Future State: Description of Our Future

A leader in integrated value creation by leveraging value from our physical (large manufacturing sites, strategic
infrastructure, anchor markets) and intellectual (brands, commercial acumen, technology) assets.

We have ownership in a flexible system of manufacturing sites that are world class in scale, reliability and efficiency, focused on an integrated value chain tied to equity crudes in the Atlantic Basin, and focused on market growth in the Pacific Basin. Each manufacturing site is supported by a set of anchor outlets, defined as scaled markets where our brands are critical to our top positions. Additional production from the manufacturing sites is traded and/or supplied as opportunity volume. We are long manufacturing, and use commercial skills to balance product supplies. We have access to a set of strategically located infrastructure (e.g. blend facilities, pipelines, ships) to supply all of our markets.

On the physical front, we have developed world-scale fuels manufacturing sites in cost advantaged locations that provide foundational economies of scale. These are big and complex, and in cost advantaged locations that may be near the resource. The overall manufacturing system is capable of processing a range of scalable raw materials, including equity and non-equity crude, natural gas, and other inputs as appropriate. The system is complemented by a flexible supply and delivery network infrastructure, where we participate in critical links, and a set of anchor markets where we are the top branded marketers. We have redefined market to be the limit of the supply/demand boundaries. Chevron has the partnering capabilities to build a network of supply sources, manufacturing sites, product outlets and infrastructure, while maintaining critical control through effective governance. Partnering capability also allows us to be the first to be invited into the cost advantaged locations. On the intellectual front, our commercial savvy and intimate market knowledge allow us to create and manage innovative and flexible supply and logistics systems. Additionally, our brands and consumer marketing capability ensure our anchor markets provide secure outlets for manufacturing supply while extracting incremental margins. Lastly, we actively create and manage a portfolio of technology options. Our ability to move from options to application of the technology from this portfolio has enabled us to incorporate new supplies into our system, produce mass market-relevant products, and maintain our leadership position in manufacturing.