2010 Corporate Responsibility Report
Welcome3                            4                             10                             14A Message              ...
Partnering for Shared Progress                          We believe that business and society are interdependent. This beli...
‘Business and community partnerships that emphasize economic progress can help set countries on a better course.’
A Message From Our CEOShared Progress                                                  We recognize that business success ...
Australia:    A Natural    Partnership    A nature reserve is an unlikely site for    a major new energy plant, but Chevro...
$56                          10,000                    No. 1billion                      jobs                      in size...
Barrow Island, a Class A nature                                                           Reducing Emissions              ...
In 2009, Australia’s Ausco Modularwas laying off workers. In 2010, ithired 200 people to build offices, labsand control ro...
heritage sites. “When we were                                                         To prevent invasive species andsurve...
Executive InterviewWhat                                          How                                       WhenWhat is the...
624,000                                  5,500                                 200,000     people were vaccinated         ...
Angola:Partnershipsand PossibilitiesAngola’s South Atlantic coast, a land of rainforests, savannasand agricultural highlan...
The ProAgro project, funded jointlyPartnership                                                                            ...
blood banks and the construction ofhealth facilities all over the country,”said Dr. Ana Ruth Luis, Chevron’s medi-cal dire...
97%                                    245,000                                  60%     reduction in flaring at           ...
The century-old relationship between Chevronand the city of Richmond is on a new path tostrengthen the company and the com...
Contra Costa Unified School District.                                                                                     ...
The                                                                                        Environment                    ...
Kazakhstan:Sea of OpportunityIn 1979, geologists discovered a 1-mile-thick (1.6-km) oil fieldnear the windswept Caspian Se...
85%                                       23                                           $645   of Tengizchevroil’s   workfo...
intern explored ways to improve the                                                                                       ...
produces high-quality equipment tointernational standards, delivers itsproducts reliably and sells them atcompetitive pric...
Chevron is a recognized leader in deepwater drilling. Our success inthe deepwater Gulf of Mexico began more than 10 years ...
2010                                       13,000                                 27%   was another year with             ...
Below the earth’s surface under                                                        in 2010 after the BP Macondo wellmo...
blowout,” said Payne. He sees BOPslike seat belts: It’s important that theyexist and are used, but it’s alwaysbetter if th...
“The simulator hones our skills toGulf Relief                                                                             ...
Executive Interview                                                Gary Luquette                                          ...
Nigeria:Healthy Employees,Healthy CommunityChevron’s business interests and community interestsare linked, so our efforts ...
$5 million                                 50,000                                     400   in scholarships was           ...
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
Chevron 2010 Corporate Responsibility Report
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Chevron 2010 Corporate Responsibility Report

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Learn more about how Chevron is doing in important areas of our corporate responsibility (C.R.) efforts in our latest C.R. Report.

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Chevron 2010 Corporate Responsibility Report

  1. 1. 2010 Corporate Responsibility Report
  2. 2. Welcome3 4 10 14A Message Australia: Angola: California,From Our CEO A Natural Partnership Partnerships United States: The Gorgon Project and Possibilities Finding Common shows how energy Sustainable programs Ground in Richmond development and the in Angola will improve The Richmond environment coexist. the quality of life. Refinery works with the community to Climate Change 7 Social Investments 13 identify and address Executive Interview 9 local needs. The Environment 17On the Cover: Marine biologists Anthony Bougher (left) and Luke Skinner conduct an intertidal surveyin the Indian Ocean adjacent to the site of Chevron’s Wheatstone Project, which will process natural gasfrom fields offshore Western Australia.
  3. 3. Partnering for Shared Progress We believe that business and society are interdependent. This belief drives our commitment to partnership to create mutual benefit, or shared progress. At Chevron, partnership is a value that we honor every day, wherever we operate, from our business to our social investments. We welcome your feedback. Thank you for your interest in Chevron.18 22 28 32 36Kazakhstan: U.S. Gulf of Mexico: Nigeria: Indonesia: AdditionalSea of Opportunity Oceans of Promise Healthy Employees, Cultivating InformationOur longstanding part- Our culture promotes Healthy Community Gotong Royong and Datanership with Kazakhstan safe operations, resulting In Nigeria, we work We provide economic Performance Datacontributes to economic in a safety record that with partners to combat opportunities for GRI and API/IPIECA Indexand social change. leads the industry. disease, and our efforts Indonesians through our Assurance Statement are making a difference. operations and support GlossaryDiversity 21 Operating With for local initiatives. About This Report Excellence 25 Human Rights 31 Renewable Energy 35 Executive Interview 27 1
  4. 4. ‘Business and community partnerships that emphasize economic progress can help set countries on a better course.’
  5. 5. A Message From Our CEOShared Progress We recognize that business success is deeply linked toEnergy is essential to human progress — it creates jobs, fuels society’s progress. Our investments in communities —innovation and powers virtually every element of the global developed in partnership with those communities — alsoeconomy. Providing that energy safely, reliably and economi- are investments in the long-term success of our company.cally is a great responsibility that we take seriously. We are This approach delivers mutual benefit and shared progress.proud that 2010 was the safest year in our company’s history, In 2010, we invested $197 million in our communities, moregiving us one of the best records for safety in our industry. than twice the amount we invested in 2006.Over the past few decades, our industry has changed We make community investments in the three areas thatdramatically. New technology and advanced skills have we believe are the foundation of working societies thecombined to unlock new production and growth in geologic world over — health, education and economic development.areas once beyond our reach. Our investments in health focus on training, testing and treatment for such diseases as HIV/AIDS, tuberculosis andOne of these frontiers, deepwater production, experienced malaria, which are critical economic and public health chal-a tragedy in the U.S. Gulf of Mexico, resulting in loss of lenges in some of our largest operating areas.precious life. It also took a toll on the economy and theecology of the Gulf Coast. Following the BP Macondo Business and community partnerships that emphasizeincident, Chevron led the joint-industry task force to raise economic progress can help set countries on a bettereven higher standards for deepwater operations across the course. One such investment is the Niger Delta Partnershipindustry. The incident reinforced our own safety imperative Initiative, launched in 2010 — an innovative, multipartnerto reach our goal of zero incidents wherever we operate. effort to promote economic development, conflict resolutionToward that goal, all of our projects are guided by our and capacity building. Our initial commitment is $50 million.strong safety culture. We leave nothing to chance becausewe have a deep, personal stake in operating safely — to Our investments in education can strengthen communities.sustain the public’s trust in our operations, to bring our As part of our California Partnership initiative, for example,employees safely home and to deliver value to those who we’ve teamed up with leading educational nonprofits toinvest in us. Our success rests on a culture true to our create opportunities in critical STEM subjects — science,Chevron Way values — getting results the right way. technology, engineering and math — for underserved students. In 2010, we reached more than 245,000 studentsCorporate responsibility at Chevron begins with safe opera- and 3,900 teachers in California.tions, but it doesn’t end there. Through multistakeholder collaboration, such as the Voluntary Principles on Security and Human Rights, we are promoting respect for global human rights. To empha- size the importance of our own commitment, in 2010 we developed plans and provided resources to implement our global Human Rights Policy. As you’ll read in this report, our community investments have increased, our partnerships are stronger and our impact is greater. These successes demonstrate shared progress for business and communities. John S. Watson Chairman of the Board and Chief Executive Officer May 2011 3
  6. 6. Australia: A Natural Partnership A nature reserve is an unlikely site for a major new energy plant, but Chevron is showing how it can work. Barrow Island, offshore Western Australia, is the site of the Gorgon natural gas project. Chevron has been safely producing oil for more than 45 years on Barrow.4
  7. 7. $56 10,000 No. 1billion jobs in size, the Gorgon CO2-injection project(AU$65 billion) will be will be created at peak is expected to be thecontributed to Australia’s construction world’s largestgross domestic product
  8. 8. Barrow Island, a Class A nature Reducing Emissions 70%reserve off Australia’s west coast, Natural gas is the cleanest-burningwill be home to the Gorgon Project, fossil fuel. Gorgon will include thewhich will tap into vast natural gas world’s largest carbon dioxide– (CO2-)resources 43.5 miles (70 km) north- injection project, which will injectwest of the island. The island’s rich of construction con- 40 percent of the project’s GHGand unique biodiversity has remained emissions underground. This will makeintact since naturalist John Thomas tracts for workforce Gorgon one of the world’s least GHG-Tunney’s writings secured its designa- housing will go to firms intensive LNG facilities. The injectiontion as a wildlife refuge a century ago. in Western Australia project will separate the CO2, a naturalIts conservation is a national priority. component of produced gas, and inject it 1.6 miles (2.6 km) beneath the islandChevron is no stranger here, having into a deep sandstone reservoir. Thesuccessfully operated on Barrow for Australian government is a partnermore than 45 years while minimizing here, having contributed $51 mil-our footprint on the island. Building lion (AU$59 million) to the injectionon this environmental stewardship project as part of its Low Emissionsinvolves a mix of advanced technology Technology Demonstration Fund.and a commitment to detail, addressingeverything from greenhouse gas (GHG) The plan was recognized internation-emissions to local concerns over light ally by the Carbon Sequestrationlevels from our operations on Barrow’s Leadership Forum, a group ofnearby beaches where turtles lay 24 national governments and thetheir eggs. Our strong environmental European Commission. We willperformance has allowed us to expand share data from the project, whichoperations, resulting in a benefit to our will accelerate and enhance scien-business and the Australian economy. tific understanding of a technology Above: Environmental scientist some scientists believe could playStrengthening the Economy Daniel Joyce is at the site of the an important role in reducing globalAt $37 billion (AU$43 billion), the Wheatstone gas processing plant GHG emissions.Gorgon Project will be Chevron’s larg- in Western Australia.est investment, targeting 40 trillion Partnering With Residents ofcubic feet of gas. Gorgon represents Western Australiathe single biggest resource project Natural gas will be offloaded from We are taking steps to make surein Australia’s history. Independent Barrow Island as liquefied natural Gorgon benefits the residents ofconsulting firm ACIL Tasman estimates gas (LNG) and transported mostly to Australia, both economically andthat Gorgon will contribute $56 billion Asian markets, while gas for Western socially. Thus far, Gorgon has created(AU$65 billion) to Australia’s gross Australia’s consumption will be 4,000 jobs in Australia. At peak con-domestic product. More than $8 billion piped ashore. Gorgon precedes our struction, it will employ 10,000 people.(AU$9 billion) has already been com- Wheatstone Project, a second offshoremitted to companies in Australia — and natural gas project currently in the A $394 million (AU$458 million)total spending in Australia is targeted planning stages. construction village is being designedat $17 billion (AU$20 billion) over and built by a joint venture betweenfive years. Australia’s prime minister, Julia Gillard, companies in Australia — Thiess, Decmil toured the project site in March 2010 and Kentz. Thiess managing director“Many people don’t realize that and said, “Having been here and seen David Saxelby said a significant aspectthrough Gorgon, Chevron is providing Barrow Island and [the] Gorgon Project, of the contract was that it offeredopportunities and benefits on a scale it’s given me a real sense of the size enormous potential for local jobs,never seen before in this country,” said and scale of this project and what it is and up to 70 percent of the contractChevron Australia managing director going to mean to the nation’s future. . . . requirements would be sourced inRoy Krzywosinski. This is a great project for employment Western Australia. in this country.”6
  9. 9. In 2009, Australia’s Ausco Modularwas laying off workers. In 2010, ithired 200 people to build offices, labsand control rooms worth $51 million(AU$59 million) for Gorgon. Already Climate Changesome 80 vessels, employing hundredsof workers, are supporting Gorgon’sdredging and the delivery of suppliesand materials. Gorgon’s CO2–injection project is one ofOther Australian companies have the many ways we are working to addressbenefited through hundreds of concerns about climate change.jobs created in freight, construction,general utilities, accommodation, Now in its 10th year of implemen- energy companies for transpar-telecommunications and site prepara- tation, our Action Plan on Climate ency in monitoring and disclosuretion. Howard Porter, a local company, Change continues to guide our of our GHG emissions and carbonhad 70 employees building 300 trail- efforts in greenhouse gas (GHG) management practices.ers for Gorgon under a $17 million emissions reduction, improved(AU$20 million) contract that Porter energy efficiency, and research • As a member of the Global Gascalled the single biggest transport and development in innovative, Flaring Reduction Partnership, wemanufacturing order ever in West- low-carbon energy technologies. are working to minimize gas flar-ern Australia. ing and venting. As of late 2009 • Since 1992, we have reduced the in Kazakhstan, Tengizchevroil —Gorgon also is a magnet for talent. total energy consumption required in which Chevron is a 50 percentA recent Chevron employee meeting to perform all our business opera- partner — eliminated routinein Perth included many people who tions by 33 percent compared with flaring. In Nigeria, Angola andhad been on the job less than a week, the energy we would have used to elsewhere, we continue projectsbut that’s business as usual as the complete the same functions. to recover gas that would havecompany fills a new 13-story office been flared.tower with about 800 Gorgon workers. • We advise customers on energy efficiency improvements and • We deployed a new enterprise-Our collaborative approach played a renewable power, reducing their wide system for reporting GHGsignificant role in developing the native energy use by an average of emissions and energy efficiency,title agreements with the Kuruma nearly 30 percent. implemented a strategy to man-Marthudunera people in June 2010 age future carbon-market activityand the Yaburara Mardudhunera peo- • In 2010, the Carbon Disclosure growth, and conducted third-partyple in November 2010 for the Gorgon Project’s Leadership Index recog- verification of our GHG emissions.Project’s domestic gas pipeline. nized Chevron as a leader amongUnder the Chevron-operated GorgonProject Cultural Heritage Management For additional information on how we are addressing this issue, pleasePlan, Australian Aboriginal people visit Chevron.com/ClimateChange.are involved to help the project avoidRight: Euros, or wallaroos (left), andperenties thrive on Barrow Island.Some native species now exist onlyon Barrow. 7
