Description of Chevron and California initiatives

1. Left: Testing water quality in a marsh near Chevron operations in Northern
California, where environmental protection is a top priority for refinery employees.
Right: Inspecting a sample at one of Chevron’s California laboratories, which
ensure all our fuels meet state emissions standards. Bottom: Growing vegetables
Chevron in California
at San Francisco service stations during World War II, from the archives of the
Standard Oil Bulletin.
Founded and headquartered in California
Contributing to the California economy
Delivering energy for today and tomorrow
Respecting California’s environment
Yesterday, today and tomorrow Partnering with our communities
For more information, explore these sources:
www.chevron.com
For news and information on Chevron’s diverse
portfolio of energy investments — from energy
efficiency, solar and biofuels, to oil and natural gas
www.willyoujoinus.com
A thought-provoking discussion on future energy
challenges, hosted by Chevron
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2. Chevron: a California company 2
Chevron is part of the fabric of California. Our roots go back 130 years to the first major A California native with
discovery of oil near Los Angeles. Today, we’re a global energy leader, and our a history of leadership
commitment to California remains strong and vibrant.
committed to California’s future Chevron’s economic contributions go far beyond our core business. Headquartered in
California, we generate a variety of benefits for the state’s economy, from support of 4 California’s leading
energy partner
community-based organizations to the creation of growth opportunities for small and
medium-sized enterprises.
As a producer of the state’s natural resources, we bear a special responsibility for
6 Fueling California’s
growth
10
California’s environment. In 1915, we won the Grand Medal of Honor for conservation
Partnering with our
at the Pan-Pacific International Exposition. Our environmental stewardship continues
communities
today with the introduction of advanced clean diesel fuel, commercialization of
sustainable energy technologies, and other renewable initiatives.
At Chevron, we believe the most important kind of energy is human energy. The ability
to innovate, to solve problems and to turn visions into reality is at the very heart of the
12 A culture of energy
efficiency
California character — and at the heart of Chevron. This is our story — as a California
company, a California citizen and a California contributor. 14 Innovating California’s
energy future
On the Cover: Near Chevron’s Bakersfield Above: A cycling team of Chevron employees,
operations, water produced with crude oil is contractors and friends topped all competitors in
separated, treated and stored in a reservoir to a 2008 fund-raising ride for the National Multiple
supplement irrigation resources for local farmers. Sclerosis Society. (See page 10)

3. 1. 2.
A California native 1902 Chevron’s Richmond
Refinery begins operations
with a history of leadership 1906 Standard Oil (California),
Chevron’s predecessor, contributes
money, fuel and supplies to aid San
Chevron’s California legacy — as rich and varied as the state’s itself — dates back to 1876, Francisco earthquake victims
when two wildcatters struck oil in Pico Canyon outside Los Angeles and incorporated the
company three years later. It was the first of many early discoveries that would help fuel
1911 Chevron starts up its second
California’s growth in the first half of the 20th century. major California refinery near Los
Angeles, naming it “El Segundo,” or
In 1917, as the American labor movement modernized, Chevron — then Standard Oil “the second”
Company (California) — became the first company in the industry to adopt an eight-hour
workday for its employees. We helped open a path for women in the workforce, setting 1928 Chevron begins a four-
up 56 schools in California and other states during the 1940s to teach women how to decade sponsorship of the Standard
operate service stations. Later, we partnered with the University of California to provide School Broadcast on radio to promote
students with on-the-job experience in our laboratories. 3. 4. 5. music appreciation in schools
In 1918, we introduced Red Crown aviation gasoline, specifically designed for airplanes
and used in 1927 by Charles Lindbergh for his famous solo transatlantic flight. Today, our
1930 A Chevron subsidiary
builds the world’s largest natural gas
refineries, which have been in continual operation for more than 100 years, produce the
pipeline at Kettleman Hills in the
nation’s cleanest gasoline.
San Joaquin Valley
Our commitment to corporate citizenship spans the 20th century. In 1926, an emergency
grant saved the San Francisco Symphony from abandoning plans to broadcast radio 1943 The Richmond Refinery
performances. In the late 50s, Chevron began awarding grants to universities aimed at earns an ”E” award from the U.S.
assisting education in science and engineering to complement an established program government for excellence in
of scholarships, fellowships and research. Today, our heritage of supporting education manufacturing efficiency, product
continues through our sponsorship of the Chevron World Challenge, a PGA-affiliated quality and reliability during wartime
golf tournament that supports the work of the Tiger Woods Foundation to enhance
educational opportunities for young people. 6.
