Item 1. Business

General Development of Business

Summary Description of Chevron

Chevron Corporation,* a Delaware corporation, manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in integrated energy and chemicals operations. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; transporting, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of refining crude oil into petroleum products; marketing of crude oil and refined products; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives.

A list of the company’s major subsidiaries is presented on page E-1. As of December 31, 2019, Chevron had approximately 48,200 employees (including about 3,500 service station employees). Approximately 25,400 employees (including about 3,200 service station employees), or 53 percent, were employed in U.S. operations.

Overview of Petroleum Industry

Petroleum industry operations and profitability are influenced by many factors. Prices for crude oil, natural gas, petroleum products and petrochemicals are generally determined by supply and demand. Production levels from the members of the Organization of Petroleum Exporting Countries (OPEC), Russia and the United States are the major factors in determining worldwide supply. Demand for crude oil and its products and for natural gas is largely driven by the conditions of local, national and global economies, although weather patterns and taxation relative to other energy sources also play a significant part. Laws and governmental policies, particularly in the areas of taxation, energy and the environment, affect where and how companies invest, conduct their operations and formulate their products and, in some cases, limit their profits directly.

Strong competition exists in all sectors of the petroleum and petrochemical industries in supplying the energy, fuel and chemical needs of industry and individual consumers. In the upstream business, Chevron competes with fully integrated, major global petroleum companies, as well as independent and national petroleum companies, for the acquisition of crude oil and natural gas leases and other properties and for the equipment and labor required to develop and operate those properties. In its downstream business, Chevron competes with fully integrated, major petroleum companies, as well as independent refining and marketing, transportation and chemicals entities and national petroleum companies in the refining, manufacturing, sale and marketing of fuels, lubricants, additives and petrochemicals.

Operating Environment

Refer to pages 28 through 34 of this Form 10-K in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the company’s current business environment and outlook.

Chevron’s Strategic Direction

Chevron’s primary objective is to deliver industry-leading results and superior shareholder value in any business environment. In the upstream, the company’s strategy is to deliver industry-leading returns while developing high-value resource opportunities. In the downstream, the company’s strategy is to grow earnings across the value chain and make targeted investments to lead the industry in returns. In support of the company’s approach to the energy transition, Chevron is focused on lowering carbon intensity cost efficiently, increasing the use of renewables in its business, and investing in future breakthrough technologies.

Information about the company is available on the company’s website at www.chevron.com. Information contained on the company’s website is not part of this Annual Report on Form 10-K. The company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge on the company’s website soon after such reports are filed with or furnished to the U.S. Securities and Exchange Commission (SEC). The reports are also available on the SEC’s website at www.sec.gov.

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• Incorporated in Delaware in 1926 as Standard Oil Company of California, the company adopted the name Chevron Corporation in 1984 and ChevronTexaco Corporation in 2001. In 2005, ChevronTexaco Corporation changed its name to Chevron Corporation. As used in this report, the term “Chevron” and such terms as “the company,” “the corporation,” “our,” “we,” “us” and "its" may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole, but unless stated otherwise they do not include “affiliates” of Chevron — i.e., those companies accounted for by the equity method (generally owned 50 percent or less) or non-equity method investments. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.

Description of Business and Properties

The upstream and downstream activities of the company and its equity affiliates are widely dispersed geographically, with operations and projects* in North America, South America, Europe, Africa, Asia and Australia. Tabulations of segment sales and other operating revenues, earnings and income taxes for the three years ending December 31, 2019, and assets as of the end of 2019 and 2018 — for the United States and the company’s international geographic areas — are in Note 12 to the Consolidated Financial Statements beginning on page 68. Similar comparative data for the company’s investments in and income from equity affiliates and property, plant and equipment are in Note 13 beginning on page 71 and Note 16 on page 77. Refer to page 39 of this Form 10-K in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the company’s capital and exploratory expenditures.

Upstream

Reserves

Refer to Table V beginning on page 96 for a tabulation of the company’s proved crude oil, condensate, natural gas liquids, synthetic oil and natural gas reserves by geographic area, at the beginning of 2017 and each year-end from 2017 through 2019. Reserves governance, technologies used in establishing proved reserves additions, and major changes to proved reserves by geographic area for the three-year period ended December 31, 2019, are summarized in the discussion for Table V. Discussion is also provided regarding the nature of, status of, and planned future activities associated with the development of proved undeveloped reserves. The company recognizes reserves for projects with various development periods, sometimes exceeding five years. The external factors that impact the duration of a project include scope and complexity, remoteness or adverse operating conditions, infrastructure constraints, and contractual limitations.

At December 31, 2019, 28 percent of the company’s net proved oil-equivalent reserves were located in the United States, 23 percent were located in Australia and 19 percent were located in Kazakhstan.

The net proved reserve balances at the end of each of the three years 2017 through 2019 are shown in the following table:

	At December 31
	2019			2018			2017
Liquids — Millions of barrels
Consolidated Companies	4,771			4,975			4,530
Affiliated Companies	1,750			1,815			2,012
Total Liquids	6,521			6,790			6,542
Natural Gas — Billions of cubic feet
Consolidated Companies	26,587			28,733			27,514
Affiliated Companies	2,870			2,843			3,222
Total Natural Gas	29,457			31,576			30,736
Oil-Equivalent — Millions of barrels1
Consolidated Companies	9,202			9,764			9,116
Affiliated Companies	2,229			2,289			2,549
Total Oil-Equivalent	11.431			12.053			11.665

1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.

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*

As used in this report, the term “project” may describe new upstream development activity, individual phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investments in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term “project” as it relates to any specific governmental law or regulation.

Net Production of Liquids and Natural Gas

The following table summarizes the net production of liquids and natural gas for 2019 and 2018 by the company and its affiliates. Worldwide oil-equivalent production of 3.058 million barrels per day in 2019 was up more than 4 percent from 2018. Production increases from shale and tight properties, and the Wheatstone project in Australia were partially offset by normal field declines. Refer to the “Results of Operations” section beginning on page 32 for a detailed discussion of the factors explaining the changes in production for crude oil, condensate, natural gas liquids, synthetic oil and natural gas, and refer to Table V on pages 99 through 101 for information on annual production by geographical region.