  10. 10. heritage sites. “When we were To prevent invasive species andsurveying our country with the other pests from being brought ontocompany [Chevron], we came across the island, we have a rigorous andseveral important sites in the desig- expansive quarantine plan, whichnated construction area,” Kuruma Western Australia’s EnvironmentalMarthudunera spokesperson Cyril Protection Authority said “likelyLockyer said. “And after talking with represents the best practice inChevron, the result is that the com- the quarantine management of apany will build the pipeline around large operation.”these areas and not destroy thesesites. This type of working relationship Our quarantine management proce-will help us preserve our heritage for dure, in place for more than 45 years,future generations.” has improved over time. Goods being shipped through the Dampier sup-With our commitment to Aboriginal ply base are tagged with one of threeemployment, construction contrac- colors to make sure the requiredtors and others are encouraged to procedures are taken. Nothing ishire Aboriginal people. Additionally, shipped to Barrow without a greenwe are working to identify longer-term tag. At the Australian Marine Complexcareer opportunities. Peter Eggleston, in Henderson is a quarantine wash-Chevron Australia’s External Affairs Top: Ann Hayes, of the local Aboriginal down area resembling a huge parkingmanager, said, “We’re now very much Thalanyji group, accompanies Chevron lot and a giant shed big enough toa part of and are engaged extensively contract botanist Jerome Bull on a cover a football field. There’s also awith Aboriginal communities in the botanical and indigenous heritage larger-than-life hair dryer that cleansareas near our operations.” survey at the Wheatstone site. Bottom: vehicles and goods bound for the Equipment headed for Barrow Island is island. And the process doesn’t endBusiness and Nature Coexist shrink-wrapped during quarantining. when the freight is put on ships. At theBarrow Island, once attached to the island, inspectors can stop goods andcontinent of Australia, now lies about return them to the mainland on the43.5 miles (70 km) offshore, having We minimized the project’s footprint next barge. Today, Barrow is the onlybeen separated from the mainland on the island itself. The seismic survey island in the region free from intro-and becoming a sort of living ark. It of the underground geology where duced species such as cats, rabbits,is home to more than 350 species of CO2 will be injected was also modified. rats and mice.native plants, 14 species of mammals, A conventional survey, consisting of100 species of birds and 54 species of clearing paths to accommodate heavy Yet another environmental con-reptiles. Some of them are found no trucks that haul necessary equipment, sideration is the nighttime lightingother place on Earth. would have disturbed about 700 acres necessary for the new LNG plant. Four (283 ha). Instead, a freight helicopter species of sea turtles nest on Barrow,We have been working with Harry did most of the heavy lifting — approxi- and light can cause them and theirButler, Ph.D., one of Australia’s pre- mately 15,000 separate lifts — while hatchlings stress.mier conservationists, throughout lighter equipment was carried by foot.oil production and Gorgon develop- By the end, fewer than 47 acres (19 ha) Daniela Ratcheva, a senior envi-ment to minimize any impact to the were disturbed. ronmental engineer with Chevronisland ecology. Australia, delivered a detailed presen- Donna Parker, CO2-injection project tation to a conference in Queensland“Today, all the species I experienced manager, is one of those who are proud in September 2010. She demonstratedwhen I first visited Barrow Island in of the achievement. “This extraordi- how we engineered the plant’s lighting1963 remain,” he said. “When you have nary effort by all involved was vital to systems to not disturb turtles and toa world-class quarantine process sup- delivering baseline survey results and comply with the stringent environmen-ported by a workforce that truly cares maintaining our reputation as an envi- tal approval conditions and applicablefor the environment, this is what you ronmental champion of Barrow Island,” safety laws and standards while notcan achieve.” she said. compromising safe operability.8
  11. 11. Executive InterviewWhat How WhenWhat is the biggest How are you addressing When will the Gorgon Projectchallenge that you face? that challenge? become a reality?By 2030, world demand for energy The development of Chevron’s Benefits already are being realized.is expected to grow by approximately world-class gas resources will provide Though production of natural gas33 percent — with Australia’s neigh- Australia and the countries receiving is not planned until 2014, billions ofbor, Asia, predicted to account for the project’s LNG with opportunities dollars in contracts have been awarded,60 percent of that growth. Chevron is to affect their greenhouse gas emis- putting people to work. Approximatelyfortunate to find itself in Australia, sur- sions. Compared with the use of coal 1,500 are employed on location onrounded by natural gas resources on to generate electricity, natural gas Barrow Island, and 4,000 acrossthe doorstep of the growing demand from the Gorgon Project will have the Australia are employed as a result ofin the region. The Gorgon Project alone same effect on global emissions as Gorgon. Those numbers will grow asis set to increase the supply of domes- removing two-thirds of the vehicles the project gathers pace.tic gas to Western Australia by about from Australian roads.30 percent. We must link energy supply The Greater Gorgon Area gas fieldsto energy demand while addressing Most supply-demand forecasts predict contain enough energy to power athe risks posed by climate change. that natural gas will play an integral city of 1 million people for 800 years. role in the energy mix as the world The Gorgon Project is long term and transitions to a lower-carbon future. will benefit generations to come. The Gorgon Project and Australia are set to be global leaders in the appli- cation of underground CO2-injection technology. We are committed to shar- ing information from the monitoring program at Gorgon to assist in building a greater understanding around this emerging and important technology.Roy Krzywosinski became managingdirector of Chevron Australia inJanuary 2008 and helped steer theGorgon Project to a final investmentdecision about 18 months later.Roy KrzywosinskiManaging Director, Chevron Australia 9
  12. 12. 624,000 5,500 200,000 people were vaccinated farmers received safe blood transfusions against polio in Cabinda technical assistance were administered in December 2010 and almost doubled through Chevron’s their yields between support 2007 and 2009Chevron medical director in Angola, Dr. Ana Ruth Luis, consults at the company’sLuanda Clinic, which offers primary medical care to retirees, employees and theirdependents. Nuno Miquel Baptista is an X-ray technician at the clinic.10