1967 Chevron applies steam
injection in California oil fields,
As California moves forward, so does Chevron.
launching an era of leadership
in “thermal enhanced recovery”
technology that today continues
to capture millions of once-
unrecoverable barrels
1982 Chevron begins using a
Cray IS supercomputer to process
7.
seismic data at a company research
8. facility in California, advancing the
use of information technology to find
new energy resources
2000 Chevron Energy Solutions
is formed to develop energy efficiency
and renewable energy projects for
government, education and business
customers in the United States
2007 The Kern River Field
in the San Joaquin Valley, first
This Page: Bygone days of whitewall tires and uniformed pump attendants are captured by famous automotive artist
Jack Schmitt. Opposite Page: 1. In 1929, aviatrix Ruth Alexander used Chevron fuels and oil while setting an altitude
tapped in 1899, celebrates the 2
record of 18,000 feet in a light open-cockpit plane. 2. Chevron’s Richmond Refinery has been operating for more than billion barrel production milestone
100 years. 3, 4. As California grew, free Chevron maps helped customers explore state highways. 5, 6, 8. A 1937 story
in the Standard Oil Bulletin helped readers explore California’s famous Big Sur coastline; a 1942 Bulletin cover
featured a “Chevronette” promoting U.S. Savings Bonds; a 1917 issue highlighted Chevron’s Richmond laboratories.
7. Pico Canyon, California, site of Chevron’s first crude oil discovery.
Chevron in California | 3

4. California’s leading energy partner
Chevron is a fully integrated energy company. We produce oil and natural gas and
manufacture, transport and market gasoline, diesel and aviation fuels. Californians Delivering energy to Californians across the state
know us best for our 1,500 branded service stations, but our operations and
infrastructure are everywhere, delivering energy around the clock.
With a statewide presence, including more than 1,500 service stations, Chevron is a
Chevron is the state’s top oil producer, and most of the oil we produce in California stays
in California. Each year, we also produce an average of 44 billion cubic feet of clean major contributor to California’s economy. In the San Francisco Bay Area, we maintain our
California natural gas for homes, businesses and utilities. We operate two of the state’s
global corporate headquarters in San Ramon. We have offices in Concord, fuel terminals
largest refineries and fuel about one in every five vehicles on California roads.
We generate most of the electricity and steam needed for our California oil production
throughout the area and a large refinery in Richmond, home also to Chevron’s Richmond
and refining operations with energy-saving combined heat and power facilities, reducing
the amount of power we draw from the grid. In our Kern River Field operations, we have Technology Center. Chevron Energy Solutions, our energy efficiency subsidiary, is
the capability to send more than 600 megawatts back to the grid of which 375 mega-
watts is on a continuous basis. The 600 megawatts could power up to approximately headquartered in San Francisco. In the Bakersfield area, we operate major oil fields and
500,000 homes.
pipelines and maintain regional offices and technical support facilities. In the Los Angeles
We maintain more than 1,000 miles of pipelines in California, continually delivering oil,
natural gas, gasoline, diesel and aviation fuels. We’re a top fuel provider to California’s area, we maintain offices and technical facilities in Brea, and operate distribution lines
15 largest airports, and as a key supplier to 122 smaller and private airports statewide,
we help keep one of the world’s busiest general aviation communities flying. We also and major terminals served by our large El Segundo Refinery, a top provider of Southern
are a major supplier of fuel for commercial transportation, from trucks to ships. Mobility,
California’s transportation fuels.
shipping, commerce — Chevron provides the energy that keeps California moving.
Looking ahead, we’re continually researching renewable energy solutions at our
Richmond Technology Center and in partnerships with businesses, universities Major operations Number of service stations: 1 2-5 6 or more
and government labs. Making all of this happen is the human energy of our 10,000
California-based employees committed to delivering safe, reliable energy to California
today and tomorrow.