						Components of Oil-Equivalent
	Oil-Equivalent					Liquids					Natural Gas
Thousands of barrels per day (MBPD)	**(MBPD)**1					(MBPD)					(MMCFPD)
Millions of cubic feet per day (MMCFPD)	2019		2018			2019		2018			2019		2018
United States	929		791			724		618			1,225		1,034
Other Americas
Argentina	27		24			23		20			25		24
Brazil	8		11			8		10			2		4
Canada2	135		116			119		103			95		79
Colombia	11		14			—		—			64		82
Total Other Americas	181		165			150		133			186		189
Africa
Angola	95		108			86		98			52		59
Democratic Republic of the Congo3	—		1			—		1			—		—
Nigeria	209		239			173		200			215		233
Republic of Congo	52		52			49		49			13		14
Total Africa	356		400			308		348			280		306
Asia
Azerbaijan	20		20			18		18			10		10
Bangladesh	110		112			4		4			638		648
China	31		29			16		16			93		84
Indonesia	109		132			101		113			52		113
Kazakhstan	49		46			28		27			129		120
Myanmar	15		16			—		—			93		98
Partitioned Zone4	—		—			—		—			—		—
Philippines	26		26			3		3			136		138
Thailand	238		236			65		66			1,038		1,022
Total Asia	598		617			235		247			2,189		2,233
Australia/Oceania
Australia	455		426			45		42			2,460		2,304
Total Australia/Oceania	455		426			45		42			2,460		2,304
Europe
Denmark5	5		19			3		12			11		45
United Kingdom	62		65			44		43			108		133
Total Europe	67		84			47		55			119		178
Total Consolidated Companies	2,586		2,483			1,509		1,443			6,459		6,244
Affiliates2,6	472		447			356		339			698		645
Total Including Affiliates****7	3,058		2,930			1,865		1,782			7,157		6,889
1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.
2 Includes synthetic oil: Canada, net	53		53			53		53			—		—
Venezuelan affiliate, net	3		24			3		24			—		—
3 Chevron sold its interest in a concession in the Democratic Republic of Congo in April 2018.
4 Located between Saudi Arabia and Kuwait. Production has been shut-in since May 2015.
5 Chevron sold its 12 percent nonoperated working interest in the Danish Underground Consortium in April 2019.
6 Volumes represent Chevron’s share of production by affiliates, including Tengizchevroil in Kazakhstan; Petroboscan and Petropiar in Venezuela; and Angola LNG in Angola.
7 Volumes include natural gas consumed in operations of 638 million and 619 million cubic feet per day in 2019 and 2018, respectively. Total “as sold” natural gas volumes were 6,519 million and 6,270 million cubic feet per day for 2019 and 2018, respectively.

Production Outlook

The company estimates its average worldwide oil-equivalent production in 2020 will grow up to 3 percent compared to 2019, assuming a Brent crude oil price of $60 per barrel and excluding the impact of anticipated 2020 asset sales. This estimate is subject to many factors and uncertainties, as described beginning on page 30. Refer to the “Review of Ongoing Exploration and Production Activities in Key Areas,” beginning on page 8, for a discussion of the company’s major crude oil and natural gas development projects.

Average Sales Prices and Production Costs per Unit of Production

Refer to Table IV on page 95 for the company’s average sales price per barrel of liquids (including crude oil, condensate and natural gas liquids) and per thousand cubic feet of natural gas produced, and the average production cost per oil-equivalent barrel for 2019, 2018 and 2017.

Gross and Net Productive Wells

The following table summarizes gross and net productive wells at year-end 2019 for the company and its affiliates:

	At December 31, 2019
	Productive Oil Wells*					Productive Gas Wells*
	Gross			Net		Gross			Net
United States	39,282			28,179		2,727			1,978
Other Americas	1,070			651		190			117
Africa	1,713			664		27			11
Asia	14,450			12,522		3,577			2,012
Australia/Oceania	540			303		103			27
Europe	27			5		—			—
Total Consolidated Companies	57,082			42,324		6,624			4,145
Affiliates	1,643			588		—			—
Total Including Affiliates	58,725			42,912		6,624			4,145
Multiple completion wells included above	629			352		147			116
* Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron’s ownership interest in gross wells.

Acreage

At December 31, 2019, the company owned or had under lease or similar agreements undeveloped and developed crude oil and natural gas properties throughout the world. The geographical distribution of the company’s acreage is shown in the following table:

	Undeveloped2						Developed						Developed and Undeveloped
Thousands of acres**1	Gross			Net			Gross			Net			Gross			Net
United States	3,665			3,214			4,149			2,886			7,814			6,100
Other Americas	17,004			10,543			1,219			284			18,223			10,827
Africa	3,717			1,443			2,238			933			5,955			2,376
Asia	19,165			7,992			1,678			924			20,843			8,916
Australia/Oceania	10,882			5,697			2,061			812			12,943			6,509
Total Consolidated Companies	54,433			28,889			11,345			5,839			65,778			34,728
Affiliates	497			219			307			117			804			336
Total Including Affiliates	54,930			29,108			11,652			5,956			66,582			35,064
1 Gross acres represent the total number of acres in which Chevron has an ownership interest. Net acres represent the sum of Chevron’s ownership interest in gross acres.
2 The gross undeveloped acres that will expire in 2020, 2021 and 2022 if production is not established by certain required dates are 1,136, 2,644 and 4,180, respectively.

Delivery Commitments

The company sells crude oil and natural gas from its producing operations under a variety of contractual obligations. Most contracts generally commit the company to sell quantities based on production from specified properties, but some natural gas sales contracts specify delivery of fixed and determinable quantities, as discussed below.

In the United States, the company is contractually committed to deliver 951 billion cubic feet of natural gas to third parties from 2020 through 2022. The company believes it can satisfy these contracts through a combination of equity production from the company’s proved developed U.S. reserves and third-party purchases. These commitments are primarily based on contracts with indexed pricing terms.

Outside the United States, the company is contractually committed to deliver a total of 2,377 billion cubic feet of natural gas to third parties from 2020 through 2022 from operations in Australia, Colombia, Indonesia and the Philippines. These sales contracts contain variable pricing formulas that are generally referenced to the prevailing market price for crude oil, natural gas or other petroleum products at the time of delivery. The company believes it can satisfy these contracts from quantities available from production of the company’s proved developed reserves in these countries.

Development Activities

Refer to Table I on page 92 for details associated with the company’s development expenditures and costs of proved property acquisitions for 2019, 2018 and 2017.

The following table summarizes the company’s net interest in productive and dry development wells completed in each of the past three years, and the status of the company’s development wells drilling at December 31, 2019. A “development well” is a well drilled within the known area of a crude oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.

	Wells Drilling*					Net Wells Completed
	at 12/31/19					2019					2018					2017
	Gross		Net			Prod.		Dry			Prod.		Dry			Prod.		Dry
United States	186		135			682		1			509		1			435		4
Other Americas	16		11			36		—			43		—			40		—
Africa	12		1			26		—			8		—			34		—
Asia	9		3			181		2			289		5			246		2
Australia/Oceania	—		—			—		—			1		—			—		—
Europe	1		—			1		—			2		—			4		—
Total Consolidated Companies	224		150			926		3			852		6			759		6
Affiliates	35		15			43		—			39		—			36		—
Total Including Affiliates	259		165			969		3			891		6			795		6
* Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron’s ownership interest in gross wells.

Exploration Activities

Refer to Table I on page 92 for detail on the company’s exploration expenditures and costs of unproved property acquisitions for 2019, 2018 and 2017.

The following table summarizes the company’s net interests in productive and dry exploratory wells completed in each of the last three years, and the number of exploratory wells drilling at December 31, 2019. “Exploratory wells” are wells drilled to find and produce crude oil or natural gas in unknown areas and include delineation and appraisal wells, which are wells drilled to find a new reservoir in a field previously found to be productive of crude oil or natural gas in another reservoir or to extend a known reservoir.

