efficiency, solar and biofuels, to oil and natural gas
www.willyoujoinus.com
A thought-provoking discussion on future energy
challenges, hosted by Chevron
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 at San Francisco service stations during World War II, from the archives of the Standard Oil Bulletin.
Chevron is part of the fabric of California. Our roots go back 130 years to the first major
discovery of oil near Los Angeles. Today, we’re a global energy leader, and our
commitment to California remains strong and vibrant.
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
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
California’s environment. In 1915, we won the Grand Medal of Honor for conservation
at the Pan-Pacific International Exposition. Our environmental stewardship continues
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
California character — and at the heart of Chevron. This is our story — as a California
company, a California citizen and a California contributor.
Chevron: a California companycommitted to California’s future
Above: A cycling team of Chevron employees, contractors and friends topped all competitors in a 2008 fund-raising ride for the National Multiple Sclerosis Society. (See page 10)
A California native with a history of leadership2California’s leading energy partner4Fueling California’s growth6Partnering with ourcommunities10 A culture of energy efficiency 12 Innovating California’s energy future 14
On the Cover: Near Chevron’s Bakersfield operations, water produced with crude oil is separated, treated and stored in a reservoir to supplement irrigation resources for local farmers.
A California native with a history of leadership
Chevron in California | 3
Chevron’s California legacy — as rich and varied as the state’s itself — dates back to 1876,
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
California’s growth in the first half of the 20th century.
In 1917, as the American labor movement modernized, Chevron — then Standard Oil
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
up 56 schools in California and other states during the 1940s to teach women how to
operate service stations. Later, we partnered with the University of California to provide
students with on-the-job experience in our laboratories.
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
refineries, which have been in continual operation for more than 100 years, produce the
nation’s cleanest gasoline.
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
performances. In the late 50s, Chevron began awarding grants to universities aimed at
assisting education in science and engineering to complement an established program
of scholarships, fellowships and research. Today, our heritage of supporting education
continues through our sponsorship of the Chevron World Challenge, a PGA-affiliated
golf tournament that supports the work of the Tiger Woods Foundation to enhance
educational opportunities for young people.
As California moves forward, so does Chevron.
1. 2.
3. 4. 5.
6.
8.
7.
1902 Chevron’s Richmond
Refinery begins operations
1906 Standard Oil (California),
Chevron’s predecessor, contributes
money, fuel and supplies to aid San
Francisco earthquake victims
1911 Chevron starts up its second
major California refinery near Los
Angeles, naming it “El Segundo,” or
“the second”
1928 Chevron begins a four-
decade sponsorship of the Standard
School Broadcast on radio to promote
music appreciation in schools
1930 A Chevron subsidiary
builds the world’s largest natural gas
pipeline at Kettleman Hills in the
San Joaquin Valley
1943 The Richmond Refinery
earns an ”E” award from the U.S.
government for excellence in
manufacturing efficiency, product
quality and reliability during wartime
1967 Chevron applies steam
injection in California oil fields,
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
seismic data at a company research
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
tapped in 1899, celebrates the 2
billion barrel production milestone
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 record of 18,000 feet in a light open-cockpit plane. 2. Chevron’s Richmond Refinery has been operating for more than 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.
California’s leading energy partner
Chevron in California | 54 | Chevron in California
Major operations Number of service stations: 1 2-5 6 or more
With a statewide presence, including more than 1,500 service stations, Chevron is a
major contributor to California’s economy. In the San Francisco Bay Area, we maintain our
global corporate headquarters in San Ramon. We have offices in Concord, fuel terminals
throughout the area and a large refinery in Richmond, home also to Chevron’s Richmond
Technology Center. Chevron Energy Solutions, our energy efficiency subsidiary, is
headquartered in San Francisco. In the Bakersfield area, we operate major oil fields and
pipelines and maintain regional offices and technical support facilities. In the Los Angeles
area, we maintain offices and technical facilities in Brea, and operate distribution lines
and major terminals served by our large El Segundo Refinery, a top provider of Southern
California’s transportation fuels.
Chevron is a fully integrated energy company. We produce oil and natural gas and
manufacture, transport and market gasoline, diesel and aviation fuels. Californians
know us best for our 1 ,500 branded service stations, but our operations and
infrastructure are everywhere, delivering energy around the clock.
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
California natural gas for homes, businesses and utilities. We operate two of the state’s
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
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
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
500,000 homes.
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
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
are a major supplier of fuel for commercial transportation, from trucks to ships. Mobility,
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
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.
70074 million 8.4 million 3,000329,000
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.
Delivering energy to Californians across the state
Barrels of California oil produced by
Chevron’s operations in the San Joaquin
Valley in 2007, roughly 32 percent of the
state’s annual oil production (Energy
Information Administration)
Safe miles driven in California by
Chevron’s gasoline delivery trucks
in 2007
Number of Boeing 737 jetliners
Chevron could fill daily based on its
aviation fuel sales in California, where
it is the largest supplier
Gallons of Chevron gasoline dispensed in
2007 on average each hour to Californians
at more than 1,500 branded service
stations statewide
The approximate number of deep-sea tanker voyages Chevron Shipping manages
from its San Ramon, California headquarters, which help move the approximately
365 million barrels of crude oil Chevron transports per year
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.
Fueling California’s growth
6 | Chevron in California
$9.2 billionEstimated 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
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.
Chevron in California | 8
No. 1 California CompanyChevron is the largest company in California based on 2007 revenues
“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 millionValue of Chevron transactions with small, women- and minority-owned
California businesses in 2007
1 in 250Jobs in California supported by Chevron, directly and indirectly —
a total of nearly 70,000 jobs in the state
22,900Number of jobs supported directly and
indirectly in the Bakersfield area by
Chevron, which accounts for about
one-fourth of the region’s economic
activity industrywide
10,000Number of jobs Chevron creates directly and
indirectly in the Los Angeles area in addition
to $1.7 billion in total economic output
30,000Number of jobs Chevron supports
directly and indirectly in the Bay Area,
with $2.7 billion direct economic output
and $1.7 billion of economic output in
other sectors
$2.2 billionCapital investment committed by Chevron to its California
refineries in Richmond and El Segundo from 2003 to 2008
Industries Most Impacted in California
Economic Activity Generated by Chevron
13.3%
12.7%Real Estate
1 1 .9%Mining
1 1 .1 %
9.9%
7.4%
5. 1 %
2.9%
2.7%
18.9%Manufacturing
Transportation and Warehousing
Real Estate
Mining (including oil and gas production)
Wholesale and Retail Trade
Professional and Scientific
Other Services
Finance and Insurance
Health Care
Information
Manufacturing
Partnering with our communities
10 | Chevron in California Chevron in California | 11
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
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
education, and instills motivation by placing them in jobs in our operations. Through
sponsorship of the Chevron World Challenge, Chevron supports the Tiger Woods
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
has sponsored Nonprofit Day, a major training event in the Bay Area. And our annual
Chevron Management Institute helps build nonprofit leadership.
Chevron matches millions of dollars in employee contributions each year. Beyond
company contributions, our employees volunteer their personal time to serve their
communities through our Chevron Humankind program. In 2008, during the company’s
volunteer week, 2,500 employees rallied to work on 250 projects at 85 community
agencies. Volunteerism remains a core value for Chevron people today, as it always has.
16,000
$5 million
Volunteer hours contributed by more
than 3,000 Chevron employees in
California in 2008
Employee donations and company
matching funds provided to California
nonprofit organizations in 2008 under
the Chevron Humankind program
$14 million
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.
Chevron contributions to California
university programs from 2002
through 2007, including matched
employee contributions
125,000Solar panels installed in California by
Chevron, the equivalent of removing
4,500 cars from the road
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.
28%
Chevron’s improvement in energy
efficiency since 1992
12 | Chevron in California Chevron in California | 13
3 millionEstimated tons of greenhouse gas
emissions reductions nationwide
over the life span of CES projects
600 megawattsPower generated efficiently from the Kern River Field’s facilities that
can be sent to the grid, where it could power up to 500,000 homes
A culture of energy efficiencyChevron 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
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.
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.
