downstream operations.

All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

Operating Developments

Key operating developments and other events during 2017 and early 2018 included the following:

Upstream

Angola Commenced production from the main production facility of the Mafumeira Sul Project.

Australia Achieved start-up of Train 3 at the Gorgon LNG Project and Train 1 at the Wheatstone LNG Project.

Canada Achieved start-up of the Hebron Project.

Indonesia Completed the sale of the geothermal business.

United States Announced significant crude oil discoveries at the Whale and Ballymore prospects in the Gulf of Mexico.

Downstream

Canada Completed the sale of refining and marketing assets in British Columbia and Alberta.

United States The company’s 50 percent-owned affiliate, Chevron Phillips Chemical Company LLC achieved start-up of two polyethylene units and reached mechanical completion of a new ethane cracker at its U.S. Gulf Coast Petrochemicals Project in Texas.

Other

Common Stock Dividends The 2017 annual dividend was $4.32 per share, making 2017 the 30th consecutive year that the company increased its annual dividend payout. In January 2018, the company's Board of Directors approved a $0.04 per share increase in the quarterly dividend to $1.12 per share, payable in March 2018.

Results of Operations

The following section presents the results of operations and variances on an after-tax basis for the company’s business segments – Upstream and Downstream – as well as for “All Other.” Earnings are also presented for the U.S. and international geographic areas of the Upstream and Downstream business segments. Refer to Note 15, beginning on page 67, for a discussion of the company’s “reportable segments.” This section should also be read in conjunction with the discussion in “Business Environment and Outlook” on pages 30 through 33.

U.S. upstream earnings were $3.64 billion in 2017, compared with a loss of $2.05 billion in 2016. The improvement in earnings reflected a benefit of $3.33 billion from U.S. tax reform, higher crude oil and natural gas realizations of $1.3 billion and lower depreciation expenses of $650 million, primarily reflecting a decrease in impairments and other asset write-offs. Lower operating expenses of $140 million also contributed to the improvement.

U.S. upstream operations incurred a loss of $2.05 billion in 2016, compared with a loss of $4.06 billion from 2015. The improvement was due to lower depreciation expense of $1.2 billion and lower exploration expense of $780 million primarily reflecting a decrease in impairments and project cancellations. Also contributing to the improvement were lower operating expenses of $600 million and lower tax items of $190 million. Partially offsetting these effects were lower crude oil and natural gas realizations of $920 million.

The company’s average realization for U.S. crude oil and natural gas liquids in 2017 was $44.53 per barrel, compared with $35.00 in 2016 and $42.70 in 2015. The average natural gas realization was $2.10 per