	Wells Drilling*						Net Wells Completed
	at 12/31/19						2019						2018						2017
	Gross			Net			Prod.			Dry			Prod.			Dry			Prod.			Dry
United States	3			1			10			2			13			2			7			1
Other Americas	2			2			—			—			1			1			—			—
Africa	—			—			—			—			—			—			—			—
Asia	—			—			—			—			1			—			—			—
Australia/Oceania	1			—			—			—			—			—			—			—
Europe	—			—			—			—			—			1			—			1
Total Consolidated Companies	6			3			10			2			15			4			7			2
Affiliates	—			—			—			—			—			—			—			—
Total Including Affiliates	6			3			10			2			15			4			7			2
* Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron’s ownership interest in gross wells.

Review of Ongoing Exploration and Production Activities in Key Areas

Chevron has exploration and production activities in many of the world’s major hydrocarbon basins. Chevron’s 2019 key upstream activities, some of which are also discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations, beginning on page 32, are presented below. The comments include references to “total production” and “net production,” which are defined under “Production” in Exhibit 99.1 on page E-7.

The discussion that follows references the status of proved reserves recognition for significant long-lead-time projects not on production as well as for projects recently placed on production. Reserves are not discussed for exploration activities or recent discoveries that have not advanced to a project stage, or for mature areas of production that do not have individual projects requiring significant levels of capital or exploratory investment.

United States

Upstream activities in the United States are primarily located in the midcontinent region, the Gulf of Mexico, California and the Appalachian Basin. Net daily oil-equivalent production in the United States during 2019 averaged 929,000 barrels.

The company’s activities in the midcontinent region are primarily in New Mexico and Texas. During 2019, net daily production in these areas averaged 259,000 barrels of crude oil, 835 million cubic feet of natural gas and 120,000 barrels of natural gas liquids (NGLs).

In the Permian Basin of West Texas and southeast New Mexico, the company holds approximately 500,000 and 1,200,000 net acres of shale and tight resources in the Midland and Delaware basins, respectively. This acreage includes multiple stacked formations that enable production from several layers of rock in different geologic zones. Chevron has implemented a factory development strategy in the basin, which utilizes multiwell pads to drill a series of horizontal wells that are completed concurrently using hydraulic fracture stimulation. The company is also applying data analytics and technology to drive improvements in identifying well targets, in drilling and completions and in production performance. In 2019, the company’s net daily production in the basin averaged 244,000 barrels of crude oil, 735 million cubic feet of natural gas and 115,000 barrels of NGLs. The company also holds approximately 360,000 net acres in the Central Basin Platform of the Permian Basin.

In July 2019, Chevron entered into a renewable wind power purchase agreement designed to cost-effectively power a portion of its Permian Basin operations.

During 2019, net daily production in the Gulf of Mexico averaged 200,000 barrels of crude oil, 112 million cubic feet of natural gas and 12,000 barrels of NGLs. Chevron is engaged in various operated and nonoperated exploration, development and production activities in the deepwater Gulf of Mexico. Chevron also holds nonoperated interests in several shelf fields.

The deepwater Jack and St. Malo fields are being jointly developed with a host floating production unit located between the two fields. Chevron has a 50 percent interest in the Jack Field and a 51 percent interest in the St. Malo Field. Both fields are company operated. The company has a 40.6 percent interest in the production host facility, which is designed to accommodate production from the Jack/St. Malo development and third-party tiebacks. Total daily production from the Jack and St. Malo fields in 2019 averaged 135,000 barrels of liquids (68,000 net) and 22 million cubic feet of natural gas (11 million net). Additional development opportunities for the Jack and St. Malo fields progressed in 2019. Stage 3 development drilling continued with the final well expected to be completed in first-half 2020. Proved reserves have been recognized for this phase. Two additional wells were added to the Jack Field in 2019, with one commencing production. The St. Malo Stage 4 waterflood project reached a final investment decision in August 2019. The project includes two new production wells, three injector wells, and topsides water injection equipment. First injection is expected in 2023. The Stage 4 multiphase subsea pump project also reached a final investment decision in May 2019. The initial recognition of proved reserves occurred in 2019 for the multiphase subsea pump project. The Jack and St. Malo fields have an estimated production life of 30 years.

The company has a 15.6 percent nonoperated working interest in the deepwater Mad Dog Field. In 2019, net daily production averaged 9,000 barrels of liquids and 1 million cubic feet of natural gas. Project execution continued in 2019 on the Mad Dog 2 Project. This phase of the plan is the development of the southwestern extension of the Mad Dog Field, including a new floating production platform with a design capacity of 140,000 barrels of crude oil per day. Drilling and fabrication are progressing as planned, and first oil is expected in 2021. Proved reserves have been recognized for the Mad Dog 2 Project.

Chevron has a 60 percent-owned and operated interest in the Big Foot Project, located in the Walker Ridge area. In 2019, net daily production averaged 11,000 barrels of crude oil and 2 million cubic feet of natural gas. Development drilling activities continued in 2019 with one well coming online and one additional well expected to come online by the end of 2020. The project has an estimated production life of 35 years.

At the 58 percent-owned and operated deepwater Tahiti Field, net daily production averaged 51,000 barrels of crude oil, 22 million cubic feet of natural gas and 3,000 barrels of NGLs. The final well from the Tahiti Vertical Expansion Project was completed in April 2019. The Tahiti Upper Sands Project includes topsides facility enhancements to process high gas rates and reached a final investment decision in July 2019. The initial recognition of proved reserves occurred in 2019 for this project. The Tahiti Field has an estimated remaining production life of 25 years.

Chevron holds a 25 percent nonoperated working interest in the Stampede Field, which is located in the Green Canyon area. In 2019, total daily production averaged 28,000 barrels of liquids (7,000 net) and 6 million cubic feet of natural gas (2 million net). The second and third injection wells were completed and brought online in 2019. Production ramp-up is expected to continue, with the completion of the final producing well expected in first-half 2020. The field has an estimated production life of 30 years.

Chevron has owned and operated interests of 62.9 to 75.4 percent in the unit areas containing the Anchor Field. Stage 1 of the Anchor development consists of a seven-well subsea development and a semi-submersible floating production unit. A final investment decision was reached in December 2019. The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The initial recognition of proved reserves occurred in 2019 for this project.

Chevron has a 60 percent-owned and operated interest in the Ballymore Field located in the Mississippi Canyon area and a 40 percent nonoperated working interest in the Whale discovery located in the Perdido area. Two appraisal wells were completed in 2019 at the Ballymore Field. At the Whale discovery, a second appraisal well was completed in April 2019. Front-end engineering design activities were initiated for this project in August 2019. At the end of 2019, proved reserves had not been recognized for these projects.

During 2019 and early 2020, the company participated in four exploration and three appraisal wells in the deepwater Gulf of Mexico. In April 2019, a significant crude oil discovery was announced in the Blacktip prospect where the company holds a 20 percent nonoperated working interest. In October 2019, an oil discovery was announced in the Esox prospect within the Mississippi Canyon block 726, where Chevron holds a 21.4 percent nonoperated working interest. The well is expected to be tied into the Tubular Bells production facility in first quarter 2020.

In 2019, Chevron added 24 leases to the deepwater portfolio through two gulf-wide lease sales. The company also added 25 additional leases through multiple asset swaps.