74 million 8.4 million 700 329,000 3,000
Barrels of California oil produced by Safe miles driven in California by Number of Boeing 737 jetliners Gallons of Chevron gasoline dispensed in The approximate number of deep-sea tanker voyages Chevron Shipping manages
Chevron’s operations in the San Joaquin Chevron’s gasoline delivery trucks Chevron could fill daily based on its 2007 on average each hour to Californians from its San Ramon, California headquarters, which help move the approximately
Valley in 2007, roughly 32 percent of the in 2007 aviation fuel sales in California, where at more than 1,500 branded service 365 million barrels of crude oil Chevron transports per year
state’s annual oil production (Energy it is the largest supplier stations statewide
Information Administration)
Energy brightens the wide boulevards and
keeps Californians in motion throughout greater
Los Angeles. Chevron is a top supplier of gasoline,
aviation fuels and clean diesel, and supports approxi-
mately 10,000 jobs in the Los Angeles basin.
4 | Chevron in California Chevron in California | 5

5. Fueling California’s growth
In addition to providing California with fuel and other energy-related products,
Chevron provides significant economic value to the state, according to a study by
the Milken Institute.* The company’s total economic output in California in 2007
was an estimated $9.2 billion, according to the study. That includes about $4.5 billion
in direct economic contributions (the total value of all of Chevron’s business activity),
plus an estimated additional $4.7 billion of indirect economic value by supporting
suppliers and other businesses.
Rippling through the economy, our business indirectly supports nearly 60,000
jobs in addition to those held by our 10,000 employees. That’s approximately
70,000 jobs or one in every 250 California jobs.
Chevron Technology Ventures invests capital in numerous start-ups, including
those developing new energy technology. As the only major oil and gas producer
headquartered in the state, Chevron is uniquely positioned to help California
shape the nation’s energy future, reports Milken.
$9.2 billion
Estimated total value of Chevron’s 2007
economic output in California, including
direct and indirect value
* Unless noted, figures in this section are for 2007 and from the Milken Institute’s
comprehensive analysis, Energizing California: Mapping Chevron's Economic
Impacts on the Golden State.
Valued employees, like design engineer Edward Shelton
at Chevron's El Segundo Refinery, are key to providing
California’s economy with millions of gallons of
transportation fuels each day.
6 | Chevron in California Chevron in California | 9

6. “The energy industry is a key component of California’s economy, and a substantial portion of its impact
can be traced to Chevron, which is a significant driver of job, wealth and output creation.” — Milken Institute
$750 million 10,000 Economic Activity Generated by Chevron
Industries Most Impacted in California
Value of Chevron transactions with small, women- and minority-owned Number of jobs Chevron creates directly and
California businesses in 2007 indirectly in the Los Angeles area in addition
to $1.7 billion in total economic output
18.9% Manufacturing
13.3% Transportation and Warehousing
12.7% Real Estate
1 1 .9% Mining (including oil and gas production)
1 in 250
1 1 .1 % Wholesale and Retail Trade
22,900 9.9% Professional and Scientific
7.4% Other Services
Number of jobs supported directly and
5. 1 % Finance and Insurance
indirectly in the Bakersfield area by Jobs in California supported by Chevron, directly and indirectly —
Chevron, which accounts for about a total of nearly 70,000 jobs in the state 2.9% Health Care
one-fourth of the region’s economic
2.7% Information
activity industrywide
30,000
$2.2 billion Number of jobs Chevron supports
directly and indirectly in the Bay Area,
with $2.7 billion direct economic output No. 1 California Company
Capital investment committed by Chevron to its California and $1.7 billion of economic output in
refineries in Richmond and El Segundo from 2003 to 2008 other sectors Chevron is the largest company in California based on 2007 revenues
Chevron in California | 8

7. Partnering with our communities
Chevron believes that investing in California communities is as important as investing in
California energy. We’re committed to supporting the building blocks of California’s
economy and competitiveness — education, career and technical training, and support
for small businesses.
In 2007, we spent about $750 million on small businesses; approximately half was spent
with minority- and women-owned businesses in California. Our Supplier Diversity
Program helps numerous organizations, such as the Southern California Minority
Business Development Council. Our support of organizations like the Women’s Initiative
for Self Employment provides low-income women with tools they can use to achieve
financial self-reliance.
Our East Bay Education Partnership supports four Bay Area school districts with grants,
resources and 500 Chevron volunteers. In the San Joaquin Valley, Chevron funds and
16,000 operates the Student Training for Achievement, Reward, and Success program in
partnership with ACT-1 Personnel Services to provide a paid youth-mentorship and work
experience to at-risk students that develops awareness of career paths, promotes higher
Volunteer hours contributed by more education, and instills motivation by placing them in jobs in our operations. Through
than 3,000 Chevron employees in sponsorship of the Chevron World Challenge, Chevron supports the Tiger Woods
California in 2008 Learning Center in Anaheim, which has helped more than 15,000 disadvantaged students
get a fair shot at success.
In 2008, we contributed $1 million toward a United Way expansion of the 2-1-1 community
information service in the Bay Area. To help charities do their best, for 20 years Chevron
$14 million has sponsored Nonprofit Day, a major training event in the Bay Area. And our annual
Chevron Management Institute helps build nonprofit leadership.
Chevron contributions to California Chevron matches millions of dollars in employee contributions each year. Beyond
university programs from 2002 company contributions, our employees volunteer their personal time to serve their
communities through our Chevron Humankind program. In 2008, during the company’s
through 2007, including matched
volunteer week, 2,500 employees rallied to work on 250 projects at 85 community
employee contributions
agencies. Volunteerism remains a core value for Chevron people today, as it always has.
$5 million
Employee donations and company
matching funds provided to California
nonprofit organizations in 2008 under
the Chevron Humankind program
Left: Bay Area expectant moms are looking their best thanks to Maternity Xchange, a retail clothing shop on
wheels launched by minority entrepreneur Bobbi Williams, who learned her business start-up skills from the
Chevron-supported Women’s Initiative for Self Employment. Above: Fifth-grade girls visited a 3-D visualization
facility at Chevron as part of Techbridge, a company-supported program of the Bay Area’s Chabot Space and
Science Center to familiarize girls with science. Right: Participating in the Read Across America program,
employee Maria Boles helps build young minds by volunteering at Golden View Elementary School in Chevron’s
headquarters city of San Ramon.
10 | Chevron in California Chevron in California | 11

8. A culture of energy efficiency
Chevron believes energy efficiency is the cheapest and cleanest form of “new” energy we
have. Today, we are helping California’s schools, colleges and government facilities reduce
their energy use as well as adopt renewable power.
Chevron Energy Solutions (CES) has developed approximately 200 projects in California
that enable public institutions to increase energy efficiency, save taxpayer money and lower
greenhouse gas emissions.
We apply ingenuity to deliver tailor-made energy solutions. At the city of Rialto’s wastewater
treatment facility, new technology will transform wastewater sludge and kitchen grease from
local restaurants into clean, renewable power. The system will increase municipal revenues,
reduce landfill waste and lower greenhouse gas emissions by nearly 5,500 tons annually,
while reducing the city’s energy costs by an estimated $800,000 per year.
Our projects are also putting one of the Golden State’s best assets to work. From the heart
of Silicon Valley to the heat of our San Joaquin Valley operations, CES installations provide
more than 20 megawatts of solar power for California, making it one of the largest solar
power installers in the state.
Chevron committed $2.5 million to the University of California at Davis Energy Efficiency
28
Center, endowing the Chevron Chair in Energy Efficiency to help develop and commercialize
%
advanced energy efficiency technologies. Meanwhile, we continue to reduce energy use across
our own operations. We installed the first fuel cell in the Bay Area at our San Ramon
headquarters, and our Richmond and El Segundo refineries, together with our San Joaquin
Valley operations, have invested in energy efficient cogeneration power plants.
Although we continually work on providing the energy needed now and in the future,
committing to energy efficiency and conservation are actions everyone can make today.
Chevron’s improvement in energy To raise public awareness of the impact even small steps can contribute, we launched the
“I will” campaign. To find out more, visit willyoujoinus.com.
efficiency since 1992
$1 billion 125,000 3 million 600 megawatts
Estimated cost savings to taxpayers and Solar panels installed in California by Estimated tons of greenhouse gas Power generated efficiently from the Kern River Field’s facilities that
businesses nationwide from Chevron Chevron, the equivalent of removing emissions reductions nationwide can be sent to the grid, where it could power up to 500,000 homes
Energy Solutions over the past five years 4,500 cars from the road over the life span of CES projects
Chevron Energy Solutions designed, built,
operates and maintains a total of 5.5 megawatts
of solar photovoltaic arrays at 14 sites at the
San José Unified School District. Mary Presutti,
construction project manager, reviews the
installation at Willow Glen Middle School
and High School.