  13. 13. Angola:Partnershipsand PossibilitiesAngola’s South Atlantic coast, a land of rainforests, savannasand agricultural highlands, is rich in natural resources andpossibility. Our business operations and community partnershipsthere offer support to a population trying to improve itsinfrastructure and grow its economy.The Peace Agreement of April 2002 Following the Angola Partnership We are also pioneering businessmarked the end of a nearly 27-year Initiative model, we are working to programs for high school students.civil war that devastated the economy promote robust micro, small and Working with the National Instituteand increased Angola’s dependence on medium-size businesses outside the for Educational Research and Develop-the oil industry. As the country recov- oil industry. For example, we support ment and the United Nations Industrialers, Chevron has been responding to the Luanda Business Incubator, a pro- Development Organization, our $1 mil-community needs. Our investments in gram to strengthen the operational lion contribution in 2010 is helpinghealth, education and economic devel- and technical capabilities of service launch an entrepreneurship curriculumopment in Angola improve livelihoods providers. The program has trained for more than 2,000 students in nineand foster stable operating environ- more than 200 entrepreneurs in provinces. The Ministry of Educationments that contribute to our ability to business planning and helped create plans to roll out the curriculum nation-conduct business. 143 new jobs in 2010. wide, reaching 500,000 students by 2013.Partnering for Sustainable “To many Angolans, the conceptEconomic Growth of entrepreneurship is new and In 2010, with support from the Euro-In 2002, we launched the Angola needs nurturing,” said Eunice de pean Union, UNESCO and UNICEF,Partnership Initiative, with $25 million Carvalho, Policy, Government and we partnered with the Ministry ofand a commitment to address needs Public Affairs general manager for Education and donated $1.5 million tobeyond those near the vicinity of our Chevron in Angola. implement a teacher training program.operations, focusing particularly on Nearly 400 teachers and administra-regions most damaged by the war. tors attended. 11
  14. 14. The ProAgro project, funded jointlyPartnership by Chevron and the U.S. Agency for International Development from 2006With the Global Fund through 2010, facilitated sustainable business relationships between produc- ers, banks, processors and distributorsChevron’s partnership saving lives and improving • About 380,000 people com- of cash crops. The project providedwith the Global Fund to health care in countries pleted voluntary HIV/AIDS technical assistance to more thanFight AIDS, Tuberculosis where we operate. counseling and testing. 5,500 farmers, who almost doubledand Malaria has helped • About 1 million malaria nets their yields between 2007 and 2009.improve the health and Through our first three were distributed.well-being of millions of years of investment inpeople in Africa and Asia. Global Fund grants in • More than 1 million rapid- Fighting DiseaseWe made an initial $30 mil- Angola, Nigeria, South diagnostic tests for malaria Since 2008, when we funded alion investment in the Africa, Thailand, Indonesia were distributed. $350,000 vaccination campaignGlobal Fund between 2008 and the Philippines, weand 2010. The Global Fund’s contributed to significant In 2010, we announced a in Uige and Cabinda provinces, weperformance-based funding results, including the commitment of an addi- have partnered with Angolan healthmodel and rigorous meas- following: tional $25 million to the authorities and UNICEF to provide vac-urement and evaluation Global Fund, raising our cinations against the wild poliovirus. • As many as 3.4 millionsystem have demonstrated six-year investment in the people were directlythat our investment has Global Fund to $55 million. reached through HIV/AIDS Through these campaigns and theyielded high-impact results, prevention programs. country’s other efforts, polio was thought to have been eradicated in Angola and neighboring Republic of the Congo for a decade. But in Novem-Promoting Economic Diversity ber 2010, an outbreak erupted inIn 2007, Chevron became a minor- Chevron is the largest Brazzaville, Congo. By December, itity partner in Banco Africano de had killed an estimated 220 people. foreign oil-industryInvestimentos Micro Finanças (BMF),formerly called NovoBanco. Since employer in Angola; We responded by sending peoplethen, BMF has made approximately and financial resources to prevent the 88%$54 million in loans to Angolan entre- disease from spreading into Angola,preneurs. From 2006 to 2010, BMF supporting an emergency campaignopened 10 branches in five Angolan that vaccinated 624,000 peopleprovinces, and in 2010, BMF provided in Cabinda in December 2010 and$9.9 million in loans to Angolan micro of Chevron’s employees donating $950,000 to the nationaland small entrepreneurs. Also in 2010, campaign to fight polio, specificallywe contributed $500,000 to expand in the country are for the provinces of Cabinda, Lunda-BMF’s operations in Cabinda. Angolans Norte, and Lunda-Sul. More than 15,000 Chevron employees, familyJoaquina Manuel, an entrepreneur members and contractors based inwho exemplifies the country’s opti- Cultivating Angola’s Fertile Land Cabinda province were vaccinated asmism, established a wholesale and While the country was once a recipi- part of the campaign.retail business in the 1980s, but a ent of global food assistance, Angola’snational currency crisis drove it into fertile soil, plentiful water, conducive Polio is just one of the diseases thatbankruptcy. She started over with a climate and hardworking farmers led our programs address.$3,000 loan. Success bred success, many donors to end support for food aidand additional loans allowed her to programs. But despite more of Angola’s “In the past 20 years, Chevron andexpand her business. farmers cultivating the land, most are partners have invested more than producing at a subsistence level. Still, $29 million in medical training and“These loans were like a rebirth for they have enormous potential to trans- treatment for and education aboutmy business,” said Manuel. form their operations into businesses. infectious diseases and in support for12
  15. 15. blood banks and the construction ofhealth facilities all over the country,”said Dr. Ana Ruth Luis, Chevron’s medi-cal director in Angola. SocialWe remain committed to helpingstop the spread of disease through Investmentsunsafe blood. With our partners — theAngola Ministry of Health, the SafeBlood for Africa Foundation, and theU.S. Centers for Disease Control andPrevention — we established a safe Our success as a business is inextricablyblood program in Cabinda province.Our nearly 20 years of support for this linked to the well-being of our employees andblood bank has allowed for more than our communities.200,000 safe transfusions.Fighting malaria remains an important Social investments at Chevron Social Investment Spendingbattle in Angola. In 2010, we sponsored aim to foster economic stability In millionsthe first entomological course on and improve quality of life. They $197malaria in the country. Organized by the are delivered through partici-Global Business Coalition on HIV/AIDS, patory partnerships that build $156Tuberculosis and Malaria and by the foundations for positive, last- $144Corporate Alliance on Malaria in Africa, ing results. We invest in health, $119the course brought 41 health specialists education and economic devel- $91from all 18 provinces to learn mosquito opment — the building blocks ofcontrol techniques. In 2010, Cabinda’s strong communities.program treated 25,317 children underage 5 and 5,408 pregnant women. In 2010, we made $197 million in social investments to help build“It takes community action and effec- community programs around 06 07 08 09 10tive partnerships to fight a disease the world. YEAR 0 6 07 08 09 10like malaria,” said Alan Kleier, manag-ing director of Chevron’s SouthernAfrica operations in 2010. “We intendto continue working with the Ministry For additional information, please visit Chevron.com/SocialInvestment.of Health and other partners towardprevention and treatment.”Left: Prompted by Chevron’s localcontent program, NASA ComercialImportação e Exportação. Lda. partici-pated in supplier development trainingto support the oil and gas industry.Nascimento Alberto is the managingdirector of NASA. Right: JoaquinaManuel’s business was expanded withChevron-supported microfinancing. 13
  16. 16. 97% 245,000 60% reduction in flaring at California students or more of the water the Richmond Refinery benefited from the Richmond Refinery has been achieved Chevron’s partnerships uses daily is treated since 2007 in 2010 or reclaimedThrough DonorsChoose.org, Chevron provides funds to Nystrom Elementary School inRichmond, California. Here, students observe butterflies during a science project.14