In 2019, Chevron was one of the largest producers in California where net daily production averaged 122,000 barrels of crude oil and 16 million cubic feet of natural gas. Construction is underway on a new 29-megawatt solar farm to supply solar power at the Lost Hills Field and is expected to be completed in first-half 2020.

In December 2019, the company impaired its Appalachia shale assets and announced plans to evaluate strategic alternatives, including possible divestment. During 2019, net daily production in these areas averaged 262 million cubic feet of natural gas, 8,000 barrels of NGLs and 2,000 barrels of condensate.

Other Americas

“Other Americas” includes Argentina, Brazil, Canada, Colombia, Mexico, Suriname and Venezuela. Net daily oil-equivalent production from these countries averaged 216,000 barrels during 2019.

Canada Upstream interests in Canada are concentrated in Alberta, British Columbia and the offshore Atlantic region. The company also has discovered resource interests in the Beaufort Sea region of the Northwest Territories. Net daily oil-equivalent production during 2019 averaged 135,000 barrels, composed of 66,000 barrels of liquids, 95 million cubic feet of natural gas and 53,000 barrels of synthetic oil from oil sands.

Chevron holds a 26.9 percent nonoperated working interest in the Hibernia Field and a 23.7 percent nonoperated working interest in the unitized Hibernia Southern Extension areas offshore Atlantic Canada. Average net daily production in 2019 was 20,000 barrels of crude oil.

The company holds a 29.6 percent nonoperated working interest in the heavy oil Hebron Field, also offshore Atlantic Canada. Total daily crude production continued to ramp up during the year, averaging 112,000 barrels (32,000 net) in 2019. The field has an expected economic life of 30 years.

Chevron holds a 50 percent-owned and operated interest in Flemish Pass Basin Block EL 1138 with 339,000 net acres.

The company holds a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) in Alberta. Oil sands are mined from both the Muskeg River and the Jackpine mines, and bitumen is extracted from the oil sands and upgraded

into synthetic oil. Carbon dioxide emissions from the upgrader are reduced by the Quest carbon capture and storage facilities. In 2019, net daily synthetic oil production averaged 53,000 barrels.

The company holds approximately 196,000 net acres in the Duvernay Shale in Alberta. Chevron has a 70 percent-owned and operated interest in most of the Duvernay acreage. A total of 163 wells had been tied into production facilities by early 2020. In 2019, net daily production averaged 14,000 barrels of condensate and natural gas liquids and 79 million cubic feet of natural gas.

Chevron holds a 50 percent-owned and operated interest in the Kitimat LNG and Pacific Trail Pipeline projects and a 50 percent-owned and operated interest in the Liard and Horn River shale gas basins in British Columbia. In December 2019, the company wrote off its investments and announced plans to not move forward with the Kitimat LNG and Pacific Trail Pipeline projects.

Mexico The company owns and operates a 33.3 percent interest in Block 3 in the Perdido area of the Gulf of Mexico covering 139,000 net acres. Initial overall block seismic reprocessing activities concluded in December 2019. Seismic interpretation is commencing in early 2020. Chevron also holds a 37.5 percent-owned and operated interest in Block 22 in the deepwater Cuenca Salina area of the Gulf of Mexico covering 267,000 net acres. In October 2019, Chevron farmed into a 40 percent nonoperated interest in Blocks 20, 21 and 23 in the Cuenca Salina area in the deepwater Gulf of Mexico. Drilling has commenced on the first of two wells planned in 2020. These three blocks cover approximately 589,000 net acres.

Argentina Chevron holds a 50 percent nonoperated interest in the Loma Campana and Narambuena concessions in the Vaca Muerta Shale covering 73,000 net acres. In November 2019, Chevron increased its owned and operated interest from 85 to 100 percent in the El Trapial Field covering 111,000 net acres with both conventional production and Vaca Muerta Shale potential. Net daily oil-equivalent production in 2019 averaged 27,000 barrels, composed of 23,000 barrels of crude oil and 25 million cubic feet of natural gas.

Development activities continued in 2019 at the nonoperated Loma Campana concession in the Vaca Muerta Shale. During 2019, the drilling program continued with 48 horizontal wells drilled. This concession expires in 2048.

The company utilizes waterflood operations to mitigate declines at the operated El Trapial Field and continues to evaluate the potential of the Vaca Muerta Shale. Chevron drilled two horizontal wells in 2019. The El Trapial concession expires in 2032.

Evaluation of the nonoperated Narambuena Block continued with appraisal activity in 2019, including drilling of four horizontal wells. Chevron has a 90 percent-owned and operated interest with a four-year exploratory concession in Loma del Molle Norte Block, consisting of 43,000 net acres.

Brazil In March 2019, Chevron sold its 51.7 percent interest in the Frade concession and its 50 percent interest in Block CE-M715. In February 2020, the company initiated the process to sell its 37.5 percent nonoperated interest in the Papa-Terra oil field. Net daily oil equivalent production in 2019 averaged 8,000 barrels, composed of 8,000 barrels of crude oil and 2 million cubic feet of natural gas.

Chevron holds between 30 to 45 percent of both operated and nonoperated interests in blocks within the Campos and Santos basins. In October 2019, the company was a successful bidder in five deepwater blocks. The contracts for these blocks were executed in February 2020. The acquisition increased Chevron’s acreage to eleven blocks in the Brazil pre-salt trend. Seismic data acquisition and environmental studies have been initiated with two exploration wells anticipated to be drilled in 2020.

Colombia In November 2019, the company signed an agreement to sell its interests in the offshore Chuchupa and onshore Ballena natural gas fields and expects to close this sale in first-half 2020. Net daily production in 2019 averaged 64 million cubic feet of natural gas.

Suriname Chevron holds a 33.3 percent and a 50 percent nonoperated working interest in deepwater Blocks 42 and 45 offshore Suriname, respectively. The deepwater blocks cover a combined area of approximately 1.1 million net acres.

Venezuela Chevron holds nonoperated interests in affiliate companies in Venezuela. Chevron's production activities in Venezuela are located in western Venezuela and the Orinoco Belt. Net daily oil-equivalent production during 2019 averaged 35,000 barrels, composed of 34,000 barrels of crude oil and 7 million cubic feet of natural gas.

Chevron has a 30 percent interest in the Petropiar affiliate that operates the heavy oil Huyapari Field. The production and upgrading project is located in the Orinoco Belt under an agreement expiring in 2033. Petropiar drilled 69 development wells in 2019. Chevron also holds a 39.2 percent interest in the Petroboscan affiliate that operates the Boscan Field in western Venezuela and a 25.2 percent interest in the Petroindependiente affiliate that operates the LL-652 Field in Lake Maracaibo,

both of which are under agreements expiring in 2026. Petroboscan drilled 26 development wells in 2019. For additional information on the company’s activities in Venezuela, refer to Note 22 on page 88 under the heading “Other Contingencies.”

Africa

In Africa, the company is engaged in upstream activities in Angola, Egypt, Nigeria and the Republic of Congo. Net daily oil-equivalent production from these countries averaged 412,000 barrels during 2019.

