total, Excluding Equity in Afliates $ 10,562 $ 28,617 $ 39,179 $10,738 $ 21,374 $ 32,112 $ 10,077 $ 17,294 $ 27,371
1
Excludes the acquisition of Atlas Energy, Inc. in 2011.
FS-13
Long-Term Unconditional Purchase Obligations and
Commitments, Including Throughput and Take-or-Pay
Agreements Te company and its subsidiaries have certain
other contingent liabilities with respect to long-term uncon-
ditional purchase obligations and commitments, including
throughput and take-or-pay agreements, some of which relate
to suppliers fnancing arrangements. Te agreements typi-
cally provide goods and services, such as pipeline and storage
capacity, drilling rigs, utilities, and petroleum products, to be
used orsold in the ordinary course of the companys business.
Teaggregate approximate amounts of required payments
under these various commitments are: 2014 $4.2 billion;
2015 $4.5 billion; 2016 $3.2 billion; 2017 $2.6 billion;
2018 $2.2 billion; 2019 and after $6.9billion. A por-
tion of these commitments may ultimately be shared with
project partners. Total payments under the agreements were
approximately $3.6 billion in 2013, $3.6 billion in 2012 and
$6.6 billion in 2011.
Te following table summarizes the companys signif-
cant contractual obligations:
Contractual Obligations
1
Millions of dollars Payments Due by Period
2015 2017 After
Total 2014 2016 2018 2018
On Balance Sheet:
2
Short-Term Debt
3
$ 374 $ 374 $ $ $
Long-Term Debt
3
19,960 8,750 4,000 7,210
Noncancelable Capital
Lease Obligations 177 45 52 34 46
Interest 2,611 335 659 606 1,011
Of Balance Sheet:
Noncancelable Operating
Lease Obligations 3,709 798 1,327 778 806
Troughput and
Take-or-Pay Agreements
4
15,320 2,679 4,372 2,587 5,682
Other Unconditional
Purchase Obligations
4
8,257 1,527 3,386 2,188 1,156
1
Excludes contributions for pensions and other postretirement beneft plans.
Information on employee beneft plans is contained in Note 21 beginning on page
FS-48.
2
Does not include amounts related to the companys income tax liabilities associated with
uncertain tax positions. Te company is unable to make reasonable estimates of the peri-
ods in which these liabilities may become payable. Te company does not expect
settlement of such liabilities will have a material efect on its consolidated fnancial posi-
tion or liquidity in any single period.
3
$8.0 billion of short-term debt that the company expects to refnance is included in
long-term debt. Te repayment schedule above refects the projected repayment of the
entire amounts in the 20152016 period.
4
Does not include commodity purchase obligations that are not fxed or determinable.
Tese obligations are generally monetized in a relatively short period of time through
sales transactions or similar agreements with third parties. Examples include obligations
to purchase LNG, regasifed natural gas and refnery products at indexed prices.
Financial and Derivative Instrument Market Risk
Te market risk associated with the companys portfolio of
fnancial and derivative instruments is discussed on the next
page. Te estimates of fnancial exposure to market risk do
not represent the companys projection of future market
changes. Te actual impact of future market changes could
difer materially due to factors discussed elsewhere in this
report, including those set forth under the heading Risk
Factors in Part I, Item 1A, of the companys 2013 Annual
Financial Ratios
Financial Ratios
At December 31
2013 2012 2011
Current Ratio 1.5 1.6 1.6
Interest Coverage Ratio 126.2 191.3 165.4
Debt Ratio 12.1% 8.2% 7.7%
Current Ratio current assets divided by current
liabilities, which indicates the companys ability to repay
its short-term liabilities with short-term assets. Te current
ratio in all periods was adversely afected by the fact that
Chevrons inventories are valued on a last-in, frst-out basis.
At year-end 2013, the book value of inventory was lower than
replacement costs, based on average acquisition costs during
the year, by approximately $9.1 billion.
Interest Coverage Ratio income before income tax
expense, plus interest and debt expense and amortization of
capitalized interest, less net income attributable to noncon-
trolling interests, divided by before-tax interest costs. Tis
ratio indicates the companys ability to pay interest on out-
standing debt. Te companys interest coverage ratio in 2013
was lower than 2012 and 2011 due to lower income.
Debt Ratio total debt as a percentage of total debt
plus Chevron Corporation Stockholders Equity, which indi-
cates the companys leverage. Te companys debt ratio in
2013 was higher than 2012 and 2011 due to higher debt, par-
tially ofset by a higher stockholders equity balance.
Guarantees, Off-Balance-Sheet Arrangements and
Contractual Obligations, and Other Contingencies
Direct Guarantees
Millions of dollars Commitment Expiration by Period
2015 2017 After
Total 2014 2016 2018 2018
Guarantee of non-
consolidated afliate or
joint-venture obligations $ 524 $ 38 $ 76 $ 76 $ 334
Te companys guarantee of $524 million is associated
with certain payments under a terminal use agreement
entered into by an equity afliate. Over the approximate
14-year remaining term of the guarantee, the maximum
guarantee amount will be reduced as certain fees are paid by
the afliate. Tere are numerous cross-indemnity agreements
with the afliate and the other partners to permit recovery
ofamounts paid under the guarantee. Chevron has recorded
no liability for its obligation under this guarantee.
Indemnifications Information related to indemnifca-
tions is included on page FS-55 in Note 23 to the
Consolidated Financial Statements under the heading
Indemnifcations.
FS-14
Derivative Commodity Instruments Chevron is
exposed to market risks related to the price volatility of crude
oil, refned products, natural gas, natural gas liquids, lique-
fed natural gas and refnery feedstocks. Te company uses
derivative commodity instruments to manage these exposures
on a portion of its activity, including frm commitments and
anticipated transactions for the purchase, sale and storage of
crude oil, refned products, natural gas, natural gas liquids
and feedstock for company refneries. Te company also
uses derivative commodity instruments for limited trading
purposes. Te results of these activities were not material to
the companys fnancial position, results of operations or cash
fows in 2013.
Te companys market exposure positions are monitored
on a daily basis by an internal Risk Control group in accor-
dance with the companys risk management policies, which
have been approved by the Audit Committee of the com-
panys Board of Directors.
Derivatives beyond those designated as normal purchase
and normal sale contracts are recorded at fair value on the
Consolidated Balance Sheet with resulting gains and losses
refected in income. Fair values are derived principally from
published market quotes and other independent third-party
quotes. Te change in fair value of Chevrons derivative
commodity instruments in 2013 was not material to the
companys results of operations.
Te company uses the Monte Carlo simulation method
with a 95 percent confdence level as its Value-at-Risk (VaR)
model to estimate the maximum potential loss in fair value
from the efect of adverse changes in market conditions on
derivative commodity instruments held or issued. A one-day
holding period is used on the assumption that market-risk
positions can be liquidated or hedged within one day. Based
on these inputs, the VaR for the companys primary risk
exposures in the area of derivative commodity instruments at
December 31, 2013 and 2012 was not material to the compa-
nys cash fows or results of operations.
Foreign Currency Te company may enter into foreign
currency derivative contracts to manage some of its foreign
currency exposures. Tese exposures include revenue and
anticipated purchase transactions, including foreign currency
capital expenditures and lease commitments. Te foreign cur-
rency derivative contracts, if any, are recorded at fair value on
the balance sheet with resulting gains and losses refected in
income. Tere were no open foreign currency derivative con-
tracts at December 31, 2013.
Interest Rates Te company may enter into interest rate
swaps from time to time as part of its overall strategy to
manage the interest rate risk on its debt. Interest rate swaps,
if any, are recorded at fair value on the balance sheet with
resulting gains and losses refected in income. At year-end
2013, the company had no interest rate swaps.
Transactions With Related Parties
Chevron enters into a number of business arrangements with
related parties, principally its equity afliates. Tese arrange-
ments include long-term supply or oftake agreements and
long-term purchase agreements. Refer to Other Information
in Note 12 of the Consolidated Financial Statements, page
FS-38, for further discussion. Management believes these
agreements have been negotiated on terms consistent with
those that would have been negotiated with an unrelated party.
Litigation and Other Contingencies
MTBE Information related to methyl tertiary butyl ether
(MTBE) matters is included on page FS-39 in Note 14 to
the Consolidated Financial Statements under the heading
MTBE.
Ecuador Information related to Ecuador matters is
included in Note 14 to the Consolidated Financial Statements
under the heading Ecuador, beginning on page FS-39.
Environmental Te following table displays the annual
changes to the companys before-tax environmental
remediation reserves, including those for federal Superfund
sites and analogous sites under state laws.
Net Additions 488 428 343
Expenditures (435) (429) (446)
FS-15
Te company records asset retirement obligations when
there is a legal obligation associated with the retirement of
long-lived assets and the liability can be reasonably estimated.
Tese asset retirement obligations include costs related to
environmental issues. Te liability balance of approximately
$14.3 billion for asset retirement obligations at year-end 2013
related primarily to upstream properties.
For the companys other ongoing operating assets, such as
refneries and chemicals facilities, no provisions are made for
exit or cleanup costs that may be required when such assets
reach the end of their useful lives unless a decision to sell or
otherwise abandon the facility has been made, as the inde-
terminate settlement dates for the asset retirements prevent
estimation of the fair value of the asset retirement obligation.
Refer to the discussion below for additional information
on environmental matters and their impact on Chevron,
and on the companys 2013 environmental expenditures.
Refer to Note 23 on pages FS-55 through FS-56 for addi-
tional discussion of environmental remediation provisions
and year-end reserves. Refer also to Note 24 on page FS-56
for additional discussion of the companys asset retirement
obligations.
Suspended Wells Information related to suspended
wells is included in Note 19 to the Consolidated Financial
Statements, Accounting for Suspended Exploratory Wells,
beginning on page FS-46.
Income Taxes Information related to income tax con-
tingencies is included on pages FS-43 through FS-45 in
Note 15 and pages FS-54 through FS-55 in Note 23 to the
Consolidated Financial Statements under the heading
Income Taxes.
Other Contingencies Information related to other con-
tingencies is included on page FS-56 in Note 23 to the
Consolidated Financial Statements under the heading Other
Contingencies.
Environmental Matters
Virtually all aspects of the businesses in which the company
engages are subject to various international, federal, state and
local environmental, health and safety laws, regulations and
market-based programs. Tese regulatory requirements con-
tinue to increase in both number and complexity over time
and govern not only the manner in which the company con-
ducts its operations, but also the products it sells. Regulations
intended to address concerns about greenhouse gas emis-
sions and global climate change also continue to evolve and
include those at the international or multinational (such as
the mechanisms under the Kyoto Protocol and the European
Unions Emissions Trading System), national (such as the
U.S. Environmental Protection Agencys emission standards
and renewable transportation fuel content requirements or
domestic market-based programs such as those in efect in
Australia and New Zealand), and state or regional (such as
Californias Global Warming Solutions Act) levels.
Most of the costs of complying with laws and regulations
pertaining to company operations and products are embed-
ded in the normal costs of doing business. It is not possible to
predict with certainty the amount of additional investments
in new or existing facilities or amounts of incremental oper-
ating costs to be incurred in the future to: prevent, control,
reduce or eliminate releases of hazardous materials into the
environment; comply with existing and new environmental
laws or regulations; or remediate and restore areas damaged
by prior releases of hazardous materials. Although these costs
may be signifcant to the results of operations in any single
period, the company does not expect them to have a material
efect on the companys liquidity or fnancial position.
Accidental leaks and spills requiring cleanup may occur
in the ordinary course of business. In addition to the costs
for environmental protection associated with its ongoing
operations and products, the company may incur expenses
for corrective actions at various owned and previously owned
facilities and at third-party-owned waste disposal sites used
by the company. An obligation may arise when operations
are closed or sold or at non-Chevron sites where company
products have been handled or disposed of. Most of the
expenditures to fulfll these obligations relate to facilities and
sites where past operations followed practices and procedures
that were considered acceptable at the time but now require
investigative or remedial work or both to meet current stan-
dards.
Using defnitions and guidelines established by the
American Petroleum Institute, Chevron estimated its world-
wide environmental spending in 2013 at approximately $2.7
billion for its consolidated companies. Included in these
expenditures were approximately $1.0 billion of environmen-
tal capital expenditures and $1.7 billion of costs associated
with the prevention, control, abatement or elimination of
hazardous substances and pollutants from operating, closed
or divested sites, and the abandonment and restoration of sites.
For 2014, total worldwide environmental capital expen-
ditures are estimated at $1.1 billion. Tese capital costs are
in addition to the ongoing costs of complying with envi-
ronmental regulations and the costs to remediate previously
contaminated sites.
Critical Accounting Estimates and Assumptions
Management makes many estimates and assumptions in
the application of generally accepted accounting principles
(GAAP) that may have a material impact on the companys
consolidated fnancial statements and related disclosures
and on the comparability of such information over diferent
reporting periods. All such estimates and assumptions afect
reported amounts of assets, liabilities, revenues and expenses,
as well as disclosures of contingent assets and liabilities.
Estimates and assumptions are based on managements expe-
rience and other information available prior to the issuance
of the fnancial statements. Materially diferent results can
occur as circumstances change and additional information
becomes known.
FS-16
Te discussion in this section of critical accounting
estimates and assumptions is according to the disclosure
guidelines of the Securities and Exchange Commission
(SEC), wherein:
1. the nature of the estimates and assumptions is mate-
rial due to the levels of subjectivity and judgment
necessary to account for highly uncertain matters
orthe susceptibility of such matters to change; and
2. the impact of the estimates and assumptions on the
companys fnancial condition or operating perfor-
mance is material.
Te development and selection of accounting estimates
and assumptions, including those deemed critical, and the
associated disclosures in this discussion have been discussed
by management with the Audit Committee of the Board of
Directors. Te areas of accounting and the associated criti-
cal estimates and assumptions made by the company are as
follows:
Oil and Gas Reserves Crude oil and natural gas
reserves are estimates of future production that impact cer-
tain asset and expense accounts included in the Consolidated
Financial Statements. Proved reserves are the estimated quan-
tities of oil and gas that geoscience and engineering data
demonstrate with reasonable certainty to be economically
producible in the future under existing economic conditions,
operating methods and government regulations. Proved
reserves include both developed and undeveloped volumes.
Proved developed reserves represent volumes expected to be
recovered through existing wells with existing equipment and
operating methods. Proved undeveloped reserves are volumes
expected to be recovered from new wells on undrilled proved
acreage, or from existing wells where a relatively major expen-
diture is required for recompletion. Variables impacting
Chevrons estimated volumes of crude oil and natural gas
reserves include feld performance, available technology and
economic conditions.
Te estimates of crude oil and natural gas reserves are
important to the timing of expense recognition for costs
incurred and to the valuation of certain oil and gas produc-
ing assets. Impacts of oil and gas reserves on Chevrons
Consolidated Financial Statements, using the successful
eforts method of accounting, include the following:
1. Amortization - Proved reserves are used in amortiz-
ing capitalized costs related to oil and gas producing
activities on the unit-of-production (UOP) method.
Capitalized exploratory drilling and development
costs are depreciated on a UOP basis using proved
developed reserves. Acquisition costs of proved proper-
ties are amortized on a UOP basis using total proved
reserves. During 2013, Chevrons UOP Depreciation,
Depletion and Amortization (DD&A) for oil and gas
properties was $11.6 billion, and proved developed
reserves at the beginning of 2013 were 4.8 billion bar-
rels. If the estimates of proved reserves used in the
UOP calculations for consolidated operations had
been lower by 5 percent across all oil and gas proper-
ties, UOP DD&A in 2013 would have increased by
approximately $600 million.
2. Impairment - Oil and gas reserves are used in assess-
ing oil and gas producing properties for impairment.
A signifcant reduction in the estimated reserves of
a property would trigger an impairment review. In
assessing whether the property is impaired, the fair
value of the property must be determined. Frequently,
a discounted cash fow methodology is the best esti-
mate of fair value. Proved reserves (and, in some cases,
a portion of unproved resources) are used to estimate
future production volumes in the cash fow model.
For a further discussion of estimates and assumptions
used in impairment assessments, see Impairment of
Properties, Plant and Equipment and Investments in
Afliates below.
Refer to Table V, Reserve Quantity Information, beginning
on page FS-64, for the changes in proved reserve estimates for
the three years ending December 31, 2013, and to Table VII,
Changes in the Standardized Measure of Discounted Future
Net Cash Flows From Proved Reserves on page FS-72 for
estimates of proved reserve values for each of the three years
ended December 31, 2013.
Tis Oil and Gas Reserves commentary should be read
in conjunction with the Properties, Plant and Equipment
section of Note 1 to the Consolidated Financial Statements,
beginning on page FS-27, which includes a description of
the successful eforts method of accounting for oil and gas
exploration and production activities.
Impairment of Properties, Plant and Equipment and
Investments in Affiliates Te company assesses its proper-
ties, plant and equipment (PP&E) for possible impairment
whenever events or changes in circumstances indicate that
the carrying value of the assets may not be recoverable. If the
carrying value of an asset exceeds the future undiscounted
cash fows expected from the asset, an impairment charge is
recorded for the excess of carrying value of the asset over its
estimated fair value.
Determination as to whether and how much an asset is
impaired involves management estimates on highly uncertain
matters, such as future commodity prices, the efects of infa-
tion and technology improvements on operating expenses,
production profles, and the outlook for global or regional
market supply-and-demand conditions for crude oil, natural
gas, commodity chemicals and refned products. However,
theimpairment reviews and calculations are based on
FS-17
assumptions that are consistent with the companys business
plans and long-term investment decisions. Refer also to the
discussion of impairments of properties, plant and equip-
ment in Note 9 beginning on page FS-33 and to the section
on Properties, Plant and Equipment in Note 1, Summary of
Signifcant Accounting Policies, beginning on page FS-27.
No material individual impairments of PP&E or Invest-
ments were recorded for the three years ending December
31, 2013. A sensitivity analysis of the impact on earnings for
these periods if other assumptions had been used in impair-
ment reviews and impairment calculations is not practicable,
given the broad range of the companys PP&E and the
number of assumptions involved in the estimates. Tat is,
favorable changes to some assumptions might have avoided
the need to impair any assets in these periods, whereas unfa-
vorable changes might have caused an additional unknown
number of other assets to become impaired.
Investments in common stock of afliates that are
accounted for under the equity method, as well as invest-
ments in other securities of these equity investees, are
reviewed for impairment when the fair value of the invest-
ment falls below the companys carrying value. When such a
decline is deemed to be other than temporary, an impairment
charge is recorded to the income statement for the diference
between the investments carrying value and its estimated fair
value at the time.
In making the determination as to whether a decline is
other than temporary, the company considers such factors as
the duration and extent of the decline, the investees fnan-
cial performance, and the companys ability and intention
to retain its investment for a period that will be sufcient to
allow for any anticipated recovery in the investments mar-
ket value. Difering assumptions could afect whether an
investment is impaired in any period or the amount of the
impairment, and are not subject to sensitivity analysis.
From time to time, the company performs impairment
reviews and determines whether any write-down in the carry-
ing value of an asset or asset group is required. For example,
when signifcant downward revisions to crude oil and natural
gas reserves are made for any single feld or concession, an
impairment review is performed to determine if the carrying
value of the asset remains recoverable. Also, if the expectation
of sale of a particular asset or asset group in any period has
been deemed more likely than not, an impairment review is
performed, and if the estimated net proceeds exceed the car-
rying value of the asset or asset group, no impairment charge
is required. Such calculations are reviewed each period until
the asset or asset group is disposed of. Assets that are not
impaired on a held-and-used basis could possibly become
impaired if a decision is made to sell such assets. Tat is, the
assets would be impaired if they are classifed as held-for-sale
and the estimated proceeds from the sale, less costs to sell,
are less than the assets associated carrying values.
Asset Retirement Obligations In the determination
of fair value for an asset retirement obligation (ARO), the
company uses various assumptions and judgments, including
such factors as the existence of a legal obligation, estimated
amounts and timing of settlements, discount and infation
rates, and the expected impact of advances in technol-
ogy and process improvements. A sensitivity analysis of
the ARO impact on earnings for 2013 is not practicable,
given the broad range of the companys long-lived assets
and the number of assumptions involved in the estimates.
Tat is, favorable changes to some assumptions would have
reduced estimated future obligations, thereby lowering
accretion expense and amortization costs, whereas unfa-
vorable changes would have the opposite efect. Refer to
Note 24 on page FS-56 for additional discussions on asset
retirement obligations.
Pension and Other Postretirement Benefit Plans
Note 21, beginning on page FS-48, includes information on
the funded status of the companys pension and other postre-
tirement beneft (OPEB) plans refected on the Consolidated
Balance Sheet; the components of pension and OPEB
expense refected on the Consolidated Statement of Income;
and the related underlying assumptions.
Te determination of pension plan expense and obliga-
tions is based on a number of actuarial assumptions. Two
critical assumptions are the expected long-term rate of return
on plan assets and the discount rate applied to pension plan
obligations. Critical assumptions in determining expense and
obligations for OPEB plans, which provide for certain health
care and life insurance benefts for qualifying retired employ-
ees and which are not funded, are the discount rate and the
assumed health care cost-trend rates. Information related
to the companys processes to develop these assumptions is
included beginning on page FS-48 in Note 21 under the
relevant headings. Actual rates of return on plan assets and
discount rates may vary signifcantly from estimates because
of unanticipated changes in the worlds fnancial markets.
For 2013, the company used an expected long-term rate
of return of 7.5 percent and a discount rate of 3.6 percent for
U.S. pension plans. For the 10 years ending December 31,
2013, actual asset returns averaged 6.4 percent for the plan.
Te actual return for 2013 was more than 7.5 percent and
was associated with a continuing recovery in the fnancial
markets during the year. Additionally, with the exception
of two other years within this 10-year period, actual asset
returns for this plan equaled or exceeded 7.5 percent.
Total pension expense for 2013 was $1.3 billion. An
increase in the expected long-term return on plan assets or
the discount rate would reduce pension plan expense, and
vice versa. As an indication of the sensitivity of pension
expense to the long-term rate of return assumption, a
1 percent increase in this assumption for the companys
primary U.S. pension plan, which accounted for 59 percent
of companywide pension expense, would have reduced
total pension plan expense for 2013 by approximately $85
million. A 1 percent increase in the discount rate for this
same plan would have reduced pension expense for 2013 by
approximately $190 million.
Te aggregate funded status recognized at December
31, 2013, was a net liability of approximately $2.4 billion.
An increase in the discount rate would decrease the pension
obligation, thus changing the funded status of a plan. At
December 31, 2013, the company used a discount rate of
FS-18
4.3 percent to measure the obligations for the U.S. pension
plans. As an indication of the sensitivity of pension liabilities
to the discount rate assumption, a 0.25 percent increase
in the discount rate applied to the companys primary
U.S. pension plan, which accounted for 59 percent of the
companywide pension obligation, would have reduced
the plan obligation by approximately $345 million, which
would have increased the plans overfunded status from
approximately $0.4 billion to $0.7 billion.
For the companys OPEB plans, expense for 2013 was
$218 million, and the total liability, which refected the
unfunded status of the plans at the end of 2013, was $3.1
billion. For the main U.S. OPEB plan, the company used a
3.9 percent discount rate to measure expense in 2013, and a
4.7 percent discount rate to measure the beneft obligations at
December 31, 2013. Discount rate changes, similar to those
used in the pension sensitivity analysis, resulted in an imma-
terial impact on 2013 OPEB expense and OPEB liabilities
at the end of 2013. For information on the sensitivity of the
health care cost-trend rate, refer to FS-51 in Note 21 under
the heading Other Beneft Assumptions.
Diferences between the various assumptions used to
determine expense and the funded status of each plan and
actual experience are included in actuarial gain/loss. Refer
to page FS-50 in Note 21 for a description of the method
used to amortize the $5.2 billion of before-tax actuarial
losses recorded by the company as of December 31, 2013,
and an estimate of the costs to be recognized in expense
during 2014. In addition, information related to company
contributions is included on Page FS-53 in Note 21 under the
heading Cash Contributions and Beneft Payments.
Contingent Losses Management also makes judgments
and estimates in recording liabilities for claims, litigation,
tax matters and environmental remediation. Actual costs can
frequently vary from estimates for a variety of reasons. For
example, the costs for settlement of claims and litigation can
vary from estimates based on difering interpretations of laws,
opinions on culpability and assessments on the amount of
damages. Similarly, liabilities for environmental remediation
are subject to change because of changes in laws, regulations
and their interpretation, the determination of additional
information on the extent and nature of site contamination,
and improvements in technology.
Under the accounting rules, a liability is generally
recorded for these types of contingencies if management
determines the loss to be both probable and estimable.
Tecompany generally reports these losses as Operating
expenses or Selling, general and administrative expenses
on the Consolidated Statement of Income. An exception to
this handling is for income tax matters, for which benefts are
recognized only if management determines the tax position
ismore likely than not (i.e., likelihood greater than 50per-
cent) to be allowed by the tax jurisdiction. For additional
discussion of income tax uncertainties, refer to Note 23
beginning on page FS-54. Refer also to the business seg-
ment discussions elsewhere in this section for the efect on
earnings from losses associated with certain litigation,
environmen tal remediation and tax matters for the three
years ended December 31, 2013.
An estimate as to the sensitivity to earnings for these
periods if other assumptions had been used in recording
these liabilities is not practicable because of the number of
contingencies that must be assessed, the number of underly-
ing assumptions and the wide range of reasonably possible
outcomes, both in terms of the probability of loss and the
estimates of such loss.
New Accounting Standards
Refer to Note 18, on page FS-46 in the Notes to
Consolidated Financial Statements, for information regarding
new accounting standards.
Quarterly Results and Stock Market Data
Unaudited
2013 2012
Millions of dollars, except per-share amounts 4th Q 3rd Q 2nd Q 1st Q 4th Q 3rd Q 2nd Q 1st Q
Revenues and Other Income
Sales and other operating revenues
1
$ 53,950 $ 56,603 $ 55,307 $ 54,296 $ 56,254 $ 55,660 $ 59,780 $ 58,896
Income from equity afliates 1,824 1,635 1,784 2,284 1,815 1,274 2,091 1,709
Other income 384 265 278 238 2,483 1,110 737 100
Total Revenues and Other Income 56,158 58,503 57,369 56,818 60,552 58,044 62,608 60,705
Costs and Other Deductions
Purchased crude oil and products 32,691 34,822 34,273 32,910 33,959 33,982 36,772 36,053
Operating expenses 6,521 6,066 6,278 5,762 6,273 5,694 5,420 5,183
Selling, general and administrative expenses 1,176 1,197 1,139 998 1,182 1,352 1,250 940
Exploration expenses 726 559 329 247 357 475 493 403
Depreciation, depletion and amortization 3,635 3,658 3,412 3,481 3,554 3,370 3,284 3,205
Taxes other than on income
1
3,211 3,366 3,349 3,137 3,251 3,239 3,034 2,852
Total Costs and Other Deductions 47,960 49,668 48,780 46,535 48,576 48,112 50,253 48,636
Income Before Income Tax Expense 8,198 8,835 8,589 10,283 11,976 9,932 12,355 12,069
Income Tax Expense 3,240 3,839 3,185 4,044 4,679 4,624 5,123 5,570
Net Income $ 4,958 $ 4,996 $ 5,404 $ 6,239 $ 7,297 $ 5,308 $ 7,232 $ 6,499
Less: Net income attributable to
noncontrolling interests 28 46 39 61 52 55 22 28
Net Income Attributable to Chevron Corporation $ 4,930 $ 4,950 $ 5,365 $ 6,178 $ 7,245 $ 5,253 $ 7,210 $ 6,471
Per Share of Common Stock
Net Income Attributable to Chevron Corporation
Basic $ 2.60 $ 2.58 $ 2.80 $ 3.20 $ 3.73 $ 2.71 $ 3.68 $ 3.30
Diluted $ 2.57 $ 2.57 $ 2.77 $ 3.18 $ 3.70 $ 2.69 $ 3.66 $ 3.27
Dividends $ 1.00 $ 1.00 $ 1.00 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.81
Common Stock Price Range High
2
$ 125.65 $ 127.83 $ 127.40 $ 121.56 $ 118.38 $ 118.53 $ 108.79 $ 112.28
Low
2
$ 114.44 $ 117.22 $ 114.12 $ 108.74 $ 100.66 $ 103.29 $ 95.73 $ 102.08
1
Includes excise, value-added and similar taxes: $ 2,128 $ 2,223 $ 2,108 $ 2,033 $ 2,131 $ 2,163 $ 1,929 $ 1,787
2
Intraday price.
Te companys common stock is listed on the New York Stock Exchange (trading symbol: CVX). As of February 10, 2014,
stockholders of record numbered approximately 160,000. Tere are no restrictions on the companys ability to pay dividends.
FS-19
FS-20 FS-20 FS-20
Managements Responsibility for Financial Statements
To the Stockholders of Chevron Corporation
Management of Chevron is responsible for preparing the accompanying consolidated fnancial statements and the related informa-
tion appearing in this report. Te statements were prepared in accordance with accounting principles generally accepted in the
United States of America and fairly represent the transactions and fnancial position of the company. Te fnancial statements
include amounts that are based on managements best estimates and judgments.
As stated in its report included herein, the independent registered public accounting frm of PricewaterhouseCoopers LLP
has audited the companys consolidated fnancial statements in accordance with the standards of the Public Company Accounting
Oversight Board (United States).
Te Board of Directors of Chevron has an Audit Committee composed of directors who are not ofcers or employees of the
company. Te Audit Committee meets regularly with members of management, the internal auditors and the independent registered
public accounting frm to review accounting, internal control, auditing and fnancial reporting matters. Both the internal auditors
and the independent registered public accounting frm have free and direct access to the Audit Committee without the presence of
management.
Managements Report on Internal Control Over Financial Reporting
Te companys management is responsible for establishing and maintaining adequate internal control over fnancial reporting,
as such term is defned in Exchange Act Rule 13a-15(f ). Te companys management, including the Chief Executive Ofcer and
Chief Financial Ofcer, conducted an evaluation of the efectiveness of the companys internal control over fnancial reporting
based on Internal Control Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Based on the results of this evaluation, the companys management concluded that internal control over
fnancial reporting was efective as of December 31, 2013.
On May 14, 2013, COSO published an updated Internal Control - Integrated Framework (2013) and related illustrative docu-
ments. As of December 31, 2013, the company is utilizing the original framework published in 1992. Te transition period for
adoption of the updated framework ends December 15, 2014.
Te efectiveness of the companys internal control over fnancial reporting as of December 31, 2013, has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting frm, as stated in its report included herein.
John S. Watson Patricia E. Yarrington Matthew J. Foehr
Chairman of the Board Vice President Vice President
and Chief Executive Ofcer and Chief Financial Ofcer and Comptroller
February 21, 2014
FS-21 FS-21 FS-21
Report of Independent Registered Public Accounting Firm
examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements, assessing the
accounting principles used and signifcant estimates made by
management, and evaluating the overall fnancial statement
presentation. Our audit of internal control over fnancial
reporting included obtaining an understanding of internal
control over fnancial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the
design and operating efectiveness of internal control based
on the assessed risk. Our audits also included performing
such other procedures as we considered necessary in
the circumstances. We believe that our audits provide a
reasonable basis for our opinions.
A companys internal control over fnancial reporting is
a process designed to provide reasonable assurance regarding
the reliability of fnancial reporting and the preparation of
fnancial statements for external purposes in accordance
with generally accepted accounting principles. A companys
internal control over fnancial reporting includes those policies
and procedures that (i) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly refect the
transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of fnancial statements in
accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being
made only in accordance with authorizations of management
and directors of the company; and (iii) provide reasonable
assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys
assets that could have a material efect on the fnancial
statements.
Because of its inherent limitations, internal control over
fnancial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of efectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may
deteriorate.
San Francisco, California
February 21, 2014
To the Stockholders and the Board of Directors of Chevron Corporation:
In our opinion, the accompanying consolidated balance
sheet and the related consolidated statements of income,
comprehensive income, equity and of cash fows present
fairly, in all material respects, the fnancial position of
Chevron Corporation and its subsidiaries at December
31, 2013, and December 31, 2012, and the results of their
operations and their cash fows for each of the three years
in the period ended December 31, 2013, in conformity
with accounting principles generally accepted in the United
States of America. In addition, in our opinion, the fnancial
statement schedule listed in the index appearing under
Item 15(a)(2) presents fairly, in all material respects, the
information set forth therein when read in conjunction
with the related consolidated fnancial statements. Also
in our opinion, the Company maintained, in all material
respects, efective internal control over fnancial reporting
as of December 31, 2013, based on criteria established in
Internal Control Integrated Framework (1992) issued by the
Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Te Companys management is
responsible for these fnancial statements and fnancial
statement schedule, for maintaining efective internal
control over fnancial reporting, and for its assessment
of the efectiveness of internal control over fnancial
reporting, included in the accompanying Managements
Report on Internal Control Over Financial Reporting.
Our responsibility is to express opinions on these fnancial
statements, on the fnancial statement schedule, and on the
Companys internal control over fnancial reporting based on
our integrated audits. We conducted our audits in accordance
with the standards of the Public Company Accounting
Oversight Board (United States). Tose standards require
that we plan and perform the audits to obtain reasonable
assurance about whether the fnancial statements are free of
material misstatement and whether efective internal control
over fnancial reporting was maintained in all material
respects. Our audits of the fnancial statements included
FS-22 FS-22 FS-22
Consolidated Statement of Income
Millions of dollars, except per-share amounts
Year ended December 31
2013 2012 2011
Sales and other operating revenues* $ 220,156 $ 230,590 $ 244,371
Income from equity afliates 7,527 6,889 7,363
Other income 1,165 4,430 1,972
Total Revenues and Other Income 228,848 241,909 253,706
Costs and Other Deductions
Purchased crude oil and products 134,696 140,766 149,923
Operating expenses 24,627 22,570 21,649
Selling, general and administrative expenses 4,510 4,724 4,745
Exploration expenses 1,861 1,728 1,216
Depreciation, depletion and amortization 14,186 13,413 12,911
Taxes other than on income* 13,063 12,376 15,628
Total Costs and Other Deductions 192,943 195,577 206,072
Income Before Income Tax Expense 35,905 46,332 47,634
Income Tax Expense 14,308 19,996 20,626
Net Income 21,597 26,336 27,008
Less: Net income attributable to noncontrolling interests 174 157 113
Net Income Attributable to Chevron Corporation $ 21,423 $ 26,179 $ 26,895
Net Income Attributable to Chevron Corporation
Basic $ 11.18 $ 13.42 $ 13.54
Diluted $ 11.09 $ 13.32 $ 13.44
*