  17. 17. The century-old relationship between Chevronand the city of Richmond is on a new path tostrengthen the company and the community.California, United States:Finding CommonGround in RichmondChevron and the city of Richmond, “We listened to those concerns,” saidCalifornia, share a rich history that Mike Coyle, refinery general manager,stretches back more than a century. “and in 2008, we began efforts toThe refinery sits on about 2,900 acres strengthen local relationships. This is(1,174 ha) 15 miles (24 km) north- helping us overcome challenges thateast of San Francisco and was built affect our business and the community.”before Richmond was incorporatedin 1905. Richmond then was a small We commissioned an independentbut growing industrial area of about nonprofit organization to interview2,000 people. Today, it’s a city with community leaders. Coyle said thea diverse economy of industrial, tech- results proved enlightening. Among thenological and maritime businesses findings: Citizen groups and nonprofitand 103,000 residents. leaders felt that our community inter- actions had decreased and that peopleTogether — through booms and reces- were unaware of our long history ofsions, 19 U.S. presidents, and economic involvement. Many wanted us to beand social changes — the relationship more active in helping the city addressbetween the refinery and the people social and economic problems.of Richmond has evolved. Over thepast two decades, there has been a As a result, we are in the midst of angrowing interest in refinery activities. effort to renew and strengthen ourSome citizens have expressed concerns relationships. We meet regularly withabout insufficient communication on residents and leaders, and based onissues such as community support, their input, we’ve invested in job crea-emissions and flaring. tion, public safety and K–12 education. 15
  18. 18. Contra Costa Unified School District. “There’s a deep connection between Chevron and our students. Working together on science, math, engineering and other programs, we’re changing the student culture to raise expecta- tions so that our students see college as the next step after high school.” Harter said program support instills a sense of optimism that can start with something as simple as new micro- scopes. Science teacher CatherineChevron Humankind Vanier needed lab materials to teach cellular biology to her seventh grade students at Richmond’s Lovonya DeJean Middle School. With the helpOur employees are active in Throughout our opera- began in 2008, 19,000nonprofits that strengthen tions in the United States, participants plus com- of Chevron’s Fuel Your School programcommunities where we live employees participate in pany matches contributed and DonorsChoose.org, Vanier wasand work. In Richmond, for Chevron Humankind, the more than $74 million able to buy the sorely needed sup-example, we mentor high company’s U.S. employee to support more than plies. In addition, the school receivedschool students interested and retiree giving and 12,000 nonprofits. a $25,000 Chevron classroom grant.in science, engineering, volunteer program. Contri-math and other technical butions made to nonprofits Above: Chevron employee As a result, Chevron “has made acareers; serve meals at through the program are Brent Tippen volunteers significant difference in the educationlocal homeless shelters; generally matched dollar in a class to teach English of our students for years to come,”and participate in commu- for dollar by the company. as a second language in Vanier said.nity improvement projects. Since Chevron Humankind Richmond. Our focus on supporting STEM (science, technology, engineering and math) education in California has resulted inWe also increased transparency. We more than 245,000 students and 3,900 70%responded to the call for information teachers benefiting from our commu-by creating public communications nity programs in 2010.platforms, and for the first time in30 years, we held an open house andtour to allow the community to see our reduction Another priority that residents voiced was economic opportunity. Chevronoperations for themselves. The com- in regulated air responded by supporting nonprofitmunity had the opportunity to engage emissions has been organizations that increase localwith us directly, and we could clarify achieved at the refinery employment.misconceptions about our operations. For example, we awarded the non-Investing in Our Community in 2010 to nonprofits in Richmond and profit Stride Center a $211,000 grantIn West Contra Costa County, unem- the county for education, youth leader- in 2009 to create a job-trainingployment is more than 18 percent. ship programs, economic development program. David Benjamin, once anTwenty-two percent of families in and job training. But our investment in unemployed high school dropout, nowRichmond have incomes below the the community goes beyond financial has a promising future in technologyU.S. federal poverty level, and 40 per- contributions. after receiving computer training fromcent of adults did not graduate from the center. “I wasn’t doing too muchhigh school. “Support from Chevron and its volun- with my life and was in and out of trou- teers comes with accountability and ble,” he explained. Now, he said, he’ll beTo help the community address these an expectation of mutual benefit,” said qualified for jobs in computer technicalchallenges, we granted $3.7 million Bruce Harter, superintendent of West support and software installation.16
  19. 19. The Environment Our efforts to reduce flaring and increaseAbove: The marshland at the refinery is a nourishing habitat for protected and water efficiency inendangered species. Great blue herons (left), egrets and mallards are some of Richmond illustrate ourthe animals that make it their home. continued commitment to minimize pollution and waste, conserveImproving Operations enough drinking water to serve about natural resources, andWe continually strive to minimize air a quarter of Richmond’s population reduce the environ-emissions and waste, use resources and could reduce severe rationingand energy efficiently, and minimize in future droughts. “This coopera- mental impact of ourenvironmental impact. tive effort,” said Lesa McIntosh, an operations. elected board director of EBMUD,The Richmond Advanced Recycled “will benefit water customers well Across the company, we devel-Expansion (RARE) Water Project is into the future.” oped a corporate environmentalone example of our collaborative stewardship process that pro-approach. In drought-prone California, Refinery air emissions have been a vides a consistent, systematic,fresh water has always been a valu- source of concern for the community. risk-based approach to manag-able commodity. Population growth By installing new technologies and run- ing aspects of the environment,and stringent environmental regula- ning plants more efficiently, we have including air, water, biodiversitytions have increased its value. Water reduced regulated air emissions by and waste.is also an essential component in oil 70 percent since the 1970s. A refinery-refining, with each gallon of oil refined wide flare-minimization program that For example, in 2010, we devel-requiring one gallon of high-quality began in 2007 has helped decrease oped an integrated, corporatewidewater. We are the San Francisco flaring by more than 97 percent. As the freshwater management planBay Area’s largest refinery and thus region’s largest refinery, the Richmond to enhance current activities onthe largest water customer for the Refinery represents approximately water stewardship.East Bay Municipal Utility District 38 percent of oil refining capacity in(EBMUD), requiring about 11 million the Bay Area but less than 1 percentgallons a day. of the volume of vented gas flared in 2009.To reduce water use, the refinery and To learn more about our environ-EBMUD completed a plant in 2010 to While we have made progress, there is mental stewardship, please visittreat municipal wastewater for our still work to be done. “Reestablishing Chevron.com/Environment.steam-producing boilers. Each day, a strong relationship and trust won’tRARE sends 3.5 million gallons of happen overnight, and we are deeplytreated wastewater to the refinery, committed to fulfilling that goal,” Coylein addition to the 4 million gallons said. “We’ve recently taken some sig-of reclaimed water already used in nificant steps, but this commitment is athe refining process. RARE saves marathon, not a sprint.” 17
