about 61.5 million common shares were acquired under this program at a total cost of $4.9 billion. Upon completion of this program, the company authorized the acquisition of up to $15 billion of additional common shares from time to time at prevailing prices, as permitted by securities laws and other legal requirements and subject to market conditions and other factors. The program is for a period of up to three years and may be discontinued at any time. As of December 31, 2007, 23.5 million shares had been acquired under the new program for $2.1 billion. Purchases through mid-February 2008 increased the total shares acquired to 34.2 million at a cost of approximately $3.0 billion.

     Capital and exploratory expenditures   Total reported expenditures for 2007 were $20 billion, including $2.3 billion for the company’s share of affiliates’ expenditures, which did not require cash outlays by the company. In 2006 and 2005, expenditures were $16.6 billion and $11.1 billion, respectively, including the company’s share of affiliates’ expenditures of $1.9 billion and $1.7 billion in the corresponding periods. The 2005 amount excludes $17.3 billion for the acquisition of Unocal Corporation.

     Of the $20 billion in expenditures for 2007, about three-fourths, or $15.5 billion, related to upstream activities. Approximately the same percentage was also expended for upstream operations in 2006 and 2005. International upstream accounted for about 70 percent of the worldwide upstream investment in each of the three years, reflecting the company’s continuing focus on opportunities that are available outside the United States.

     In 2008, the company estimates capital and exploratory expenditures will be 15 percent higher at $22.9 billion, including $2.6 billion of spending by affiliates. About three-fourths of the total, or $17.5 billion, is budgeted for exploration and production activities, with $12.7 billion of this amount outside the United States. Spending in 2008 is primarily targeted for exploratory prospects in the deepwater Gulf of Mexico and western Africa and major development projects in Angola, Australia, Brazil, Indonesia, Kazakhstan, Nigeria, Thailand, the deepwater Gulf of Mexico, the Piceance Basin in Colorado and an oil sands project in Canada.

     Worldwide downstream spending in 2008 is estimated at $4.1 billion, with about $2.3 billion for projects in the United States. Capital projects include upgrades to refineries in the United States and South Korea and construction of gas-to-liquids facilities in support of associated upstream projects.

     Investments in chemicals, technology and other corporate businesses in 2008 are budgeted at $1.3 billion. Technology investments include projects related to unconventional hydrocarbons technologies, oil and gas reservoir management and gas-fired and renewable power generation.

Pension Obligations   In 2007, the company’s pension plan contributions were $317 million (approximately $78 million to the U.S. plans). The company estimates contributions in 2008 will be approximately $500 million. Actual contribution amounts are dependent upon plan-investment results, changes in pension