merrill lynch global energy large cap conference presentation

© 2008 Chevron Corporation

Merrill LynchGlobal Energy Large Cap ConferenceJohn WatsonExecutive Vice President, Strategy and DevelopmentNew York City – December 2, 2008

Strategic Continuity

© 2008 Chevron Corporation 2

Cautionary Statement

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This presentation of Chevron Corporation contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; refining, marketing and chemicals margins; actions of competitors; timing of exploration expenses; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company’s 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 company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from pending or future litigation; the company’s acquisition or disposition of assets; gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on pages 32 and 33 of the company’s 2007 Annual Report on Form 10-K/A. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on forward-looking statements.U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as “resources,” “unrisked resource,” “undeveloped gas resources,” “oil in place,” “recoverable reserves,” and “recoverable resources,” among others, may be used in this presentation to describe certain oil and gas properties that are not permitted to be used in filings with the SEC. In addition, SEC regulations define oil-sands reserves as mining-related and not a part of conventional oil and gas reserves.

© 2008 Chevron Corporation 3

Key Accomplishments2008 Year-To-Date

Safety improvement

Base business improvement

Major capital projects

Portfolio rationalization

© 2008 Chevron Corporation 4

Strong Financial PerformanceFirst 9 Months 2008

ROCE(Rolling 12 months) 27.4%

Earnings 19.0$Billion

7.4Debt ratio%

Dividend increase 12.1%

in 2Q08

© 2008 Chevron Corporation 5

Delivering Results 2008 Total Stockholder Return Through Nov 21st

© 2008 Chevron Corporation 6

Rewarding Our Shareholders

© 2008 Chevron Corporation 7

Strategic Continuity

UpstreamGrow and build new legacy positions

Downstream Improve returns

Renewable EnergyCapture profitable positions

1993 200865 MBD 540 MBD

© 2008 Chevron Corporation 8

Tactical Flexibility

• Added focus on base business and reliability

• Aggressive cost control – leveraging market conditions

• Further application of technology

© 2008 Chevron Corporation 9

Resilience to Changing Markets

© 2008 Chevron Corporation 10

Present Challenges / Future Opportunities

1980s 2008

© 2008 Chevron Corporation 11

Chevron’s Strategic Advantages

ExplorationLeader

TechnologyLeader

Resource Base

Large

Project Queue

Top

AccessAdvantaged

DownstreamFocused

© 2008 Chevron Corporation 12

DownstreamSharpening the Focus

© 2008 Chevron Corporation 13

Advantaged Geographic Focus

Major Refineries

North America

Asia-Pacific

75 of ChevronRefining Capacity

%

50 of Energy Demand Growth

%

© 2008 Chevron Corporation 14

Portfolio High-GradingAsset Sales

North America

Asia-Pacific Ecuador

BrazilPeru

Paraguay

Uruguay

Scandinavia

Netherlands

Benelux

Credit Card Manufacturing Retail Fuels

WesternAfrica

Nigeria

Kenya

Uganda

© 2008 Chevron Corporation 15

Improving Refinery Reliability

• Superior capabilities– Hiring experts– Reliability specialists– Reliability University

© 2008 Chevron Corporation 16

Improving Refinery Reliability

• World-Class processes

– Regular asset reliability briefs

– Focus on risk elimination

© 2008 Chevron Corporation 17

Improving Refinery Reliability

• Advanced equipment– Risk detection– Remote monitoring– Design for reliability

© 2008 Chevron Corporation 18

Increasing Integration Value

PNZ Heavy El Segundo

© 2008 Chevron Corporation 19

Increasing Integration Value

Asia High-Mercury HawaiiSingapore

ThailandSouth Korea

© 2008 Chevron Corporation 20

Increasing Integration Value

PembrokeCaspian Blend

© 2008 Chevron Corporation 21

Improving Marketing Returns

© 2008 Chevron Corporation 22

Investing For Higher Margins

2010By

crude flexibility

Increase

by $0.50/bbl

to reduce

crude cost

high-valueproduct yields

Increase

© 2008 Chevron Corporation 23

Upstream and GasThe Growth Leader

© 2008 Chevron Corporation 24

Upstream Project PerformanceNigeria

AgbamiCurrent production exceeds 100,000 barrels per day

© 2008 Chevron Corporation 25

Upstream Project PerformanceKazakhstan

Tengiz ExpansionFull facilities start-up

© 2008 Chevron Corporation 26

Upstream Project PerformanceGulf of Mexico

Blind FaithFirst production

© 2008 Chevron Corporation 27

Upstream Project PerformanceBrazil

FradeOn track for 2009 first oil

© 2008 Chevron Corporation 28

Upstream Project PerformanceGulf of Mexico

TahitiCommissioning in progress for 2009 first oil

© 2008 Chevron Corporation 29

Upstream Project PerformanceAngola

Tombua LandanaStart-up expected in 2009

© 2008 Chevron Corporation 30

Best Upstream Earnings Per Barrel

© 2008 Chevron Corporation 31

Best Exploration Performance

© 2008 Chevron Corporation 32

Growing a Leading Resource* Portfolio

© 2008 Chevron Corporation 33

Low Costs

© 2008 Chevron Corporation 34

Technology LeaderThermal Recovery

• Well positioned for the future:

– PNZ expansion– Ells River– Petropiar

expansion

• World’s largest thermal operations:

– San Joaquin Valley– Duri Field

© 2008 Chevron Corporation 35

Technology LeaderSour Oil & Gas

WyomingCarter Creek sour gas plant

KazakhstanTengiz sour production

ChinaChuandongbei sour gas

© 2008 Chevron Corporation 36

Base Business PerformanceContinuing Focus

© 2008 Chevron Corporation 37

2004-2007Positioned for Growth

Projects >$1B Chevron Share

TCO SGI/SGPACG II-III

Petropiar Upgrader

© 2008 Chevron Corporation 38

2008-2011Growth Leadership

Projects >$1B Chevron Share

TCO SGI/SGPACG II-III

Petropiar Upgrader

AOSP Expansion 1Piceance

Blind FaithTahiti

Perdido

FradePapa Terra Agbami

Nigeria EGP 3Nigeria GTL

Usan

Moho BilondoTombua Landana

NWS Train 5

Platong II

Chuandongbei

North Duri

© 2008 Chevron Corporation 39

2012+ Growth

North America• Big Foot• Tonga• Jack / St. Malo• Tubular Bells• Hebron

Asia-Pacific• Gorgon• Wheatstone• Gendalo-Gehem

Eurasia• Tengiz Expansion• Karachaganak

Phase III Expansion

Africa• Angola LNG• Bonga SW / Aparo• Negage• Lucapa

© 2008 Chevron Corporation 40

Chevron’s Strategic Advantages

ExplorationLeader

TechnologyLeader

Resource Base

Large

Project Queue

Top

AccessAdvantaged

DownstreamFocused

© 2008 Chevron Corporation

Merrill LynchGlobal Energy Large Cap ConferenceJohn WatsonExecutive Vice President, Strategy and DevelopmentNew York City – December 2, 2008

Strategic Continuity

© 2008 Chevron Corporation 42© 2008 Chevron Corporation

Appendix

© 2008 Chevron Corporation 43© 2008 Chevron Corporation 43

Appendix 1Reconciliation of Chevron’s Non-GAAP Earnings

TOTAL UPSTREAM

9 mos 2008 2007 2006 2005 2004 2003

Adjusted Earnings * $ 18,608 $ 15,166 $ 13,142 $ 11,724 $ 8,622 $ 6,369

Special Items:

Asset Impairments & Revaluations (400) (350) -- -- -- (133)

Asset Dispositions 350 -- -- -- 1,217 109

Tax Adjustments -- -- -- -- -- 118

Environmental Remediation Provisions -- -- -- -- -- --

Restructurings & Reorganizations -- -- -- -- -- (60)

Litigation Provisions -- -- -- -- (55) --

Total Special Items (50) (350) -- -- 1,162 34

Cumulative Effect of Changes in Accounting Principles -- -- -- -- -- (205)

Reported Earnings $ 18,558 $ 14,816 $ 13,142 $ 11,724 $ 9,784 $ 6,198

Net Production Volume (MBOED) 2,526 2,619 2,667 2,517 2,509 2,637

Reported Earnings per BOE $ 26.81 $ 15.50 $ 13.50 $ 12.76 $ 10.65 $ 6.44

* Adjusted Earnings are also known as Operational Earnings.Earnings of competitors are adjusted on a consistent basis as Chevron to exclude certain special item effects based on publicly available information.

© 2008 Chevron Corporation 44

Appendix 2Calculation of Chevron’s Upstream Cost per BOE

2007 2006 2005 2004 2003

Production Cost $ 8.81 $ 7.09 $ 6.71 $ 5.74 $ 5.24

Other Operating Expenses/(Income) $ 2.15 $ 1.23 $ 0.66 ($ 0.33) $ 1.11

Exploration Expenses $ 1.38 $ 1.47 $ 0.84 $ 0.80 $ 0.62

DD&A $ 7.10 $ 6.32 $ 5.12 $ 4.04 $ 3.94

Total Upstream Operating Costs per BOE $ 19.44 $ 16.11 $ 13.33 $ 10.25 $ 10.91

Notes:

1. The 2003 through 2006 upstream costs per BOE for Chevron (as well as the competitor group) are quoted from A.G. Edwards report

“Upstream Matrix Performance Analysis (1997-2006), Eleventh Edition”.

2. For competitors, the 2007 costs per BOE shown in slide 33 are calculated on a consistent basis, using publicly available information and

adjusting for special items to normalize these costs.