$1 billionEstimated cost savings to taxpayers and
businesses nationwide from Chevron
Energy Solutions over the past five years
Innovating California’s energy futureCreativity and innovation are the defining hallmarks of California. Tapping that ingenuity
through the efforts of Chevron’s employees and partners will help us solve California’s
energy challenges. We are engaged in every stage of the innovation cycle — from the
moment of inspiration to the application that touches our lives.
A commitment to research and collaboration is the starting point. We partner our best
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
to transform agricultural waste into next-generation biofuels, as well as the development
of new energy-efficiency technologies.
We invest in the best ideas — our own and those of entrepreneurs that offer the possibility
of transformational energy technologies. Our Venture Capital team has invested in
start-up companies specializing in energy and information technologies — with most of
them in California, Maryland and Texas. These investments support early-stage
innovation and provide small businesses with a gateway to a global customer with
worldwide operations, thereby building future engines of growth for California.
We build collaborative partnerships to find solutions to energy challenges. For example, in
partnership with Microsoft and the University of Southern California, Chevron is building a
digital oil field at our San Joaquin Valley operations. The application of computer
technology enables safer, cleaner and more productive operations. We also are exploring
greenhouse gas sequestration technologies in cooperation with state government.
The Carbon Disclosure Project, which represents 385 institutional investors with assets of
$57 trillion, ranked Chevron as one of the top five international oil and gas companies —
and No. 1 among U.S.-based companies — in its 2008 Climate Leadership Index. This index
highlights companies taking “best in class” actions to measure and report carbon
emissions and to integrate the long-term value and cost of climate change when assessing
the financial health and future prospects of their business.
Our California refineries are applying new technologies to manufacture the clean gasoline
and diesel fuel that California needs — technologies made possible through research,
collaboration and innovation.
As we have for most of our 130 years in California, Chevron will remain the premier
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
its energy resources, as well as driving energy efficiency and protecting the environment,
Chevron will continue to focus its most valuable natural resource — human energy — on
providing viable and sustainable energy solutions. Working together, Californians and
Chevron can turn this great challenge into an even greater opportunity — creating a
stronger energy future and keeping our Golden State moving forward.
Chevron in California | 15
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Energy Efficiency Chevron Energy Solutions (CES) uses energy-efficient building technologies and renewables such as solar, biomass and fuel cell systems to help schools, government buildings and other large facilities lower their energy costs and carbon footprint. CES is one of the largest installers of solar power in California. Its projects nationwide are reducing customers’ energy costs by more than $1 billion and greenhouse gas emissions by more than 3 million metric tons.
University Partnerships Chevron is partnering with the University of California 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 researching new energy-efficiency technologies, and provided a $2.5 million endowment for a permanent chair to head the Center. We have partnerships with other major California universities, including Stanford University, the University of California at Berkeley and the University of Southern California (USC).
Digital Oil FieldsOur partnership with USC is helping create a “digital oil field” at our San Joaquin Valley operations that is safer, cleaner and more productive. We also are installing advanced solar technology in the San Joaquin Valley to produce steam that is used in the production of oil to power some of our operations.
Addressing Climate ChangeChevron has a comprehensive program in place to reduce greenhouse gas emissions and annually reports on its progress in this area. We also are exploring carbon sequestration technologies at our San Joaquin Valley oil field operations, reducing energy use at our facilities, providing vanpools for employees and taking other steps to reduce carbon emissions.
Funding the FutureChevron Technology Ventures, our venture capital unit, manages strategic investments in early-stage technology companies worldwide, including California companies, which are exploring the frontier of renewable energy technologies.
Waste to EnergyChevron Energy Solutions built innovative systems in Rialto and Millbrae that transform wastewater and kitchen grease from local restaurants into clean, renewable power.
Biofuels Chevron and Weyerhaeuser, one of the world's largest integrated forest products companies, have formeda joint venture, Catchlight Energy, to develop commercial-scale transportation fuel from nonfood plant sources such as wood waste.
14 | Chevron in California
Portion of California shown in this satellite image
Satellite Image: NASA/Goddard Space Flight Center — Scientific Visualization Studio