  20. 20. Kazakhstan:Sea of OpportunityIn 1979, geologists discovered a 1-mile-thick (1.6-km) oil fieldnear the windswept Caspian Sea. They named it “Tengiz,”Kazakh for “sea,” a fitting description considering its locationand potential.Today, Chevron is Kazakhstan’s “If you want to do business here, or A Commitmentlargest private oil producer, holding anywhere else, you have two respon- to Human Potentialstakes in the nation’s two biggest sibilities — business and community,” Longtime Kazakhstani employees stilloil-producing projects — the Tengiz said Jay Johnson, president of talk about adapting to Chevron’s busi-and Karachaganak fields. We hold a Chevron Europe, Eurasia and Middle ness and engineering standards. Berik50 percent interest in Tengizchevroil East Exploration and Production Ltd. Dyussenov, TCO’s Health, Environment(TCO), which operates the supergiant “We satisfy both by encouraging our and Safety coordinator, said stand-Tengiz Field. Kazakhstani employees to continue ards today are more stringent than to develop their skills. That is why we what he saw during Tengiz’s infancy.Our commitment to the region began work closely with local schools and uni- Chevron’s decision “to partner within 1993 with the formation of TCO and versities. As the community benefits, Kazakhstan on the Tengiz project wasthe five-year, $50 million Atyrau Bonus so does our business.” made shortly after Kazakhstan’s inde-Fund that developed infrastructure pendence,” he said. “The partnershipprojects. Since then, we have continued At year-end 2010, 85 percent of TCO’s brought new opportunities to us work-to cultivate opportunities that result workforce was Kazakhstani. TCO spent ing in Tengiz and contributed greatly toin economic and social change for nearly $1.35 billion on Kazakhstani our country’s economy.”many Kazakhstanis. Our business is services and materials. Ongoing train-enhanced by strong local suppliers and ing and education programs contributea skilled workforce. to the high number of Kazakhstan citizens among TCO’s workforce and in leadership positions.18
  21. 21. 85% 23 $645 of Tengizchevroil’s workforce in 2010 was technical universities in Kazakhstan were million Kazakhstani introduced to an energy has been spent by efficiency course Tengizchevroil on social developed by Chevron programs since 1993Gulbarshyn Matniyazova (left) and Kulyan Zhangutty are participants and trainers in theChevron-sponsored Kazakhstan Artisan Business Development Program. Here, they arecreating felt souvenirs for the Olympic Council of Asia’s 2011 Winter Games. 19
  22. 22. intern explored ways to improve the injection performance for disposing of the field’s wastewater. “My internship helped me apply the theoretical knowledge I obtained in college and expand my under- standing of petroleum engineering,” said Texas A&M graduate Merey Shinikulova, now a TCO production engineer. “I worked on interest- ing and challenging projects, andUniversity Partnership Program I was impressed that my projects were actually used after I left the internship.”Chevron’s University In the United States, United Kingdom. FurtherPartnership Program we support more than efforts are under way to Of the 12 new reservoir manage-engages with key universi- 75 schools in areas critical finalize partnerships with ment employees in 2010, 11 cameties throughout the world to our energy future, such universities in Angola and from the program. Three of themby providing scholarships, as engineering, earth to explore partnerships in completed master’s degrees atgrants and employee science, finance, infor- Poland and Bangladesh. the Colorado School of Mines withinvolvement. Through these mation technology and We also pair programs atefforts, we have provided environmental science. world-class institutions with funding from Chevron’s Universityapproximately $18 million in These programs include less developed ones in order Partnership Program.funding per year, support- efforts to increase minority to strengthen the facultying research and academic participation. and curriculum of the less Supporting Businessexcellence to help develop developed programs. Developmentthe professionals needed Internationally, we focusin the energy industry. We our involvement in locations Above: The student chapter Fostering emerging small businessesconsider these educational of our strategic operations, of the KazNTU Society of and suppliers is an important goalpartnerships also to be including Indonesia, West- Petroleum Engineers plans that we and our government andstrategic investments in ern Australia, Kazakhstan, for the 8th International Oil nongovernment partners share.local communities. Thailand, Brazil and the and Gas Youth Forum in 2011. Since 1997, TCO has provided more than $7.8 million to small business development loan programs that have helped entrepreneurs in agri-During his career, Dyussenov visited Development. This new course was culture, catering, and medical andChevron facilities across the United introduced to all 23 technical univer- community services.States and Canada and credits Chevron sities in Kazakhstan.programs for offering Kazakhstani Jay Johnson cited Byelkamit, a localspecialists an opportunity to receive In 2010, TCO began working with company that has been workingstate-of-the-art training and learn best Kazakhstan’s Bolashak (“future” with TCO since 1997. In addition topractices in environmental safety. in Kazakh) program, which allows numerous other projects in 2009, talented students to study abroad Byelkamit was the prime contractorOur program at the Kazakh National with full government scholarships. on a large fixed-roof crude-oil storageTechnical University (KazNTU) Mike Sullivan, a reservoir surveillance tank and employed 600 local workersstarted in 2007 and has provided coordinator, began an aggressive at peak construction. Prior to thisscholarships for 150 graduate and program to recruit Bolashak students project, a Kazakhstani contractor hadundergraduate students. Working with for internships. never built a tank this large, a newthe university and international and capability for the country’s industry,local environmental nongovernmental Students were paired with senior developed with TCO’s help.organizations, we introduced a major mentors at TCO and were givenaddition to the country’s curriculum: a problem that required original “We prefer to buy locally wheneverEnergy Efficiency and Sustainable research to solve. For example, one we can,” said Johnson. “Byelkamit20
  23. 23. produces high-quality equipment tointernational standards, delivers itsproducts reliably and sells them atcompetitive prices.” DiversityFueling Social ProgramsSince 1993, TCO has invested morethan $645 million in social programsin the Atyrau Oblast. In 2010, TCO We need the diverse talents and fullspent $20 million on its Egilik (Kazakhfor “benefit”) social infrastructure potential of every individual employee inprogram, and Karachaganak Petroleum order for Chevron to excel as a leader inOperating, in which Chevron holds a20 percent interest, also contributed the global marketplace. We recognize the$20 million to social programs in the benefits of maintaining a workforce thatWestern Kazakhstan Oblast. reflects the composition of the communitiesWe and our affiliates have continually where we operate.supported health programs, includingcurrent efforts to combat high rates Our commitment to diversity and • We encourage managers andof cardiovascular disease, a leading inclusion is more than words, more selection teams to hire from acause of death in Kazakhstan. than a set of goals. Our actions diverse slate of candidates who speak for themselves. represent a range of backgrounds.The Kazakhstan Association ofFamily Physicians and TCO are part- • Approximately 22,500 Chevron • We have a robust suppliernering to educate the local medical employees participate in Employee diversity program. In 2010 in thecommunity and public about how to Networks, which help eliminate United States, we spent moreprevent cardiovascular disease. In barriers, improve communication than $2 billion on products andone program, more than 100 doctors among employees and cultivate services from small businesses.are being trained to diagnose and links with communities. We spent $364 million on productsimprove treatment. Another program, and services from women-ownedfor doctors at the Atyrau Cardiovas- • Diversity councils help promote a businesses, and $254 millioncular Hospital, provided mentoring work environment in which every on products and services fromby surgeons from the Astana Cardio- employee has the opportunity to minority-owned businesses.vascular Center. contribute to company goals.Left: In 2010, TCO funded cardio- For additional information, please visit Chevron.com/Diversity.vascular disease training for Atyraudoctors at the Astana CardiovascularCenter. Here, radiography surgicalnurse Aizhan Saurbekova assists dur-ing a medical test. Right: At Chevron’spolyethylene pipe plant in Atyrau, allemployees are Kazakhstan nationals.Chevron plans to build a new plantin Atyrau to produce valves thatcurrently have to be imported. Fromfront to back are operator MaratImangaliev, manufacturer’s representa-tive Jorg Kahl and operator AlimzhanKuanshaliyev. 21
