

~~EX-10.6~~	~~EX-24.9~~
~~EX-10.7~~	~~EX-24.10~~
~~EX-10.23~~	~~EX-31.1~~
~~EX-12.1~~	~~EX-31.2~~
~~EX-21.1~~	~~EX-32.1~~
~~EX-23.1~~	~~EX-32.2~~
~~EX-24.1~~	~~EX-99.1~~
~~EX-24.2~~	~~EX-101 INSTANCE DOCUMENT~~
~~EX-24.3~~	~~EX-101 SCHEMA DOCUMENT~~
~~EX-24.4~~	~~EX-101 CALCULATION LINKBASE DOCUMENT~~
~~EX-24.5~~	~~EX-101 LABELS LINKBASE DOCUMENT~~
~~EX-24.6~~	~~EX-101 PRESENTATION LINKBASE DOCUMENT~~
~~EX-24.7~~	~~EX-101 DEFINITION LINKBASE DOCUMENT~~
~~EX-24.8~~

CAUTIONARY ~~STATEMENT~~STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Annual Report on Form 10-K of Chevron Corporation contains forward-looking statements relating to Chevron’s operations and energy transition plans that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “drives,” “aims,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “can,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on ~~schedule,” “on~~ track,~~” “is slated,~~” “goals,” “objectives,” “strategies,” ~~“opportunities”~~“opportunities,” “poised,” “potential,” “ambitions,” “aspires” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such ~~forward- looking~~forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas ~~prices;~~prices and demand for the company’s products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changes to government policies in the countries in which the company operates; public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics, and any related government policies and actions; disruptions in the company’s global supply chain, including supply chain constraints and escalation of the cost of goods and services; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; changing refining, marketing and chemicals margins; ~~the company's ability to realize anticipated cost savings and expenditure reductions;~~ actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; ~~technological developments;~~development of large carbon capture and offset markets; the results of operations and financial condition of the ~~company's~~company’s suppliers, vendors, partners and equity affiliates, particularly during ~~extended periods of low prices for crude oil and natural gas;~~the COVID-19 pandemic; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, ~~and~~ terrorist acts, ~~crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries,~~ or other natural or human causes beyond ~~its~~the company’s control; ~~changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions;~~ the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from ~~other~~ pending or future litigation; the company’s future ~~acquisition~~acquisitions or ~~disposition~~dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; ~~government-mandated~~government mandated sales, divestitures, recapitalizations, ~~industry-specific~~ taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the ~~impact~~receipt of ~~the 2017 U.S. tax legislation on the company's~~required Board authorizations to implement capital allocation strategies, including future ~~results;~~stock repurchase programs and dividend payments; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the ~~company's~~company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 1920 through 2225 in this report. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.

PART I

Item 1. Business

General Development of Business

Summary Description of Chevron

Chevron Corporation,^* a Delaware corporation, manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in integrated energy and chemicals operations. Upstream operations consist primarily of exploring for, developing, producing and ~~producing~~transporting crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; transporting, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of refining crude oil into petroleum products; marketing of crude oil, refined products, and ~~refined products;~~lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives.

A list of the company’s major subsidiaries is presented on page E-2. As of December 31, 2017, Chevron had approximately 51,900 employees (including about 3,300 service station employees). Approximately 25,200 employees (including about 3,100 service station employees), or 49 percent, were employed in ~~U.S. operations.~~Exhibit 21.1.

Overview of Petroleum Industry

Petroleum industry operations and profitability are influenced by many factors. Prices for crude oil, natural gas, petroleum products and petrochemicals are generally determined by supply and demand. Production levels from the members of ~~the~~ Organization of Petroleum Exporting Countries (OPEC), Russia and the United States are the major factors in determining worldwide supply. