© 2011 Chevron Copyright 20111

People, Process and TechnologyMaking IT a strategic capability

Randy KrotowskiCIO, Global UpstreamChevron Corporation

© 2011 Chevron Copyright 20112

ChevronA World Class Global Energy Company

60,000 employees

11.3 billion BOE net proved oil and gas

reserves

2.7 million BOE daily net production

2.0 million BPD refining capacity

$26 billion C&E budget

© 2011 Chevron

My First Lesson:It’s About What My Business Needs from IT

Delineation & Development

Reservoir Management & Production Operations

Exploration & Appraisal

2-8 years 2-5 years 5 – 100 yearsTo recover 10-90% of the oil & gas

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© 2011 Chevron

Building CredibilityRoadmap & Execution Excellence

$1.2B project roadmap

Focus on deployment

With transparent reporting

Copyright 20114

© 2011 Chevron

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Management Credibility

Clear, consistent strategic focus

Measurable milestones linked to strategy

Deliver on commitments

Transparent reporting

Superior financial performance relative to peers

Consistent, predictable, sustainable results

Earnings growth and return on invested capital

My Second Lesson:The Street Rewards Performance

© 2011 Chevron

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Competing Through TechnologyA Point of View About the Future

Differentiating performance through information and information technology Invest in Our Core

Business

Deliver the Data Platform

Drive Functional Excellence

Our vision is that Upstream is an industry leader at applying and using information technology to

find, develop and produce oil and gas.

© 2011 Chevron

MSV

SSO

Logistics DSC

Compression DSC

WEST

…

• Production management tools• Automating routine decisions• Management by exception

My Third Lesson:Bet on the Future

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Project Framework

SCRUM Pattern

SCRUM

BACKLOG SPRINT

DELIVERABLES

Monthly Sprint

Planning

Prioritize, package &

assign ownership

BlockRemoval

• Done in past week• Barriers / Blocks / Decisions• Do in next week

Randy Krotowski Version 0.1 10/29/98

Execute

ExternalExecution

InternalExecution

• Maintenance management • Plant Surveillance• AI for optimization

• Equipment Optimization• Central decision centers• Standardization

Opportunity Queue EA, SOA & Agile Quick Return Solutions

Seer Data Warehouse

MADSLoss

ReportingAction

TrackingSAP

Site Safe

BAPP Track

PoB CPASPHD

CUE Operating Platform SystemsCaptain Systems Asset Implemented Operating Platform Systems

Source System Façade

Source System Façade

Source System Façade

Source System Façade

Source System Façade

Source System Façade

Source System Façade

Source System Façade

ASP.NET (C#)

SQL Server Integration Services

Web Service[PPDM XML] Data Integration Layer SQL Server Integration Services (SSIS)

Source System Façade

SQL Server Data WarehouseSeer PI Server

SSIS “Stream”

SSIS “Stream”

SSIS “Stream”

SSIS “Stream”

SSIS “Stream”

SSIS “Stream”

SSIS “Stream”

Business ServicesData Services

SQL Server Analysis Services

“Data Bricks”KPIs & Metrics exposed

as Analysis Services Measure Groups

[PPDM]

PHD Interface

Rules Engine

Notification Engine

Service AccessData Access[ODBC, OLE-DB] [Web Services]

Seer UIWindows SharePoint Services

Administration

Seer Client PCSeer “Power User” PC Seer Service Clients

Process Book

Business Objects

Reporting Services

DashboardSQL Server Reporting Services

Internet Explorer Chevron Apps & Services

Visualised “Data Bricks”Web Parts, Reporting Services, ASP.NET Controls

RtPM Web Parts

Source System Viewer

ODBC, OLE DB, Oracle Client etc.

Data Access Facade

RtBaseline

Manual Entry D/B

SSIS

Common Reference

Data Service

Hierarchy Store

© 2011 Chevron

Setting the Foundation forTransforming Upstream Workflows

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Reservoir / Production Surveillance and Analysis • Integrated reservoir and production management tools

• Automating routine decisions

• Management by exception

Scheduling / Activity Management• Surface & Subsurface

maintenance activity

• Plant Surveillance and 3D video fusion

• Artificial Intelligence for optimization

Equipment / Facility Optimization Decision Support• Facilities / Equipment

Optimization

• Centralized decision centers providing subject matter expertise & know how

• Standardization

© 2011 Chevron

My Fourth Lesson: Leadership is a Shared Responsibility

Copyright 20119

2012One team

Common data and technology platform

Fast, effective global deployment

System-wide reliability

Core processes enabled by technology2006

Multiple IT organizations

Many solutions for the same process

Multi-year global deployments

Component reliability

Focused on back-office/ infrastructure

Jointly Leading an IT Transformation

© 2011 Chevron

And Partnering With My Peers to …

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UWT Vision

Integrate people, processes, technology and information…

… to enable transformation of our key upstream processes and assets.

© 2011 Chevron

Transformational Leadership

Copyright 201111

Today’s Paradigm

Tomorrow’s Opportunity

Share leadership

Bet on the future

Invest in credibility

Develop your point of view

© 2011 Chevron

Q&AThe future is not the result of choices among

alternative paths offered by the present,but a place that is created

first in mind, next in will, then in activity.

The future is not some place we are going to,but one we are creating

John Schaar

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