  24. 24. Chevron is a recognized leader in deepwater drilling. Our success inthe deepwater Gulf of Mexico began more than 10 years ago when wetapped the Genesis Field 2,600 feet (792 m) below the water’s surface.Throughout that time, we have continued to drill safely by combining ourtechnological know-how with a proven organizational culture of safetythat begins with management and extends to employees and contractors.U.S. Gulf of Mexico:Oceansof Promise22
  25. 25. 2010 13,000 27% was another year with Chevron employees is the approximate no recordable incidents live and work in the amount of U.S. oil supply for Chevron’s Gulf of Gulf States that is produced in the Mexico shorebase and Gulf of Mexico maritime transportation operationsTransocean’s Discoverer Clear Leader is on lease to Chevron in the Gulf of Mexico.Workers are seen here on the drillship’s helipad. 23
  26. 26. Below the earth’s surface under in 2010 after the BP Macondo wellmore than 2,000 feet (610 m) of incident in the Gulf of Mexico. “Chevron 375water rests a vast promise of global will adopt any new standards it doesn’tenergy. Below this depth, the global already apply.” He also stressed ouroil industry tripled its offshore capacity commitment “to advancing safe opera-to 5 million barrels a day in the past tions through enhanced prevention,decade and ultimately could double better well containment and interven- deepwater wells havethat number by 2015. In the United tion, and improved spill response.”States, production in the outer conti- been drilled safely bynental shelf, almost all of which is in Chevron around the Practicing Safetythe Gulf of Mexico, currently accounts In 2010, the company had a record-low world since 1987for 27 percent of the nation’s oil and injury and illness rate.15 percent of its natural gas. “At Chevron, one goal overrides allWhile offshore resources hold the others: making sure everyone goespromise of energy and profit, there are home safe every day,” Watson said.risks that have to be addressed. One example of our safety culture“We know we can only operate with is our regularly held “safety stand-the public’s confidence that the energy downs” with drilling personnelwe need will be produced safely and and rig crews to reinforce safetyreliably,” said Chevron Chairman and practices. We share these exten-CEO John Watson. “We have a very sive reviews of drilling processes,personal stake in operating safely well-control contingency plans andbecause it is our home, too.” risk management plans across our global operations.One Team, One GoalOur commitment to safe drilling Since 1987, we have safely drilledbegins with a corporatewide dedica- 375 deepwater wells around thetion to operational excellence. This Above: Drilling engineer Jeremy Sokol world. Deepwater drilling is par-emphasis translates into specific (left) and subsea operations engineer ticularly challenging because of theprograms and standards, such as Zachary Schneider do a routine safety pressures involved, but our expertiseempowering workers to stop work walk on the Discoverer Clear Leader. with blowout prevention was evidentwhenever they sense potentially during the task force work. A blowoutunsafe operations, thus creating lay- preventer (BOP) is a series of valvesers of protection in drilling practices, while the reservoir itself is more than that prevent a well’s fluids from escap-well design and construction. 23,000 feet (7,010 m) below the water’s ing from the well. We have an in-house surface. Our team had to upgrade eight team of employees dedicated solely toDavid Payne, Chevron’s vice president separate technologies just to finish understanding BOPs and subsea wellof Drilling and Completions, said, “We its test well. interventions. We also operate ouraddress anticipated risks before we own well-control school, have drillingstart, and we’re prepared to handle any In 2010, we helped lead the joint- specialists overseeing every major wellothers that come up during drilling.” industry task force that made recom- and constantly partner with suppliers mendations to the U.S. Department of on equipment quality. And we have theThis approach was crucial at the the Interior to raise industry stand- only operator-owned cement lab inTahiti Field. Discovered in 2002, ards on offshore equipment, operating North America.Tahiti, which is estimated to contain procedures and subsea well control to400 million to 500 million barrels of even higher levels. Operating a deepwater rig costs moreoil-equivalent recoverable reserves, than $1 million a day, and activat-represented a complex and dramatic “A majority of these standards are ing the BOP causes delays. “Butchallenge because it lies in more already embedded in Chevron’s opera- we’d rather activate a BOP eventhan 4,000 feet (1,219 m) of water, tions,” Watson told the U.S. Congress when it isn’t necessary than risk a24
  27. 27. blowout,” said Payne. He sees BOPslike seat belts: It’s important that theyexist and are used, but it’s alwaysbetter if they’re not needed. OperatingRick Graff, who spent the past 13 yearson Chevron’s Gulf of Mexico rigs as a With Excellencedeepwater drilling engineer, said hisfirst boss taught him constant respectfor high-pressure reservoirs in deepwater. “We take great care as we drillto keep them safely contained with cas- Our industry-leading performance is due toing, cement, drilling mud and constantmonitoring,” Graff said. “In my view, our commitment to excellence, from projectthe human element is just as important design through operation.as the mechanical.” Chevron’s Operational Excellence know what it means conceptually. Management System (OEMS) was We are incredibly fortunate to work ‘At Chevron, developed to systematically man- in an enterprise where protecting one goal overrides age all aspects of safety, health, people and the environment is both all others: making the environment, reliability and a practice and a heartfelt value,” efficiency to achieve industry- he said. sure everyone leading performance. The system goes home safe provides specific expectations for Over the past decade, our safety every day.’ all employees and contractors to record has gone from trailing participate in promoting safety, the industry to leading it. Our caring for the environment, and Days Away From Work Rate has John Watson making sure the company’s opera- dropped 90 percent, and nearly Chairman and CEO tions run reliably and efficiently. 800 fewer workers were injured in 2010 than were injured a decade Chuck Taylor, vice president of ago. Since 2001, we’ve reducedAt our Covington, Louisiana, operations Corporate Health, Environment the number of spills by 50 percentcenter, offshore installation managers and Safety in 2010, said protecting and reduced our spill volume bysuch as Mark Davis train on a simula- people and the environment is a nearly 80 percent. And since 1992,tor that is unique to our industry. The company priority and a core value. we’ve improved our own energysimulator mirrors high-tech control “Many companies say this and efficiency by 33 percent.rooms on production platforms in theGulf of Mexico. For additional information, please visit Chevron.com/OE andThe training creates scenarios as Chevron.com/OEMS.diverse as fluctuating pressures onequipment, changing flow rates, andloss of communications between com-puter and equipment.Right: Transocean drillship DiscovererInspiration in the Gulf of Mexico iscapable of drilling wells in 12,000 feet(3,658 m) of water to a total depth of40,000 feet (12,192 m). 25