Includes excise, value-added and similar taxes. $ 8,492 $ 8,010 $ 8,085
See accompanying Notes to the Consolidated Financial Statements.
FS-23 FS-23 FS-23
Consolidated Statement of Comprehensive Income
Millions of dollars
2013 2012 2011
Net Income $ 21,597 $ 26,336 $ 27,008
Currency translation adjustment
Unrealized net change arising during period 42 23 17
Unrealized holding (loss) gain on securities
Net (loss) gain arising during period (7) 1 (11)
Derivatives
Net derivatives (loss) gain on hedge transactions (111) 20 20
Reclassifcation to net income of net realized (gain) loss (1) (14) 9
Income taxes on derivatives transactions 39 (3) (10)
Total (73) 3 19
Defned beneft plans
Actuarial gain (loss)
Amortization to net income of net actuarial loss and settlements 866 920 773
Actuarial gain (loss) arising during period 3,379 (1,180) (3,250)
Prior service credits (cost)
Amortization to net income of net prior service credits (27) (61) (26)
Prior service credits (cost) arising during period 60 (142) (27)
Defned beneft plans sponsored by equity afliates 164 (54) (81)
Income taxes on defned beneft plans (1,614) 143 1,030
Total 2,828 (374) (1,581)
Other Comprehensive Gain (Loss), Net of Tax 2,790 (347) (1,556)
Comprehensive Income 24,387 25,989 25,452
Comprehensive income attributable to noncontrolling interests (174) (157) (113)
Comprehensive Income Attributable to Chevron Corporation $ 24,213 $ 25,832 $ 25,339
FS-24 FS-24 FS-24
Consolidated Balance Sheet
At December 31
2013 2012
Assets
Cash and cash equivalents $ 16,245 $ 20,939
Time deposits 8 708
Marketable securities 263 266
Accounts and notes receivable (less allowance: 2013 $62; 2012 $80) 21,622 20,997
Inventories:
Crude oil and petroleum products 3,879 3,923
Chemicals 491 475
Materials, supplies and other 2,010 1,746
Total inventories 6,380 6,144
Prepaid expenses and other current assets 5,732 6,666
Total Current Assets 50,250 55,720
Long-term receivables, net 2,833 3,053
Investments and advances 25,502 23,718
Properties, plant and equipment, at cost 296,433 263,481
Less: Accumulated depreciation, depletion and amortization 131,604 122,133
Properties, plant and equipment, net 164,829 141,348
Deferred charges and other assets 5,120 4,503
Goodwill 4,639 4,640
Assets held for sale 580
Total Assets $ 253,753 $ 232,982
Liabilities and Equity
Short-term debt $ 374 $ 127
Accounts payable 22,815 22,776
Accrued liabilities 5,402 5,738
Federal and other taxes on income 3,092 4,341
Other taxes payable 1,335 1,230
Total Current Liabilities 33,018 34,212
Long-term debt 19,960 11,966
Capital lease obligations 97 99
Deferred credits and other noncurrent obligations 22,982 21,502
Noncurrent deferred income taxes 21,301 17,672
Noncurrent employee benet plans 5,968 9,699
Total Liabilities 103,326 95,150
Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued)
Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares
issued at December 31, 2013 and 2012) 1,832 1,832
Capital in excess of par value 15,713 15,497
Retained earnings 173,677 159,730
Accumulated other comprehensive loss (3,579) (6,369)
Deferred compensation and beneft plan trust (240) (282)
Treasury stock, at cost (2013 529,073,512 shares; 2012 495,978,691 shares) (38,290) (33,884)
Total Chevron Corporation Stockholders Equity 149,113 136,524
Noncontrolling interests 1,314 1,308
Total Equity 150,427 137,832
Total Liabilities and Equity $ 253,753 $ 232,982
FS-25 FS-25 FS-25
Consolidated Statement of Cash Flows
Millions of dollars
2013 2012 2011
Operating Activities
Net Income $ 21,597 $ 26,336 $ 27,008
Adjustments
Depreciation, depletion and amortization 14,186 13,413 12,911
Dry hole expense 683 555 377
Distributions less than income from equity afliates (1,178) (1,351) (570)
Net before-tax gains on asset retirements and sales (639) (4,089) (1,495)
Net foreign currency efects (103) 207 (103)
Deferred income tax provision 1,876 2,015 1,589
Net (increase) decrease in operating working capital (1,331) 363 2,318
Decrease (increase) in long-term receivables 183 (169) (150)
(Increase) decrease in other deferred charges (321) 1,047 341
Cash contributions to employee pension plans (1,194) (1,228) (1,467)
Other 1,243 1,713 336
Net Cash Provided by Operating Activities 35,002 38,812 41,095
Investing Activities
Acquisition of Atlas Energy (3,009)
Advance to Atlas Energy (403)
Capital expenditures (37,985) (30,938) (26,500)
Proceeds and deposits related to asset sales 1,143 2,777 3,517
Net sales (purchases) of time deposits 700 3,250 (1,104)
Net sales (purchases) of marketable securities 3 (3) (74)
Repayment of loans by equity afliates 314 328 339
Net sales (purchases) of other short-term investments 216 (210) (255)
Net Cash Used for Investing Activities (35,609) (24,796) (27,489)
Financing Activities
Net borrowings of short-term obligations 2,378 264 23
Proceeds from issuances of long-term debt 6,000 4,007 377
Repayments of long-term debt and other nancing obligations (132) (2,224) (2,769)
Cash dividends common stock (7,474) (6,844) (6,136)
Distributions to noncontrolling interests (99) (41) (71)
Net purchases of treasury shares (4,494) (4,142) (3,193)
Net Cash Used for Financing Activities (3,821) (8,980) (11,769)
Efect of Exchange Rate Changes on Cash and Cash Equivalents (266) 39 (33)
Net Change in Cash and Cash Equivalents (4,694) 5,075 1,804
Cash and Cash Equivalents at January 1 20,939 15,864 14,060
Cash and Cash Equivalents at December 31 $ 16,245 $ 20,939 $ 15,864
FS-26 FS-26 FS-26
Consolidated Statement of Equity
Shares in thousands; amounts in millions of dollars
2013 2012 2011
Shares Amount Shares Amount Shares Amount
Preferred Stock $ $ $
Common Stock 2,442,677 $ 1,832 2,442,677 $ 1,832 2,442,677 $ 1,832
Capital in Excess of Par
Treasury stock transactions 216 341 360
Retained Earnings
Net income attributable to Chevron Corporation 21,423 26,179 26,895
Cash dividends on common stock (7,474) (6,844) (6,136)
Stock dividends (3) (3) (3)
Tax (charge) beneft from dividends paid on
unallocated ESOP shares and other 1 (1) 2
Accumulated Other Comprehensive Loss
Currency translation adjustment
Balance at January 1 $ (65) $ (88) $ (105)
Change during year 42 23 17
Balance at December 31 $ (23) $ (65) $ (88)
Unrealized net holding (loss) gain on securities
Balance at January 1 $ 1 $ $ 11
Change during year (7) 1 (11)
Balance at December 31 $ (6) $ 1 $
Net derivatives gain (loss) on hedge transactions
Change during year (73) 3 19
Pension and other postretirement beneft plans
Balance at January 1 $ (6,430) $ (6,056) $ (4,475)
Change during year 2,828 (374) (1,581)
Balance at December 31 $ (3,602) $ (6,430) $ (6,056)
Balance at December 31 $ (3,579) $ (6,369) $ (6,022)
Deferred Compensation and Beneft Plan Trust
Deferred Compensation
Balance at January 1 $ (42) $ (58) $ (71)
Net reduction of ESOP debt and other 42 16 13
Balance at December 31 (42) (58)
Beneft Plan Trust (Common Stock) 14,168 (240) 14,168 (240) 14,168 (240)
Balance at December 31 14,168 $ (240) 14,168 $ (282) 14,168 $ (298)
Treasury Stock at Cost
Balance at January 1 495,979 $ (33,884) 461,510 $ (29,685) 435,196 $ (26,411)
Purchases 41,676 (5,004) 46,669 (5,004) 42,424 (4,262)
Issuances mainly employee benet plans (8,581) 598 (12,200) 805 (16,110) 988
Balance at December 31 529,074 $ (38,290) 495,979 $ (33,884) 461,510 $ (29,685)
Total Chevron Corporation Stockholders Equity $ 149,113 $ 136,524 $ 121,382
at December 31
Noncontrolling Interests