Angola The company operates and holds a 39.2 percent interest in Block 0, a concession adjacent to the Cabinda coastline, and a 31 percent operated interest in a production-sharing contract (PSC) for deepwater Block 14. The Block 0 concession extends through 2030. Development and production rights for the producing fields in Block 14 expire beginning in 2023. The majority of the production is held in leases that expire between 2027 and 2031. During 2019, net daily production averaged 97,000 barrels of liquids and 324 million cubic feet of natural gas.

In 2019, total daily production at Mafumeira Sul averaged 52,000 barrels of liquids (17,000 net) and 124 million cubic feet of natural gas (49 million net) exported to the Angola LNG plant. Additionally, three new wells were drilled in 2019.

Chevron has a 36.4 percent interest in Angola LNG Limited, which operates an onshore natural gas liquefaction plant in Soyo, Angola. The plant has the capacity to process 1.1 billion cubic feet of natural gas per day. This is the world’s first LNG plant supplied with associated gas, where the natural gas is a byproduct of crude oil production. Feedstock for the plant originates from multiple fields and operators. Total daily production in 2019 averaged 746 million cubic feet of natural gas (272 million net) and 30,000 barrels of liquids (11,000 net).

Angola-Republic of Congo Joint Development Area Chevron operates and holds a 31.3 percent interest in the Lianzi Unitization Zone, located in an area shared equally by Angola and the Republic of Congo. Production from Lianzi is reflected in the totals for Angola and the Republic of Congo.

Republic of Congo Chevron has a 31.5 percent nonoperated working interest in the offshore Haute Mer permit areas (Nkossa, Nsoko and Moho-Bilondo). The permits for Nkossa, Nsoko and Moho-Bilondo expire in 2027, 2034 and 2030, respectively. Average net daily production in 2019 was 49,000 barrels of liquids. In June 2019, the company relinquished its 20.4 percent nonoperated working interest in the Haute Mer B permit area.

Egypt In December 2019, Chevron was announced as the successful bidder for one oil and gas exploration concession in Egypt's Red Sea.

Nigeria Chevron operates and holds a 40 percent interest in eight concessions in the onshore and near-offshore regions of the Niger Delta. In 2019, infill drilling programs continued in the Niger Delta. The company also holds acreage positions in three operated and six nonoperated deepwater blocks, with working interests ranging from 20 to 100 percent. The company’s net daily oil-equivalent production for 2019 in Nigeria averaged 209,000 barrels, composed of 168,000 barrels of crude oil, 215 million cubic feet of natural gas and 5,000 barrels of LPG.

Chevron is the operator of the Escravos Gas Plant (EGP) with a total processing capacity of 680 million cubic feet per day of natural gas and LPG and condensate export capacity of 58,000 barrels per day. The company is also the operator of the 33,000-barrel-per-day Escravos Gas to Liquids facility. In addition, the company holds a 36.7 percent interest in the West African Gas Pipeline Company Limited affiliate, which supplies Nigerian natural gas to customers in Benin, Ghana and Togo.

The 40 percent-owned and operated Sonam natural gas field completed the seven well drilling program in first quarter 2019. The Sonam Field Development Project is designed to process natural gas through the EGP and deliver it to the domestic gas market. Net daily production in 2019 averaged 11,000 barrels of liquids and 89 million cubic feet of natural gas.

Chevron operates and holds a 67.3 percent interest in the Agbami Field, located in deepwater Oil Mining Lease (OML) 127 and OML 128. Infill drilling continued in 2019 to offset field decline. Additionally, Chevron holds a 30 percent nonoperated working interest in the Usan Field in OML 138. The leases that contain the Usan and Agbami Fields expire in 2023 and 2024, respectively.

Also in the deepwater area, the Aparo Field in OML 132 and OML 140 and the third-party-owned OML 118 Bonga SW Field share a common geologic structure and are planned to be developed jointly. Chevron holds a 16.6 percent nonoperated working interest in the unitized area. The development plan involves subsea wells tied back to a floating production, storage and offloading vessel. Work continues to progress towards a final investment decision. At the end of 2019, no proved reserves were recognized for this project.

In deepwater exploration, Chevron operates and holds a 55 percent interest in the deepwater Nsiko discoveries in OML 140. Chevron also holds a 30 percent nonoperated working interest in OML 138, which includes the Usan Field and several satellite discoveries, and a 27 percent interest in adjacent licenses OML 139 and OML 154. The company plans to continue evaluating development options for the multiple discoveries in the Usan area, including the Owowo Field, which straddles OML 139 and OML 154.

In 2019, the company initiated the process to evaluate a possible divestment of its 40 percent operated interest in OML 86 and OML 88.

Asia

In Asia, the company is engaged in upstream activities in Azerbaijan, Bangladesh, China, Indonesia, Kazakhstan, the Kurdistan Region of Iraq, Myanmar, the Partitioned Zone located between Saudi Arabia and Kuwait, the Philippines, Russia and Thailand. During 2019, net daily oil-equivalent production averaged 979,000 barrels in this region.

Azerbaijan In November 2019, Chevron signed an agreement to sell its 9.6 percent nonoperated interest in Azerbaijan International Operating Company and its 8.9 percent interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline affiliate. The sale is expected to close in first-half 2020. Net daily oil-equivalent production in 2019 averaged 20,000 barrels, composed of 18,000 barrels of crude oil and 10 million cubic feet of natural gas.

Kazakhstan Chevron has a 50 percent interest in the Tengizchevroil (TCO) affiliate and an 18 percent nonoperated working interest in the Karachaganak Field. Net daily oil-equivalent production in 2019 averaged 430,000 barrels, composed of 339,000 barrels of liquids and 548 million cubic feet of natural gas.

TCO is developing the Tengiz and Korolev crude oil fields in western Kazakhstan under a concession agreement that expires in 2033. Net daily production in 2019 from these fields averaged 290,000 barrels of crude oil, 419 million cubic feet of natural gas and 21,000 barrels of NGLs. All of TCO’s 2019 crude oil production was exported through the Caspian Pipeline Consortium (CPC) pipeline.

The Future Growth and Wellhead Pressure Management Project (FGP/WPMP) at Tengiz is managed as a single integrated project. The FGP is designed to increase total daily production by about 260,000 barrels of crude oil and to expand the utilization of sour gas injection technology proven in existing operations to increase ultimate recovery from the reservoir. The WPMP is designed to maintain production levels in existing plants as reservoir pressure declines. During 2019, the pipe rack modules and the gas turbine generators were installed, and fabrication in three of the four yards was completed. All initial production wells have been drilled and completed. The WPMP portion is expected to start up in late 2022, with the remaining facilities expected to come online in mid-2023. Proved reserves have been recognized for the FGP/WPMP.

The Karachaganak Field is located in northwest Kazakhstan, and operations are conducted under a PSC that expires in 2038. During 2019, net daily production averaged 28,000 barrels of liquids and 129 million cubic feet of natural gas. Most of the exported liquids were transported through the CPC pipeline during 2019. Work continues to identify the optimal scope for the future expansion of the field. At the end of 2019, proved reserves had not been recognized for future expansion.

Kazakhstan/Russia Chevron has a 15 percent interest in the CPC. In May 2019, CPC shareholders announced a final investment decision on a debottlenecking project, which is expected to further increase capacity. During 2019, CPC transported an average of 1.4 million barrels of crude oil per day, composed of 1.2 million barrels per day from Kazakhstan and 160,000 barrels per day from Russia.