  28. 28. “The simulator hones our skills toGulf Relief operate safely and is a unique tool to improve response through practice during the training,” said Davis. “TheWe provided $10 million to “Our collaboration with which supported hard- simulator is not just about reading afive Gulf Coast community Chevron allowed us to hit commercial fishing procedure, it’s about doing it.”organizations that par- inform and mobilize volun- communities along theticipated in environmental teers across the country,” Louisiana coast, whereand economic relief, spill said Audubon President we have major facilities; Stop-Work Authorityresponse and cleanup after David Yarnold. “We provided and Greater New Orleans, The authority to stop work on athe BP Macondo well inci- much needed relief efforts Inc., which applied funding project is another critical factor indent in the Gulf of Mexico. and built a corps of citizen to economic recovery in keeping workers safe, and this author- scientists committed to the concert with the Louisiana ity extends to every employee andOne group was the long-term conservation of Economic DevelopmentNational Audubon Society. coastal bird populations and Department. contractor. It includes five steps: StopOur Pascagoula, Missis- habitats across the Gulf.” the unsafe or at-risk act with thosesippi, refinery helped the “These community part- potentially at risk, notify a supervisorgroup establish the Gulf Other groups we funded ners had immediate needs if he or she is present, address theCoast Audubon Volunteer were The Nature Con- to mobilize and respond issue, resume work after the issueResponse Center to man- servancy and America’s to impacts on localage more than 35,000 WETLAND Foundation, residents,” said Warner has been resolved, and share whatinquiries by volunteers which used funding to Williams, vice president of is learned with others.wanting to assist in Loui- address coastal restora- Chevron’s Gulf of Mexicosiana, Mississippi, Florida tion; the Committee for operations, “and we con- Barry Smith, who was the offshoreand Alabama. Plaquemines Recovery, tinue to work with them.” installation manager for Chevron’s Tahiti project in 2010, said the team reviews stop-work cases before every shift. “We discuss the incident to learnEvery employee and contractor from it and to positively recognize those who used stop-work author-has the authority and responsibility ity,” Smith said. “We want everyone to understand there are no negativeto stop work when he or she sees repercussions for taking the time to do things right.”an unsafe act or condition. During the Tahiti hookup and com- missioning phase, which lasted eight months, the Tahiti workforce logged stop-work authority more than 1,400 times, about five a day, for issues as diverse as hurricane-force weather and a shipping container that had arrived without a proper seal. Smith said there were almost 120 work stop- pages onboard Tahiti in 2010. “On Tahiti, I estimate that 60 percent to 70 percent of our work stoppages are called by our contractors,” Smith said. “This is a testament to our safety culture and to our business partners’Above: Offshore installation managers John Naquin (left) and Mark Davis train understanding that when we say it, weon simulators at Chevron’s Covington, Louisiana, operations center. The simula- mean it. Our contractors notice thattors replicate the control room on the Blind Faith production platform. we ‘walk the talk.‘”26
  29. 29. Executive Interview Gary Luquette President, Chevron North America Exploration and Production Co.Gary Luquette became president of Chevron North America Explorationand Production Co. in April 2006. He chaired the governing board thatoversaw four joint-industry task forces formed after the BP Macondo wellincident in the U.S. Gulf of Mexico.What Why WhenWhat was the biggest Why is it important that When will the results of thesechallenge you faced in we return to work now task forces become a reality?the aftermath of the BP in the Gulf of Mexico?Macondo well incident? We have made significant progress. Oil and natural gas will be primary In addition to submitting numerousWhile this incident was the responsi- energy sources for decades to come. reports on lessons learned to thebility of a single operator, the entire Production in the outer continental U.S. Department of the Interior, weindustry felt the impact. We needed shelf — almost all of which is in the made recommendations in such keyan immediate and unified industry Gulf of Mexico — accounts for 27 per- areas as well design, cementing andresponse to learn from this tragedy cent of U.S. oil and 15 percent of U.S. safety. Many of these recommenda-and make sure it would never be natural gas supplies. Chevron alone tions evolved into regulations thatrepeated. That’s why the industry has more than 13,000 employees are helping companies operate at acalled together hundreds of experts living and working in Gulf States. We higher standard.to form four joint-industry task forces provide jobs, economic growth andto identify tangible improvements that government revenue. And even after we submit our finalcould be made in blowout prevention, reports from the task forces, thewell intervention and oil spill response. industry will continue to work togetherI was asked to chair the governing to improve operations and incidentboard that oversaw their work, and response. We committed to a numberI assumed this role because I felt of initiatives that will show sustainedstrongly that the industry needed to improvements through technology,take quick and decisive action in order research and development, and train-to earn the right to return to drilling in ing. We are safer today than we everthe deepwater Gulf of Mexico. have been, and we will continue to improve in the years ahead. 27
  30. 30. Nigeria:Healthy Employees,Healthy CommunityChevron’s business interests and community interestsare linked, so our efforts to fight disease benefit all.Chevron Nigeria Ltd. reaches out nongovernmental organizations, Reducing the stigma associatedeach day to people in Nigeria’s bus- youth groups, congregations, shop- with the HIV infection is important totling cities and small towns to improve keepers, and others active in the battling it, according to Okala. “A fewhealth through workplace and com- diverse communities of Nigeria. months ago,” she said, “a colleaguemunity-based HIV/AIDS, malaria and said he had overcome his fears andtuberculosis programs. While combat- A fundamental element to operating had an HIV test. He tested positive,ing disease, we encounter prevailing successfully is a healthy workforce. but in the same breath added that hemyths and misconceptions, a social “The threat of HIV/AIDS to our wasn’t worried because he knew hefabric that leaves women and children employees is inseparable from the and his family would be fine, thanksespecially vulnerable, and a geography threat it presents to communities to the training on HIV he’d receivedthat makes it difficult to reach people. around our operations. Taking a lead from us. When I saw his smile, I knew position in the fight against AIDS in his case we had made progress.”“We believe we can make a difference is the right thing to do, and it is goodthrough our health programs, that business,” said Andrew Fawthrop, Reaching Women and Childrenwe can save lives and give back hope,” chairman and managing director of In Africa, HIV/AIDS disproportionallysaid Femi Odumabo, Policy, Govern- Chevron’s Nigeria and mid-Africa affects women, increasing the risk ofment and Public Affairs general operations. mother-to-child transmission. Mostmanager for Chevron Nigeria Ltd. of the 57,000 babies born HIV-positive Information, Creating Hope in Nigeria each year become infectedMany of the programs Chevron As medical protocols for HIV/AIDS by their mothers. Through our invest-Nigeria Ltd. supports are part of have evolved, communication, educa- ment in a Global Fund to Fight AIDS,our global strategies to help com- tion and access remain hurdles. “While Tuberculosis and Malaria grant inbat disease. In Nigeria, Chevron’s many people in urban centers are Nigeria, we have helped 50,213 HIV-partnerships and programs target informed, you still meet people in rural infected pregnant women receiveemployees, contractors, suppliers areas who don’t know anything about a complete course of antiretroviraland communities. We work together the disease,” said Dr. Chinwe Okala, a treatment to prevent mother-to-childwith local leaders, governments and Chevron public health physician. transmission. And to empower women28
  31. 31. $5 million 50,000 400 in scholarships was HIV-infected pregnant communities benefit awarded by Chevron and women have received from programs created its Agbami partners to treatment to prevent by Global Memorandums students in medical fields mother-to-child trans- of Understanding between mission of the disease Chevron, communities and state governmentsEmployees at the Escravos gas plant in the Niger Delta region include (from left) electricaltechnicians Abigail Bateren and Akinfe Samuel, maintenance technician Adewale Adegbayi,and control systems technician Otokini Doore. 29

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