$ 1,314 $ 1,308 $ 799
Total Equity $ 150,427 $ 137,832 $ 122,181
FS-27
Note 1
Summary of Significant Accounting Policies
General Upstream operations consist primarily of explor-
ing for, developing and producing crude oil and natural gas;
liquefaction, transportation and regasifcation associated with
liquefed natural gas (LNG); transporting crude oil by major
international oil export pipelines; processing, transporting,
storage and marketing of natural gas; and a gas-to-liquids
project. Downstream operations relate primarily to refn-
ing crude oil into petroleum products; marketing of crude
oil and refned products; transporting crude oil and refned
products by pipeline, marine vessel, motor equipment and
rail car; and manufacturing and marketing of commodity
petrochemicals, plastics for industrial uses, and additives for
fuels and lubricant oils.
Te companys Consolidated Financial Statements are
prepared in accordance with accounting principles gener-
ally accepted in the United States of America. Tese require
the use of estimates and assumptions that afect the assets,
liabilities, revenues and expenses reported in the fnancial
statements, as well as amounts included in the notes thereto,
including discussion and disclosure of contingent liabilities.
Although the company uses its best estimates and judgments,
actual results could difer from these estimates as future con-
frming events occur.
Subsidiary and Afliated Companies Te Consolidated
Financial Statements include the accounts of controlled sub-
sidiary companies more than 50 percent-owned and any
variable-interest entities in which the company is the primary
benefciary. Undivided interests in oil and gas joint ventures
and certain other assets are consolidated on a proportionate
basis. Investments in and advances to afliates in which the
company has a substantial ownership interest of approxi-
mately 20 percent to 50 percent, or for which the company
exercises signifcant infuence but not control over policy
decisions, are accounted for by the equity method. As part of
that accounting, the company recognizes gains and losses
that arise from the issuance of stock by an afliate that
results in changes in thecompanys proportionate share of
the dollar amount of the afliates equity currently in income.
Investments are assessed for possible impairment when
events indicate that the fair value of the investment may be
below the companys carrying value. When such a condition
is deemed to be other than temporary, the carrying value of
the investment is written down to its fair value, and the
amount of the write-down is included in net income. In
making the determination as to whether a decline is other
than temporary, the company considers such factors as the
duration and extent of the decline, the investees fnancial
performance, and the companys ability and intention to
retain its investment for a period that will be sufcient to
allow for any anticipated recovery in the investments market
value. Te new cost basis of investments in these equity
investees is not changed for subsequent recoveries in fair value.
Diferences between the companys carrying value of an
equity investment and its underlying equity in the net assets
of the afliate are assigned to the extent practicable to specifc
assets and liabilities based on the companys analysis of the
various factors giving rise to the diference. When appro priate,
the companys share of the afliates reported earnings is
adjusted quarterly to refect the diference between these allo-
cated values and the afliates historical book values.
Derivatives Te majority of the companys activity in
derivative commodity instruments is intended to manage
the fnancial risk posed by physical transactions. For some
of this derivative activity, generally limited to large, discrete
or infrequently occurring transactions, the company may
elect to apply fair value or cash fow hedge accounting. For
other similar derivative instruments, generally because of
the short-term nature of the contracts or their limited use,
the company does not apply hedge accounting, and changes
in the fair value of those contracts are refected in current
income. For the companys commodity trading activity,
gains and losses from derivative instruments are reported in
current income. Te company may enter into interest rate
swaps from time to time as part of its overall strategy to
manage the interest rate risk on its debt. Interest rate swaps
related to a portion of the companys fxed-rate debt, if any,
may be accounted for as fair value hedges. Interest rate swaps
related to foating-rate debt, if any, are recorded at fair value
on the balance sheet with resulting gains and losses refected
in income. Where Chevron is a party to master netting
arrangements, fair value receivable and payable amounts rec-
ognized for derivative instruments executed with the same
counterparty are generally ofset on the balance sheet.
Short-Term Investments All short-term investments are
classifed as available for sale and are in highly liquid debt
securities. Tose investments that are part of the companys
cash management portfolio and have original maturities
of three months or less are reported as Cash equivalents.
Bank time deposits with maturities greater than 90 days
are reported as Time deposits. Te balance of short-term
investments is reported as Marketable securities and is
marked-to-market, with any unrealized gains or losses
included in Other comprehensive income.
Inventories Crude oil, petroleum products and chemicals
inventories aregenerally stated at cost, using a last-in, frst-
out method. In the aggregate, these costs are below market.
Materials, supplies and other inventories generally are
stated at average cost.
FS-28
Properties, Plant and Equipment Te successful eforts
method is used for crude oil and natural gas exploration and
production activities. All costs for development wells, related
plant and equipment, proved mineral interests in crude oil
and natural gas properties, and related asset retirement obli-
gation (ARO) assets are capitalized. Costs of exploratory
wells are capitalized pending determination of whether the
wells found proved reserves. Costs of wells that are assigned
proved reserves remain capitalized. Costs also are capitalized
for exploratory wells that have found crude oil and natural
gas reserves even if the reserves cannot be classifed as proved
when the drilling is completed, provided the exploratory
wellhas found a sufcient quantity of reserves to justify its
completion as a producing well and the company is making
sufcient progress assessing the reserves and the economic
and operating viability of the project. All other exploratory
wells and costs are expensed. Refer to Note 19, beginning
on FS-46, for additional discussion of accounting for
suspended exploratory well costs.
Long-lived assets to be held and used, including proved
crude oil and natural gas properties, are assessed for possible
impairment by comparing their carrying values with their
asso ciated undiscounted, future net before-tax cash fows.
Events that can trigger assessments for possible impairments
include write-downs of proved reserves based on feld per-
formance, signifcant decreases in the market value of an
asset, signifcant change in the extent or manner of use of
or a physical change in an asset, and a more-likely-than-not
expectation that a long-lived asset or asset group will be sold
or otherwise disposed of signifcantly sooner than the end
of its previously estimated useful life. Impaired assets are
written down to their estimated fair values, generally their
discounted, future net before-tax cash fows. For proved
crude oil and natural gas properties in the United States,
the company generally performs an impairment review on
an individual feld basis. Outside the United States, reviews
are performed on a country, concession, development area
or feld basis, as appropriate. In Downstream, impairment
reviews are performed on the basis of a refnery, a plant, a
marketing/lubricants area or distribution area, as appropriate.
Impairment amounts are recorded as incremental Deprecia-
tion, depletion and amortization expense.
Long-lived assets that are held for sale are evaluated for
possible impairment by comparing the carrying value of the
asset with its fair value less the cost to sell. If the net book
value exceeds the fair value less cost to sell, the asset is consid-
ered impaired and adjusted to the lower value. Refer to Note 9,
beginning on FS-32, relating to fair value measurements.
Te fair value of a liability for an ARO is recorded as an
asset and a liability when there is a legal obligation associ-
ated with the retirement of a long-lived asset and the amount
can be reasonably estimated. Refer also to Note 24, on FS-56,
relating to AROs.
Depreciation and depletion of all capitalized costs of
proved crude oil and natural gas producing properties, except
mineral interests, are expensed using the unit-of-produc-
tion method, generally by individual feld, as the proved
developed reserves are produced. Depletion expenses for
capitalized costs of proved mineral interests are recognized
using the unit-of-production method by individual feld as
the related proved reserves are produced. Periodic valuation
provisions for impairment of capitalized costs of unproved
mineral interests are expensed.
Te capitalized costs of all other plant and equipment
are depreciated or amortized over their estimated useful
lives. In general, the declining-balance method is used to
depreciate plant and equipment in the United States; the
straight-line method is generally used to depreciate interna-
tional plant and equipment and to amortize all capitalized
leased assets.
Gains or losses are not recognized for normal retirements
of properties, plant and equipment subject to composite
group amortization or depreciation. Gains or losses from
abnormal retirements are recorded as expenses, and from
sales as Other income.
Expenditures for maintenance (including those for
planned major maintenance projects), repairs and minor
renewals to maintain facilities in operating condition are
generally expensed as incurred. Major replacements and
renewals are capitalized.
Goodwill Goodwill resulting from a business combination
is not subject to amortization. Te company tests such good-
will at the reporting unit level for impairment on an annual
basis and between annual tests if an event occurs or circum-
stances change that would more likely than not reduce the fair
value of the reporting unit below its carrying amount.
Environmental Expenditures Environmental expenditures
that relate to ongoing operations or to conditions caused by
past operations are expensed. Expenditures that create future
benefts or contribute to future revenue generation are capital-
ized.
Liabilities related to future remediation costs are recorded
when environmental assessments or cleanups or both are
probable and the costs can be reasonably estimated. For the
companys U.S. and Canadian marketing facilities, the accrual
is based in part on the probability that a future remediation
commitment will be required. For crude oil, natural gas and
mineral-producing properties, a liability for an ARO is made
in accordance with accounting standards for asset retirement
and environmental obligations. Refer to Note 24, on
page FS-56, for adiscussion of the companys AROs.
Note 1 Summary of Significant Accounting Policies Continued
FS-29
For federal Superfund sites and analogous sites under
state laws, the company records a liability for its designated
share of the probable and estimable costs, and probable
amounts for other potentially responsible parties when man-
dated by the regulatory agencies because the other parties are
not able to pay their respective shares.
Te gross amount of environmental liabilities is based
on the companys best estimate of future costs using currently
available technology and applying current regulations and
the companys own internal environmental policies. Future
amounts are not discounted. Recoveries or reimbursements
are recorded as assets when receipt is reasonably assured.
Currency Translation Te U.S. dollar is the functional
currency for substantially all of the companys consolidated
operations and those of its equity afliates. For those opera-
tions, all gains and losses from currency remeasurement are
included in current period income. Te cumulative trans-
lation efects for those few entities, both consolidated and
afliated, using functional currencies other than the U.S.
dollar are included in Currency translation adjustment on
the Consolidated Statement of Equity.
Revenue Recognition Revenues associated with sales of
crude oil, natural gas, petroleum and chemicals products,
andall other sources are recorded when title passes to the
customer, net of royalties, discounts and allowances, as
applicable. Revenues from natural gas production from prop-
erties in which Chevron has an interest with other producers
are generally recognized using the entitle ment method. Excise,
value-added and similar taxes assessed by a governmental
authority on a revenue- producing transaction between a seller
and a customer are presented on a gross basis. Te associated
amounts are shown as a footnote to the Consolidated State-
ment of Income, on page FS-22. Purchases and sales of
inventorywith the same counterparty that are entered into
incontemplation of one another (including buy/sell arrange-
ments) are combined and recorded on a net basis and reported
in Purchased crude oil and products on the Consolidated
Statement of Income.
Stock Options and Other Share-Based Compensation
Te company issues stock options and other share-based
compensation to certain employees. For equity awards, such
as stock options, total compensation cost is based on the
grant date fair value, and for liability awards, such as stock
appreciation rights, total compensation cost is based on
the settlement value. Te company recognizes stock-based
compensation expense for all awards over the service period
required to earn the award, which is the shorter of the vest-
ing period or the time period an employee becomes eligible
to retain the award at retirement. Stock options and stock
appreciation rights granted under the companys Long-Term
Incentive Plan have graded vesting provisions by which
one-third of each award vests on the frst, second and third
anniversaries of the date of grant. Te company amortizes
these graded awards on a straight-line basis.
Note 1 Summary of Significant Accounting Policies Continued
Note 2
Changes in Accumulated Other Comprehensive Losses
Te change in Accumulated Other Comprehensive Losses (AOCL) presented on the Consolidated Balance Sheet and the
impact of signifcant amounts reclassifed from AOCL on information presented in the Consolidated Statement of Income for
the year ending December 31, 2013, are refected in the table below.
Changes in Accumulated Other Comprehensive Losses by Component
1
Year Ending December 31, 2013
Currency
Translation
Adjustment
Unrealized Holding
Gains (Losses) on
Securities Derivatives
Defned Beneft
Plans Total
Balance at January 1 $ (65) $ 1 $ 125 $ (6,430) $ (6,369)
Components of Other Comprehensive
Income (Loss):
Before Reclassifcations 42 (7) (72) 2,302 2,265
Reclassifcations
2
(1) 526 525
Net Other Comprehensive Income (Loss) 42 (7) (73) 2,828 2,790
Balance at December 31 $ (23) $ (6) $ 52 $ (3,602) $ (3,579)
1
All amounts are net of tax.
2
Refer to Note 21, Employee Benefts for reclassifed components totaling $839 that are included in employee beneft costs for the year ending December 31, 2013. Related income taxes for the
same period, totaling $313, are refected in Income Tax Expense on the Consolidated Statement of Income. All other reclassifed amounts were insignifcant.
FS-30
Note 3
Ownership interests in the companys subsidiaries held by
parties other than the parent are presented separately from
the parents equity on the Consolidated Balance Sheet. Te
amount of consolidated net income attributable to the par-
ent and the noncontrolling interests are both presented on
the face of the Consolidated Statement of Income. Te term
earnings is defned as Net Income Attributable to Chevron
Corporation.
Activity for the equity attributable to noncontrolling
interests for 2013, 2012 and 2011 is as follows:
2013 2012 2011
Balance at January 1 $ 1,308 $ 799 $ 730
Net income 174 157 113
Distributions to noncontrolling interests (99) (41) (71)
Other changes, net* (69) 393 27
Balance at December 31 $ 1,314 $ 1,308 $ 799
* Includes components of comprehensive income, which are disclosed separately in the
Consolidated Statement of Comprehensive Income.
Note 4
Information Relating to the Consolidated Statement of Cash Flows
2013 2012 2011
Net (increase) decrease in operating
working capital was composed of the
following:
(Increase) decrease in accounts and
notes receivable $ (1,101) $ 1,153 $ (2,156)
Increase in inventories (237) (233) (404)
Decrease (increase) in prepaid
expenses and other current assets 834 (471) (853)
Increase in accounts payable
and accrued liabilities 160 544 3,839
(Decrease) increase in income and
other taxes payable (987) (630) 1,892
Net (increase) decrease in operating
working capital $ (1,331) $ 363 $ 2,318
Net cash provided by operating
activities includes the following
cash payments for income taxes:
Income taxes $ 12,898 $ 17,334 $ 17,374
Net sales (purchases) of marketable
securities consisted of the following
gross amounts:
Marketable securities purchased $ (7) $ (35) $ (112)
Marketable securities sold 10 32 38
Net sales (purchases) of marketable
securities $ 3 $ (3) $ (74)
Net sales (purchases) of time deposits
consisted of the following
gross amounts:
Time deposits purchased $ (2,317) $ (717) $ (6,439)
Time deposits matured 3,017 3,967 5,335
Net sales (purchases) of time deposits $ 700 $ 3,250 $ (1,104)
Te Net (increase) decrease in operating working capital
includes reductions of $79, $98 and $121 for excess income
tax benefts associated with stock options exercised during
2013, 2012 and 2011, respectively. Tese amounts are ofset
by an equal amount in Net purchases of treasury shares.
Other includes changes in postretirement benefts obliga-
tions and other long-term liabilities.
In February 2011, the company acquired Atlas Energy,
Inc. (Atlas) for the aggregate purchase price of approximately
$4,500. Te purchase price included assumption of debt
and certain payments noted below. Te Acquisition of Atlas
Energy refects the $3,009 cash paid for all the common
shares of Atlas. An Advance to Atlas Energy of $403 was
made to facilitate the purchase of a 49 percent interest in
Laurel Mountain Midstream LLC on the day of closing. Te
Repayments of long-term debt and other fnancing obliga-
tions in 2011 includes $761 for repayment of Atlas debt and
$271 for payof of the Atlas revolving credit facility. Te Net
(increase) decrease in operating working capital includes
$184 for payments made in connection with Atlas equity
awards subsequent to the acquisition. Te remaining impacts
of the acquisition did not have a material impact on the Con-
solidated Statement of Cash Flows.
Te Net purchases of treasury shares represents the cost of
common shares acquired less the cost of shares issued for share-
based compensation plans. Purchases totaled $5,004, $5,004 and
$4,262 in 2013, 2012 and 2011, respectively. In 2013, 2012 and
2011, the company purchased 41.6 million, 46.6 million and
42.3 million common shares for $5,000, $5,000 and $4,250
under its ongoing share repurchase program, respectively.
In 2013, 2012 and 2011, Net sales (purchases) of other
short-term investments generally consisted of restricted cash
associated with tax payments, upstream abandonment activi-
ties, funds held in escrow for asset acquisitions and capital
investment projects that was invested in cash and short-term
securities and reclassifed from Cash and cash equivalents to
Deferred charges and other assets on the Consolidated Bal-
ance Sheet. Te company issued $374 in 2011 of tax exempt
bonds as a source of funds for U.S. refnery projects, which is
included in Proceeds from issuance of long-term debt.
Te Consolidated Statement of Cash Flows excludes
changes to the Consolidated Balance Sheet that did not afect
cash. Te 2012 period excludes the efects of $800 of proceeds
to be received in future periods for the sale of an equity interest
in the Wheatstone Project, of which $82 was received in 2013.
Capital expenditures in the 2012 period excludes a $1,850
increase in Properties, plant and equipment related to an
upstream asset exchange in Australia. Refer also to Note 24,
on page FS-56, for a discussion of revisions to the companys
AROs that also did not involve cash receipts or payments for the
three years ending December 31, 2013.
Note 3 Noncontrolling Interests
FS-31
Te summarized fnancial information for CUSA and its
consolidated subsidiaries is as follows:
2013 2012 2011
Sales and other operating
revenues $ 174,318 $ 183,215 $ 187,929
Total costs and other deductions 169,984 175,009 178,510
Net income attributable to CUSA 3,714 6,216 6,898
At December 31
2013 2012
Current assets $ 17,626 $ 18,983
Other assets 57,288 52,082
Current liabilities 17,486 18,161
Other liabilities 28,119 26,472
Total CUSA net equity $ 29,309 $ 26,432
Memo: Total debt $ 14,482 $ 14,482
Note 6
Summarized Financial Data Chevron Transport Corporation Ltd.
Chevron Transport Corporation Ltd. (CTC), incorporated in
Bermuda, is an indirect, wholly owned subsidiary of Chevron
Corporation. CTC is the principal operator of Chevrons inter-
national tanker feet and is engaged in the marine transportation
of crude oil and refned petroleum products. Most of CTCs
shipping revenue is derived from providing transportation serv-
ices to other Chevron companies. Chevron Corporation has
fully and unconditionally guaranteed this subsidiarys obliga-
tions in connection with certain debt securities issued by a third
party. Summarized fnancial information for CTC and its
consolidated subsidiaries is as follows:
2013 2012 2011
Sales and other operating revenues $ 504 $ 606 $ 793
Total costs and other deductions 695 745 974
Net loss attributable to CTC (191) (135) (177)
At December 31
2013 2012
Current assets $ 221 $ 199
Other assets 549 313
Current liabilities 94 154
Other liabilities 911 415
Total CTC net defcit $ (235) $ (57)
Tere were no restrictions on CTCs ability to pay divi-
dends or make loans or advances at December 31, 2013.
Te major components of Capital expenditures and
the reconciliation of this amount to the reported capital and
exploratory expenditures, including equity afliates, are
presented in the following table:
2013 2012 2011
Additions to properties, plant
and equipment* $ 36,550 $ 29,526 $ 25,440
Additions to investments 934 1,042 900
Current-year dry hole expenditures 594 475 332
Payments for other liabilities
and assets, net (93) (105) (172)
Capital expenditures 37,985 30,938 26,500
Expensed exploration expenditures 1,178 1,173 839
Assets acquired through capital
lease obligations and other
fnancing obligations 16 1 32
Capital and exploratory expenditures,
excluding equity afliates 39,179 32,112 27,371
Companys share of expenditures
by equity afliates 2,698 2,117 1,695
Capital and exploratory expenditures,
including equity afliates $ 41,877 $ 34,229 $29,066
*Excludes noncash additions of $1,661 in 2013, $4,569 in 2012 and $945 in 2011.
Note 5
Summarized Financial Data Chevron U.S.A. Inc.
Chevron U.S.A. Inc. (CUSA) is a major subsidiary of
Chevron Corporation. CUSA and its subsidiaries manage
and operate most of Chevrons U.S. businesses. Assets include
those related to the exploration and production of crude oil,
natural gas and natural gas liquids and those associated with
the refning, marketing, supply and distribution of products
derived from petroleum, excluding most of the regulated
pipeline operations of Chevron. CUSA also holds the
companys investment in the Chevron Phillips Chemical
Company LLC joint venture, which is accounted for using
the equity method.
During 2012, Chevron implemented legal reorganizations
in which certain Chevron subsidiaries transferred assets to
or under CUSA. Te summarized fnancial information
for CUSA and its consolidated subsidiaries presented in the
following table gives retroactive efect to the reorganizations
as if they had occurred on January 1, 2011. However, the
fnancial information in the following table may not refect
the fnancial position and operating results in the periods
presented if the reorganization had occurred on that date.
Note 4 Information Relating to the Consolidated Statement of Cash Flows Continued
FS-32
Contingent rentals are based on factors other than the pas-
sage of time, principally sales volumes at leased service stations.
Certain leases include escalation clauses for adjusting rentals to
refect changes in price indices, renewal options ranging up to
25 years, and options to purchase the leased property during or
at the end of the initial or renewal lease period for the fair mar-
ket value or other specifed amount at that time.
At December 31, 2013, the estimated future minimum
lease payments (net of noncancelable sublease rentals) under
operating and capital leases, which at inception had a non-
cancelable term of more than one year, were as follows:
At December 31
Operating Capital
Leases Leases
Year: 2014 $ 798 $ 45
2015 733 32
2016 594 20
2017 472 17
2018 306 17
Tereafter 806 46
Total $ 3,709 $ 177
Less: Amounts representing interest
and executory costs $ (37)
Net present values 140
Less: Capital lease obligations
included in short-term debt (43)
Long-term capital lease obligations $ 97
Note 9
Fair Value Measurements
Te three levels of the fair value hierarchy of inputs the com-
pany uses to measure the fair value of an asset or liability are
described as follows:
Level 1: Quoted prices (unadjusted) in active markets
for identical assets and liabilities. For the company,
Level 1 inputs include exchange-traded futures con-
tracts for which the parties are willing to transact at the
exchange-quoted price and marketable securities that
are actively traded.
Level 2: Inputs other than Level 1 that are observable,
either directly or indirectly. For the company, Level 2
inputs include quoted prices for similar assets or liabili-
ties, prices obtained through third-party broker quotes
and prices that can be corroborated with other observ-
able inputs for substantially the complete term of a
contract.
Level 3: Unobservable inputs. Te company does not
use Level 3 inputs for any of its recurring fair value
measurements. Level 3 inputs may be required for
the determination of fair value associated with cer-
tain nonrecurring measurements of nonfnancial assets
and liabilities.
Note 7 Summarized Financial Data Tengizchevroil LLP
Note 7
Summarized Financial Data Tengizchevroil LLP
Chevron has a 50 percent equity ownership interest in
Tengizchevroil LLP (TCO). Refer to Note 12, on page FS-37,
foradiscussion of TCO operations.
Summarized fnancial information for 100 percent of
TCO is presented in the following table:
2013 2012 2011
Sales and other operating revenues $ 25,239 $ 23,089 $ 25,278
Costs and other deductions 11,173 10,064 10,941
Net income attributable to TCO 9,855 9,119 10,039
At December 31
2013 2012
Current assets $ 3,598 $ 3,251
Other assets 12,964 12,020
Current liabilities 3,016 2,597
Other liabilities 2,761 3,390
Total TCO net equity $ 10,785 $ 9,284
Note 8
Lease Commitments
Certain noncancelable leases are classifed as capital leases,
and the leased assets are included as part of Properties,
plant and equipment, at cost on the Consolidated Balance
Sheet. Such leasing arrangements involve crude oil produc-
tion and processing equipment, service stations, bareboat
charters, ofce buildings, and other facilities. Other leases
are classifed as operating leases and are not capitalized.
Te payments on operating leases are recorded as expense.
Details of the capitalized leased assets are as follows:
At December 31
2013 2012
Upstream $ 445 $ 433
Downstream 316 316
All Other
Total 761 749
Less: Accumulated amortization 523 479
Net capitalized leased assets $ 238 $ 270
Rental expenses incurred for operating leases during
2013, 2012 and 2011 were as follows:
2013 2012 2011
Minimum rentals $ 1,049 $ 973 $ 892
Contingent rentals 1 7 11
Total 1,050 980 903
Less: Sublease rental income 25 32 39
Net rental expense $ 1,025 $ 948 $ 864
FS-33
Assets and Liabilities Measured at Fair Value on a Recurring Basis
At December 31, 2013 At December 31, 2012
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Marketable securities $ 263 $ 263 $ $ $ 266 $ 266 $ $
Derivatives 28 28 86 21 65
Total Assets at Fair Value $ 291 $ 263 $ 28 $ $ 352 $ 287 $ 65 $
Derivatives 89 80 9 149 148 1
Total Liabilities at Fair Value $ 89 $ 80 $ 9 $ $ 149 $ 148 $ 1 $
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
At December 31 At December 31
Total Level 1 Level 2 Level 3
Before-Tax
Loss
Year 2013 Total Level 1 Level 2 Level 3
Before-Tax
Loss
Year 2012
Properties, plant and
equipment, net
(held and used) $ 102 $ $ $ 102 $ 278 $ 84 $ $ $ 84 $ 213
Properties, plant and
equipment, net
(held for sale) 69 69 104 16 16 17
Investments and advances 38 35 3 228 15
Total Nonrecurring
Assets at Fair Value $ 209 $ $ 104 $ 105 $ 610 $ 100 $ $ $ 100 $ 245
Note 9 Fair Value Measurements Continued
Te tables below show the fair value hierarchy for assets and
liabilities measured at fair value on a recurring and nonrecur-
ring basis at December 31, 2013, and December 31, 2012.
Marketable Securities Te company calculates fair value
for its marketable securities based on quoted market prices
for identical assets. Te fair values refect the cash that would
have been received if the instruments were sold at December
31, 2013.
Derivatives Te company records its derivative instru-
ments other than any commodity derivative contracts that
are designated as normal purchase and normal sale on
the Consolidated Balance Sheet at fair value, with the of-
setting amount to the Consolidated Statement of Income.
Derivatives classifed as Level 1 include futures, swaps and
options contracts traded in active markets such as the New
York Mercantile Exchange. Derivatives classifed as Level 2
include swaps, options, and forward contracts, principally
with fnancial institutions and other oil and gas companies,
the fair values of which are obtained from third-party broker
quotes, industry pricing services and exchanges. Te com-
pany obtains multiple sources of pricing information for the
Level 2 instruments. Since this pricing information is gener-
ated from observable market data, it has historically been
very consistent. Te company does not materially adjust this
information.
Properties, Plant and Equipment Te company did not
have any material long-lived assets measured at fair value on a
nonrecurring basis to report in 2013 or 2012.
Investments and Advances Te company did not have any
material investments and advances measured at fair value on a
nonrecurring basis to report in 2013 or 2012.
Assets and Liabilities Not Required to Be Measured at
Fair Value Te company holds cash equivalents and bank
time deposits in U.S. and non-U.S. portfolios. Te instru-
ments classifed as cash equivalents are primarily bank time
deposits with maturities of 90 days or less and money market
funds. Cash and cash equivalents had carrying/fair values
of $16,245 and $20,939 at December 31, 2013, and Decem-
ber 31, 2012, respectively. Te instruments held in Time
deposits are bank time deposits with maturities greater
than 90 days, and had carrying/fair values of $8 and $708
at December 31, 2013, and December 31, 2012, respectively.
Te fair values of cash, cash equivalents and bank time depos-
its are classifed as Level 1 and refect the cash that would
have been received if the instruments were settled at Decem-
ber 31, 2013.
FS-34
Cash and cash equivalents do not include invest-
ments with a carrying/fair value of $1,210 and $1,454 at
December 31, 2013, and December 31, 2012, respectively. At
December 31, 2013, these investments are classifed as Level
1 and include restricted funds related to tax payments and
certain upstream abandonment activities which are reported
in Deferred charges and other assets on the Consolidated
Balance Sheet. Long-term debt of $11,960 and $6,086 at
December 31, 2013, and December 31, 2012, had estimated
fair values of $12,267 and $6,770, respectively. Long-term
debt primarily includes corporate issued bonds. Te fair value
of corporate bonds is $11,581 and classifed as Level 1. Te
fair value of the other bonds is $686 and classifed as Level 2.
Te carrying values of short-term fnancial assets and
liabilities on the Consolidated Balance Sheet approximate their
fair values. Fair value remeasurements of other fnancial instru-
ments at December 31, 2013 and 2012, were not material.
Note 10
Financial and Derivative Instruments
Derivative Commodity Instruments Chevron is exposed
to market risks related to price volatility of crude oil, refned
products, natural gas, natural gas liquids, liquefed natural gas
and refnery feedstocks.
Te company uses derivative commodity instruments to
manage these exposures on a portion of its activity, including
frm commitments and anticipated transactions for the pur-
chase, sale and storage of crude oil, refned products, natural
gas, natural gas liquids and feedstock for company refneries.
From time to time, the company also uses derivative commod-
ity instruments for limited trading purposes.
Te companys derivative commodity instruments princi-
pally include crude oil, natural gas and refned product futures,
swaps, options, and forward contracts. None of the companys
derivative instruments is designated as a hedging instrument,
although certain of the companys afliates make such des-
ignation. Te companys derivatives are not material to the
companys fnancial position, results of operations or liquidity.
Te company believes it has no material market or credit risks
to its operations, fnancial position or liquidity as a result of its
commodity derivative activities.
Te company uses derivative commodity instruments
traded on the New York Mercantile Exchange and on electronic
platforms of the Inter-Continental Exchange and Chicago
Mercantile Exchange. In addition, the company enters into
swap contracts and option contracts principally with major
fnancial institutions and other oil and gas companies in the
over-the-counter markets, which are governed by Interna-
tional Swaps and Derivatives Association agreements and other
master netting arrangements. Depending on the nature of the
derivative transactions, bilateral collateral arrangements may
also be required.
Derivative instruments measured at fair value at Decem-
ber 31, 2013, December 31, 2012, and December 31, 2011,
and their classifcation on the Consolidated Balance Sheet and
Consolidated Statement of Income are as follows:
Consolidated Balance Sheet: Fair Value of Derivatives Not
Designated as Hedging Instruments
Balance Sheet At December 31 At December 31
Type of Contract Classifcation 2013 2012
Commodity Accounts and
notes receivable, net $ 22 $ 57
Commodity Long-term
receivables, net 6 29
Total Assets at Fair Value $ 28 $ 86
Commodity Accounts payable $ 65 $ 112
Commodity Deferred credits and other
noncurrent obligations 24 37
Total Liabilities at Fair Value $ 89 $ 149
Consolidated Statement of Income: Te Efect of Derivatives Not
Designated as Hedging Instruments
Gain/(Loss)
Type of Derivative Statement of
Contract Income Classifcation 2013 2012 2011
Commodity Sales and other
operating revenues $ (108) $ (49) $ (255)
Commodity Purchased crude oil
and products (77) (24) 15
Commodity Other income (9) 6 (2)
$ (194) $ (67) $ (242)
Note 9 Fair Value Measurements Continued
FS-35
Derivative assets and liabilities are classifed on the Con-
solidated Balance Sheet as accounts and notes receivable,
long-term receivables, accounts payable, and deferred credits
and other noncurrent obligations. Amounts not ofset on the
Consolidated Balance Sheet represent positions that do not
meet all the conditions for a right of ofset.
Concentrations of Credit Risk Te companys fnancial
instruments that are exposed to concentrations of credit risk
consist primarily of its cash equivalents, time deposits, mar-
ketable securities, derivative fnancial instruments and trade
receivables. Te companys short-term investments are placed
with a wide array of fnancial institutions with high credit
ratings. Company investment policies limit the companys
exposure both to credit risk and to concentrations of credit
risk. Similar policies on diversifcation and creditworthiness
are applied to the companys counterparties in derivative
instruments.
Te trade receivable balances, refecting the companys
diver sifed sources of revenue, are dispersed among the
companys broad customer base worldwide. As a result, the
company believes concentrations of credit risk are limited.
Te company routinely assesses the fnancial strength of its
customers. When the fnancial strength of a customer is not
considered sufcient, alternative risk mitigation measures may
be deployed including requiring pre-payments, letters of credit
or other acceptable collateral instruments to support sales
to customers.
Note 11
Operating Segments and Geographic Data
Although each subsidiary of Chevron is responsible for its
own afairs, Chevron Corporation manages its investments in
these subsidiaries and their afliates. Te investments are
grouped into two business segments, Upstream and Down-
stream, representing the companys reportable segments and
operating segments. Upstream operations consist primarily
Te table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated
Balance Sheet at December 31, 2013 and December 31, 2012.
Consolidated Balance Sheet: Te Efect of Netting Derivative Assets and Liabilities
Gross Amount
Recognized
Gross Amounts
Ofset
Net Amounts
Presented
Gross Amounts
Not Ofset Net Amount
At December 31, 2013
Derivative Assets $ 732 $ 704 $ 28 $ 27 $ 1
Derivative Liabilities $ 793 $ 704 $ 89 $ $ 89
Derivative Assets $ 749 $ 663 $ 86 $ 64 $ 22
Derivative Liabilities $ 812 $ 663 $ 149 $ 5 $ 144
of exploring for, developing and producing crude oil and natu-
ral gas; liquefaction, transportation and regasifcation
associated with liquefed natural gas (LNG); transporting
crude oil by major international oil export pipelines; process-
ing, transporting, storage and marketing of natural gas; and a
gas-to-liquids project. Downstream operations consist primar-
ily of refning of crude oil into petroleum products; marketing
of crude oil and refned products; transporting of crude oil and
refned products by pipeline, marine vessel, motor equipment
and rail car; and manufacturing and marketing of commodity
petrochemicals, plastics for industrial uses, and fuel and lubri-
cant additives. All Other activities of the company include
mining operations, power and energy services, worldwide cash
management and debt fnancing activities, corporate adminis-
trative functions, insurance operations, real estate activities,
alternative fuels, and technology companies.
Te segments are separately managed for investment pur-
poses under a structure that includes segment managers
who report to the companys chief operating decision maker
(CODM). Te CODM is the companys Executive Commit-
tee (EXCOM), a committee of senior ofcers that includes the
Chief Executive Ofcer, and EXCOM reports to the Board of
Directors of Chevron Corporation.
Te operating segments represent components of the
company, that engage in activities (a) from which revenues are
earned and expenses are incurred; (b) whose operating results
are regularly reviewed by the CODM, which makes decisions
about resources to be allocated to the segments and assesses
their performance; and (c) for which discrete fnancial infor-
mation is available.
Segment managers for the reportable segments are
directly accountable to and maintain regular contact with the
companys CODM to discuss the segments operating activities
and fnancial performance. Te CODM approves annual
capital and exploratory budgets at the reportable segment level,
as well as reviews capital and exploratory funding for major
projects and approves major changes to the annual capital and
Note 10 Financial and Derivative Instruments Continued
FS-36
exploratory budgets. However, business-unit managers within
the operating segments are directly responsible for decisions
relating to project implementation and all other matters con-
nected with daily operations. Company ofcers who are
members of the EXCOM also have individual management
responsibilities and participate in other committees for pur-
poses other than acting as the CODM.
Te companys primary country of operation is the
United States of America, its country of domicile. Other
components of the companys operations are reported as
International (outside the United States).
Segment Earnings Te company evaluates the performance
of its operating segments on an after-tax basis, without con-
sidering the efects of debt fnancing interest expense or
investment interest income, both of which are managed by the
company on a worldwide basis. Corporate administrative
costs and assets are not allocated to the operating segments.
However, operating segments are billed for the direct use of
corporate services. Nonbillable costs remain at the corporate
level in All Other. Earnings by major operating area are pre-
sented in the following table:
2013 2012 2011
Segment Earnings
Upstream
United States $ 4,044 $ 5,332 $ 6,512
International 16,765 18,456 18,274
Total Upstream 20,809 23,788 24,786
Downstream
United States 787 2,048 1,506
Total Segment Earnings 23,046 28,087 28,377
All Other
Interest income 80 83 78
Other (1,703) (1,991) (1,560)
Net Income Attributable
to Chevron Corporation $ 21,423 $ 26,179 $ 26,895
Segment Assets Segment assets do not include intercompany
investments or intercompany receivables. Segment assets at
year-end 2013 and 2012 are as follows:
At December 31
2013 2012
Upstream
United States $ 45,436 $ 41,891
International 137,096 115,806
Total Upstream 187,171 162,337
Downstream
United States 23,829 23,023
Total Downstream 44,097 43,047
Total Segment Assets 231,268 205,384
All Other
United States 7,326 7,727
Total All Other 22,485 27,598
Total Assets United States 76,591 72,641
Total Assets International 172,523 155,701
Total Assets $ 253,753 $ 232,982
Segment Sales and Other Operating Revenues Operat-
ing segment sales and other operating revenues, including
internal transfers, for the years 2013, 2012 and 2011, are
presented in the table that follows. Products are transferred
between operating segments at internal product values that
approximate market prices.
Revenues for the upstream segment are derived primarily
from the production and sale of crude oil and natural gas,
as well as the sale of third-party production of natural gas.
Revenues for the downstream segment are derived from the
refning and marketing of petroleum products such as gaso-
line, jet fuel, gas oils, lubricants, residual fuel oils and other
products derived from crude oil. Tis segment also gener-
ates revenues from the manufacture and sale of additives for
fuels and lubricant oils and the transportation and trading of
refned products, crude oil and natural gas liquids.
Note 11 Operating Segments and Geographic Data Continued
FS-37
Note 11 Operating Segments and Geographic Data Continued
2013 2012 2011
Upstream
United States $ 8,052 $ 6,416 $ 9,623
Intersegment 16,865 17,229 18,115
International 17,607 19,459 20,086
Intersegment 33,034 34,094 35,012
Total Upstream 75,558 77,198 82,836
Downstream
United States 80,272 83,043 86,793
Excise and similar taxes 4,792 4,665 4,199
Intersegment 39 49 86
International 105,373 113,279 119,254
Excise and similar taxes 3,699 3,346 3,886
All Other
United States 358 378 526
Intersegment 1,524 1,300 1,072
International 3 4 4
Total International 34 52 46
Total All Other 1,916 1,730 1,644
Segment Sales and Other
Operating Revenues
United States 111,902 113,080 120,414
International 160,606 170,310 178,365
Total Segment Sales and Other
Operating Revenues 272,508 283,390 298,779
Elimination of intersegment sales (52,352) (52,800) (54,408)
Total Sales and Other
Operating Revenues $ 220,156 $ 230,590 $ 244,371
Segment Income Taxes Segment income tax expense for
the years 2013, 2012 and 2011 is as follows:
2013 2012 2011
Upstream
United States $ 2,333 $ 2,820 $ 3,701
International 12,470 16,554 16,743
Total Upstream 14,803 19,374 20,444
Downstream
United States 364 1,051 785
International 389 587 416
Total Downstream 753 1,638 1,201
All Other (1,248) (1,016) (1,019)
Total Income Tax Expense $ 14,308 $ 19,996 $ 20,626
Other Segment Information Additional information for
thesegmentation of major equity afliates is contained in
Note 12. Information related to proper ties, plant and
equipment by segment is contained in Note 13, on page FS-39.
Note 12
Investments and Advances
Equity in earnings, together with investments in and advances
to companies accounted for using the equity method and other
investments accounted for at or below cost, is shown in the fol-
lowing table. For certain equity afliates, Chevron pays its share
of some income taxes directly. For such afliates, the equity in
earnings does not include these taxes, which are reported on the
Consolidated Statement of Income as Income tax expense.
Investments and Advances Equity in Earnings
At December 31 Year ended December 31
2013 2012 2013 2012 2011
Upstream
Tengizchevroil $ 5,875 $ 5,451 $ 4,957 $ 4,614 $5,097
Petropiar 858 952 339 55 116
Caspian Pipeline Consortium 1,298 1,187 113 96 122
Petroboscan 1,375 1,261 300 229 247
Angola LNG Limited 3,423 3,186 (111) (106) (42)
Other 2,835 2,658 214 266 166
Total Upstream 15,664 14,695 5,812 5,154 5,706
Downstream
GS Caltex Corporation 2,518 2,610 132 249 248
Chevron Phillips Chemical
Company LLC 4,312 3,451 1,371 1,206 985
Star Petroleum Refning
Company Ltd. 22 75
Caltex Australia Ltd. 1,020 835 224 77 117
Other 989 837 199 196 183
Total Downstream 8,839 7,733 1,926 1,750 1,608
All Other
Other 375 640 (211) (15) 49
Total equity method $ 24,878 $ 23,068 $ 7,527 $ 6,889 $ 7,363
Other at or below cost 624 650
Total investments and
advances $ 25,502 $ 23,718
Total United States $ 6,638 $ 5,788 $ 1,294 $ 1,268 $ 1,119
Total International $ 18,864 $ 17,930 $ 6,233 $ 5,621 $ 6,244
Descriptions of major afliates, including signifcant
diferences between the companys carrying value of its
investments and its underlying equity in the net assets of
the afliates, are as follows:
Tengizchevroil Chevron has a 50 percent equity ownership
interest in Tengizchevroil (TCO), which was formed in 1993
to develop the Tengiz and Korolev crude oil felds in Kazakh-
stan over a 40-year period. At December 31, 2013, the
companys carrying value of its investment in TCO was about
$160 higher than the amount of underlying equity in TCOs
net assets. Tis diference results from Chevron acquiring
aportion of its interest in TCO at a value greater than the
underlying book value for that portion of TCOs net assets.
See Note 7, on page FS-32, for summarized fnancial
informa tion for 100 percent of TCO.
FS-38
Petropiar Chevron has a 30 percent interest in Petropiar, a
joint stock company formed in 2008 to operate the Hamaca
heavy-oil production and upgrading project. Te project, located
in Venezuelas Orinoco Belt, has a 25-year contract term. Prior
to the formation of Petropiar, Chevron had a 30 percent interest
in the Hamaca project. At December 31, 2013, the companys
carrying value of its investment in Petropiar was approximately
$170 less than the amount of underlying equity in Petropiars net
assets. Te diference represents the excess of Chevrons underly-
ing equity in Petropiars net assets over the net book value of the
assets contributed to the venture.
Caspian Pipeline Consortium Chevron has a 15 percent
interest in the Caspian Pipeline Consortium, a variable
interest entity, which provides the critical export route for
crude oil from both TCO and Karachaganak. Te company
joined the consortium in 1997 and has investments and
advances totaling $1,298, which includes long-term loans of
$1,251 at year-end 2013. Te loans were provided to fund
30 percent of the initial pipeline construction. Te company
is not the primary benefciary of the consortium because it
does not direct activities of the consortium and only receives
its proportionate share of the fnancial returns.
Petroboscan Chevron has a 39 percent interest in Petro-
boscan, a joint stock company formed in 2006 to operate the
Boscan Field in Venezuela until 2026. Chevron previously
operated the feld under an operating service agreement. At
December 31, 2013, the companys carrying value of its
investment in Petroboscan was approximately $180 higher
than the amount of underlying equity in Petroboscans net
assets. Te diference refects the excess of the net book value
of the assets contributed by Chevron over its underlying
equity in Petroboscans net assets. In 2013, Chevron fnalized
a fnancial agreement with Petroboscan. Te fnancing, not to
exceed $2 billion, will occur in stages over a limited draw-
down period set to expire on December 31, 2018. Te loan
will support a specifc work program to maintain and increase
production to an agreed-upon level. Te terms are designed to
Note 12 Investment and Advances Continued
support cash needs for ongoing operations and new develop-
ment, as well as distributions.
Angola LNG Ltd. Chevron has a 36 percent interest in
Angola LNG Ltd., which processes and liquefes natural gas
produced in Angola for delivery to international markets.
GS Caltex Corporation Chevron owns 50 percent of GS
Caltex Corporation, a joint venture with GS Energy. Te
joint venture imports, refnes and markets petroleum prod-
ucts and petrochemicals, predominantly in South Korea.
Chevron Phillips Chemical Company LLC Chevron owns
50 percent of Chevron Phillips Chemical Company LLC.
Te other half is owned by Phillips 66.
Caltex Australia Ltd. Chevron has a 50 percent equity
owner ship interest in Caltex Australia Ltd. (CAL). Te
remaining 50 percent of CAL is publicly owned. At
December 31, 2013, the fair value of Chevrons share
ofCAL common stock was approximately $2,400.
Other Information Sales and other operating revenues
on the Consolidated Statement of Income includes $14,635,
$17,356 and $20,164 with afliated companies for 2013, 2012
and 2011, respectively. Purchased crude oil and products
includes $7,063, $6,634 and $7,489 with afliated companies
for 2013, 2012 and 2011, respectively.
Accounts and notes receivable on the Consolidated
Balance Sheet includes $1,328 and $1,207 due from afliated
companies at December 31, 2013 and 2012, respectively.
Accounts payable includes $466 and $407 due to afliated
companies at December 31, 2013 and 2012, respectively.
Te following table provides summarized fnancial infor-
mation on a 100 percent basis for all equity afliates as well
as Chevrons total share, which includes Chevrons net loans
to afliates of $1,129, $1,494 and $957 at December 31,

