It keeps us on target to reach our production goal of 3.3 million barrels of oil-equivalent per day by 2017, an increase of more than 20 percent from 2010 levels. 

To continually improve our operations, we develop technologies that advance our business and create new value. These include technologies in areas such as seismic imaging, deepwater operations and hydrocarbons from shale that enable us to access new resources while also ensuring safe and responsible production. At the Marcellus Shale operations in western Pennsylvania, water recycling technology has reduced our fresh water consumption. To further reduce our operating footprint, temporary modular tanks are being tested for onsite water storage. At our St. Malo well, a series of field trials points to the promise of a new system designed to boost well completion efficiency, thus reducing rig time, costs and operational risk. 

Fundamental to everything we do is a constant focus on achieving increasingly higher levels of safety, operational and environmental performance. Our efforts are guided by our Operational Excellence Management System, which aligns with international standards for safety and environmental performance. In 2012, we continued to be an industry leader in personal safety, as measured by injuries requiring time away from work. We also delivered our lowest spill volumes in a decade. But we are not incident-free. Our strong safety culture and our focused efforts in improving process safety will help us continually progress toward our goal of incident-free operations. 

We apply the same type of commit- ment to our social performance, contributing to the creation of stronger communities wherever we operate. 

We work toward building sustainable economies by employing people from our host communities, training workers to world-class standards, building capacity and supporting small business. In 2012, we bought $60 billion in goods and services around the globe, providing a meaningful stimulus for local economies. And in the past seven years, we invested more than $1 billion worldwide in programs focused on economic development, health and education. You can find more detail about our social investments in our companion publication, the 2012 Corporate Responsibility Report. 

Our commitment above all is to safely develop the affordable energy vital

to economic growth. In fulfilling that commitment, we are mindful of our unique responsibility as an ambassador for a system of values — The Chevron Way — that promotes responsible and ethical behavior in all we do. We have the right people with the right skills, an unparalleled project portfolio, proven strategies and a culture committed to being the global energy company most admired for its people, partnership 

and performance. We are strongly positioned to create enduring value for the communities where we operate and for those who place their trust in us — our stockholders. 

Thank you for investing in Chevron. 

Business Environment and Outlook

Chevron is a global energy company with substantial business activities in the following countries: Angola, Argentina, Australia, Azerbaijan, Bangladesh, Brazil, Cambodia,