12 | Chevron in California Chevron in California | 13

9. Innovating California’s energy future
A Energy Efficiency
Creativity and innovation are the defining hallmarks of California. Tapping that ingenuity
Chevron Energy Solutions (CES) uses energy-efficient
building technologies and renewables such as solar, through the efforts of Chevron’s employees and partners will help us solve California’s
biomass and fuel cell systems to help schools,
energy challenges. We are engaged in every stage of the innovation cycle — from the
government buildings and other large facilities lower
their energy costs and carbon footprint. CES is one of moment of inspiration to the application that touches our lives.
the largest installers of solar power in California. Its
projects nationwide are reducing customers’ energy A commitment to research and collaboration is the starting point. We partner our best
costs by more than $1 billion and greenhouse gas
emissions by more than 3 million metric tons. talent with the brightest minds in government, industry and the scientific community.
Our collaboration with the University of California at Davis, for example, includes research
B University Partnerships to transform agricultural waste into next-generation biofuels, as well as the development
Chevron is partnering with the University of California of new energy-efficiency technologies.
at Davis on the creation of next-generation biofuels from
sources such as agricultural waste. We are a member of
the university’s Energy Efficiency Center, which is
D We invest in the best ideas — our own and those of entrepreneurs that offer the possibility
researching new energy-efficiency technologies, and B of transformational energy technologies. Our Venture Capital team has invested in
provided a $2.5 million endowment for a permanent start-up companies specializing in energy and information technologies — with most of
chair to head the Center. We have partnerships with
other major California universities, including Stanford them in California, Maryland and Texas. These investments support early-stage
G
A B
University, the University of California at Berkeley and innovation and provide small businesses with a gateway to a global customer with
the University of Southern California (USC).
F worldwide operations, thereby building future engines of growth for California.
C Digital Oil Fields
B E We build collaborative partnerships to find solutions to energy challenges. For example, in
Our partnership with USC is helping create a “digital oil G partnership with Microsoft and the University of Southern California, Chevron is building a
field” at our San Joaquin Valley operations that is safer,
cleaner and more productive. We also are installing digital oil field at our San Joaquin Valley operations. The application of computer
advanced solar technology in the San Joaquin Valley to
technology enables safer, cleaner and more productive operations. We also are exploring
produce steam that is used in the production of oil to
power some of our operations. greenhouse gas sequestration technologies in cooperation with state government.
The Carbon Disclosure Project, which represents 385 institutional investors with assets of
D Addressing Climate Change
Chevron has a comprehensive program in place to $57 trillion, ranked Chevron as one of the top five international oil and gas companies —
reduce greenhouse gas emissions and annually reports and No. 1 among U.S.-based companies — in its 2008 Climate Leadership Index. This index
on its progress in this area. We also are exploring
carbon sequestration technologies at our San Joaquin highlights companies taking “best in class” actions to measure and report carbon
Valley oil field operations, reducing energy use at our emissions and to integrate the long-term value and cost of climate change when assessing
facilities, providing vanpools for employees and taking
other steps to reduce carbon emissions.
the financial health and future prospects of their business.
Our California refineries are applying new technologies to manufacture the clean gasoline
E Funding the Future and diesel fuel that California needs — technologies made possible through research,
Chevron Technology Ventures, our venture capital unit,
manages strategic investments in early-stage technology C D collaboration and innovation.
companies worldwide, including California companies,
which are exploring the frontier of renewable energy As we have for most of our 130 years in California, Chevron will remain the premier
technologies.
energy partner in our home state, creating jobs, wealth and output well beyond the
energy industry. As California tackles the enormous challenge of growing and diversifying
F Waste to Energy
its energy resources, as well as driving energy efficiency and protecting the environment,
Chevron Energy Solutions built innovative systems in
Rialto and Millbrae that transform wastewater and Chevron will continue to focus its most valuable natural resource — human energy — on
kitchen grease from local restaurants into clean,
providing viable and sustainable energy solutions. Working together, Californians and
renewable power.
G A Chevron can turn this great challenge into an even greater opportunity — creating a
stronger energy future and keeping our Golden State moving forward.
G
F B C
Biofuels
Chevron and Weyerhaeuser, one of the world's largest
integrated forest products companies, have formed
a joint venture, Catchlight Energy, to develop
commercial-scale transportation fuel from nonfood
plant sources such as wood waste. Portion of California shown in this satellite image
Satellite Image: NASA/Goddard Space Flight
Center — Scientific Visualization Studio
14 | Chevron in California Chevron in California | 15