Afliates Chevron Share
Year ended December 31 2013 2012 2011 2013 2012 2011
Total revenues $ 131,875 $136,065 $ 140,107 $ 63,101 $ 65,196 $ 68,632
Income before income tax expense 24,075 23,016 23,054 11,108 9,856 10,555
Net income attributable to afliates 15,594 16,786 16,663 7,845 6,938 7,413
At December 31
Current assets $ 39,713 $ 37,541 $ 35,573 $ 15,156 $ 14,732 $ 14,695
Noncurrent assets 68,593 66,065 61,855 25,059 23,523 22,422
Current liabilities 29,642 27,878 24,671 11,587 11,093 11,040
Noncurrent liabilities 19,442 19,366 19,267 4,559 4,879 4,491
Total afliates net equity $ 59,222 $ 56,362 $ 53,490 $ 24,069 $ 22,283 $ 21,586
FS-39
Note 14
Litigation
MTBE Chevron and many other companies in the petroleum
industry have used methyl tertiary butyl ether (MTBE) as a
gasoline additive. Chevron is a party to ten pending lawsuits
and claims, the majority of which involve numerous other
petroleum marketers and refners. Resolution of these lawsuits
and claims may ultimately require the company to correct
or ameliorate the alleged efects on the environment of prior
release of MTBE by the company or other parties. Additional
lawsuits and claims related to the use of MTBE, including
personal-injury claims, may be fled in the future. Te compa-
nys ultimate exposure related to pending lawsuits and claims
is not determinable. Te company no longer uses MTBE in
the manufacture of gasoline in the United States.
Ecuador Chevron is a defendant in a civil lawsuit initiated in
the Superior Court of Nueva Loja in Lago Agrio, Ecuador, in
May 2003 by plaintifs who claim to be representatives of cer-
tain residents of an area where an oil production consortium
formerly had operations. Te lawsuit alleges damage to the
environment from the oil exploration and production opera-
tions and seeks unspecifed damages to fund environmental
remediation and restoration of the alleged environmental
harm, plus a health monitoring program. Until 1992, Texaco
Petroleum Company (Texpet), a subsidiary of Texaco Inc.,
was a minority member of this consortium with Petroecuador,
Note 13
Properties, Plant and Equipment
1
At December 31 Year ended December 31
Gross Investment at Cost Net Investment Additions at Cost
2,3
Depreciation Expense
4
2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011
Upstream
United States $ 89,555 $ 81,908 $ 74,369 $ 41,831 $ 37,909 $ 33,461 $ 8,188 $ 8,211 $ 14,404 $ 4,412 $ 3,902 $ 3,870
International 169,623 145,799 125,795 104,100 85,318 72,543 27,383 21,343 15,722 8,336 8,015 7,590
Total Upstream 259,178 227,707 200,164 145,931 123,227 106,004 35,571 29,554 30,126 12,748 11,917 11,460
Downstream
United States 22,407 21,792 20,699 11,481 11,333 10,723 1,154 1,498 1,226 780 799 776
International 9,303 8,990 7,422 4,139 3,930 2,995 653 2,544 443 360 308 332
Total Downstream 31,710 30,782 28,121 15,620 15,263 13,718 1,807 4,042 1,669 1,140 1,107 1,108
All Other
5
United States 5,402 4,959 5,117 3,194 2,845 2,872 721 415 591 286 384 338
International 143 33 30 84 13 14 23 4 5 12 5 5
Total All Other 5,545 4,992 5,147 3,278 2,858 2,886 744 419 596 298 389 343
Total United States 117,364 108,659 100,185 56,506 52,087 47,056 10,063 10,124 16,221 5,478 5,085 4,984
Total International 179,069 154,822 133,247 108,323 89,261 75,552 28,059 23,891 16,170 8,708 8,328 7,927
Total $ 296,433 $ 263,481 $ 233,432 $ 164,829 $ 141,348 $ 122,608 $ 38,122 $ 34,015 $ 32,391 $ 14,186 $ 13,413 $ 12,911
1
Other than the United States, Australia and Nigeria, no other country accounted for 10 percent or more of the companys net properties, plant and equipment (PP&E) in 2013.
Australia had $31,464, $21,770 and $12,423 in 2013, 2012 and 2011, respectively. Nigeria had PP&E of $18,429, $17,485 and $15,601 for 2013, 2012 and 2011, respectively.
2
Net of dry hole expense related to prior years expenditures of $89, $80 and $45 in 2013, 2012 and 2011, respectively.
3
Includes properties acquired with the acquisition of Atlas Energy, Inc., in 2011.
4
Depreciation expense includes accretion expense of $627, $629 and $628 in 2013, 2012 and 2011, respectively.
5
Primarily mining operations, power and energy services, real estate assets and management information systems.
the Ecuadorian state-owned oil company, as the majority
partner; since 1990, the operations have been conducted
solely by Petroecuador. At the conclusion of the consortium
and following an independent third-party environmental
audit of the concession area, Texpet entered into a formal
agreement with the Republic of Ecuador and Petroecuador
for Texpet to remediate specifc sites assigned by the govern-
ment in proportion to Texpets ownership share of the
consortium. Pursuant to that agreement, Texpet conducted a
three-year remediation program at a cost of $40. After certi-
fying that the sites were properly remediated, the government
granted Texpet and all related corporate entities a full release
from any and all environmental liability arising from the con-
sortium operations.
Based on the history described above, Chevron believes
that this lawsuit lacks legal or factual merit. As to mat-
ters of law, the company believes frst, that the court lacks
jurisdiction over Chevron; second, that the law under which
plaintifs bring the action, enacted in 1999, cannot be applied
retroactively; third, that the claims are barred by the statute
of limitations in Ecuador; and, fourth, that the lawsuit is also
barred by the releases from liability previously given to Tex-
pet by the Republic of Ecuador and Petroecuador and by the
pertinent provincial and municipal governments. With regard
to the facts, the company believes that the evidence confrms
that Texpets remediation was properly conducted and that
the remaining environmental damage refects Petroecuadors
Note 13 Properties, Plant and Equipment
FS-40
failure to timely fulfll its legal obligations and Petroecua-
dors further conduct since assuming full control over the
operations.
In 2008, a mining engineer appointed by the court to
identify and determine the cause of environmental dam-
age, and to specify steps needed to remediate it, issued a
report recommending that the court assess $18,900, which
would, according to the engineer, provide fnancial com-
pensation for purported damages, including wrongful death
claims, and pay for, among other items, environmental
remediation, health care systems and additional infrastruc-
ture for Petroecuador. Te engineers report also asserted
that an additional $8,400 could be assessed against Chevron
for unjust enrichment. In 2009, following the disclosure by
Chevron of evidence that the judge participated in meetings
in which businesspeople and individuals holding themselves
out as government ofcials discussed the case and its likely
outcome, the judge presiding over the case was recused. In
2010, Chevron moved to strike the mining engineers report
and to dismiss the case based on evidence obtained through
discovery in the United States indicating that the report was
prepared by consultants for the plaintifs before being pre-
sented as the mining engineers independent and impartial
work and showing further evidence of misconduct. In August
2010, the judge issued an order stating that he was not bound
by the mining engineers report and requiring the parties to
provide their positions on damages within 45 days. Chevron
subsequently petitioned for recusal of the judge, claiming
that he had disregarded evidence of fraud and misconduct
and that he had failed to rule on a number of motions within
the statutory time requirement.
In September 2010, Chevron submitted its position
on damages, asserting that no amount should be assessed
against it. Te plaintifs submission, which relied in part on
the mining engineers report, took the position that damages
are between approximately $16,000 and $76,000 and that
unjust enrichment should be assessed in an amount between
approximately $5,000 and $38,000. Te next day, the judge
issued an order closing the evidentiary phase of the case and
notifying the parties that he had requested the case fle so
that he could prepare a judgment. Chevron petitioned to
have that order declared a nullity in light of Chevrons prior
recusal petition, and because procedural and evidentiary
matters remained unresolved. In October 2010, Chevrons
motion to recuse the judge was granted. A new judge took
charge of the case and revoked the prior judges order closing
the evidentiary phase of the case. On December 17, 2010,
the judge issued an order closing the evidentiary phase of the
case and notifying the parties that he had requested the case
fle so that he could prepare a judgment.
On February 14, 2011, the provincial court in Lago
Agrio rendered an adverse judgment in the case. Te court
rejected Chevrons defenses to the extent the court addressed
them in its opinion. Te judgment assessed approximately
$8,600 in damages and approximately $900 as an award
for the plaintifs representatives. It also assessed an addi-
tional amount of approximately $8,600 in punitive damages
unless the company issued a public apology within 15 days
of the judgment, which Chevron did not do. On Febru-
ary 17, 2011, the plaintifs appealed the judgment, seeking
increased damages, and on March 11, 2011, Chevron
appealed the judgment seeking to have the judgment nulli-
fed. On January 3, 2012, an appellate panel in the provincial
court afrmed the February 14, 2011 decision and ordered
that Chevron pay additional attorneys fees in the amount
of 0.10% of the values that are derived from the decisional
act of this judgment. Te plaintifs fled a petition to clarify
and amplify the appellate decision on January 6, 2012, and
the court issued a ruling in response on January 13, 2012,
purporting to clarify and amplify its January 3, 2012 rul-
ing, which included clarifcation that the deadline for the
company to issue a public apology to avoid the additional
amount of approximately $8,600 in punitive damages was
within 15 days of the clarifcation ruling, or February 3,
2012. Chevron did not issue an apology because doing so
might be mischaracterized as an admission of liability and
would be contrary to facts and evidence submitted at trial.
On January 20, 2012, Chevron appealed (called a petition for
cassation) the appellate panels decision to Ecuadors National
Court of Justice. As part of the appeal, Chevron requested the
suspension of any requirement that Chevron post a bond to pre-
vent enforcement under Ecuadorian law of the judgment during
the cassation appeal. On February 17, 2012, the appellate panel
of the provincial court admitted Chevrons cassation appeal in a
procedural step necessary for the National Court of Justice to hear
the appeal. Te provincial court appellate panel denied Chevrons
request for a suspension of the requirement that Chevron post
a bond and stated that it would not comply with the First and
Second Interim Awards of the international arbitration tribunal
discussed on the next page. On March 29, 2012, the matter was
transferred from the provincial court to the National Court of
Justice, and on November 22, 2012, the National Court agreed
to hear Chevrons cassation appeal. On August 3, 2012, the
provincial court in Lago Agrio approved a court-appointed liqui-
dators report on damages that calculated the total judgment in
the case to be $19,100. On November 13, 2013, the National
Court ratifed the judgment but nullifed the $8,600 punitive
damage assessment resulting in a judgment of $9,500. On
December 23, 2013, Chevron appealed the decision to the
Ecuador Constitutional Court, Ecuadors highest court.
Note 14 Litigation Continued
FS-41
to be embargoed, requiring third parties to withhold 40
percent of any payments due to Chevron Argentina S.R.L.
and ordering banks to withhold 40 percent of the funds in
Chevron Argentina S.R.L. bank accounts. On December
14th, 2012, the Argentinean court rejected a motion to revoke
the Freeze Order but modifed it by ordering that third par-
ties are not required to withhold funds but must report their
payments. Te court also clarifed that the Freeze Order relat-
ing to bank accounts excludes taxes. On January 30, 2013,
an appellate court upheld the Freeze Order, but on June 4,
2013 the Supreme Court of Argentina revoked the Freeze
Order in its entirety. On December 12, 2013, the Lago Agrio
plaintifs served Chevron with notice of their fling of an
enforcement proceeding in the National Court, First Instance,
of Argentina. Chevron intends to vigorously defend against
the proceeding. Chevron continues to believe the provincial
courts judgment is illegitimate and unenforceable in Ecuador,
the United States and other countries. Te company also
believes the judgment is the product of fraud, and contrary to
the legitimate scientifc evidence. Chevron cannot predict the
timing or ultimate outcome of the appeals process in Ecuador
or any enforcement action. Chevron expects to continue a
vigorous defense of any imposition of liability in the
Ecuadorian courts and to contest and defend any and all
enforcement actions.
Chevron and Texpet fled an arbitration claim in
September 2009 against the Republic of Ecuador before an
arbitral tribunal presiding in the Permanent Court of Arbi-
tration in Te Hague under the Rules of the United Nations
Commission on International Trade Law. Te claim alleges
violations of the Republic of Ecuadors obligations under
the United StatesEcuador Bilateral Investment Treaty
(BIT) and breaches of the settlement and release agreements
between the Republic of Ecuador and Texpet (described
above), which are investment agreements protected by the
BIT. Trough the arbitration, Chevron and Texpet are
seeking relief against the Republic of Ecuador, including a
declaration that any judgment against Chevron in the Lago
Agrio litigation constitutes a violation of Ecuadors obliga-
tions under the BIT. On February 9, 2011, the Tribunal
issued an Order for Interim Measures requiring the Republic
of Ecuador to take all measures at its disposal to suspend or
cause to be suspended the enforcement or recognition within
and without Ecuador of any judgment against Chevron in
the Lago Agrio case pending further order of the Tribunal.
On January 25, 2012, the Tribunal converted the Order for
Interim Measures into an Interim Award. Chevron fled a
renewed application for further interim measures on Janu-
ary 4, 2012, and the Republic of Ecuador opposed Chevrons
application and requested that the existing Order for Interim
Measures be vacated on January 9, 2012. On February 16,
On July 2, 2013, the provincial court in Lago Agrio
issued an embargo order in Ecuador ordering that any funds
to be paid by the Government of Ecuador to Chevron to sat-
isfy a $96 award issued in an unrelated action by an arbitral
tribunal presiding in the Permanent Court of Arbitration in
Te Hague under the Rules of the United Nations Commis-
sion on International Trade Law must be paid to the Lago
Agrio plaintifs. Te award was issued by the tribunal under
the United States-Ecuador Bilateral Investment Treaty in
an action fled in 2006 in connection with seven breach of
contract cases that Texpet fled against the Government of
Ecuador between 1991 and 1993. Te Government of Ecua-
dor has appealed the tribunals award. A Federal District
Court for the District of Columbia confrmed the tribunals
award, and the Government of Ecuador has appealed the
District Courts decision.
Chevron has no assets in Ecuador, and the Lago Agrio
plaintifs lawyers have stated in press releases and through
other media that they will seek to enforce the Ecuadorian
judgment in various countries and otherwise disrupt
Chevrons operations. On May 30, 2012, the Lago Agrio
plaintifs fled an action against Chevron Corporation,
Chevron Canada Limited, and Chevron Canada Finance
Limited in the Ontario Superior Court of Justice in Ontario,
Canada, seeking to recognize and enforce the Ecuadorian
judgment. On May 1, 2013, the Ontario Superior Court of
Justice held that the court has jurisdiction over Chevron and
Chevron Canada Limited for purposes of the action, but
stayed the action due to the absence of evidence that Chevron
Corporation has assets in Ontario. Te Lago Agrio plaintifs
appealed that decision. On December 17, 2013, the Court of
Appeals for Ontario afrmed the lower courts decision on
jurisdiction and set aside the stay, allowing the recognition
and enforcement action to be heard in the Ontario Superior
Court of Justice. Chevron has appealed the decision concern-
ing jurisdiction to the Supreme Court of Canada and, on
January 16, 2014, the Court of Appeals for Ontario granted
Chevrons motion to stay the recognition and enforcement
proceeding pending a decision on the admissibility of the
Supreme Court appeal.
On June 27, 2012, the Lago Agrio plaintifs fled an
action against Chevron Corporation in the Superior Court of
Justice in Brasilia, Brazil, seeking to recognize and enforce the
Ecuadorian judgment. On October 15, 2012, the provincial
court in Lago Agrio issued an ex parte embargo order that
purports to order the seizure of assets belonging to separate
Chevron subsidiaries in Ecuador, Argentina and Colombia.
On November 6, 2012, at the request of the Lago Agrio
plaintifs, a court in Argentina issued a Freeze Order against
Chevron Argentina S.R.L. and another Chevron subsidiary,
Ingeniero Nortberto Priu, requiring shares of both companies
FS-42
2012, the Tribunal issued a Second Interim Award mandat-
ing that the Republic of Ecuador take all measures necessary
(whether by its judicial, legislative or executive branches) to
suspend or cause to be suspended the enforcement and recog-
nition within and without Ecuador of the judgment against
Chevron and, in particular, to preclude any certifcation
by the Republic of Ecuador that would cause the judgment
to be enforceable against Chevron. On February 27, 2012,
the Tribunal issued a Tird Interim Award confrming its
jurisdiction to hear Chevrons arbitration claims. On Febru-
ary 7, 2013, the Tribunal issued its Fourth Interim Award in
which it declared that the Republic of Ecuador has violated
the First and Second Interim Awards under the [BIT], the
UNCITRAL Rules and international law in regard to the
fnalization and enforcement subject to execution of the Lago
Agrio Judgment within and outside Ecuador, including (but
not limited to) Canada, Brazil and Argentina. Te Tribunal
has divided the merits phase of the proceedings into three
phases. On September 17, 2013, the Tribunal issued its First
Partial Award from Phase One, fnding that the settlement
agreements between the Republic of Ecuador and Texpet
applied to Texpet and Chevron, released Texpet and Chevron
from claims based on collective or difuse rights arising
from Texpets operations in the former concession area and
precluded third parties from asserting collective/difuse rights
environmental claims relating to Texpets operations in the
former concession area but did not preclude individual claims
for personal harm. Chevron expects that the application
of this ruling will be considered by the Tribunal in Phase
Two, including a determination of whether the claims of the
Lago Agrio plaintifs are individual or collective/difuse. Te
Tribunal had set Phase Two to begin on January 20, 2014
to hear Chevrons denial of justice claims, but on January
2, 2014, the Tribunal postponed Phase Two and held a pro-
cedural hearing on January 20-21, 2014. Te Tribunal set
a hearing on April 28-30, 2014 to address remaining issues
relating to Phase One. It also set a hearing on April 20 to
May 6, 2015 to address Phase Two issues. Te Tribunal has
not set a date for Phase Tree, which will be the damages
phase of the arbitration.
Trough a series of U.S. court proceedings initiated by
Chevron to obtain discovery relating to the Lago Agrio litiga-
tion and the BIT arbitration, Chevron obtained evidence that
it believes shows a pattern of fraud, collusion, corruption, and
other misconduct on the part of several lawyers, consultants
and others acting for the Lago Agrio plaintifs. In February
2011, Chevron fled a civil lawsuit in the Federal District
Court for the Southern District of New York against the Lago
Agrio plaintifs and several of their lawyers, consultants and
supporters, alleging violations of the Racketeer Infuenced and
Corrupt Organizations Act and other state laws. Trough the
civil lawsuit, Chevron is seeking relief that includes a declara-
tion that any judgment against Chevron in the Lago Agrio
litigation is the result of fraud and other unlawful conduct
and is therefore unenforceable. On March 7, 2011, the Federal
District Court issued a preliminary injunction prohibiting
the Lago Agrio plaintifs and persons acting in concert with
them from taking any action in furtherance of recognition or
enforcement of any judgment against Chevron in the Lago
Agrio case pending resolution of Chevrons civil lawsuit by
the Federal District Court. On May 31, 2011, the Federal
District Court severed claims one through eight of Chev-
rons complaint from the ninth claim for declaratory relief
and imposed a discovery stay on claims one through eight
pending a trial on the ninth claim for declaratory relief. On
September 19, 2011, the U.S. Court of Appeals for the Second
Circuit vacated the preliminary injunction, stayed the trial on
Chevrons ninth claim, a claim for declaratory relief, that had
been set for November 14, 2011, and denied the defendants
mandamus petition to recuse the judge hearing the lawsuit.
Te Second Circuit issued its opinion on January 26, 2012
ordering the dismissal of Chevrons ninth claim for declara-
tory relief. On February 16, 2012, the Federal District Court
lifted the stay on claims one through eight, and on October
18, 2012, the Federal District Court set a trial date of
October 15, 2013. On March 22, 2013, Chevron settled its
claims against Stratus Consulting, and on April 12, 2013
sworn declarations by representatives of Stratus Consulting
were fled with the Court admitting their role and that of
the plaintifs attorneys in drafting the environmental report
of the mining engineer appointed by the provincial court
in Lago Agrio. On September 26, 2013, the Second Circuit
denied the defendants Petition for Writ of Mandamus to
recuse the judge hearing the case and to collaterally estop
Chevron from seeking a declaration that the Lago Agrio
judgment was obtained through fraud and other unlawful
conduct. Te trial commenced on October 15, 2013 and
concluded on November 22, 2013. Post-trial briefng has
concluded, but no decision has been rendered by the Federal
District Court as of the date of this report.
Te ultimate outcome of the foregoing matters, including
any fnancial efect on Chevron, remains uncertain. Manage-
ment does not believe an estimate of a reasonably possible
loss (or a range of loss) can be made in this case. Due to the
defects associated with the Ecuadorian judgment, the 2008
engineers report on alleged damages and the September 2010
plaintifs submission on alleged damages, management does
not believe these documents have any utility in calculating
a reasonably possible loss (or a range of loss). Moreover, the
highly uncertain legal environment surrounding the case
provides no basis for management to estimate a reasonably
possible loss (or a range of loss).
FS-43
Note 15 Taxes
Note 15
Taxes
Income Taxes
2013 2012 2011
Taxes on income
U.S. federal
Current $ 15 $ 1,703 $ 1,893
Deferred 1,128 673 877
State and local
Current 120 652 596
Deferred 74 (145) 41
International
Current 12,296 15,626 16,548
Deferred 675 1,487 671
Total taxes on income $ 14,308 $ 19,996 $ 20,626
In 2013, before-tax income for U.S. operations, including
related corporate and other charges, was $4,672, compared
with before-tax income of $8,456 and $10,222 in 2012 and
2011, respectively. For international operations, before-tax
income was $31,233, $37,876 and $37,412 in 2013, 2012
and2011, respectively. U.S. federal income tax expense was
reduced by $175, $165 and $191 in 2013, 2012 and 2011,
respectively, for business tax credits.
Te reconciliation between the U.S. statutory federal
income tax rate and the companys efective income tax rate
isdetailed in the following table:
2013 2012 2011
U.S. statutory federal income tax rate 35.0% 35.0% 35.0%
Efect of income taxes from inter-
national operations at rates diferent
from the U.S. statutory rate 5.1 7.8 7.5
State and local taxes on income, net
of U.S. federal income tax beneft 0.6 0.6 0.9
Prior-year tax adjustments (0.8) (0.2) (0.1)
Tax credits (0.5) (0.4) (0.4)
Efects of changes in tax rates 0.3 0.5
Other 0.5 0.1 (0.1)
Efective tax rate 39.9% 43.2% 43.3%
Te companys efective tax rate decreased from
43.2 percent in 2012 to 39.9 percent in 2013. Te decrease was
primarily due to a lower efective tax rate in international
upstream operations. Te lower international upstream efec-
tive tax rate was driven by a greater portion of equity income
in 2013 than in 2012 (equity income is included as part of
before-tax income and is generally recorded net of income
taxes) and foreign currency remeasurement impacts.
Te company records its deferred taxes on a tax-
jurisdiction basis and classifes those net amounts as current
or noncurrent based on the balance sheet classifcation of the
related assets or liabilities. Te reported deferred tax balances
are composed of the following:
At December 31
2013 2012
Deferred tax liabilities
Properties, plant and equipment $ 25,936 $ 24,295
Investments and other 2,272 2,276
Total deferred tax liabilities 28,208 26,571
Deferred tax assets
Foreign tax credits (11,572) (10,817)
Abandonment/environmental reserves (6,279) (5,728)
Employee benefts (3,825) (5,100)
Deferred credits (2,768) (2,891)
Tax loss carryforwards (1,016) (738)
Other accrued liabilities (533) (381)
Inventory (358) (281)
Miscellaneous (1,439) (1,835)
Total deferred tax assets (27,790) (27,771)
Deferred tax assets valuation allowance 17,171 15,443
Total deferred taxes, net $ 17,589 $ 14,243
Deferred tax liabilities at the end of 2013 increased by
approximately $1,600 from year-end 2012. Te increase was
related to increased temporary diferences for property, plant
and equipment. Deferred tax assets were essentially
unchanged between periods.
Te overall valuation allowance relates to deferred tax
assets for U.S. foreign tax credit carryforwards, tax loss carry-
forwards and temporary diferences. It reduces the deferred
tax assets to amounts that are, in managements assessment,
more likely than not to be realized. At the end of 2013, the
company had tax loss carryforwards of approximately $3,064
and tax credit carryforwards of approximately $1,301 primar-
ily related to various international tax jurisdictions. Whereas
some of these tax loss carryforwards do not have an expira-
tion date, others expire at various times from 2014 through
2029. U.S. foreign tax credit carryforwards of $11,572 will
expire between 2014 and 2023.
FS-44
Note 15 Taxes Continued
At December 31, 2013 and 2012, deferred taxes were
classifed on the Consolidated Balance Sheet as follows:
At December 31
2013 2012
Prepaid expenses and other current assets $ (1,341) $ (1,365)
Deferred charges and other assets (2,954) (2,662)
Federal and other taxes on income 583 598
Noncurrent deferred income taxes 21,301 17,672
Total deferred income taxes, net $ 17,589 $ 14,243
Income taxes are not accrued for unremitted earnings
of international operations that have been or are intended to
be reinvested indefnitely. Undistributed earnings of inter-
national consolidated subsidiaries and afliates for which
no deferred income tax provision has been made for possible
future remittances totaled approximately $31,300 at Decem-
ber 31, 2013. Tis amount represents earnings reinvested as
part of the companys ongoing international business. It is
not practicable to estimate the amount of taxes that might
be payable on the possible remittance of earnings that are
intended to be reinvested indefnitely. At the end of 2013,
deferred income taxes were recorded for the undistributed
earnings of certain international operations where indefnite
reinvestment of the earnings is not planned. Te company
does not anticipate incurring signifcant additional taxes on
remittances of earnings that are not indefnitely reinvested.
Uncertain Income Tax Positions Te company recognizes a
tax beneft in the fnancial statements for an uncertain tax
position only if managements assessment is that the position
is more likely than not (i.e., a likelihood greater than 50
percent) to be allowed by the tax jurisdiction based solely on
the technical merits of the position. Te term tax position
in the accounting standards for income taxes refers to a posi-
tion in a previously fled tax return or a position expected to
be taken in a future tax return that is refected in measuring
current or deferred income tax assets and liabilities for
interim or annual periods.
Te following table indicates the changes to the
companys unrecognized tax benefts for the years ended
December 31, 2013, 2012 and 2011. Te term unrecognized
tax benefts in the accounting standards for income taxes
refers to the diferences between a tax position taken or
expected to be taken in a tax return and the beneft measured
and recognized in the fnancial statements. Interest and
penalties are not included.
2013 2012 2011
Foreign currency efects (58) 4 (2)
Additions based on tax positions
taken in current year 276 543 469
Additions/reductions resulting from
current-year asset acquisitions/sales (41)
Additions for tax positions taken
in prior years 1,164 152 236
Reductions for tax positions taken
in prior years (176) (899) (366)
Settlements with taxing authorities
in current year (320) (138) (318)
Reductions as a result of a lapse
of the applicable statute of limitations (109) (72) (4)
Te increase in unrecognized tax benefts between
December 31, 2012, and December 31, 2013 was primarily
due to additions for refund claims to be fled with respect to
prior years.
Approximately 71 percent of the $3,848 of unrecognized
tax benefts at December 31, 2013, would have an impact
on the efective tax rate if subsequently recognized. Certain of
these unrecognized tax benefts relate to tax carryforwards
that may require a full valuation allowance atthe time of any
such recognition.
Tax positions for Chevron and its subsidiaries and
afliates are subject to income tax audits by many tax juris-
dictions throughout the world. For the companys major tax
jurisdictions, examinations of tax returns for certain prior tax years
had not been completed as of December 31, 2013. For these
jurisdictions, the latest years for which income tax examinations
had been fnalized were as follows: United States 2008,
Nigeria 2000, Angola 2001, Saudi Arabia 2009 and
Kazakhstan 2007.
Te company engages in ongoing discussions with tax
authorities regarding the resolution of tax matters in the various
jurisdictions. Both the outcome of these tax matters and the
timing of resolution and/or closure of the tax audits are highly
uncertain. However, it is reasonably possible that developments
on tax matters in certain tax jurisdictions may result in signif-
cant increases or decreases in the companys total unrecognized
tax benefts within the next 12 months. Given the number of
years that still remain subject to examination and the number of
matters being examined in the various tax jurisdictions, the
company is unable to estimate the range of possible adjustments
to the balance of unrecognized tax benefts.
FS-45
Note 15 Taxes Continued
Te company completed its assessment of the potential
impact of the August 2012 decision by the U.S. Court of
Appeals for the Tird Circuit that disallowed the Historic
Rehabilitation Tax Credits claimed by an unrelated taxpayer.
Te fndings of this assessment did not result in a material
impact on the companys fnancial position, results of opera-
tions or cash fows.
On the Consolidated Statement of Income, the company
reports interest and penalties related to liabilities for uncertain
tax positions as Income tax expense. As of December 31,
2013, accruals of $215 for anticipated interest and penalty
obligations were included on the Consolidated Balance Sheet,
compared with accruals of $293 as of year-end 2012. Income
tax expense (beneft) associated with interest and penalties was
$(42), $145 and $(64) in 2013, 2012 and 2011, respectively.
Taxes Other Tan on Income
2013 2012 2011
United States
Excise and similar taxes on
products and merchandise $ 4,792 $ 4,665 $ 4,199
Import duties and other levies 4 1 4
Property and other
miscellaneous taxes 1,036 782 726
Payroll taxes 255 240 236
Taxes on production 333 328 308
International
Excise and similar taxes on
products and merchandise 3,700 3,345 3,886
Import duties and other levies 41 106 3,511
Property and other
miscellaneous taxes 2,486 2,501 2,354
Payroll taxes 168 160 148
Taxes on production 248 248 256
Total taxes other than on income $ 13,063 $ 12,376 $ 15,628
Note 16
Short-Term Debt
At December 31
2013 2012
Commercial paper* $ 5,130 $ 2,783
Notes payable to banks and others with
originating terms of one year or less 49 23
Current maturities of long-term debt 20
Current maturities of long-term
capital leases 34 38
Redeemable long-term obligations
Long-term debt 3,152 3,151
Capital leases 9 12
Subtotal 8,374 6,027
Reclassifed to long-term debt (8,000) (5,900)
Total short-term debt $ 374 $ 127
* Weighted-average interest rates at December 31, 2013 and 2012, were 0.09 percent
and 0.13 percent, respectively.
Redeemable long-term obligations consist primarily of tax-
exempt variable-rate put bonds that are included as current
liabilities because they become redeemable at the option of the
bondholders during the year following the balance sheet date.
Te company may periodically enter into interest rate
swaps on a portion of its short-term debt. At December 31,
2013, the company had no interest rate swaps on short-
term debt.
At December 31, 2013, the company had $8,000 in com-
mitted credit facilities with various major banks, expiring in
December 2016, that enable the refnancing of short-term
obligations on a long-term basis. Tese facilities support com-
mercial paper borrowing and can also be used for general
corporate purposes. Te companys practice has been to
continually replace expiring commitments with new commit-
ments on substantially the same terms, maintaining levels
management believes appropriate. Any borrowings under the
facilities would be unsecured indebtedness at interest rates
based on the London Interbank Ofered Rate or an average of
base lending rates published by specifed banks and on terms
refecting the companys strong credit rating. No borrowings
were outstanding under these facilities at December 31, 2013.
At December 31, 2013 and 2012, the company classifed
$8,000 and $5,900, respectively, of short-term debt as long-
term. Settlement of these obligations is not expected to require
the use of working capital within one year, as the company has
both the intent and the ability, as evidenced by committed
credit facilities, to refnance them on a long-term basis.
FS-46
Note 18
New Accounting Standards
Income Taxes (Topic 740). Presentation of an Unrecog-
nized Tax Beneft When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Car-
ryforward Exists (ASU 2013-11) In July 2013, the FASB
issued ASU 2013-11, which became efective for the com-
pany January 1, 2014. Te standard provides that a liability
related to an unrecognized tax beneft should be ofset
against a deferred tax asset for a net operating loss carryfor-
ward, a similar tax loss, or a tax credit carryforward if such
settlement is required or expected in the event the uncertain
tax position is disallowed. Adoption of the standard is not
expected to have a signifcant efect on the companys results
of operations, fnancial position or liquidity.
Note 19
Accounting for Suspended Exploratory Wells
Te company continues to capitalize exploratory well cost
after the completion of drilling when (a) the well has found
a sufcient quantity of reserves to justify completion as a
producing well, and (b) the entity is making sufcient prog-
ress assessing the reserves and the economic and operating
viability of the project. If either condition is not met or if an
enterprise obtains information that raises substantial doubt
about the economic or operational viability of the project,
the exploratory well would be assumed to be impaired,
and its costs, net of any salvage value, would be charged to
expense. (Note that an entity is not required to complete the
exploratory well as a producing well.) Te accounting stan-
dards provide a number of indicators that can assist an entity
in demonstrating that sufcient progress is being made in
assessing the reserves and economic viability of the project.
Te following table indicates the changes to the companys
suspended exploratory well costs for the three years ended
December 31, 2013:
2013 2012 2011
Beginning balance at January 1 $ 2,681 $ 2,434 $ 2,718
Additions to capitalized exploratory
well costs pending the
determination of proved reserves 885 595 652
Reclassifcations to wells, facilities
and equipment based on the
determination of proved reserves (290) (244) (828)
Capitalized exploratory well costs
charged to expense (31) (49) (45)
Other reductions* (55) (63)
Ending balance at December 31 $ 3,245 $ 2,681 $ 2,434
*Represents property sales.
Note 17
Long-Term Debt
Total long-term debt, excluding capital leases, at December 31,
2013, was $19,960. Te companys long-term debt
outstanding at year-end 2013 and 2012 was as follows:
At December 31
2013 2012
3.191% notes due 2023 $ 2,250 $
1.104% notes due 2017 2,000 2,000
1.718% notes due 2018 2,000
2.355% notes due 2022 2,000 2,000
4.95% notes due 2019 1,500 1,500
2.427% notes due 2020 1,000
0.889% notes due 2016 750
8.625% debentures due 2032 147 147
8.625% debentures due 2031 107 107
8% debentures due 2032 74 74
9.75% debentures due 2020 54 54
8.875% debentures due 2021 40 40
Medium-term notes, maturing from
2021 to 2038 (5.96%)
1
38 38
7.5% debentures due 2043 83
7.327% amortizing notes due 2014
2
23
7.327% amortizing notes due 2013
2
20
Total including debt due within one year 11,960 6,086
Debt due within one year (20)
Reclassifed from short-term debt 8,000 5,900
Total long-term debt $ 19,960 $ 11,966
1
Weighted-average interest rate at December 31, 2013.
2
Guarantee of ESOP debt.
Chevron has an automatic registration statement that
expires in 2015. Tis registration statement is for an unspecifed
amount of nonconvertible debt securities issued or guaranteed
by the company.
Long-term debt of $11,960 matures as follows: 2014 $0;
2015 $0; 2016 $750; 2017 $2,000; 2018 $2,000; and
after 2018 $7,210.
In June 2013, $6,000 of Chevron Corporation bonds
were issued, and $83 of Texaco Capital, Inc. 7.5% bonds due
2043 and $23 of Chevron Corporation 7.327% bonds due
2014 were redeemed early. In January 2013, $20 of Chevron
Corporation 7.327% bonds matured.
See Note 9, beginning on page FS-32, for information
concerning the fair value of the companys long-term debt.
Note 17 Long-Term Debt
FS-47
Te following table provides an aging of capitalized well
costs and the number of projects for which exploratory well
costs have been capitalized for a period greater than one year
since the completion of drilling.
At December 31
2013 2012 2011
Exploratory well costs capitalized
for a period of one year or less $ 641 $ 501 $ 557
Exploratory well costs capitalized
for a period greater than one year 2,604 2,180 1,877
Number of projects with exploratory
well costs that have been capitalized
for a period greater than one year* 51 46 47
* Certain projects have multiple wells or felds or both.
Of the $2,604 of exploratory well costs capitalized for
more than one year at December 31, 2013, $1,733 (22 proj-
ects) is related to projects that had drilling activities under
way or frmly planned for the near future. Te $871 balance is
related to 29 projects in areas requiring a major capital expen-
diture before production could begin and for which additional
drilling eforts were not under way or frmly planned for the
near future. Additional drilling was not deemed necessary
because the presence of hydrocarbons had already been estab-
lished, and other activities were in process to enable a future
decision on project development.
Te projects for the $871 referenced above had the fol-
lowing activities associated with assessing the reserves and the
projects economic viability: (a) $382 (six projects) undergo-
ing front-end engineering and design with fnal investment
decision expected within three years; (b) $47 (two projects)
development concept under review by government; (c) $384
(nine projects) development alternatives under review; (d)
$58 (twelve projects) miscellaneous activities for projects
with smaller amounts suspended. While progress was being
made on all 51 projects, the decision on the recognition of
proved reserves under SEC rules in some cases may not occur
for several years because of the complexity, scale and negotia-
tions connected with the projects. Approximately half of these
decisions are expected to occur in the next three years.
Te $2,604 of suspended well costs capitalized for a
period greater than one year as of December 31, 2013, rep-
resents 191 exploratory wells in 51 projects. Te tables below
contain the aging of these costs on a well and project basis:

Number
Aging based on drilling completion date of individual wells: Amount of wells
19972002 $ 120 28
20032007 531 46
20082012 1,953 117
Total $ 2,604 191

Aging based on drilling completion date of last Number
suspended well in project: Amount of projects
1999 $ 8 1
20032008 347 10
20092013 2,249 40
Total $ 2,604 51
Note 20
Stock Options and Other Share-Based Compensation
Compensation expense for stock options for 2013, 2012 and
2011 was $292 ($190 after tax), $283 ($184 after tax) and
$265 ($172 after tax), respectively. In addition, compensa-
tion expense for stock appreciation rights, restricted stock,
performance units and restricted stock units was $223 ($145
after tax), $177 ($115 after tax) and $214 ($139 after tax) for
2013, 2012 and 2011, respectively. No signifcant stock-based
compensation cost was capitalized at December 31, 2013,
or December 31, 2012.
Cash received in payment for option exercises under all
share-based payment arrangements for 2013, 2012 and 2011
was $553, $753 and $948, respectively. Actual tax benefts
realized for the tax deductions from option exercises were
$73, $101 and $121 for 2013, 2012 and 2011, respectively.
Cash paid to settle performance units and stock appre-
ciation rights was $186, $123 and $151 for 2013, 2012 and
2011, respectively.
Chevron Long-Term Incentive Plan (LTIP) Awards under
the LTIP may take the form of, but are not limited to, stock
options, restricted stock, restricted stock units, stock appreci-
ation rights, performance units and nonstock grants. From
April 2004 through May 2023, no more than 260 million
shares may be issued under the LTIP. For awards issued on or
after May 29, 2013, no more than 50 million of those shares
may be in a form other than a stock option, stock appreciation
right or award requiring full payment for shares by the award
recipient. For the major types of awards outstanding as of
December 31, 2013, the contractual terms vary between three
years for the performance units and 10 years for the stock
options and stock appreciation rights.
Note 19 Accounting for Suspended Exploratory Wells Continued
FS-48
Unocal Share-Based Plans (Unocal Plans) When Chevron
acquired Unocal in August 2005, outstanding stock options
and stock appreciation rights granted under various Unocal
Plans were exchanged for fully vested Chevron options and
appreciation rights. Tese awards retained the same provi-
sions as the original Unocal Plans. Unexercised awards began
expiring in early 2010 and will continue to expire through
early 2015.
Te fair market values of stock options and stock appre-
ciation rights granted in 2013, 2012 and 2011 were measured
on the date of grant using the Black-Scholes option-pricing
model, with the following weighted-average assumptions:
2013 2012 2011
Stock Options
Expected term in years
1
6.0 6.0 6.2
Volatility
2
31.3% 31.7% 31.0%
Risk-free interest rate based on
zero coupon U.S. treasury note 1.2% 1.1% 2.6%
Dividend yield 3.3% 3.2% 3.6%
Weighted-average fair value per
option granted $ 24.48 $ 23.35 $ 21.24
1
Expected term is based on historical exercise and postvesting cancellation data.
2
Volatility rate is based on historical stock prices over an appropriate period,
generally equal to the expected term.
A summary of option activity during 2013 is presented
below:
Weighted- Average
Average Remaining Aggregate
Shares Exercise Contractual Intrinsic
(Tousands) Price Term (Years) Value
Outstanding at
January 1, 2013 71,895 $ 81.26
Granted 13,194 $ 116.45
Exercised (8,377) $ 68.20
Forfeited (1,086) $ 93.98
Outstanding at
December 31, 2013 75,626 $ 88.44 6.12 $ 2,758
Exercisable at
December 31, 2013 51,797 $ 78.52 5.05 $ 2,403
Te total intrinsic value (i.e., the diference between the
exercise price and the market price) of options exercised during
2013, 2012 and 2011 was $445, $580 and $668, respectively.
During this period, the company continued its practice of
issuing treasury shares upon exercise of these awards.
Note 20 Stock Options and Other Share-Based Compensation Continued
As of December 31, 2013, there was $259 of total unrec-
ognized before-tax compensation cost related to nonvested
share-based compensation arrangements granted under the
plans. Tat cost is expected to be recognized over aweighted-
average period of 1.7 years.
At January 1, 2013, the number of LTIP performance
units outstanding was equivalent to 2,827,757 shares. During
2013, 776,180 units were granted, 1,007,952 units vested
with cash proceeds distributed to recipients and 64,715 units
were forfeited. At December 31, 2013, units outstanding
were 2,531,270, and the fair value of the liability recorded
for these instruments was $312 measured using the Monte
Carlo simulation method. In addition, outstanding stock
appreciation rights and other awards that were granted under
various LTIP and former Unocal programs totaled approxi-
mately 2.9 million equivalent shares as of December 31,
2013. A liability of $107 was recorded for theseawards.
Note 21
Employee Benefit Plans
Te company has defned beneft pension plans for many
employees. Te company typically prefunds defned beneft
plans as required by local regulations or in certain situations
where prefunding provides economic advantages. In the
United States, all qualifed plans are subject to the Employee
Retirement Income Security Act (ERISA) minimum fund-
ing standard. Te company does not typically fund U.S.
nonqualifed pension plans that are not subject to funding
requirements under laws and regulations because contri-
butions to these pension plans may be less economic and
investment returns may be less attractive than the companys
other investment alternatives.
Te company also sponsors other postretirement (OPEB)
plans that provide medical and dental benefts, as well as life
insurance for some active and qualifying retired employees.
Te plans are unfunded, and the company and retirees share
the costs. Medical coverage for Medicare-eligible retirees
in the companys main U.S. medical plan is secondary to
Medicare (including Part D) and the increase to the company
contribution for retiree medical coverage is limited to no
more than 4 percent each year. Certain life insurance benefts
are paid by the company.
Te company recognizes the overfunded or underfunded
status of each of its defned beneft pension andOPEB plans
as an asset or liability on the Consolidated Balance Sheet.
FS-49
Te funded status of the companys pension and other postretirement beneft plans for 2013 and 2012 follows:
Pension Benefts
2013 2012 Other Benefts
U.S. Intl. U.S. Intl. 2013 2012
Change in Beneft Obligation
Beneft obligation at January 1 $ 13,654 $ 6,287 $ 12,165 $ 5,519 $ 3,787 $ 3,765
Service cost 495 197 452 181 66 61
Interest cost 471 314 435 320 149 153
Plan participants contributions 8 7 154 151
Plan amendments (78) 18 94 37 11
Actuarial (gain) loss (1,398) (206) 1,322 417 (636) 44
Foreign currency exchange rate changes (187) 114 (23) 1
Benefts paid (1,064) (336) (763) (308) (359) (350)
Divestitures (51) (49)
Beneft obligation at December 31 12,080 6,095 13,654 6,287 3,138 3,787
Change in Plan Assets
Fair value of plan assets at January 1 9,909 4,125 8,720 3,577
Actual return on plan assets 1,546 375 1,149 375
Foreign currency exchange rate changes (21) 90
Employer contributions 819 392 844 384 205 199
Plan participants contributions 8 7 154 151
Benefts paid (1,064) (336) (763) (308) (359) (350)
Divestitures (41)
Fair value of plan assets at December 31 11,210 4,543 9,909 4,125
Funded Status at December 31 $ (870) $ (1,552) $ (3,745) $ (2,162) $ (3,138) $ (3,787)
Amounts recognized on the Consolidated Balance Sheet for the companys pension and other postretirement beneft plans at
December 31, 2013 and 2012, include:
Pension Benefts
U.S. Intl. U.S. Intl. 2013 2012
Deferred charges and other assets $ 394 $ 128 $ 7 $ 55 $ $
Accrued liabilities (76) (81) (61) (76) (215) (225)
Noncurrent employee beneft plans (1,188) (1,599) (3,691) (2,141) (2,923) (3,562)
Net amount recognized at December 31 $ (870) $ (1,552) $ (3,745) $ (2,162) $ (3,138) $ (3,787)
Amounts recognized on a before-tax basis in Accumulated other comprehensive loss for the companys pension and OPEB
plans were $5,464 and $9,742 at the end of 2013 and 2012, respectively. Tese amounts consisted of:
Pension Benefts
U.S. Intl. U.S. Intl. 2013 2012
Net actuarial loss $ 3,185 $ 1,808 $ 6,087 $ 2,439 $ 256 $ 968
Prior service (credit) costs (22) 167 58 170 70 20
Total recognized at December 31 $ 3,163 $ 1,975 $ 6,145 $ 2,609 $ 326 $ 988
Te accumulated beneft obligations for all U.S. and international pension plans were $10,876 and $5,108, respectively, at
December 31, 2013, and $12,108 and $5,167, respectively, at December 31, 2012.
Note 21 Employee Benefit Plans Continued
FS-50
tively. In addition, the company estimates an additional $132
will be recognized from Accumulated other comprehensive
loss during 2014 related to lump-sum settlement costs from
U.S. pension plans.
Te weighted average amortization period for recognizing
prior service costs (credits) recorded in Accumulated other
comprehensive loss at December 31, 2013, was approximately
10 and 12 years for U.S. and international pension plans,
respectively, and 10 years for other postretirement beneft
plans. During 2014, the company estimates prior service
(credits) costs of $(9), $21 and $14 will be amortized from
Accumulated other comprehensive loss for U.S. pension,
international pension and OPEB plans, respectively.
Net actuarial losses recorded in Accumulated other
comprehensive loss at December 31, 2013, for the companys
U.S. pension, international pension and OPEB plans are
being amortized on a straight-line basis over approximately
10, 12 and 10 years, respectively. Tese amortization periods
represent the estimated average remaining service of employ-
ees expected to receive benefts under the plans. Tese losses
are amortized to the extent they exceed 10 percent of the
higher of the projected beneft obligation or market-related
value of plan assets. Te amount subject to amortization is
determined on a plan-by-plan basis. During 2014, the com-
pany estimates actuarial losses of $209, $102 and $7 will be
amortized from Accumulated other comprehensive loss for
U.S. pension, international pension and OPEB plans, respec-
Information for U.S. and international pension plans with an accumulated beneft obligation in excess of plan assets at
December 31, 2013 and 2012, was:
Pension Benefts
2013 2012
U.S. Intl. U.S. Intl.
Projected beneft obligations $ 1,267 $ 1,692 $ 13,647 $ 4,812
Accumulated beneft obligations 1,155 1,240 12,101 4,063
Fair value of plan assets 4 203 9,895 2,756
Te components of net periodic beneft cost and amounts recognized in the Consolidated Statement of Comprehensive
Income for 2013, 2012 and 2011 are shown in the table below:
Pension Benefts
2013 2012 2011 Other Benefts
U.S. Intl. U.S. Intl. U.S. Intl. 2013 2012 2011
Net Periodic Beneft Cost
Service cost $ 495 $ 197 $ 452 $ 181 $ 374 $ 174 $ 66 $ 61 $ 58
Interest cost 471 314 435 320 463 325 149 153 180
Expected return on plan assets (701) (274) (634) (269) (613) (283)
Amortization of prior service
costs (credits) 2 21 (7) 18 (8) 19 (50) (72) (72)
Recognized actuarial losses 485 143 470 136 310 101 53 56 64
Settlement losses 173 12 220 5 298 (26)
Curtailment losses (gains) 35 (10)
Total net periodic beneft cost 925 413 936 391 824 371 218 172 220
Changes Recognized in
Comprehensive Income
Net actuarial (gain) loss
during period (2,244) (476) 805 330 2,671 448 (659) 45 131
Amortization of actuarial loss (658) (155) (700) (141) (608) (101) (53) (79) (64)
Prior service (credits) cost
during period (78) 18 94 37 27 11
Amortization of prior service
(costs) credits (2) (21) 7 (18) 8 (54) 50 72 72
Total changes recognized in
other comprehensive income (2,982) (634) 206 208 2,071 320 (662) 49 139
Recognized in Net Periodic
Beneft Cost and Other
Comprehensive Income $ (2,057) $ (221) $ 1,142 $ 599 $ 2,895 $ 691 $ (444) $ 221 $ 359
FS-51
Other Beneft Assumptions For the measurement of accu-
mulated postretirement beneft obligation at December 31,
2013, for the main U.S. postretirement medical plan, the
assumed health care cost-trend rates start with 7.3 percent
in 2014 and gradually decline to 4.5 percent for 2025 and
beyond. For this measurement at December 31, 2012, the
assumed health care cost-trend rates started with 7.5 percent
in 2013 and gradually declined to 4.5 percent for 2025 and
beyond. In both measurements, the annual increase to com-
pany contributions was capped at 4 percent.
Assumed health care cost-trend rates can have a signif-
cant efect on the amounts reported for retiree health care
costs. Te impact is mitigated by the 4 percent cap on the
companys medical contributions for the primary U.S. plan.
A 1-percentage-point change in the assumed health care cost-
trend rates would have the following efects on worldwide
plans:
1 Percent 1 Percent
Increase Decrease
Efect on total service and interest cost components $ 13 $ (11)
Efect on postretirement beneft obligation $ 137 $ (115)
Plan Assets and Investment Strategy Te fair value hierar-
chy of inputs the company uses to value the pension assets is
divided into three levels:
Level 1: Fair values of these assets are measured using
unadjusted quoted prices for the assets or the prices of identi-
cal assets in active markets that the plans have the ability
toaccess.
Level 2: Fair values of these assets are measured based
on quoted prices for similar assets in active markets; quoted
prices for identical or similar assets in inactive markets; inputs
other than quoted prices that are observable for the asset; and
inputs that are derived principally from or corroborated by
observable market data through correlation or other means. If
Expected Return on Plan Assets Te companys estimated
long-term rates of return on pension assets are driven pri-
marily by actual historical asset-class returns, an assessment
of expected future performance, advice from external actu-
arial frms and the incorporation of specifc asset-class risk
factors. Asset allocations are periodically updated using pen-
sion plan asset/liability studies, and the companys estimated
long-term rates of return are consistent with these studies.
For 2013, the company used an expected long-term rate
of return of 7.5 percent for U.S. pension plan assets, which
account for 71 percent of the companys pension plan assets.
In 2012 and 2011, the company used a long-term rate of
return of 7.5 and 7.8 percent for this plan.
Te market-related value of assets of the major U.S. pen-
sion plan used in the determination of pension expense was
based on the market values in the three months preceding
the year-end measurement date. Management considers the
three-month time period long enough to minimize the efects
of distortions from day-to-day market volatility and still be
contemporaneous to the end of the year. For other plans,
market value of assets as of year-end is used in calculating the
pension expense.
Discount Rate Te discount rate assumptions used to
determine the U.S. and international pension and postretire-
ment beneft plan obligations and expense refect the rate at
which benefts could be efectively settled, and is equal to the
equivalent single rate resulting from yield curve analysis. Tis
analysis considered the projected beneft payments specifc to
the companys plans and the yields on high-quality bonds.
At December 31, 2013, the company used a 4.3 percent dis-
count rate for the U.S. pension plans and 4.7 percent for the
main U.S. OPEB plan. Te discount rates at the end of 2012
and 2011 were 3.6 and 3.9 percent and 3.8 and 4.0 percent
for the U.S. pension plans and the main U.S. OPEB plans,
respectively.
Assumptions Te following weighted-average assumptions were used to determine beneft obligations and net periodic beneft
costs for years ended December 31:
Pension Benefts
2013 2012 2011 Other Benefts
U.S. Intl. U.S. Intl. U.S. Intl. 2013 2012 2011
Assumptions used to determine
beneft obligations:
Discount rate 4.3% 5.8% 3.6% 5.2% 3.8% 5.9% 4.9% 4.1% 4.2%
Rate of compensation increase 4.5% 5.5% 4.5% 5.5% 4.5% 5.7% N/A N/A N/A
Assumptions used to determine
net periodic beneft cost:
Discount rate 3.6% 5.2% 3.8% 5.9% 4.8% 6.5% 4.1% 4.2% 5.2%
Expected return on plan assets 7.5% 6.8% 7.5% 7.5% 7.8% 7.8% N/A N/A N/A
Rate of compensation increase 4.5% 5.5% 4.5% 5.7% 4.5% 6.7% N/A N/A N/A
FS-52
Level 3: Inputs to the fair value measurement are
unobservable for these assets. Valuation may be performed
using a fnancial model with estimated inputs entered into
themodel.
the asset has a contractual term, the Level 2 input is observ-
able for substantially the full term of the asset. Te fair values
for Level 2 assets are generally obtained from third-party bro-
ker quotes, independent pricing services and exchanges.
Te fair value measurements of the companys pension plans for 2013 and 2012 are below:
U.S. Intl.
Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3
Equities
U.S.
1
$ 1,709 $ 1,709 $ $ $ 334 $ 334 $ $
International 1,263 1,263 520 520
Collective Trusts/Mutual Funds
2
2,979 7 2,972 1,233 402 831
Fixed Income
Government 435 396 39 578 40 538
Corporate 384 384 230 25 175 30
Mortgage-Backed Securities 65 65 2 2
Other Asset Backed 51 51 4 4
2
1,520 1,520 671 26 645
Mixed Funds
3
115 4 111
Real Estate
4
1,114 1,114 177 177
Cash and Cash Equivalents 373 373 222 204 18
Other
5
16 (44) 5 55 39 (3) 40 2
Total at December 31, 2012 $ 9,909 $ 3,704 $ 5,036 $ 1,169 $ 4,125 $ 1,552 $ 2,362 $ 211
Equities
U.S.
1
$ 2,298 $ 2,298 $ $ $ 409 $ 409 $ $
International 1,501 1,501 533 533
2
2,977 26 2,951 1,066 211 855
Fixed Income
Government 81 52 29 726 46 680
Corporate 1,275 1,275 545 23 499 23
Mortgage-Backed Securities 1 1 4 2 2
Other Asset Backed
2
1,357 1,357 647 27 620
Mixed Funds
3
120 5 115
Real Estate
4
1,265 1,265 294 294
Cash and Cash Equivalents 385 385 173 173
Other
5
70 (2) 18 54 26 (2) 25 3
Total at December 31, 2013 $ 11,210 $ 4,260 $ 5,631 $ 1,319 $ 4,543 $ 1,425 $ 2,796 $ 322
1
U.S. equities include investments in the companys common stock in the amount of $28 at December 31, 2013, and $27 at December 31, 2012.
2
Collective Trusts/Mutual Funds for U.S. plans are entirely index funds; for International plans, they are mostly index funds. For these index funds, the Level 2 designation is
partially based on the restriction that advance notifcation of redemptions, typically two business days, is required.
3
Mixed funds are composed of funds that invest in both equity and fxed-income instruments in order to diversify and lower risk.
4
Te year-end valuations of the U.S. real estate assets are based on internal appraisals by the real estate managers, which are updates of third-party appraisals that occur at least once
a year for each property in the portfolio.
5
Te Other asset class includes net payables for securities purchased but not yet settled (Level 1); dividends and interest- and tax-related receivables (Level 2); insurance contracts
and investments in private-equity limited partnerships (Level 3).
FS-53
its U.S. plan and $350 to its international plans. Actual con-
tribution amounts are dependent upon investment returns,
changes in pension obligations, regulatory environments and
other economic factors. Additional funding may ultimately
be required if investment returns are insufcient to ofset
increases in plan obligations.
Te company anticipates paying other postretirement
benefts of approximately $215 in 2014, compared with $205
paid in 2013.
Te following beneft payments, which include estimated
future service, are expected to be paid by the company in the
next 10 years:

Pension Benefts
Other
U.S. Intl. Benefts
2014 $ 1,212 $ 284 $ 215
2015 $ 1,187 $ 290 $ 218
2016 $ 1,170 $ 284 $ 221
2017 $ 1,175 $ 363 $ 224
2018 $ 1,168 $ 391 $ 227
20192023 $ 5,399 $ 2,307 $ 1,148
Employee Savings Investment Plan Eligible employees
of Chevron and certain of its subsidiaries participate in the
Chevron Employee Savings Investment Plan (ESIP).
Charges to expense for the ESIP represent the companys
contributions to the plan, which are funded either through
the purchase of shares of common stock on the open market
or through the release of common stock held in the leveraged
employee stock ownership plan (LESOP), which is described
in the section that follows. Total company matching con-
tributions to employee accounts within the ESIP were $303,
$286 and $263 in 2013, 2012 and 2011, respectively. Tis
cost was reduced by the value of shares released from the
LESOP totaling $140, $43 and $38 in 2013, 2012 and2011,
respectively. Te remaining amounts, totaling $163, $243
Te primary investment objectives of the pension plans
are to achieve the highest rate of total return within prudent
levels of risk and liquidity, to diversify and mitigate potential
downside risk associated with the investments, and to
provideadequate liquidity for beneft payments and
portfolio management.
Te companys U.S. and U.K. pension plans comprise
88percent of the total pension assets. Both the U.S. and U.K.
plans have an Investment Committee that regularly meets
during the year to review the asset holdings and their returns.
To assess the plans investment performance, long-term asset
allocation policy benchmarks have been established.
For the primary U.S. pension plan, the companys Bene-
ft Plan Investment Committee has established the following
approved asset allocation ranges: Equities 4070 percent,
Fixed Income and Cash 2060 percent, Real Estate 015
percent, and Other 05 percent. For the U.K. pension plan,
the U.K. Board ofTrustees has established the following asset
allocation guidelines, which are reviewed regularly: Equities
4060 percent, Fixed Income and Cash 2550 percent and
Real Estate 515 percent. Te other signifcant international
pension plans also have established maximum and minimum
asset allocation ranges that vary by plan. Actual asset alloca-
tion within approved ranges is based on a variety of current
economic and market conditions and consideration of specifc
asset class risk. To mitigate concentration and other risks,
assets are invested across multiple asset classes with active
investment managers and passive index funds.
Te company does not prefund its OPEB obligations.
Cash Contributions and Beneft Payments In 2013,
the company contributed $819 and $375 to its U.S. and
international pension plans, respectively. In 2014, the
company expects contributions to be approximately $350 to
Te efects of fair value measurements using signifcant unobservable inputs on changes in Level 3 plan assets are
outlined below:
Fixed Income
Mortgage-Backed
Corporate Securities Real Estate Other Total
Total at December 31, 2011 $ 27 $ 2 $ 998 $ 56 $ 1,083
Actual Return on Plan Assets:
Assets held at the reporting date 108 1 109
Assets sold during the period 2 2
Purchases, Sales and Settlements 4 182 186
Transfers in and/or out of Level 3
Total at December 31, 2012 $ 31 $ 2 $ 1,290 $ 57 $1,380
Actual Return on Plan Assets:
Assets held at the reporting date (9) 90 81
Assets sold during the period 3 3
Purchases, Sales and Settlements 1 176 177
Transfers in and/or out of Level 3
Total at December 31, 2013 $ 23 $ 2 $ 1,559 $ 57 $ 1,641
FS-54
Prior to its acquisition by Chevron, Unocal established
various grantor trusts to fund obligations under some of its
beneft plans, including the deferred compensation and sup-
plemental retirement plans. At December 31, 2013 and 2012,
trust assets of $40 and $48, respectively, were invested primar-
ily in interest-earning accounts.
Employee Incentive Plans Te Chevron Incentive Plan is
an annual cash bonus plan for eligible employees that links
awards to corporate, business unit and individual perfor-
mance in the prior year. Charges to expense for cash bonuses
were $871, $898 and $1,217 in 2013, 2012 and 2011, respec-
tively. Chevron also has the LTIP for ofcers and other
regular salaried employees of the company and its subsidiar-
ies who hold positions of signifcant responsibility. Awards
under the LTIP consist of stock options and other share-
based compensation that are described in Note 20, beginning
on page FS-47.
Note 22
Equity
Retained earnings at December 31, 2013 and 2012, included
approximately $11,395 and $10,119, respectively, for the com-
panys share of undistributed earnings of equity afliates.
At December 31, 2013, about 143 million shares of
Chevrons common stock remained available for issuance from
the 260 million shares that were reserved for issuance under
the Chevron LTIP. In addition, approximately 204,000
shares remain available for issuance from the 800,000 shares
of the companys common stock that were reserved for awards
under the Chevron Corporation Non-Employee Directors
Equity Compensation and Deferral Plan.
Note 23
Other Contingencies and Commitments
Income Taxes Te company calculates its income tax
expense and liabilities quarterly. Tese liabilities generally
are subject to audit and are not fnalized with the individual
taxing authorities until several years after the end of the
annual period for which income taxes have been calculated.
Refer to Note 15, beginning on page FS-43, for a discussion
of the periods for which tax returns have been audited for
the companys major tax jurisdictions and a discussion for
all tax jurisdictions of the diferences between the amount
of tax benefts recognized in the fnancial statements and the
amount taken or expected to be taken in a tax return. As dis-
cussed on page FS-45, Chevron completed its assessment of
the potential impact of the August 2012 decision by the U.S.
Court of Appeals for the Tird Circuit that disallowed the
Historic Rehabilitation Tax Credits claimed by an unrelated
taxpayer. Te fndings of this assessment did not result in a
and $225 in 2013, 2012 and 2011, respectively, represent
open market purchases.
Employee Stock Ownership Plan Within the Chevron
ESIP is anemployee stock ownership plan (ESOP). In 1989,
Chevron established a LESOP as a constituent part of the
ESOP. Te LESOP provides partial prefunding of the compa-
nys future commitments to the ESIP. Te debt associated with
the LESOP was retired in 2013 and the remaining unallocated
shares were distributed to ESIP participants during the year.
Te company reports compensation expense equal to
LESOP debt principal repayments less dividends received
and used by the LESOP for debt service. Interest accrued on
LESOP debt was recorded as interest expense. Dividends paid
on LESOP shares were refected as a reduction of retained
earnings. All LESOP shares were considered outstanding for
earnings-per-share computations.
Total expense (credits) for the LESOP were $5, $1 and
$(1) in 2013, 2012 and 2011, respectively. Te net expense
(credit) for the respective years were composed of compensa-
tion expenses (credits) of $4, $(2) and $(5) and charges to
interest expense for LESOP debt of $1, $3 and $4.
Of the dividends paid on the LESOP shares, $38, $18
and $18 were used in 2013, 2012 and 2011, respectively, to
service LESOP debt. Te company also contributed $7 and
$2 in 2013 and 2012, respectively, to satisfy LESOP debt
service. No company contributions were required in 2011, as
dividends received by the LESOP were sufcient to satisfy
LESOP debt service.
Shares held in the LESOP were released and allocated to
the accounts of ESIP participants based on debt service
deemed to be paid in the year in proportion to the total of
current-year and remaining debt service. LESOP shares as
of December 31, 2013 and 2012, were as follows:
Tousands 2013 2012
Allocated shares 17,954 18,055
Unallocated shares 1,292
Total LESOP shares 17,954 19,347
Beneft Plan Trusts Prior to its acquisition by Chevron,
Texaco established a beneft plan trust for funding obligations
under some of its beneft plans. At year-end 2013, thetrust
contained 14.2 million shares of Chevron treasury stock. Te
trust will sell the shares or use the dividends from the shares
to pay benefts only to the extent that the company does
not pay such benefts. Te company intends to continue to
pay its obligations under the beneft plans. Te trustee will
vote the shares held in the trust as instructed by the trusts
benefciaries. Te shares held in the trust are not considered
outstanding for earnings-per-share purposes until distributed
or sold by the trust in payment of beneft obligations.
FS-55
material impact on the companys fnancial position, results
of operations or cash fows.
Guarantees Te companys guarantee of $524 is associ-
ated with certain payments under a terminal use agreement
entered into by an equity afliate. Over the approximate
14-year remaining term of the guarantee, the maximum
guarantee amount will be reduced as certain fees are paid by
the afliate. Tere are numerous cross-indemnity agreements
with the afliate and the other partners to permit recovery of
amounts paid under the guarantee. Chevron has recorded no
liability for its obligation under this guarantee.
Indemnifcations In the acquisition of Unocal, the com-
pany assumed certain indemnities relating to contingent
environmental liabilities associated with assets that were sold
in 1997. Te acquirer of those assets shared in certain envi-
ronmental remediation costs up to a maximum obligation of
$200, which had been reached at December 31, 2009. Under
the indemnifcation agreement, after reaching the $200 obli-
gation, Chevron is solely responsible until April 2022, when
the indemnifcation expires. Te environmental conditions or
events that are subject to these indemnities must have arisen
prior to the sale of the assets in 1997.
Although the company has provided for known obliga-
tions under this indemnity that are probable and reasonably
estimable, the amount of additional future costs may be
material to results of operations in the period in which they
are recognized. Te company does not expect these costs will
have a material efect on its consolidated fnancial position or
liquidity.
Long-Term Unconditional Purchase Obligations and
Commitments, Including Troughput and Take-or-Pay
Agreements Te company and its subsidiaries have certain
other contingent liabilities with respect to long-term uncon-
ditional purchase obligations and commitments, including
throughput and take-or-pay agreements, some of which relate
to suppliers fnancing arrangements. Te agreements typi-
cally provide goods and services, such as pipeline and storage
capacity, drilling rigs, utilities, and petroleum products,
to be used or sold in the ordinary course of the companys
business. Te aggregate approximate amounts of required
payments under these various commitments are: 2014
$4,200; 2015 $4,500; 2016 $3,200; 2017 $2,600; 2018
$2,200; 2019 and after $6,900. A portion of these com-
mitments may ultimately be shared with project partners.
Total payments under the agreements were approximately
$3,600 in 2013, $3,600 in 2012 and $6,600 in 2011.
Environmental Te company is subject to loss contingen-
cies pursuant to laws, regulations, private claims and legal
proceedings related to environmental matters that are subject
to legal settlements or that in the future may require the
company to take action to correct or ameliorate the efects on
the environment of prior release of chemicals or petroleum
substances, including MTBE, by the company or other par-
ties. Such contingencies may exist for various sites, including,
but not limited to, federal Superfund sites and analogous sites
under state laws, refneries, crude oil felds, service stations,
terminals, land development areas, and mining operations,
whether operating, closed or divested. Tese future costs are
not fully determinable due to such factors as the unknown
magnitude of possible contamination, the unknown timing
and extent of the corrective actions that may be required,
the determination of the companys liability in proportion to
other responsible parties, and the extent to which such costs
are recoverable from third parties.
Although the company has provided for known envi-
ronmental obligations that are probable and reasonably
estimable, the amount of additional future costs may be
material to results of operations in the period in which they
are recognized. Te company does not expect these costs will
have a material efect on its consolidated fnancial position or
liquidity. Also, the company does not believe its obligations
to make such expenditures have had, or will have, any signif-
cant impact on the companys competitive position relative to
other U.S. or international petroleum or chemical companies.
Chevrons environmental reserve as of December 31,
2013, was $1,456. Included in this balance were remediation
activities at approximately 174 sites for which the company
had been identifed as a potentially responsible party or
otherwise involved in the remediation by the U.S. Environ-
mental Protection Agency (EPA) or other regulatory agencies
under the provisions of the federal Superfund law or analo-
gous state laws. Te companys remediation reserve for these
sites at year-end 2013 was $179. Te federal Superfund law
and analogous state laws provide for joint and several liability
for all responsible parties. Any future actions by the EPA or
other regulatory agencies to require Chevron to assume other
potentially responsible parties costs at designated hazardous
waste sites are not expected to have a material efect on the
companys results of operations, consolidated fnancial posi-
tion or liquidity.
Of the remaining year-end 2013 environmental reserves
balance of $1,277, $834 related to the companys U.S. down-
stream operations, including refneries and other plants,
marketing locations (i.e., service stations and terminals),
chemical facilities, and pipelines. Te remaining $443 was
associated with various sites in international downstream
$79, upstream $313 and other businesses $51. Liabilities at
all sites, whether operating, closed or divested, were primar-
ily associated with the companys plans and activities to
Note 23 Other Contingencies and Commitments Continued
FS-56
suppliers. Te amounts of these claims, individually and in
the aggregate, may be signifcant and take lengthy periods to
resolve.
Te company and its afliates also continue to review
and analyze their operations and may close, abandon, sell,
exchange, acquire or restructure assets to achieve operational
or strategic benefts and to improve competitiveness and prof-
itability. Tese activities, individually or together, may result
in gains or losses in future periods.
Note 24
Asset Retirement Obligations
Te company records the fair value of a liability for an asset
retirement obligation (ARO) as an asset and liability when
there is a legal obligation associated with the retirement of a
tangible long-lived asset and the liability can be reasonably
estimated. Te legal obligation to perform the asset retire-
ment activity is unconditional, even though uncertainty may
exist about the timing and/or method of settlement that may
be beyond the companys control. Tis uncertainty about the
timing and/or method of settlement is factored into the mea-
surement of the liability when sufcient information exists
to reasonably estimate fair value. Recognition of the ARO
includes: (1) the present value of a liability and ofsetting
asset, (2) the subsequent accretion of that liability and depre-
ciation of the asset, and (3) the periodic review of the ARO
liability estimates and discount rates.
AROs are primarily recorded for the companys crude
oil and natural gas producing assets. No signifcant AROs
associated with any legal obligations to retire downstream
long-lived assets have been recognized, as indeterminate set-
tlement dates for the asset retirements prevent estimation of
the fair value of the associated ARO. Te company performs
periodic reviews of its downstream long-lived assets for any
changes in facts and circumstances that might require recog-
nition of a retirement obligation.
Te following table indicates the changes to the companys
before-tax asset retirement obligations in 2013, 2012 and 2011:
2013 2012 2011
Liabilities incurred 59 133 62
Liabilities settled (907) (966) (1,316)
Accretion expense 627 629 628
Revisions in estimated cash fows 1,248 708 905
In the table above, the amounts associated with Revi-
sions in estimated cash fows refect increasing cost estimates
to abandon wells, equipment and facilities.
Te long-term portion of the $14,298 balance at the end
of 2013 was $13,476.
Note 23 Other Contingencies and Commitments Continued
remediate soil or groundwater contamination or both. Tese
and other activities include one or more of the following: site
assessment; soil excavation; ofsite disposal of contaminants;
onsite containment, remediation and/or extraction of petro-
leum hydrocarbon liquid and vapor from soil; groundwater
extraction and treatment; and monitoring of the natural
attenuation of the contaminants.
Te company manages environmental liabilities under
specifc sets of regulatory requirements, which in the United
States include the Resource Conservation and Recovery Act
and various state and local regulations. No single remediation
site at year-end 2013 had a recorded liability that was mate-
rial to the companys results of operations, consolidated
fnancial position or liquidity.
It is likely that the company will continue to incur addi-
tional liabilities, beyond those recorded, for environmental
remediation relating to past operations. Tese future costs are
not fully determinable due to such factors as the unknown
magnitude of possible contamination, the unknown timing
and extent of the corrective actions that may be required,
the determination of the companys liability in proportion to
other responsible parties, and the extent to which such costs
are recoverable from third parties.
Refer to Note 24 for a discussion of the companys asset
retirement obligations.
Other Contingencies On April 26, 2010, a California
appeals court issued a ruling related to the adequacy of an
Environmental Impact Report (EIR) supporting the issuance
of certain permits by the city of Richmond, California, to
replace and upgrade certain facilities at Chevrons refnery
in Richmond. Settlement discussions with plaintifs in the
case ended late fourth quarter 2010, and on March 3, 2011,
the trial court entered a fnal judgment and peremptory writ
ordering the City to set aside the project EIR and conditional
use permits and enjoining Chevron from any further work.
On May 23, 2011, the company fled an application with the
City Planning Department for a conditional use permit for
a revised project to complete construction of the hydrogen
plant, certain sulfur removal facilities and related infrastruc-
ture. On June 10, 2011, the City published its Notice of
Preparation of the revised EIR for the project. Te revised
and recirculated EIR is intended to comply with the appeals
court decision. Management believes the outcomes associ-
ated with the project are uncertain. Due to the uncertainty of
the companys future course of action, or potential outcomes
of any action or combination of actions, management does
not believe an estimate of the fnancial efects, if any, can be
made at this time.
Chevron receives claims from and submits claims to
customers; trading partners; U.S. federal, state and local
regulatory bodies; governments; contractors; insurers; and
FS-57
Note 27
Earnings Per Share
Basic earnings per share (EPS) is based upon Net Income Attributable to Chevron Corporation (earnings) and includes the
efects ofdeferrals of salary and other compensation awards that areinvested in Chevron stock units by certain ofcers and
employees of the company. Diluted EPSincludes the efects of these items as well as the dilu tive efects of outstanding stock
options awarded under the companys stock option programs (refer to Note 20, Stock Options and Other Share-Based Compen-
sation, beginning on page FS-47). Te table below sets forth the computation ofbasic and diluted EPS:
2013 2012 2011
Basic EPS Calculation
Earnings available to common stockholders Basic* $ 21,423 $ 26,179 $ 26,895
Weighted-average number of common shares outstanding 1,916 1,950 1,986
Add: Deferred awards held as stock units 1
Total weighted-average number of common shares outstanding 1,917 1,950 1,986
Earnings per share of common stock Basic $ 11.18 $ 13.42 $ 13.54
Diluted EPS Calculation
Earnings available to common stockholders Diluted* $ 21,423 $ 26,179 $ 26,895
Weighted-average number of common shares outstanding 1,916 1,950 1,986
Add: Deferred awards held as stock units 1
Add: Dilutive efect of employee stock-based awards 15 15 15
Total weighted-average number of common shares outstanding 1,932 1,965 2,001
Earnings per share of common stock Diluted $ 11.09 $ 13.32 $ 13.44
*Tere was no efect of dividend equivalents paid on stock units or dilutive impact of employee stock-based awards on earnings.
Note 25 Other Financial Information
Note 25
Other Financial Information
Earnings in 2013 included after-tax gains of approximately
$500 relating to the sale of nonstrategic properties. Of this
amount, approximately $300 and $200 related to down-
stream and upstream assets, respectively. Earnings in 2012
included after-tax gains of approximately $2,800 relat-
ing to the sale of nonstrategic properties. Of this amount,
approximately $2,200 and $600 related to upstream and
downstream assets, respectively.
Other fnancial information is as follows:
2013 2012 2011
Total fnancing interest and debt costs $ 284 $ 242 $ 288
Less: Capitalized interest 284 242 288
Interest and debt expense $ $ $
Research and development expenses $ 750 $ 648 $ 627
Foreign currency efects* $ 474 $ (454) $ 121
*

Includes $244, $(202) and $(27) in 2013, 2012 and 2011, respectively, for the com-
panys share of equity afliates foreign currency efects.
Te excess of replacement cost over the carrying value
of inventories for which the last-in, frst-out (LIFO) method
is used was $9,150, and $9,292 at December 31, 2013 and
2012, respectively. Replacement cost is generally based on
average acquisition costs for the year. LIFO profts (charges)
of $14, $121 and $193 were included in earnings for the years
Te company has $4,639 in goodwill on the Con-
solidated Balance Sheet related to the 2005 acquisition of
Unocal and to the 2011 acquisition of Atlas Energy, Inc. Te
company tested this goodwill for impairment during 2013
and concluded no impairment was necessary.
Note 26
Assets Held for Sale
At December 31, 2013, the company classifed $580 of net
properties, plant and equipment as Assets Held for Sale on
the Consolidated Balance Sheet. Tese assets are associated
with upstream operations that are anticipated to be sold in
2014. Te revenues and earnings contributions of these assets
in 2013 were not material.
FS-58 FS-58
Five-Year Financial Summary
Unaudited
Millions of dollars, except per-share amounts 2013 2012 2011 2010 2009
Statement of Income Data
Total sales and other operating revenues* $ 220,156 $ 230,590 $ 244,371 $ 198,198 $ 167,402
Income from equity afliates and other income 8,692 11,319 9,335 6,730 4,234
Total Revenues and Other Income 228,848 241,909 253,706 204,928 171,636
Total Costs and Other Deductions 192,943 195,577 206,072 172,873 153,108
Income Before Income Tax Expense 35,905 46,332 47,634 32,055 18,528
Income Tax Expense 14,308 19,996 20,626 12,919 7,965
Net Income 21,597 26,336 27,008 19,136 10,563
Less: Net income attributable to noncontrolling interests 174 157 113 112 80
Net Income Attributable to Chevron Corporation $ 21,423 $ 26,179 $ 26,895 $ 19,024 $ 10,483
Net Income Attributable to Chevron
Basic $ 11.18 $ 13.42 $ 13.54 $ 9.53 $ 5.26
Diluted $ 11.09 $ 13.32 $ 13.44 $ 9.48 $ 5.24
Cash Dividends Per Share $ 3.90 $ 3.51 $ 3.09 $ 2.84 $ 2.66
Balance Sheet Data (at December 31)
Current assets $ 50,250 $ 55,720 $ 53,234 $ 48,841 $ 37,216
Noncurrent assets 203,503 177,262 156,240 135,928 127,405
Total Assets 253,753 232,982 209,474 184,769 164,621
Short-term debt 374 127 340 187 384
Other current liabilities 32,644 34,085 33,260 28,825 25,827
Long-term debt and capital lease obligations 20,057 12,065 9,812 11,289 10,130
Other noncurrent liabilities 50,251 48,873 43,881 38,657 35,719
Total Liabilities 103,326 95,150 87,293 78,958 72,060
Total Chevron Corporation Stockholders Equity $ 149,113 $ 136,524 $ 121,382 $ 105,081 $ 91,914
Noncontrolling interests 1,314 1,308 799 730 647
Total Equity $ 150,427 $ 137,832 $ 122,181 $ 105,811 $ 92,561
*Includes excise, value-added and similar taxes: $ 8,492 $ 8,010 $ 8,085 $ 8,591 $ 8,109
FS-58
FS-59
In accordance with FASB and SEC disclosure and reporting
requirements for oil and gas producing activities, this section
provides supplemental information on oil and gas exploration
and producing activities of the company in seven separate
tables. Tables I through IV provide historical cost informa-
tion pertaining to costs incurred in exploration, property
acquisitions and development; capitalized costs; and results
of operations. Tables V through VII present information
Supplemental Information on Oil and Gas Producing Activities
Unaudited
Table I Costs Incurred in Exploration, Property Acquisitions and Development
1
Consolidated Companies Afliated Companies

Other
Millions of dollars U.S. Americas Africa Asia Australia Europe Total TCO Other
Year Ended December 31, 2013
Exploration
Wells $ 594 $ 495 $ 88 $ 405 $ 262 $ 123 $ 1,967 $ $
Geological and geophysical 134 70 105 116 29 55 509
Rentals and other 166 62 147 80 124 131 710
Total exploration 894 627 340 601 415 309 3,186
Property acquisitions
2
Proved 71 26 64 1 162
Unproved 331 2,068 203 105 3 2,710
Total property acquisitions 402 2,068 26 267 105 4 2,872
Development
3
7,457 2,306 3,549 4,907 6,611 1,046 25,876 1,027 544
Total Costs Incurred
4
$ 8,753 $ 5,001 $ 3,915 $ 5,775 $ 7,131 $ 1,359 $ 31,934 $ 1,027 $ 544
5

Exploration
Wells $ 251 $ 202 $ 121 $ 271 $ 302 $ 88 $ 1,235 $ $
2
Proved 248 8 39 295
Unproved 1,150 29 5 342 28 1,554 28
Total property acquisitions 1,398 29 13 381 28 1,849 28
Development
3
6,597 1,211 3,118 3,797 5,379 753 20,855 660 293
Total Costs Incurred
4
$ 8,506 $ 1,602 $ 3,452 $ 4,736 $ 5,841 $ 1,006 $ 25,143 $ 660 $ 321
Exploration
Wells $ 321 $ 71 $ 104 $ 146 $ 242 $ 188 $ 1,072 $ $
2
Proved 1,174 16 1 1,191
Unproved 7,404 228 25 7,657
Total property acquisitions 8,578 244 1 25 8,848
Development
3
5,517 1,537 2,698 2,867 2,638 633 15,890 379 368
Total Costs Incurred $ 14,601 $ 1,956 $ 2,950 $ 3,202 $ 2,974 $ 967 $ 26,650 $ 379 $ 368
1
Includes costs incurred whether capitalized or expensed. Excludes general support equipment expenditures. Includes capitalized amounts related to asset retirement obligations. SeeNote24,
Asset Retirement Obligations, on page FS-56.
2
Does not include properties acquired in nonmonetary transactions.
3
Includes $661, $963 and $1,035 costs incurred prior to assignment of proved reserves for consolidated companies in 2013, 2012 and 2011 respectively.
4
Reconciliation of consolidated and afliated companies total cost incurred to Upstream capital and exploratory (C&E) expenditures $ billions.
2013 2012
5