Bangladesh Chevron operates and holds a 100 percent interest in Block 12 (Bibiyana Field) and Blocks 13 and 14 (Jalalabad and Moulavi Bazar fields). The rights to produce from Jalalabad expire in 2030, from Moulavi Bazar in 2033 and from Bibiyana in 2034. Net daily oil-equivalent production in 2019 averaged 110,000 barrels, composed of 638 million cubic feet of natural gas and 4,000 barrels of condensate.

Myanmar Chevron has a 28.3 percent nonoperated working interest in a PSC for the production of natural gas from the Yadana, Badamyar and Sein fields, within Blocks M5 and M6, in the Andaman Sea. The PSC expires in 2028. The company also has a 28.3 percent nonoperated working interest in a pipeline company that transports natural gas to the Myanmar-Thailand border for delivery to power plants in Thailand. Net daily natural gas production in 2019 averaged 93 million cubic feet.

Chevron relinquished its 55 percent-owned and operated interest in Blocks AD3 and A5 in March 2019.

Thailand Chevron holds operated interests in the Pattani Basin, located in the Gulf of Thailand, with ownership ranging from 35 percent to 80 percent. Concessions for producing areas within this basin expire between 2022 and 2035. Chevron also has a 16 percent nonoperated working interest in the Arthit Field located in the Malay Basin. Concessions for the

producing areas within this basin expire between 2036 and 2040. Net daily oil-equivalent production in 2019 averaged 238,000 barrels, composed of 65,000 barrels of crude oil and condensate and 1.0 billion cubic feet of natural gas.

The company holds ownership ranging from 70 to 80 percent of the Erawan concession, which expires in 2022. Erawan concession’s net average daily production in 2019 was 44,000 barrels of crude oil and condensate and 804 million cubic feet of natural gas.

Chevron also has a 35 percent-owned and operated interest in the Ubon Project in Block 12/27, development plans are being evaluated and are expected to include multiple wellhead platforms and infield pipelines to deliver production to a Central Processing Platform with a floating, production, storage and offloading vessel for oil export. At the end of 2019, proved reserves had not been recognized for this project.

Chevron holds between 30 and 80 percent operated and nonoperated working interests in the Thailand-Cambodia overlapping claims area that are inactive, pending resolution of border issues between Thailand and Cambodia.

China Chevron has nonoperated working interests in several areas in China. The company’s net daily production in 2019 averaged 16,000 barrels of crude oil and 93 million cubic feet of natural gas.

In October 2019, Chevron transferred operatorship of the Chuandongbei Project and now has a 49 percent nonoperated working interest in the project, including the Loujiazhai and Gunziping natural gas fields located onshore in the Sichuan Basin.

In April 2019, the company relinquished its interest in the Tienshanpo, Dukouhe and Qilibei natural gas fields.

The company also has nonoperated working interests of 32.7 percent in Block 16/19 in the Pearl River Mouth Basin, 24.5 percent in the Qinhuangdao (QHD) 32-6 Block, and 16.2 percent in Block 11/19 in the Bohai Bay. The PSCs for these producing assets expire between 2022 and 2028.

Philippines The company signed an agreement in October 2019 to sell its 45 percent nonoperated working interest in the offshore Malampaya natural gas field. The sale is expected to close in first-half 2020. Net daily oil-equivalent production in 2019 averaged 26,000 barrels, composed of 136 million cubic feet of natural gas and 3,000 barrels of condensate.

Indonesia Chevron has working interests through various PSCs in Indonesia. In Sumatra, the company holds a 100 percent-owned and operated interest in the Rokan PSC, which expires in 2021. The company operates and holds a 62 percent interest in two PSCs in the Kutei Basin (Rapak and Ganal), located offshore eastern Kalimantan. Additionally, in offshore eastern Kalimantan, the company operates a 72 percent interest in Makassar Strait. The PSCs for offshore eastern Kalimantan expire in 2027 and 2028. Net daily oil-equivalent production in 2019 averaged 109,000 barrels, composed of 101,000 barrels of liquids and 52 million cubic feet of natural gas.

Chevron has concluded that the Indonesia Deepwater Development held by the Kutei Basin PSCs does not compete in its portfolio and is evaluating strategic alternatives for the company’s 62 percent-owned and operated interest.

Partitioned Zone Chevron holds a concession to operate the Kingdom of Saudi Arabia’s 50 percent interest in the hydrocarbon resources in the onshore area of the Partitioned Zone between Saudi Arabia and Kuwait. The concession expires in 2039. Production has been shut in since May 2015 as result of difficulties securing work and equipment permits and a dispute between Saudi Arabia and Kuwait. In December 2019, the governments of Saudi Arabia and Kuwait signed a memorandum of understanding to resolve the dispute and allow production to restart in the Partitioned Zone. In mid-February 2020, pre-startup activities commenced. The company expects production to ramp up to pre-shut-in levels within one to two years.

Kurdistan Region of Iraq The company operates and holds a 50 percent interest in the Sarta PSC, which expires in 2047, and a 40 percent interest in the Qara Dagh PSC, which expires in October 2020. In January 2019, Sarta Stage 1A Project reached a final investment decision. Site civil work and construction began in mid-2019, and first oil is expected in second-half 2020. At the end of 2019, proved reserves had not been recognized for this project. Chevron will operate the Sarta block through 2021 and plans to transition to partner operations thereafter.

Europe

In Europe, net oil-equivalent production averaged 67,000 barrels per day during 2019.

United Kingdom The company’s net daily oil-equivalent production in 2019 averaged 62,000 barrels, composed of 44,000 barrels of liquids and 108 million cubic feet of natural gas.

Chevron holds a 19.4 percent nonoperated working interest in the Clair Field, located west of the Shetland Islands. The Clair Ridge Project is the second development phase of the Clair Field, with a design capacity of 120,000 barrels of crude oil and

100 million cubic feet of natural gas per day. Production continues to ramp up with three new wells added in 2019. The Clair Field has an estimated production life extending until 2050.

In January 2019, Chevron sold its 40 percent interest in the undeveloped Rosebank Field. In November 2019, the company sold its interests in producing assets in the Central North Sea, including the Captain Field.

Denmark Chevron sold its 12 percent nonoperated working interest in the Danish Underground Consortium in April 2019.

Australia/Oceania

Chevron is Australia's largest producer of LNG. During 2019, net daily oil-equivalent production averaged 455,000 barrels.

Australia Upstream activities in Australia are concentrated offshore Western Australia, where the company is the operator of two major LNG projects, Gorgon and Wheatstone, and has a nonoperated working interest in the North West Shelf (NWS) Venture and exploration acreage in the Carnarvon Basin and Browse Basin. During 2019, the company's net daily production averaged 45,000 barrels of liquids and 2.5 billion cubic feet of natural gas.

Chevron holds a 47.3 percent-owned and operated interest in the Gorgon Project, which includes the development of the Gorgon and Jansz-Io fields. The project includes a carbon dioxide sequestration facility, which achieved start-up in August 2019. The company commenced drilling 11 new wells for Gorgon Stage 2 during 2019. The Gorgon Stage 2 project is expected to be completed in 2022. Total daily production in 2019 averaged 16,000 barrels of condensate (8,000 barrels net) and 2.3 billion cubic feet of natural gas (1.1 billion net). The project's estimated economic life exceeds 40 years.

