Chevron 2004 Annual Report Download - page 5
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CHAIRMANOFTHEBOARDANDCHIEFEXECUTIVEOFFICER
MARCH2,2005
processmarket-disadvantagedequitycrudeoilfromourChadoperationsinAfricaintohigh-quality
gasolineblendstocksforNorthAmerica.Wehavecombinedseparategroupstocreateasingleorgani-
zationtomanagetechnologyforupstreamanddownstream.Thisapproach,whichisuniquein
theindustry,allowsustooptimizetechnologysolutionsacrosstheenterprise,fromthereservoir
totheretailpump.
Looking forward, our growth opportunities are excellent. We are aggressively managing pro-
duction decline rates in mature fields, adding exploration acreage in key areas and building a
world-classportfolioofcapitalprojects–BenguelaBelize-LobitoTombocoinAngola,Agbamiin
Nigeria,TahitiintheGulfofMexicoandtheTengizchevroilexpansioninKazakhstan.Allofthese
projectsarescheduledtocomeonlineoverthenextfouryears,contributingtoouroil-equivalent
productiongoalof3millionbarrelsadayby2008.
Weareatastrategicinflectionpointinourindustry.Theconvergenceofgrowingdemand,chal-
lengingresourcelocations suchas the deep waterand oil sands,aneedforgreaterdiversityof
energysupplies,acomplexgeopoliticalenvironment,andashiftingcompetitivelandscapehave
createdafundamentallynewenergyequation.
ChevronTexacoisstronglypositionedtosucceedinthisnewenvironment.Wehaverobuststrate-
giesthathavebeentestedunderavarietyofmarketconditions.Wearecommittedtoachieving
andmaintainingworld-classlevelsofoperatingandcapitaldiscipline.Weareleveragingtechnol-
ogytocreateoperatingefficienciesintheneartermanddeveloppromisingnewenergysources
forthelongterm.Wearecontinuingtobuildonoureffortstobethepartnerofchoiceinstrategic
energyregionsoftheworld.
Astrongreflectionofourcommitmenttopartnershipoccurredin2004whenourBoardof
DirectorsheldameetinginAngolatoreviewourbusinessoperations,witnessourcommu-
nityengagementprojectsandvisitwiththecountry’sleadership.Itwasoneofthefirsttimes
aBoardfromamajormultinationalcompanyhasmetinsub-SaharanAfrica,anditwasan
affirmationofourcontinuingcommitmenttothiscontinent.
Evenwithsoundstrategiesandastrongbalancesheet,thecriticalfactorforsuccessishaving
therightpeopleinthe rightpositions doing the right things.ChevronTexaco’s peopleper-
formedsuperblyin2004,andwearecontinuingtoenhancethecapabilitiesandcommitment
ofourglobalworkforce.Wehaveastrongmanagementteamwithaproventrackrecordanda
dedicated,experiencedBoard.Welookforwardtotheopportunitieswefaceinthecoming
yeartoincreasecompetitivereturnsandstockholdervalueandtodelivertheenergy
neededtofueleconomicdevelopmentandgrowtharoundtheworld.
Thankyouforyourcontinuedsupport.