Total cost incurred $ 33.5 $ 26.1
Non-oil and gas activities 5.8 5.0 (Primarily includes LNG, gas-to-liquids and transportation activities)
ARO (1.4) (0.7)
Upstream C&E $ 37.9 $ 30.4 Reference page FS-12 Upstream total
5
2012 Non-oil and gas allocation revised.
FS-60
Table II Capitalized Costs Related to Oil and Gas Producing Activities

Other
Unproved properties $ 10,228 $ 3,697 $ 267 $ 2,064 $ 1,990 $ 36 $ 18,282 $ 109 $ 29
Proved properties and
related producing assets 67,837 12,868 32,936 42,780 3,274 9,592 169,287 6,977 3,408
Support equipment 1,314 344 1,180 1,678 1,608 177 6,301 1,166
Deferred exploratory wells 670 297 536 335 1,134 273 3,245
Other uncompleted projects 9,149 4,175 4,424 5,998 16,000 1,390 41,136 1,638 404
Gross Capitalized Costs 89,198 21,381 39,343 52,855 24,006 11,468 238,251 9,890 3,841
Unproved properties valuation 1,243 707 203 389 6 31 2,579 45 10
Proved producing properties
Depreciation and depletion 45,756 5,695 18,501 27,356 2,083 7,825 106,766 2,672 696
Support equipment depreciation 656 189 647 1,177 384 149 3,202 538
Accumulated provisions 47,655 6,591 18,901 28,922 2,473 8,005 112,547 3,255 706
Net Capitalized Costs $ 41,543 $ 14,790 $ 20,442 $ 23,933 $ 21,533 $ 3,463 $ 125,704 $ 6,635 $ 3,135
*

Unproved properties $ 10,478 $ 1,415 $ 271 $ 2,039 $ 1,884 $ 34 $ 16,121 $ 109 $ 28
Support equipment 1,179 330 1,195 1,554 1,191 172 5,621 1,089
Deferred exploratory wells 412 201 598 326 911 233 2,681
Other uncompleted projects 7,203 3,211 3,466 4,123 10,578 768 29,349 906 1,594
Unproved properties valuation 1,121 634 201 253 2 28 2,239 41
*
2012 Non-oil and gas allocations revised.
Table I Costs Incurred in Exploration,
Property Acquisitions and Development

Continued
on the companys estimated net proved-reserve quantities,
stan dardized measure of estimated discounted future netcash
fows related to proved reserves and changes in estimated
discounted future net cash fows. Te Africa geographic area
includes activities principally in Angola, Chad, Democratic
Republic of the Congo, Nigeria and Republic of the Congo.
Te Asia geographic area includes activities principally in
Azerbaijan, Bangladesh, China, Indonesia, Kazakhstan,
Myanmar, the Partitioned Zone between Kuwait and Saudi
Arabia, the Philippines, and Tailand. Te Europe geo-
graphic area includes activities primarily in Denmark, the
Netherlands, Norway and the United Kingdom. Te Other
Americas geographic region includes activities primarily in
Argentina, Brazil, Canada, Colombia, and Trinidad and
Tobago. Amounts for TCO represent Chevrons 50 percent
equity share of Tengizchevroil, an exploration and production
partnership in the Republic of Kazakhstan. Te afliated
companies Other amounts are composed of the companys
equity interests principally in Venezuela and Angola. Refer
to Note 12, beginning on FS-37, for a dis cussion of thecom-
panys major equity afliates.
FS-61


Other
Unproved properties $ 9,806 $ 1,417 $ 368 $ 2,408 $ 6 $ 33 $ 14,038 $ 109 $
Support equipment 1,071 292 1,362 1,544 533 169 4,971 1,018
Deferred exploratory wells 565 63 629 260 709 208 2,434
Other uncompleted projects 4,887 2,408 4,773 3,109 6,076 492 21,745 605 1,466
Unproved properties valuation 1,085 498 178 262 2 13 2,038 38
Table II Capitalized Costs Related to Oil and
Gas Producing Activities

Continued
FS-62
Table III Results of Operations for Oil and
1
Te companys results of operations from oil and gas
producing activities for the years 2013, 2012 and 2011 are
shown in the following table. Net income from exploration
and production activities as reported on FS-36 refects
income taxes computed on an efective rate basis.
Income taxes in Table III are based on statutory tax rates,
refecting allowable deductions and tax credits. Interest
income and expense are excluded from the results reported in
Table III and from the net income amounts on FS-36.
Table III Results of Operations for Oil and Gas Producing Activities
1
Other
Revenues from net production
Sales $ 2,303 $ 1,351 $ 702 $ 9,220 $ 1,431 $ 1,345 $ 16,352 $ 8,522 $ 2,100
Transfers 14,471 1,973 14,804 9,521 984 1,701 43,454
Total 16,774 3,324 15,506 18,741 2,415 3,046 59,806 8,522 2,100
Production expenses excluding taxes (4,606) (1,218) (2,099) (4,429) (193) (759) (13,304) (401) (444)
Taxes other than on income (648) (90) (149) (140) (378) (3) (1,408) (439) (704)
Proved producing properties:
Depreciation and depletion (4,039) (440) (2,747) (3,602) (342) (416) (11,586) (518) (179)
Accretion expense
2
(223) (22) (125) (114) (28) (79) (591) (9) (14)
Exploration expenses (555) (372) (203) (272) (161) (258) (1,821)
Unproved properties valuation (129) (84) (13) (141) (4) (5) (376) (10)
Other income (expense)
3
242 (5) 145 (275) 89 13 209 (81) 462
Results before income taxes 6,816 1,093 10,315 9,768 1,398 1,539 30,929 7,074 1,211
Income tax expense (2,471) (289) (6,545) (4,824) (411) (1,058) (15,598) (2,122) (624)
Results of Producing Operations $ 4,345 $ 804 $ 3,770 $ 4,944 $ 987 $ 481 $ 15,331 $ 4,952 $ 587
Sales $ 1,832 $ 1,561 $ 1,480 $ 10,485 $ 1,539 $ 1,618 $ 18,515 $ 7,869 $ 1,951
Transfers 15,122 1,997 15,033 9,071 1,073 2,148 44,444
Total 16,954 3,558 16,513 19,556 2,612 3,766 62,959 7,869 1,951
Accretion expense
2
(226) (33) (66) (92) (23) (46) (486) (8) (6)
Unproved properties valuation (127) (138) (16) (133) (15) (429)
3
167 (169) (199) 245 2,495 13 2,552 27 31
Results before income taxes 8,399 1,369 11,251 10,952 4,082 2,265 38,318 6,559 620
Income tax expense (3,043) (310) (7,558) (5,739) (1,226) (1,511) (19,387) (1,972) (299)
Results of Producing Operations $ 5,356 $ 1,059 $ 3,693 $ 5,213 $ 2,856 $ 754 $ 18,931 $ 4,587 $ 321
1
Te value of owned production consumed in operations as fuel has been eliminated from revenues and production expenses, and the related volumes have been deducted from net production in
calculating the unit average sales price and production cost. Tis has no efect on the results of producing operations.
2
Represents accretion of ARO liability. Refer to Note 24, Asset Retirement Obligations, on page FS-56.
3
Includes foreign currency gains and losses, gains and losses on property dispositions and other miscellaneous income and expenses.
FS-63

Table III Results of Operations for Oil and Gas Producing Activities
1
, continued


Other
Sales $ 2,508 $ 2,047 $ 1,174 $ 9,431 $ 1,474 $ 1,868 $ 18,502 $ 8,581 $ 1,988
Transfers 15,811 2,624 15,726 8,962 1,012 2,672 46,807
Total 18,319 4,671 16,900 18,393 2,486 4,540 65,309 8,581 1,988
Accretion expense
2
(291) (27) (106) (81) (18) (39) (562) (8) (4)
Unproved properties valuation (134) (146) (27) (60) (14) (381)
3
163 (466) (409) 231 (18) (74) (573) (8) (29)
Results before income taxes 10,219 1,894 12,266 10,558 1,673 2,990 39,600 7,245 765
Income tax expense (3,728) (535) (7,802) (5,374) (507) (1,913) (19,859) (2,176) (392)
Results of Producing Operations $ 6,491 $ 1,359 $ 4,464 $ 5,184 $ 1,166 $ 1,077 $ 19,741 $ 5,069 $ 373
1
Te value of owned production consumed in operations as fuel has been eliminated from revenues and production expenses, and the related volumes have been deducted from net production in
calculating the unit average sales price and production cost. Tis has no efect on the results of producing operations.
2
Represents accretion of ARO liability. Refer to Note 24, Asset Retirement Obligations, on page FS-56.
3
Includes foreign currency gains and losses, gains and losses on property dispositions, and other miscellaneous income and expenses.
Table IV Results of Operations for Oil and Gas Producing Activities

Unit Prices and Costs
1


Other
U.S. Americas Africa Asia Australia Europe Total TCO Other
Average sales prices
Liquids, per barrel $ 93.46 $ 88.32 $ 107.22 $ 98.37 $ 103.28 $ 105.78 $ 99.05 $ 88.06 $ 78.87
Natural gas, per thousand cubic feet 3.38 2.68 1.76 6.02 10.61 11.04 5.45 1.50 4.00
Average production costs, per barrel
2
19.57 21.29 13.93 16.49 5.90 22.87 17.10 4.37 22.69
2
16.99 18.38 12.14 16.71 4.86 15.72 15.46 4.42 18.73
2
15.08 14.62 9.48 17.47 3.41 11.44 13.98 4.23 10.54
1
Te value of owned production consumed in operations as fuel has been eliminated from revenues and production expenses, and the related volumes have been deducted from net
production in calculating the unit average sales price and production cost. Tis has no efect on the results of producing operations.
2
Natural gas converted to oil-equivalent gas (OEG) barrels at a rate of 6 MCF = 1 OEG barrel.
Table III Results of Operations for Oil and
1
Continued
FS-64
Reserves Governance Te company has adopted a compre-
hensive reserves and resource classifcation system modeled
after a system developed and approved by the Society of
Petroleum Engineers, the World Petroleum Congress and
the American Association of Petroleum Geologists. Te sys-
tem classifes recoverable hydrocarbons into six categories
based on their status at the time of reporting three deemed
commercial and three potentially recoverable. Within the
commercial classifcation are proved reserves and two cat-
egories of unproved: probable and possible. Te potentially
recoverable categories are also referred to as contingent
resources. For reserves estimates to be classifed as proved,
they must meet all SEC and company standards.
Proved oil and gas reserves are the estimated quantities
that geoscience and engineering data demonstrate with rea-
sonable certainty to be economically producible in the future
from known reservoirs under existing economic conditions,
operating methods and government regulations. Net proved
reserves exclude royalties and interests owned by others and
refect contractual arrangements and royalty obligations in
efect at the time of the estimate.
Proved reserves are classifed as either developed or unde-
veloped. Proved developed reserves are the quantities expected
to be recovered through existing wells with existing equip-
ment and operating methods.
Due to the inherent uncertainties and the limited nature
of reservoir data, estimates of reserves are subject to change as
additional information becomes available.
Proved reserves are estimated by company asset teams
composed of earth scientists and engineers. As part of the
internal control process related to reserves estimation, the
company maintains a Reserves Advisory Committee (RAC)
that is chaired by the Manager of Corporate Reserves, a cor-
porate department that reports directly to the Vice Chairman
responsible for the companys worldwide exploration and
production activities. Te Manager of Corporate Reserves has
more than 30 years experience working in the oil and gas
industry and a Master of Science in Petroleum Engineering
degree from Stanford University. His experience includes
Table V Reserve Quantity Information
Summary of Net Oil and Gas Reserves
2013 2012 2011
Liquids in Millions of Barrels
Natural Gas in Billions of Cubic Feet
Crude Oil
Condensate
NGLs
Synthetic
Oil
Natural
Gas
Crude Oil
Condensate
NGLs
Synthetic
Oil
Natural
Gas
Crude Oil
Condensate
NGLs
Synthetic
Oil
Natural
Gas
Proved Developed
Consolidated Companies
U.S. 976 2,632 1,012 2,574 990 2,486
Other Americas 109 403 94 3 91 391 1,063 82 403 1,147
Africa 763 1,161 782 1,163 792 1,276
Asia 601 4,620 643 4,511 703 4,300
Australia 44 1,251 31 682 39 813
Europe 94 200 103 191 116 204
Total Consolidated 2,587 403 10,807 2,662 391 10,184 2,722 403 10,226
Afliated Companies
TCO 884 1,188 977 1,261 1,019 1,400
Other 105 44 330 115 50 377 93 50 75
Total Consolidated and Affiliated Companies 3,576 447 12,325 3,754 441 11,822 3,834 453 11,701
Proved Undeveloped
U.S. 354 1,358 347 1,148 321 1,160
Other Americas 134 134 357 132 122 412 31 120 517
Africa 341 1,884 348 1,918 363 1,920
Asia 191 2,125 194 2,356 191 2,421
Australia 87 9,076 103 9,570 101 8,931
Europe 72 63 54 66 43 54
Affiliated Companies
TCO 784 1,102 755 1,038 740 851
Other 49 176 856 49 182 865 64 194 1,128
Total Proved Reserves 5,588 757 29,146 5,736 745 29,195 5,688 767 28,683
FS-65

more than 15 years of managing oil and gas reserves processes.
He was chairman of the Society of Petroleum Engineers Oil
and Gas Reserves Committee, served on the United Nations
Expert Group on Resources Classifcation, and is a past mem-
ber of the Joint Committee on Reserves Evaluator Training
and the California Conservation Committee. He is an active
member of the Society of Petroleum Evaluation Engineers
and serves on the Society of Petroleum Engineers Oil and Gas
Reserves Committee.
All RAC members are degreed professionals, each
with more than 10 years of experience in various aspects of
reserves estimation relating to reservoir engineering, petro-
leum engineering, earth science or fnance. Te members
are knowledgeable in SEC guidelines for proved reserves
classifcation and receive annual training on the preparation
of reserves estimates. Te reserves activities are managed by
two operating company-level reserves managers. Tese two
reserves managers are not members of the RAC so as to pre-
serve corporate-level independence.
Te RAC has the following primary responsibilities:
establish the policies and processes used within the operat-
ing units to estimate reserves; provide independent reviews
and oversight of the business units recommended reserves
estimates and changes; confrm that proved reserves are rec-
ognized in accordance with SEC guidelines; determine that
reserve volumes are calculated using consistent and appro-
priate standards, procedures and technology; and maintain
the Corporate Reserves Manual, which provides standardized
procedures used corporatewide for classifying and reporting
hydrocarbon reserves.
During the year, the RAC is represented in meetings with
each of the companys upstream business units to review and
discuss reserve changes recommended by the various asset
teams. Major changes are also reviewed with the companys
Strategy and Planning Committee, whose members include
the Chief Executive Ofcer and the Chief Financial Ofcer.
Te companys annual reserve activity is also reviewed with the
Board of Directors. If major changes to reserves were to occur
between the annual reviews, those matters would also be dis-
cussed with the Board.
RAC subteams also conduct in-depth reviews during
the year of many of the felds that have large proved reserves
quantities. Tese reviews include an examination of the
proved-reserve records and documentation of their compli-
ance with the Corporate Reserves Manual.
Table V Reserve Quantity Information Continued
Technologies Used in Establishing Proved Reserves
Additions In 2013, additions to Chevrons proved reserves
were based on a wide range of geologic and engineering tech-
nologies. Information generated from wells, such as well logs,
wire line sampling, production and pressure testing, fuid
analysis, and core analysis, was integrated with seismic data,
regional geologic studies, and information from analogous
reservoirs to provide reasonably certain proved reserves esti-
mates. Both proprietary and commercially available analytic
tools, including reservoir simulation, geologic modeling and
seismic processing, have been used in the interpretation of
the subsurface data. Tese technologies have been utilized
extensively by the company in the past, and the company
believes that they provide a high degree of confdence in
establishing reliable and consistent reserves estimates.
Proved Undeveloped Reserve Quantities At the end
of 2013, proved undeveloped reserves totaled 5.1 billion bar-
rels of oil-equivalent (BOE), a decrease of 56 million BOE
from year-end 2012. Te decrease was due to the transfer
of 461 million BOE to proved developed, partially ofset by
increases of 210 BOE in extensions and discoveries, 7 million
BOE in purchases, 42 million BOE in improved recovery
and 146 million BOE in revisions.
Investment to Convert Proved Undeveloped to Proved
Developed Reserves During 2013, investments totaling
approximately $17.4 billion in oil and gas producing activities
and about $3.4 billion in non-oil and gas producing activi-
ties were expended to advance the development of proved
undeveloped reserves. Australia accounted for $9.6 billion of
the total, mainly for development and construction activities
at the Gorgon and Wheatstone LNG projects. Expenditures
of about $3.5 billion in the United States related primarily
to various development activities in the Gulf of Mexico and
the midcontinent region. In Asia, expenditures during the
year totaled $3.0 billion, primarily related to development
projects in Tailand, Indonesia and with the TCO afliate
in Kazakhstan. In Africa, another $2.9 billion was expended
on various ofshore development and natural gas projects in
Nigeria and Angola.
Proved Undeveloped Reserves for Five Years or More
Reserves that remain proved undeveloped for fve or more
years are a result of several factors that afect optimal project
development and execution, such as the complex nature of the
development project in adverse and remote locations, physical
limitations of infrastructure or plant capacities that dictate project
timing, compression projects that are pending reservoir pressure
declines, and contractual limitations that dictate production
levels.
Summary of Net Oil and Gas Reserves
2013 2012 2011
Liquids in Millions of Barrels
Natural Gas in Billions of Cubic Feet
Crude Oil
Condensate
NGLs
Synthetic
Oil
Natural
Gas
Crude Oil
Condensate
NGLs
Synthetic
Oil
Natural
Gas
Crude Oil
Condensate
NGLs
Synthetic
Oil
Natural
Gas
Proved Developed
U.S. 976 2,632 1,012 2,574 990 2,486
Other Americas 109 403 94 3 91 391 1,063 82 403 1,147
Africa 763 1,161 782 1,163 792 1,276
Asia 601 4,620 643 4,511 703 4,300
Australia 44 1,251 31 682 39 813
Europe 94 200 103 191 116 204
Afliated Companies
TCO 884 1,188 977 1,261 1,019 1,400
Other 105 44 330 115 50 377 93 50 75
Proved Undeveloped
U.S. 354 1,358 347 1,148 321 1,160
Other Americas 134 134 357 132 122 412 31 120 517
Africa 341 1,884 348 1,918 363 1,920
Asia 191 2,125 194 2,356 191 2,421
Australia 87 9,076 103 9,570 101 8,931
Europe 72 63 54 66 43 54
Affiliated Companies
TCO 784 1,102 755 1,038 740 851
Other 49 176 856 49 182 865 64 194 1,128
Total Proved Reserves 5,588 757 29,146 5,736 745 29,195 5,688 767 28,683
FS-66
At year-end 2013, the company held approximately 1.6 bil-
lion BOE of proved undeveloped reserves that have remained
undeveloped for fve years or more. Te reserves are held by
consolidated and afliated companies and the majority of these
reserves are in locations where the company has a proven track
record of developing major projects.
In Africa, the majority of the approximately 300 million
BOE of proved undeveloped reserves that have remained unde-
veloped for fve years or more is related to deepwater and natural
gas developments in Nigeria. Major Nigerian deepwater develop-
ment projects include Agbami, which started production in 2008
and has ongoing development activities to maintain full utiliza-
tion of infrastructure capacity, and the Usan development, which
started production in 2012. Also in Nigeria, various felds and
infrastructure associated with the Escravos gas projects are cur-
rently under development.
In Asia, less than 200 million BOE remain classifed as
proved undeveloped for more than fve years. Te majority relate
to ongoing development activities in the Pattani Field in Tailand
and the Azeri-Chirag-Gunashli felds in Azerbaijan.
Afliates account for 1.1 billion barrels of proved unde-
veloped reserves that have remained undeveloped for fve years
or more, with the majority related to the TCO afliate in
Kazakhstan. At TCO, further feld development to convert the
remaining proved undeveloped reserves is scheduled to occur in
line with reservoir depletion. In Venezuela, development drilling
continues at Hamaca to optimize utilization of upgrader capacity.
Annually, the company assesses whether any changes have
occurred in facts or circumstances, such as changes to develop-
ment plans, regulations or government policies, that would
warrant a revision to reserve estimates. For 2013, this assess-
ment did not result in any material changes in reserves classifed
as proved undeveloped. Over the past three years, the ratio of
proved undeveloped reserves to total proved reserves has ranged
between 44 percent and 46 percent. Te consistent completion
of major capital projects has kept the ratio in a narrow range over
this time period.
Proved Reserve Quantities At December 31, 2013,
proved reserves for the company were 11.2billion BOE.
Approximately 18 percent of the total reserves were located in
the United States.
Aside from the TCO afliates Tengiz Field in
Kazakhstan, no single property accounted for more than
5 percent of the companys total oil-equivalent proved
reserves. About 18 other individual properties in the compa-
nys portfolio of assets each contained between 1 percent and
5 percent of the companys oil-equivalent proved reserves,
which in the aggregate accounted for 44 percent of the com-
panys total oil-equivalent proved reserves. Tese properties
were geographically dispersed, located in the United States,
Canada, South America, Africa, Asia and Australia.
In the United States, total proved reserves at year-end
2013 were 2.0 billion BOE. California properties accounted
for 30 percent of the U.S. reserves, with most classifed as
heavy oil. Because of heavy oils high viscosity and the need
to employ enhanced recovery methods, most of the com-
panys heavy oil felds in California employ a continuous
steamfooding process. Te Gulf of Mexico region contains
26 percent of the U.S. reserves and production operations are
mostly ofshore. Other U.S. areas represent the remaining
44 percent of U.S. reserves. For production of crude oil, some
felds utilize enhanced recovery methods, including water-
fooding and CO
2
injection.
For the three years ending December 31, 2013, the pat-
tern of net reserve changes shown in the following tables are
not necessarily indicative of future trends. Apart from acqui-
sitions, the companys ability to add proved reserves can be
afected by, among other things, events and circumstances
that are outside the companys control, such as delays in gov-
ernment permitting, partner approvals of development plans,
changes in oil and gas prices, OPEC constraints, geopolitical
uncertainties, and civil unrest.
Te companys estimated net proved reserves of crude
oil, condensate, natural gas liquids and synthetic oil and
changes thereto for the years 2011, 2012 and 2013 are shown
in the table on page FS-67. Te companys estimated net
proved reserves of natural gas are shown on page FS-68.
FS-67

Net Proved Reserves (Developed and Undeveloped) of Crude Oil, Condensate, Natural Gas Liquids and Synthetic Oil

Total
Consolidated

Other Synthetic

Synthetic and Afliated
Millions of barrels U.S. Americas
1
Africa Asia Australia Europe Oil
2
Total TCO Oil Other
3
Companies
Reserves at January 1, 2011 1,275 108 1,168 1,013 88 152 466 4,270 1,820 256 157 6,503
Changes attributable to:
Revisions 63 4 60 25 (2) 15 32 197 28 10 235
Improved recovery 6 4 48 58 58
Extensions and discoveries 140 30 34 4 65 26 299 299
Purchases 2 40 42 42
Sales (5) (1) (6) (6)
Production (170) (33) (155) (148) (10) (34) (15) (565) (89) (12) (10) (676)
Reserves at December 31, 2011
4
1,311 113 1,155 894 140 159 523 4,295 1,759 244 157 6,455
Revisions 104 20 66 97 4 16 6 313 59 (6) 24 390
Improved recovery 24 8 30 6 9 77 77
Extensions and discoveries 77 101 30 2 7 217 1 218
Purchases 10 10 10
Sales (1) (15) (7) (23) (23)
Production (166) (19) (151) (147) (10) (27) (16) (536) (86) (6) (18) (646)
4
1,359 223 1,130 837 134 157 513 4,353 1,732 232 164 6,481
Revisions 55 25 94 84 7 17 40 322 32 (3) 3 354
Improved recovery 26 10 10 11 57 57
Extensions and discoveries 55 4 13 2 4 78 78
Purchases 2 9 11 11
Sales (3) (1) (4) (4)
Production (164) (18) (142) (141) (10) (23) (16) (514) (96) (9) (13) (632)
4
1,330 243 1,104 792 131 166 537 4,303 1,668 220 154 6,345
1
Ending reserve balances in North America were 141, 121 and 13 and in South America were 102, 102 and 100 in 2013, 2012 and 2011, respectively.
2
Reserves associated with Canada.
3
Ending reserve balances in Africa were 37, 41 and 38 and in South America were 117, 123 and 119 in 2013, 2012 and 2011, respectively.
4
Included are year-end reserve quantities related to production-sharing contracts (PSC) (refer to page E-11 for the defnition of a PSC). PSC-related reserve quantities are
20 percent, 20 percent and 22 percent for consolidated companies for 2013, 2012 and 2011, respectively.
Noteworthy amounts in the categories of liquids proved
reserve changes for 2011 through 2013 are discussed below:
Revisions In 2011, net revisions increased reserves 235
million barrels. For consolidated companies, improved reser-
voir performance accounted for a majority of the 63 million
barrel increase in the United States. In Africa, improved feld
performance drove the 60 million barrel increase. In Asia,
increases from improved reservoir performance were partially
ofset by the efects of higher prices on entitlement volumes.
Synthetic oil reserves in Canada increased by 32 million
barrels, primarily due to geotechnical revisions. For afliated
companies, improved facility and reservoir performance was
partially ofset by the price efect on entitlement volumes
at TCO.
In 2012, net revisions increased reserves 390 million
barrels. Improved feld performance and drilling associated
with Gulf of Mexico projects accounted for the majority of
the 104 million barrel increase in the United States. In Asia,
drilling results across numerous assets drove the 97 million
barrel increase. Improved feld performance from various
Nigeria and Angola producing assets was primarily respon-
sible for the 66 million barrel increase in Africa. Improved
plant efciency for the TCO afliate was responsible for a
large portion of the 59 million barrel increase.
In 2013, net revisions increased reserves 354 million
barrels. Improved feld performance from various Nigeria
and Angola producing assets was primarily responsible for
the 94 million barrel increase in Africa. In Asia, drilling
performance across numerous assets resulted in an 84 mil-
lion barrel increase. Improved feld performance and drilling
associated with Gulf of Mexico projects and drilling in the
Midland and Delaware basins accounted for the majority of
the 55 million barrel increase in the United States. Synthetic
oil reserves in Canada increased by 40 million barrels, pri-
marily due to improved feld performance.
Improved Recovery In 2011, improved recovery
increased volumes by 58 million barrels. Reserves in Africa
increased 48 million barrels due primarily to secondary
recovery performance in Nigeria.
In 2012, improved recovery increased reserves by 77 mil-
lion barrels, primarily due to secondary recovery performance
in Africa and in Gulf of Mexico felds in the United States.
FS-68
In 2012, extensions and discoveries increased reserves 218
million barrels. In Other Americas, extensions and discover-
ies increased reserves 101 million barrels, primarily due to
the initial booking of the Hebron project in Canada. In the
United States, additions at several Gulf of Mexico projects and
drilling activity in the mid-continent region were primarily
responsible for the 77 million barrel increase.
In 2013, extensions and discoveries increased reserves
78 million barrels. In the United States, extensions and dis-
coveries in the Midland and Delaware basins were primarily
responsible for the 55 million barrel increase.
Purchases In 2011, purchases increased worldwide liq-
uid volumes 42 million barrels. Te acquisition of additional
acreage in Canada increased synthetic oil reserves 40 million
barrels.
In 2013, improved recovery increased reserves by 57
million barrels due to numerous small projects, including
expansions of existing projects in the United States, Europe,
Asia, and Africa.
Extensions and Discoveries In 2011, extensions and
discoveries increased reserves 299 million barrels. In the
United States, additions related to two Gulf of Mexico projects
resulted in the majority of the 140 million barrel increase. In
Australia, the Wheatstone Project increased liquid volumes 65
million barrels. Africa and Other Americas increased reserves
34 million and 30 million barrels, respectively, following the
start of new projects in these areas. In Europe, a project in the
United Kingdom increased reserves 26 million barrels.
Net Proved Reserves of Natural Gas