The Jansz-Io Compression Project entered front-end engineering and design in March 2019 and is planned to provide access to compression for the Jansz-Io field. The project supports maintaining gas supply to the Gorgon LNG plant and maximizing the recovery of fields accessing the Jansz trunkline.

Chevron holds an 80.2 percent interest in the offshore licenses and a 64.1 percent-owned and operated interest in the LNG facilities associated with the Wheatstone Project. The project includes the development of the Wheatstone and Iago fields, a two-train, 8.9 million-metric-ton-per-year LNG facility, and a domestic gas plant. The onshore facilities are located at Ashburton North on the coast of Western Australia. The total production capacity for the Wheatstone and Iago fields and nearby third-party fields is expected to be approximately 1.6 billion cubic feet of natural gas and 30,000 barrels of condensate per day. Total daily production averaged 22,000 barrels of condensate (18,000 net) and 1.2 billion cubic feet of natural gas (943 million net) in 2019. The project’s estimated economic life exceeds 30 years.

Chevron has a 16.7 percent nonoperated working interest in the NWS Venture in Western Australia.

Chevron holds 50 percent-owned and operated interests in four exploration permits in the northern Carnarvon Basin. Chevron continued to evaluate exploration potential in the Carnarvon Basin during 2019. The company holds nonoperated working interests ranging from 24.8 percent to 50 percent in three exploration blocks in the Browse Basin. Relinquishment of Chevron’s offshore blocks in the Bight Basin was finalized in April 2019.

Chevron has a 100 percent-owned and operated interest in the Clio, Acme and Acme West fields. The company is collaborating with other Carnarvon Basin participants to assess the opportunity of Clio Acme being developed through shared utilization of existing infrastructure.

New Zealand In September 2019, Chevron relinquished its 50 percent operated interest in three deepwater exploration permits in the offshore Pegasus and East Coast basins.

Sales of Natural Gas and Natural Gas Liquids

The company sells natural gas and natural gas liquids (NGLs) from its producing operations under a variety of contractual arrangements. In addition, the company also makes third-party purchases and sales of natural gas and NGLs in connection with its supply and trading activities.

During 2019, U.S. and international sales of natural gas averaged 4.0 billion and 5.9 billion cubic feet per day, respectively, which includes the company’s share of equity affiliates’ sales. Outside the United States, substantially all of the natural gas sales from the company’s producing interests are from operations in Angola, Argentina, Australia, Bangladesh, Canada, Colombia, Kazakhstan, Indonesia, Myanmar, Nigeria, the Philippines, Thailand and the United Kingdom.

U.S. and international sales of NGLs averaged 231,000 and 106,000 barrels per day, respectively, in 2019.

Refer to “Selected Operating Data,” on page 37 in Management’s Discussion and Analysis of Financial Condition and Results of Operations, for further information on the company’s sales volumes of natural gas and natural gas liquids. Refer also to

“Delivery Commitments” beginning on page 6 for information related to the company’s delivery commitments for the sale of crude oil and natural gas.

Downstream

Refining Operations

At the end of 2019, the company had a refining network capable of processing 1.7 million barrels of crude oil per day. Operable capacity at December 31, 2019, and daily refinery inputs for 2017 through 2019 for the company and affiliate refineries are summarized in the table below.

Average crude oil distillation capacity utilization was 90 percent in 2019 and 93 percent in 2018. At the U.S. refineries, crude oil distillation capacity utilization averaged 91 percent in 2019, compared with 97 percent in 2018. Chevron processes both imported and domestic crude oil in its U.S. refining operations. Imported crude oil accounted for about 65 percent and 70 percent of Chevron’s U.S. refinery inputs in 2019 and 2018, respectively.

In the United States, the company continued work on projects to improve refinery flexibility and reliability. At the Richmond Refinery in California, production on the new hydrogen plant reached full operational capacity in January 2019. At the refinery in Salt Lake City, Utah, construction continued on the alkylation retrofit project with more than 100 modules installed. Project start-up is expected in first-half 2021.

In May 2019, the company completed the acquisition of the Pasadena refinery in Texas. The Pasadena Refinery has the capacity to process 110,000 barrels per day of light crude oil and enables the company to leverage its Permian Basin upstream assets.

Outside the United States, the company has three large refineries in South Korea, Singapore and Thailand. The Singapore Refining Company (SRC), a 50 percent-owned joint venture, has a total capacity of 290,000 barrels of crude per day and manufactures a wide range of petroleum products. Recent upgrades have enabled SRC to produce higher-quality gasoline that meets stricter emission standards. The 50 percent-owned, GS Caltex (GSC) operated, Yeosu Refinery in South Korea remains one of the world’s largest refineries with a total crude capacity of 800,000 barrels per day. In February 2019, a final investment decision was reached on the olefins mixed-feed cracker and associated polyethylene unit with first production planned for 2021. The company’s 60.6 percent-owned refinery in Map Ta Phut, Thailand, continues to supply high-quality petroleum products through the Caltex brand into regional markets.

Petroleum Refineries: Locations, Capacities and Inputs
Capacities and inputs in thousands of barrels per day		December 31, 2019				Refinery Inputs
Locations		Number		Operable Capacity		2019		2018		2017
Pascagoula	Mississippi	1		350		358		332		349
El Segundo	California	1		276		241		273		251
Richmond	California	1		257		236		249		248
Pasadena1	Texas	1		106		58		—		—
Salt Lake City	Utah	1		55		54		51		53
Total Consolidated Companies — United States		5		1,044		947		905		901
Map Ta Phut	Thailand	1		166		134		160		152
Cape Town2	South Africa	—		—		—		49		68
Burnaby, B.C.3	Canada	—		—		—		—		40
Total Consolidated Companies — International		1		166		134		209		260
Affiliates	Various Locations	3		538		483		494		500
Total Including Affiliates — International		4		704		617		703		760
Total Including Affiliates — Worldwide		9		1,748		1,564		1,608		1,661

1	In May 2019, the company acquired the Pasadena, TX refinery.

2	In September 2018, the company sold its interest in the Cape Town refinery.

3	In September 2017, the company sold the Burnaby, B.C. refinery.

Marketing Operations

The company markets petroleum products under the principal brands of “Chevron,” “Texaco” and “Caltex” throughout many parts of the world. The following table identifies the company’s and affiliates’ refined products sales volumes, excluding intercompany sales, for the three years ended December 31, 2019.

Refined Products Sales Volumes
Thousands of barrels per day	2019		2018		2017
United States
Gasoline	667		627		625
Jet Fuel	256		255		242
Diesel/Gas Oil	191		188		179
Residual Fuel Oil	42		48		48
Other Petroleum Products1	94		100		103
Total United States	1,250		1,218		1,197
International****2
Gasoline	289		336		365
Jet Fuel	238		276		274
Diesel/Gas Oil	427		446		490
Residual Fuel Oil	167		177		162
Other Petroleum Products1	206		202		202
Total International	1,327		1,437		1,493
Total Worldwide****2	2,577		2,655		2,690
1 Principally naphtha, lubricants, asphalt and coke.
2 Includes share of affiliates’ sales:	379		373		366

In the United States, the company markets under the Chevron and Texaco brands. At year-end 2019, the company supplied directly or through retailers and marketers to approximately 7,900 Chevron- and Texaco- branded service stations, primarily in the southern and western states. Approximately 310 of these outlets are company-owned or -leased stations.

