Natural Gas Providing an Efficient, Economical Energy Source Dismissed as a useless byproduct of crude oil production until the

second half of the 20th century, natural gas now accounts for 23 percent of the world's energy consumption. And the demand is growing. An environmentally friendly and efficient energy source, natural gas is the cleanest-burning conventional fuel, producing lower levels of greenhouse gas emissions than heavier hydrocarbon fuels such as coal and oil. Historically, natural gas also has been one of the most economical energy sources. Natural gas fuels electric power generators, heats buildings and is used as a raw material in many consumer products, such as those made of traditional plastics. The International Energy Agency predicts that the demand for natural gas will grow by approximately 44 percent through 2035. Chevron is well positioned to meet this escalating demand. What Chevron Is Doing Natural gas is a growing segment of Chevron's energy portfolio. Our natural gas resources span six continents, with significant holdings in Africa, Australia, Southeast Asia, the Caspian region, Latin America and North America. Chevron has a net production of more than 5 billion cubic feet of natural gas per day, including equity shares in affiliates, and we expect to substantially increase this volume over the next decade. Although world gas resources are plentiful, the regions with natural gas surpluses are often oceans away from the greatest demand. Chevron has the capabilities to meet the challenges of developing resources and delivering natural gas to markets where its use is growing. Chevron is engaged in every aspect of the natural gas businessproduction, liquefaction, shipping, regasification, pipelines, marketing and trading, power generation, and gas-to-liquids (GTL). We hold the largest natural gas resource position in Australia through the Gorgon and Wheatstone projects, the Browse Basin, and the North West Shelf Venture. We also have significant natural gas holdings in western Africa, Bangladesh, China, Indonesia, Kazakhstan, North America, the Philippines, South America, Thailand, the United Kingdom and Vietnam. Australia North West Shelf Venture We are a longtime participant in Australia's North West Shelf Venture, which operates offshore producing fields and extensive onshore facilities that include five liquefied natural gas (LNG) processing units, or trains, and a domestic gas plant. Approximately 70 percent of the natural gas is sold in the form of LNG to major utilities in Japan, South Korea and China, primarily under long-term contracts. Gorgon Project Chevron is leading the development of Australia's largest single-resource project. The Gorgon Project includes a threetrain, 15.0 million-metric-ton-per-year LNG facility on Barrow Island, a domestic natural gas plant and a carbon dioxide injection project. Construction and other activities for the Gorgon Project progressed during 2010 with the awarding of more than $25 billion of contracts and purchase orders, clearing of the plant site, completion of the first stage of the construction village, commencement of module fabrication, and progression of studies on the possible expansion of the project. Wheatstone Project The Chevron-operated Wheatstone Project includes a two-train, 8.9 million-metric-ton-per-year LNG facility and a separate domestic gas plant, both at Ashburton North, on the West Pilbara coast of Australia. The facilities will be fed by natural gas from the Wheatstone and Iago fields, as well as third-party gas. A final investment decision is expected in 2011. Browse LNG Development The three gas fields that make up the Browse developmentBrecknock, Calliance and Torosaare in the Browse Basin, about 155 miles (250 km) off the far northwest coast of Western Australia. In 2010, Chevron and the other Browse LNG development participants began design evaluation for the fields. Africa Angola LNG Project Chevron has a 36.4 percent interest in Angola LNG Limited, which will operate the country's first LNG plant. Construction continued throughout 2010 on the 5.2 million-metric-ton LNG plant in Soyo, Angola. Facility startup is expected in 2012. Olokola LNG Project, Nigeria Chevron has a 19.5 percent interest in the OKLNG Free Zone Enterprise in Nigeria. Plans have been developed to build a multitrain LNG facility and marine terminal located northwest of Escravos. Escravos, Nigeria Chevron is partnering with the Nigerian National Petroleum Corporation to construct a GTL plant in Escravos, Nigeria. It will convert gas from Chevron's Escravos Gas Plant to GTL diesel fuels, GTL naphtha and liquefied petroleum gas. At the end of 2010, site construction was 53 percent complete.

Niger Delta, Nigeria Chevron is developing several gas projects in the Niger Delta to increase gas supplies for national and regional power generation and reduce routine natural gas flaring. Asia Thailand The Platong Gas II project in the Gulf of Thailand is expected to boost Thailand's domestic gas production by 10 percent. Construction on the project continued through 2010 and is scheduled to come on line in 2011. Vietnam The Vietnam Block B Gas Development will supply gas to utilities in southern Vietnam. A final investment decision for this offshore development is expected in 2011. China The Chuandongbei project is under way in China's Sichuan Basin. Upon completion, the full development will include two new sour gas processing plants and five natural gas fields with gathering systems and tie-ins to the plants. Latin America Delta Caribe Project, Venezuela Chevron has been invited to participate in Venezuela's first LNG train. We hold interests in the offshore Plataforma Deltana region, which would provide the initial natural gas supply to this project. North America and Europe The company is adding more shale gas acreage to its portfolio, including recent acquisitions in the U.S. state of Pennsylvania, western Canada and Eastern Europe. Shale gas refers to natural gas found in fine-grained sedimentary rock. Locked in very small spaces within the reservoir rock, the gas is extracted using advanced technologies that allow it to flow to production wells. Chevron will continue to find, develop and deliver natural gas to meet the rising demand for energy.