Total


Consolidated

Other

and Afliated
Billions of cubic feet (BCF) U.S. Americas
1
Africa Asia Australia Europe Total TCO Other
2
Companies
Reserves at January 1, 2011 2,472 1,815 2,944 7,193 6,056 275 20,755 2,386 1,110 24,251
Revisions 217 (4) 39 196 (107) 74 415 (21) 103 497
Improved recovery 1 1 1
Extensions and discoveries 287 13 290 46 4,035 9 4,680 4,680
Purchases 1,231 2 1,233 1,233
Sales (95) (2) (77) (174) (174)
Production
3
(466) (161) (77) (714) (163) (100) (1,681) (114) (10) (1,805)
4
3,646 1,664 3,196 6,721 9,744 258 25,229 2,251 1,203 28,683
Revisions 318 (77) (30) 1,007 358 84 1,660 158 37 1,855
Improved recovery 5 1 2 8 8
Extensions and discoveries 166 34 2 50 747 999 12 1,011
Purchases 33 33 33
Sales (6) (93) (439) (538) (538)
Production
3
(440) (146) (87) (819) (158) (87) (1,737) (110) (10) (1,857)
4
3,722 1,475 3,081 6,867 10,252 257 25,654 2,299 1,242 29,195
Revisions (234) (59) 27 627 229 46 636 117 (35) 718
Improved recovery 3 2 6 4 15 15
Extensions and discoveries 951 27 16 27 1,021 1,021
Purchases 12 32 60 104 104
Sales (10) (1) (1) (12) (12)
Production
3
(454) (148) (91) (831) (154) (70) (1,748) (126) (21) (1,895)
4
3,990 1,300 3,045 6,745 10,327 263 25,670 2,290 1,186 29,146
1
Ending reserve balances in North America and South America were 54, 49, 19 and 1,246, 1,426, 1,645 in 2013, 2012 and 2011, respectively.
2
Ending reserve balances in Africa and South America were 1,009, 1,068, 1,016 and 177, 174, 187 in 2013, 2012 and 2011, respectively.
3
Total as sold volumes are 1,704 BCF, 1,666 BCF and 1,615 BCF for 2013, 2012 and 2011, respectively. 2011 and 2012 conformed to 2013 presentation.
4
Includes reserve quantities related to production-sharing contracts (PSC) (refer to page E-11 for the defnition of a PSC). PSC-related reserve quantities are 20 percent,
21 percent and 21 percent for consolidated companies for 2013, 2012 and 2011, respectively.
FS-69

Extensions and Discoveries In 2011, extensions and
discoveries increased reserves 4,680 BCF. In Australia, the
Wheatstone Project accounted for the 4,035 BCF in addi-
tions. In Africa, the start of a new natural gas development
project in Nigeria resulted in the 290 BCF increase. In the
United States, development drilling accounted for the major-
ity of the 287 BCF increase.
In 2012, extensions and discoveries increased reserves by
1,011 BCF. Te increase of 747 BCF in Australia was primar-
ily related to positive drilling results at the Gorgon Project.
In 2013, extensions and discoveries increased reserves by
1,021 BCF, with the majority in the Appalachian region in
the U.S.
Purchases In 2011, purchases increased reserves
1,233 BCF. In the United States, acquisitions in the
Marcellus Shale increased reserves 1,230 BCF.
Sales In 2011, sales decreased reserves 174 BCF. In
Australia, the Wheatstone Project unitization and equity sales
agreements reduced reserves 77 BCF. In the United States,
sales in Alaska and other smaller felds reduced reserves
95 BCF.
In 2012, sales decreased reserves by 538 BCF. Sales of a
portion of the companys equity interest in the Wheatstone
Project were responsible for the 439 BCF reserves reduction
in Australia.
Noteworthy amounts in the categories of natural gas
proved-reserve changes for 2011 through 2013 are dis-
cussed below:
Revisions In 2011, net revisions increased reserves 497
BCF. For consolidated companies, improved reservoir perfor-
mance accounted for a majority of the 217 BCF increase in the
United States. In Asia, a net increase of 196 BCF was driven
by development drilling and improved feld performance in
Tailand, partially ofset by the efects of higher prices on
entitlement volumes in Kazakhstan. For afliated companies,
ongoing reservoir assessment resulted in the recognition of addi-
tional reserves related to the Angola LNG project. At TCO,
improved facility and reservoir performance was more than
ofset by the price efect on entitlement volumes.
In 2012, net revisions increased reserves 1,855 BCF. A
net increase of 1,007 BCF in Asia was primarily due to devel-
opment drilling and additional compression in Bangladesh,
and drilling results and improved feld performance in
Tailand. In Australia, updated reservoir data interpretation
based on additional drilling at the Gorgon Project drove
the 358 BCF increase. Drilling results from activities in
the Marcellus Shale were responsible for the majority of the
318 BCF increase in the United States.
In 2013, net revisions increased reserves 718 BCF.
A net increase of 627 BCF in Asia was primarily due to
development drilling and improved feld performance in
Bangladesh and Tailand. In Australia, drilling performance
drove the 229 BCF increase. Te majority of the net decrease
of 234 BCF in the United States was due to a change in
development plans in the Appalachian region.
FS-70
Table VI Standardized Measure of Discounted Future Net Cash
Flows Related to Proved Oil and Gas Reserves
Te standardized measure of discounted future net cash
fows, related to the preceding proved oil and gas reserves, is calcu-
lated in accordance with the requirements of the FASB. Estimated
future cash infows from production are computed by applying
12-month average prices for oil and gas to year-end quantities of
estimated net proved reserves. Future price changes are limited
to those provided by contractual arrangements in existence at the
end of each reporting year. Future development and production
costs are those estimated future expenditures necessary to develop
and produce year-end estimated proved reserves based on year-end
cost indices, assuming continuation of year-end economic condi-
tions, and include estimated costs for asset retirement obligations.
Estimated future income taxes are calculated by applying appro-
priate year-end statutory tax rates. Tese rates refect allowable
deductions and tax credits and are applied to estimated future pre-
tax net cash fows, less the tax basis of related assets. Discounted
future net cash fows are calculated using 10 percent midperiod
discount factors. Discounting requires a year-by-year esti-
mate of when future expenditures will be incurred and when
reserves will be produced.
Te information provided does not represent manage-
ments estimate of the companys expected future cash fows or
value of proved oil and gas reserves. Estimates of proved-reserve
quantities are imprecise and change over time as new infor-
mation becomes available. Moreover, probable and possible
reserves, which may become proved in the future, are excluded
from the calculations. Te valuation prescribed by the FASB
requires assumptions as to the timing and amount of future
development and production costs. Te calculations are made
as of December 31 each year and should not be relied upon as
an indication of the companys future cash fows or value of
its oil and gas reserves. In the following table, Standardized
Measure Net Cash Flows refers to the standardized measure
of discounted future net cash fows.
Table VI Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves

Total
Consolidated
Other and Afliated
Millions of dollars U.S. Americas Africa Asia Australia Europe Total TCO Other Companies
Future cash infows from production
1
$ 136,942 $ 73,468 $ 117,119 $ 111,970 $ 130,620 $ 20,232 $ 590,351 $ 157,108 $ 43,380 $ 790,839
Future production costs (39,009) (29,373) (27,800) (35,716) (19,387) (10,099) (161,384) (32,245) (18,027) (211,656)
Future development costs (12,058) (10,149) (10,983) (17,290) (18,220) (2,644) (71,344) (12,852) (3,879) (88,075)
Future income taxes (28,458) (9,454) (53,953) (26,162) (27,904) (4,727) (150,658) (33,603) (9,418) (193,679)
Undiscounted future net cash fows 57,417 24,492 24,383 32,802 65,109 2,762 206,965 78,408 12,056 297,429
10 percent midyear annual discount
for timing of estimated cash fows (23,055) (15,217) (8,165) (10,901) (35,110) (888) (93,336) (41,444) (6,482) (141,262)
Standardized Measure
Net Cash Flows $ 34,362 $ 9,275 $ 16,218 $ 21,901 $ 29,999 $ 1,874 $ 113,629 $ 36,964 $ 5,574 $ 156,167
2
1
$ 139,856 $ 72,548 $ 122,189 $ 121,849 $ 134,009 $ 19,653 $ 610,104 $ 169,966 $ 47,496 $ 827,566
Future development costs (11,192) (14,810) (14,601) (17,275) (24,923) (1,946) (84,747) (12,355) (3,710) (100,812)
for timing of estimated cash fows (23,055) (14,331) (12,429) (13,033) (40,450) (860) (104,158) (47,534) (5,644) (157,336)
Net Cash Flows $ 31,479 $ 6,314 $ 21,884 $ 25,065 $ 23,072 $ 2,490 $ 110,304 $ 40,334 $ 4,880 $ 155,518
1
$ 143,633 $ 63,579 $ 124,077 $ 124,972 $ 113,773 $ 19,704 $ 589,738 $ 171,588 $ 42,212 $ 803,538
Future development costs (11,272) (9,345) (10,695) (15,035) (29,489) (676) (76,512) (10,778) (2,836) (90,126)
for timing of estimated cash fows (25,013) (15,082) (13,801) (14,627) (35,051) (1,117) (104,691) (51,547) (4,883) (161,121)
Net Cash Flows $ 33,775 $ 7,175 $ 23,775 $ 25,847 $ 13,161 $ 3,215 $ 106,948 $ 41,661 $ 4,230 $ 152,839
1
Based on 12-month average price.
2
2012 conformed to 2013 presentation.
FS-71

Table VII Changes in the Standardized Measure of Discounted
Future Net Cash Flows From Proved Reserves
production volumes and costs. Changes in the timing
of production are included with Revisions of previous
quantityestimates.
Table VII Changes in the Standardized Measure of Discounted Future Net Cash Flows From Proved Reserves
Total
Consolidated
and Affiliated
Millions of dollars Consolidated Companies* Afliated Companies Companies
Present Value at January 1, 2011 $ 73,024 $ 35,619 $ 108,643
Sales and transfers of oil and gas produced net of production costs (52,338) (8,679) (61,017)
Development costs incurred 13,869 729 14,598
Purchases of reserves 1,212 1,212
Sales of reserves (803) (803)
Extensions, discoveries and improved recovery less related costs 12,288 12,288
Revisions of previous quantity estimates 16,025 923 16,948
Net changes in prices, development and production costs 61,428 15,979 77,407
Accretion of discount 11,943 5,048 16,991
Net change in income tax (29,700) (3,728) (33,428)
Net change for 2011 33,924 10,272 44,196
Present Value at December 31, 2011 $ 106,948 $ 45,891 $ 152,839
Development costs incurred 18,013 942 18,955
Purchases of reserves 376 376
Sales of reserves (1,630) (1,630)
Extensions, discoveries and improved recovery less related costs 9,251 106 9,357
Revisions of previous quantity estimates 26,022 3,759 29,781
Net changes in prices, development and production costs (19,178) (2,266) (21,444)
Net change in income tax 1,570 (1,832) (262)
Net change for 2012 3,356 (677) 2,679
Development costs incurred 22,907 1,411 24,318
Purchases of reserves 184 184
Sales of reserves 243 243
Extensions, discoveries and improved recovery less related costs 3,135 3,135
Revisions of previous quantity estimates 25,573 1,306 26,879
Net changes in prices, development and production costs (25,959) (5,925) (31,884)
Net change in income tax 2,539 2,818 5,357
Net change for 2013 3,325 (2,676) 649
*
2012 conformed to 2013 presentation.
Te changes in present values between years, which can
be signifcant, refect changes in estimated proved-reserve
quantities and prices and assumptions used in forecasting
E-1
EXHIBITINDEX
Exhibit No. Description
3.1 Restated Certificate of Incorporation of Chevron Corporation, dated May30, 2008, filed as Exhibit3.1 to Chevron
Corporations Quarterly Report on Form10-Q for the quarterly period ended June30, 2008, and incorporated herein by
reference.
3.2 By-Laws of Chevron Corporation, as amended January 29, 2014, filed as Exhibit3.1 to ChevronCorporations Current
Report on Form8-K filed January 31, 2014, and incorporated herein by reference.
4.1 Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of
the company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any
such instrument does not exceed 10percent of the total assets of the corporation and its subsidiaries on a consolidated
basis. A copy of such instrument will be furnished to the Securities and Exchange Commission upon request.
4.2 Confidential Stockholder Voting Policy of Chevron Corporation, filed as Exhibit4.2 to ChevronCorporations Annual
Report on Form10-K for the year ended December31, 2008, and incorporated herein by reference.
10.1 Chevron Corporation Non-Employee Directors Equity Compensation and Deferral Plan, filed as Exhibit10.1 to
Chevron Corporations Annual Report on Form10-K for the year ended December31, 2008, and incorporated herein
by reference.
10.2 Chevron Incentive Plan, filed as Exhibit10.2 to Chevron Corporations Annual Report on Form10-K for the year
ended December31, 2008, and incorporated herein by reference.
10.3 Long-Term Incentive Plan of Chevron Corporation, filed as ExhibitB to Chevron Corporations Notice of the 2013
Annual Meeting and 2013 Proxy Statement filed April 11, 2013, and incorporated herein by reference.
10.4 Chevron Corporation Deferred Compensation Plan for Management Employees, filed as Exhibit10.5 to Chevron
Corporations Current Report on Form8-K filed December13, 2005, and incorporated herein by reference.
10.5 Chevron Corporation Deferred Compensation Plan for Management Employees II, filed as Exhibit10.5 to Chevron
Corporations Annual Report on Form10-K for the year ended December31, 2008, and incorporated herein by
reference.
10.6 Chevron Corporation Retirement Restoration Plan, filed as Exhibit10.6 to Chevron Corporations Annual Report on
Form10-K for the year ended December31, 2008, and incorporated herein by reference.
10.7 Chevron Corporation ESIP Restoration Plan, filed as Exhibit10.7 to Chevron Corporations Annual Report on
Form10-K for the year ended December31, 2008, and incorporated herein by reference.
10.8* Summary of Chevron Incentive Plan Award Criteria.
10.9* Form of Terms and Conditions for Awards under the Long-Term Incentive Plan of Chevron Corporation.
10.10 Form of Restricted Stock Unit Grant Agreement under the Long-Term Incentive Plan of ChevronCorporation, filed as
Exhibit 10.13 to Chevron Corporation's Annual Report on Form 10-K for the year ended December 31, 2012, and
incorporated herein by reference.
10.11 Form of Retainer Stock Option Agreement under the Chevron Corporation Non-Employee Directors Equity
Compensation and Deferral Plan, filed as Exhibit10.17 to Chevron Corporations Annual Report on Form10-K for the
year ended December31, 2009, and incorporated herein by reference.
10.12 Form of Stock Units Agreement under the Chevron Corporation Non-Employee Directors Equity Compensation and
Deferral Plan, filed as Exhibit10.19 to Chevron Corporations Annual Report on Form10-K for the year ended
December31, 2008, and incorporated herein by reference.
10.13 Agreement between Chevron Corporation and R. Hewitt Pate, filed as Exhibit 10.16 to Chevron's Annual Report on
Form 10-K for the year ended December 31, 2011, and incorporated herein by reference.
12.1* Computation of Ratio of Earnings to Fixed Charges (pageE-3).
21.1* Subsidiaries of Chevron Corporation (page E-4).
E-2
Exhibit No. Description
23.1* Consent of PricewaterhouseCoopers LLP (pageE-5).
24.1 to 24.10*
Powers of Attorney for directors and certain officers of Chevron Corporation, authorizing the signing of the Annual
Report on Form10-K on their behalf.
31.1* Rule13a-14(a)/15d-14(a) Certification of the companys Chief Executive Officer (pageE-6).
31.2* Rule13a-14(a)/15d-14(a) Certification of the companys Chief Financial Officer (pageE-7).
32.1* Section1350 Certification of the companys Chief Executive Officer (pageE-8).
32.2* Section1350 Certification of the companys Chief Financial Officer (pageE-9).
95* Mine Safety Disclosure.
99.1* Definitions of Selected Energy and Financial Terms (pages E-10 through E-11).
101.INS* XBRL Instance Document.
101.SCH* XBRL Schema Document.
101.CAL* XBRL Calculation Linkbase Document.
101.LAB* XBRL Label Linkbase Document.
101.PRE* XBRL Presentation Linkbase Document.
101.DEF* XBRL Definition Linkbase Document.
Attached as Exhibit101 to this report are documents formatted in XBRL (Extensible Business Reporting Language). The financial
information contained in the XBRL-related documents is unaudited or unreviewed.
_______________________________
*
Filed herewith.
Copies of the above exhibits not contained herein are available to any security holder upon written request to theCorporate
Governance Department, Chevron Corporation, 6001 Bollinger Canyon Road, SanRamon, California 94583-2324.
E-3
Exhibit 12.1
CHEVRON CORPORATION TOTAL ENTERPRISE BASIS
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year
Ended
December 31, 2013
Year Ended December 31
2012 2011 2010 2009
(Millions of dollars)
Net Income Attributable to Chevron
Corporation
$ 21,423 $ 26,179 $ 26,895 $ 19,024 $ 10,483
Income Tax Expense
14,308 19,996 20,626 12,919 7,965
Distributions Less Than Equity in
Earnings of Affiliates
(1,178) (1,351) (570) (501) (103)
174 157 113 112 80
Previously Capitalized Interest Charged
to Earnings During Period
96 123 117 240 261
Interest and Debt Expense
50 28
Interest Portion of Rentals
(1)
342 316 288 300 299
Earnings Before Provision for Taxes
and Fixed Charges
$ 35,165 $ 45,420 $ 47,469 $ 32,144 $ 19,013
Interest and Debt Expense
50 28
Interest Portion of Rentals
(1)
342 316 288 300 299
Preferred Stock Dividends of Subsidiaries

Capitalized Interest
284 230 288 267 273
Total Fixed Charges
$ 626 $ 546 $ 576 $ 617 $ 600
Ratio of Earnings to Fixed Charges
56.17 83.19 82.41 52.10 31.69
(1)
Calculated as one-third of rentals. Considered a reasonable approximation of interest factor.

E-4
Exhibit 21.1
SUBSIDIARIES OF CHEVRON CORPORATION
1

At December31, 2013
Name of Subsidiary State, Province or Country in Which Organized
Cabinda Gulf Oil Company Limited Bermuda
Chevron Argentina S.R.L. Argentina
Chevron Australia Pty Ltd. Australia
Chevron Australia Holdings Pty Ltd. Australia
Chevron Canada Limited Canada
Chevron Global Energy Inc. Delaware
Chevron Global Technology Services Company Delaware
Chevron Investments Inc. Delaware
Chevron LNG Shipping Company Limited Bermuda
Chevron Malampaya LLC Delaware
Chevron Nigeria Limited Nigeria
Chevron North Sea Limited United Kingdom
Chevron Oil Congo (D.R.C.) Limited Bermuda
Chevron Oronite Company LLC Delaware
Chevron Oronite Pte. Ltd. Singapore
Chevron Oronite S.A.S. France
Chevron Overseas Company Delaware
Chevron Overseas (Congo) Limited Bermuda
Chevron Overseas Petroleum Limited Bahamas
Chevron Petroleum Chad Company Limited Bermuda
Chevron Petroleum Company New Jersey
Chevron Petroleum Limited Bermuda
Chevron Petroleum Nigeria Limited Nigeria
Chevron Philippines Inc. Philippines
Chevron Pipe Line Company Delaware
Chevron South Natuna B Inc. Liberia
Chevron Thailand Exploration and Production, Ltd. Bermuda
Chevron (Thailand) Limited Bahamas
Chevron Thailand LLC Delaware
Chevron Transport Corporation Ltd. Bermuda
Chevron U.S.A. Holdings Inc. Delaware
Chevron U.S.A. Inc. Pennsylvania
Nigeria Chevron Alpha Limited Bermuda
PT Chevron Pacific Indonesia Indonesia
Saudi Arabian Chevron Inc. Delaware
Star Petroleum Refining Public Co., Ltd. Thailand
Texaco Inc. Delaware
Texaco Overseas Holdings Inc. Delaware
Texaco Venezuela Holdings (I) Company Delaware
Union Oil Company of California California
Unocal Corporation Delaware
Unocal International Corporation Nevada
1
All of the subsidiaries in the above list are wholly owned, either directly or indirectly, by Chevron Corporation. Certain subsidiaries are
not listed since, considered in the aggregate as a single subsidiary, they would not constitute a significant subsidiary at December31,
2013.
E-5
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 of Chevron Corporation and its
subsidiaries (No. 333-184777), and to the incorporation by reference in the Registration Statements on Form S-8 of Chevron
Corporation and its subsidiaries (Nos. 333-190422, 333-190421, 333-172428, 333-171066, 333-162660, 333-152846,
333-128734, 333-128733, 333-127570, 333-127569, 333-127568, 333-127567, 333-127566, 333-127565, 333-127564,
333-127563, 333-127561, 333-127560, 333-127559, 333-127558, 333-122121, 333-26731, 333-105136, 333-102269, 333-72672,
333-46261, 333-21805, 333-21807, 333-21809, 333-02011), of our report dated February 21, 2014, relating to the consolidated
financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears
in this Form 10-K.
/s/ PricewaterhouseCoopers LLP
San Francisco, California
February 21, 2014
E-6
Exhibit 31.1
RULE 13a-14(a)/15d-14(a) CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, John S. Watson, certify that:
1. I have reviewed this Annual Report on Form 10-K of Chevron Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
(c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
(d) disclosed in this report any change in the registrants internal control over financial reporting that
occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the
case of an annual report) that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrants auditors and the audit committee of the registrants board
of directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrants ability to record,
process, summarize and report financial information; and
(b) any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrants internal control over financial reporting.
/S/JOHN S. WATSON
John S. Watson
Chairman of the Board and
Chief Executive Officer
Dated: February 21, 2014
E-7
Exhibit 31.2
RULE 13a-14(a)/15d-14(a) CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Patricia E. Yarrington, certify that:
1. I have reviewed this Annual Report on Form 10-K of Chevron Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
(b) designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
(d) disclosed in this report any change in the registrants internal control over financial reporting that occurred
during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to materially affect, the registrants
internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrants auditors and the audit committee of the registrants board
of directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrants ability to record, process,
summarize and report financial information; and
(b) any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrants internal control over financial reporting.
/S/PATRICIA E. YARRINGTON
Patricia E. Yarrington
Vice President and
Chief Financial Officer
E-8
Exhibit 32.1
CERTIFICATION PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)
In connection with the Annual Report of Chevron Corporation (the Company) on Form 10-K for the period ended
December31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, John
S. Watson, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section1350, as
adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) the Report fully complies with the requirements of Section13(a) or 15(d) of the Securities Exchange Act
of 1934; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.
/S/JOHN S. WATSON
John S. Watson
Chairman of the Board and
Chief Executive Officer
E-9
Exhibit 32.2
CERTIFICATION PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)
In connection with the Annual Report of Chevron Corporation (the Company) on Form 10-K for the period ended
December31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Patricia
E. Yarrington, Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section1350,
as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) the Report fully complies with the requirements of Section13(a) or 15(d) of the Securities Exchange Act
of 1934; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.
/S/PATRICIA E. YARRINGTON
Patricia E. Yarrington
Vice President and
Chief Financial Officer
E-10
Exhibit 99.1
DEFINITIONS OF SELECTED ENERGY TERMS
Barrels of oil-equivalent (BOE)
A unit of measure to quantify crude oil, natural gas liquids and natural gas amounts using the same basis. Natural gas volumes are
converted to barrels on the basis of energy content. See oil-equivalent gas and production.
Development
Drilling, construction and related activities following discovery that are necessary to begin production and transportation of crude
oil and natural gas.
Exploration
Searching for crude oil and/or natural gas by utilizing geologic and topographical studies, geophysical and seismic surveys, and
drilling of wells.
Gas-to-liquids (GTL)
A process that converts natural gas into high-quality liquid transportation fuels and other products.
Liquefied natural gas (LNG)
Natural gas that is liquefied under extremely cold temperatures to facilitate storage or transportation in specially designed vessels.
Liquefied petroleum gas (LPG)
Light gases, such as butane and propane, that can be maintained as liquids while under pressure.
Oil-equivalent gas (OEG)
The volume of natural gas needed to generate the equivalent amount of heat as a barrel of crude oil. Approximately 6,000 cubic
feet of natural gas is equivalent to one barrel of crude oil.
Oil sands
Naturally occurring mixture of bitumen a heavy, viscous form of crude oil water, sand and clay. Using hydroprocessing
technology, bitumen can be refined to yield synthetic oil.
Price Effects on Entitlement Volumes
The impact on Chevrons share of net production and net proved reserves due to changes in crude oil and natural gas prices
between periods. Under production-sharing and variable-royalty provisions of certain agreements, price variability can increase or
decrease royalty burdens and/or volumes attributable to the company. For example, at higher prices, fewer volumes are required
for Chevron to recover its costs under certain production-sharing contracts.
Production
Total production refers to all the crude oil (including synthetic oil), natural gas liquids and natural gas produced from a property.
Net production is gross production minus both royalties paid to landowners and a governments agreed-upon share of production
under a production-sharing contract. Liquids production refers to crude oil, condensate, natural gas liquids and synthetic oil
volumes. Oil-equivalent production is the sum of the barrels of liquids and the oil-equivalent barrels of natural gas produced. See
barrels of oil-equivalent and oil-equivalent gas.
Production-sharing contract (PSC)
An agreement between a government and a contractor (generally an oil and gas company) whereby production is shared between
the parties in a prearranged manner. The contractor typically incurs all exploration, development and production costs, which are
subsequently recoverable out of an agreed-upon share of any future PSC production, referred to as cost recovery oil and/or gas.
Any remaining production, referred to as profit oil and/or gas, is shared between the parties on an agreed-upon basis as stipulated
in the PSC. The government may also retain a share of PSC production as a royalty payment, and the contractor typically owes
income tax on its portion of the profit oil or gas. The contractors share of PSC oil and/or gas production and reserves varies over
time, as it is dependent on prices, costs and specific PSC terms.
Reserves
Crude oil or natural gas contained in underground rock formations called reservoirs and saleable hydrocarbons extracted from oil
sands, shale, coalbeds or other nonrenewable natural resources that are intended to be upgraded into synthetic oil or gas. Net
proved reserves are the estimated quantities that geoscience and engineering data demonstrate with reasonable certainty to be
E-11
economically producible in the future from known reservoirs under existing economic conditions, operating methods and
government regulations, and exclude royalties and interests owned by others. Estimates change as additional information becomes
available. Oil-equivalent reserves are the sum of the liquids reserves and the oil-equivalent gas reserves. See barrels of oil-
equivalent and oil-equivalent gas. The company discloses only net proved reserves in its filings with the U.S. Securities and
Exchange Commission.
Shale gas
Natural gas produced from shale rock formations where the gas was sourced from within the shale itself. Shale is very fine-grained
rock, characterized by low porosity and extremely low permeability. Production of shale gas normally requires formation
stimulation such as the use of hydraulic fracturing (pumping a fluid-sand mixture into the formation under high pressure) to help
produce the gas.
Tight oil
Liquid hydrocarbons produced from shale (also referred to as shale oil) and other rock formations with extremely low permeability.
As with shale gas, production from tight oil reservoirs normally requires formation stimulation such as hydraulic fracturing.
Synthetic oil
A marketable and transportable hydrocarbon liquid, resembling crude oil, that is produced by upgrading highly viscous or solid
hydrocarbons, such as extra-heavy crude oil or oil sands.
DEFINITIONS OF SELECTED FINANCIAL TERMS
Earnings
The term earnings is net income attributable to Chevron Corporation as presented on the Consolidated Statement of Income.
Return on capital employed (ROCE)
ROCE is calculated by dividing earnings (adjusted for after-tax interest expense and noncontrolling interests) by the average of
total debt, noncontrolling interests and Chevron Corporation stockholders equity for the year.
Return on stockholders equity
Return on stockholders equity is earnings divided by average Chevron Corporation stockholders equity. Average Chevron
Corporation stockholders equity is computed by averaging the sum of the beginning-of-year and end-of-year balances.

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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