2017



to our stockholders 

The contributions of the energy industry to economic development have enabled the greatest advancements in living standards in recorded history. Over the course of nearly 140 years, Chevron has become a leader in helping improve the communities we touch – reducing energy poverty, driving economic and social development, improving health and education, delivering the benefits of modern life, and working to advance human progress for billions around the world, in developed and developing countries alike. Our leadership is a profound source of pride. 

We take seriously our responsibility to answer the call of those who aspire to a better today – even as we continuously innovate to solve the energy challenges of tomorrow. That is why we are anchored to, and guided by, the vision, values and strategies of The Chevron Way. We strive to operate as the global energy company most admired for its people, partnership and performance. We are committed to business and enterprise strategies that enhance our ability to deliver industry-leading results and superior stockholder value in any business environment. And most important, we are united by our purpose: enabling human progress by developing the energy that improves lives and powers the world forward. 

Delivering on our purpose requires relationships built upon trust and integrity throughout the world. So just as important as what we do is how we do it, through ethical and responsible actions that support and protect our workforce, our stakeholders, the communities where we operate and the environment, while delivering lasting and sustainable value to our stockholders. This is our definition of leading the right way. The responsible way. The Chevron Way. (See pages 86 and 87.) 

At the heart of Chevron are a dedicated, innovative and talented global workforce and a Board of Directors that is engaged with leadership to oversee strategic decisions and to manage the wide array of risks inherent to our business. 

In 2017, the world economy grew at its quickest pace in nearly five years, providing strong support to oil and gas demand. The combination of healthy demand growth and OPEC production cuts reduced the surplus in global oil markets, and China’s actions to reduce air pollution and curb coal use supported demand in liquefied natural gas (LNG) markets. 

Meanwhile, heightened geopolitical tensions throughout the world added uncertainty to markets, with ongoing tensions on the Korean Peninsula, continued strain in the Middle East and challenging economic conditions across oil exporting economies. The U.S. Congress passed the first comprehensive tax reform legislation in decades and began work on regulatory reform, providing renewed optimism for the U.S. economy. 

Overall, oil and gas market conditions improved in 2017, and hydrocarbons are projected to play an important role in fueling the world economy for decades to come. Chevron’s actions to bring on line new production from the Permian Basin in the United States and from our major capital projects in Australia helped meet growing global demand in 2017 and supported our aim of being a reliable supplier of the