Chevron Announces $22.9 Billion Capital and Exploratory Budget for 2008

* Upstream spending estimated at $17.5 billion, reflecting an excellent queue of crude oil and natural gas projects
* Downstream budget of $4.1 billion includes a significant increase for investments at U.S. refineries

SAN RAMON, Calif., Dec. 6, 2007 - Chevron Corporation (NYSE: CVX) today announced a $22.9 billion capital and exploratory spending program for 2008, a 15 percent increase from estimated outlays of $20 billion in 2007. Included in the 2008 program are $2.6 billion of expenditures by affiliates, which do not require cash outlays by Chevron’s consolidated companies.

“We have a portfolio of projects that will provide the foundation for our company’s future growth,” said Chairman and CEO Dave O’Reilly.

O’Reilly said about 75 percent of the 2008 spending program is for upstream oil and gas exploration and production projects worldwide. Another 20 percent is dedicated to the company’s downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products. The total budget for expenditures in the United States is approximately $8 billion.

“Much of our 2008 spending continues to be on large, multiyear projects aimed at increasing energy supplies to meet growing global demand and also improving efficiency and reliability,” O’Reilly added.
Highlights of the 2008 Capital and Exploratory Spending Program Chevron 2008 Planned Capital & Exploratory Expenditures $ Billions
U.S. Upstream $ 4.8
International Upstream 12.7
Total Upstream 17.5
U.S. Downstream 2.3
International Downstream 1.8
Total Downstream 4.1
Chemicals and Other 1.3
TOTAL (Including Chevron’s Share of Expenditures by Affiliated Companies) $22.9
Expenditures by Affiliated Companies (2.6)
Cash Expenditures by Chevron Consolidated Companies $20.3
Upstream - Exploration and Production

Spending of $17.5 billion is planned for exploration, production and natural gas-related projects. A significant portion relates to development projects that build on the company’s successful and focused exploration results in recent years, including opportunities in the deepwater U.S. Gulf of Mexico and western Africa. Funding also is earmarked for further appraisal and evaluation of other prospective areas in the world’s major hydrocarbon basins.

“Our upstream investments are aimed at finding and developing oil and gas resources to increase production and help supply the increasing energy needs of world markets,” said George Kirkland, Chevron’s executive vice president of Upstream and Gas. “Production start-ups of major projects in 2008 are expected to include Blind Faith in the Gulf of Mexico and Agbami offshore Nigeria. We also anticipate significant production increases at the Tengiz Field, Kazakhstan, as facilities become fully operational in 2008.”

Major upstream spending in 2008 includes projects in the following areas:

* U.S. Gulf of Mexico - deepwater exploration and development, including Tahiti, Great White, Blind Faith, Jack and St. Malo.
* U.S Mid-Continent - gas development within the Piceance Basin.
* Nigeria - development of the Agbami and Usan deepwater fields.
* Angola - deepwater development of Tombua-Landana and construction of LNG facilities.
* Kazakhstan - expansion of production at the Tengiz Field.
* Western Australia - development of the offshore Gorgon Area natural gas resource.
* Thailand - development of the Platong Gas II project offshore Thailand.
* Canada - expansion of the Athabasca Oil Sands Project.
* Brazil - development of the Frade Field.
* Indonesia - northern expansion of the Duri Field steamflood project.

Downstream - Refining, Marketing and Transportation

Capital spending of $4.1 billion in 2008 is budgeted for global downstream operations, including $2.3 billion for projects in the United States. Included in the U.S. spending is $1.5 billion for improvements to the refinery network, representing an increase of more than 50 percent from expected outlays in 2007.

Downstream expenditures are aimed at enhancing the company’s ability to safely and reliably manufacture transportation fuels from a variety of feedstocks, increasing energy efficiency and providing environmental benefits.

Outlays in 2008 include projects to upgrade the company’s refineries in Mississippi and California. The company’s 50 percent-owned GS Caltex affiliate will also continue development work on another potential major upgrading of its Yeosu refining complex in South Korea. In support of projects to commercialize the company’s large natural gas resource base, downstream expenditures will be made in 2008 on gas-to-liquids manufacturing facilities.
Chemicals and Other

Expenditures of approximately $1.3 billion in 2008 are estimated for chemicals, technology, power generation and other corporate activities. Investments include projects related to unconventional hydrocarbon technologies, reservoir management, and gas-fired and renewable power generation.

Chevron Corporation is one of the world’s leading integrated energy companies. We have approximately 58,000 employees and conduct business across the entire energy spectrum - exploring for, producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.