Outside the United States, Chevron supplied directly or through retailers and marketers approximately 5,100 branded service stations, including affiliates. The company markets in Latin America using the Texaco brand. In 2019, Chevron continued to grow, expanding to nearly 200 branded stations in northwestern Mexico at the end of the year. The company also operates through affiliates under various brand names. In the Asia-Pacific region and the Middle East, the company uses the Caltex brand. In South Korea, the company operates through its 50 percent-owned affiliate, GSC.

In December 2019, the company signed an agreement to acquire a network of terminals and service stations in Australia, which is expected to close in second-half 2020, pending regulatory approval.

Chevron markets commercial aviation fuel at approximately 70 airports worldwide. The company also markets an extensive line of lubricant and coolant products under the product names Havoline, Delo, Ursa, Meropa, Rando, Clarity and Taro in the United States and worldwide under the three brands: Chevron, Texaco and Caltex.

Chemicals Operations

Chevron Oronite Company develops, manufactures and markets performance additives for lubricating oils and fuels and conducts research and development for additive component and blended packages. At the end of 2019, the company manufactured, blended or conducted research at 10 locations around the world. Construction progressed in 2019 on a lubricant additive blending and shipping plant in Ningbo, China. Commercial production is anticipated to begin in 2021.

Chevron owns a 50 percent interest in its Chevron Phillips Chemical Company LLC (CPChem) affiliate. CPChem produces olefins, polyolefins and alpha olefins and is a supplier of aromatics and polyethylene pipe, in addition to participating in the specialty chemical and specialty plastics markets. At the end of 2019, CPChem owned or had joint-venture interests in 28 manufacturing facilities and two research and development centers around the world.

In 2019, CPChem announced agreements to jointly develop petrochemical complexes in Qatar and the U.S. Gulf Coast. Engineering and design for these projects is underway.

Chevron also maintains a role in the petrochemical business through the operations of GSC, the company’s 50 percent-owned affiliate. GSC manufactures aromatics, including benzene, toluene and xylene. These base chemicals are used to produce a range of products, including adhesives, plastics and textile fibers. GSC also produces polypropylene, which is used to make automotive and home appliance parts, food packaging, laboratory equipment and textiles.

GSC reached a final investment decision in February 2019 to build an olefins mixed-feed cracker and polyethylene unit within the existing refining and aromatics facilities in Yeosu, South Korea.

Transportation

Pipelines Chevron owns and operates a network of crude oil, natural gas and product pipelines and other infrastructure assets in the United States. In addition, Chevron operates pipelines for its 50 percent-owned CPChem affiliate. The company also has direct and indirect interests in other U.S. and international pipelines.

Refer to pages 11 through 13 in the Upstream section for information on the West African Gas Pipeline, the Baku-Tbilisi- Ceyhan Pipeline, and the Caspian Pipeline Consortium.

Shipping The company’s marine fleet includes both U.S. and foreign flagged vessels. The operated fleet consists of conventional crude tankers, product carriers and LNG carriers. These vessels transport crude oil, LNG, refined products and feedstock in support of the company’s global upstream and downstream businesses.

Other Businesses

Research and Technology Chevron’s energy technology organization supports upstream and downstream businesses. The company conducts research, develops and qualifies technology, and provides technical services and competency development. The disciplines cover earth sciences, reservoir and production engineering, drilling and completions, facilities engineering, manufacturing, process technology, catalysis, technical computing and health, environment and safety.

Chevron’s information technology organization integrates computing, telecommunications, data management, cybersecurity and network technology to provide a digital infrastructure to enable Chevron’s global operations and business processes.

In 2019, Chevron continued its involvement in the Oil and Gas Climate Initiative (OGCI), a global collaboration focused on the industry’s efforts to take actions to accelerate and participate in the energy transition. OGCI members seek to lower carbon footprints of energy, industry, and transportation value chains. This includes work to reduce methane emissions, reduce the carbon intensity of upstream oil and gas emissions, and facilitate large-scale commercial investment in carbon capture, use and storage. OGCI Climate Investments is a $1 billion-plus investment fund set up by the OGCI member companies. OGCI Climate Investments focuses on three objectives: reducing methane emissions during the production, delivery and usage of oil and gas; reducing carbon dioxide emissions by increasing energy efficiency in power, industry and transport; and recycling and storing carbon dioxide produced during power generation or industrial processes by using it in products or storing it. As a member of OGCI, Chevron has committed to contribute $100 million to this fund.

Chevron’s technology ventures unit supports Chevron’s upstream and downstream businesses by bridging the gap between business unit needs and emerging technology solutions developed externally in areas of emerging materials, water management, information technology, power systems and production enhancement. In 2018, Chevron established the Chevron Future Energy Fund with an initial commitment of $100 million to invest in breakthrough technologies that enable the ongoing energy transition. Our investments and partnerships have focused on areas such as alternative energy and emerging technologies, transportation and infrastructure, capturing and reducing emissions, and energy storage.

Some of the investments the company makes in the areas described above are in new or unproven technologies and business processes, and ultimate technical or commercial successes are not certain. Refer to Note 25 on page 89 for a summary of the company’s research and development expenses.

Environmental Protection The company designs, operates and maintains its facilities to avoid potential spills or leaks and to minimize the impact of those that may occur. Chevron requires its facilities and operations to have operating standards and processes and emergency response plans that address significant risks identified through site-specific risk and impact assessments. Chevron also requires that sufficient resources be available to execute these plans. In the unlikely event that a major spill or leak occurs, Chevron also maintains a Worldwide Emergency Response Team comprised of employees who are trained in various aspects of emergency response, including post-incident remediation.

To complement the company’s capabilities, Chevron maintains active membership in international oil spill response cooperatives, including the Marine Spill Response Corporation, which operates in U.S. territorial waters, and Oil Spill Response, Ltd., which operates globally. The company is a founding member of the Marine Well Containment Company, whose primary mission is to expediently deploy containment equipment and systems to capture and contain crude oil in the unlikely event of a future loss of control of a deepwater well in the Gulf of Mexico. In addition, the company is a member of

the Subsea Well Response Project, which has the objective to further develop the industry’s capability to contain and shut in subsea well control incidents in different regions of the world.

The company is committed to improving energy efficiency in its day-to-day operations and is required to comply with the greenhouse gas-related laws and regulations to which it is subject. Refer to Item 1A. Risk Factors on pages 18 through 21 for further discussion of greenhouse gas regulation and climate change and the associated risks to Chevron’s business.

Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations on page 44 for additional information on environmental matters and their impact on Chevron, and on the company’s 2019 environmental expenditures. Refer to page 44 and Note 22 beginning on page 87 for a discussion of environmental remediation provisions and year-end reserves.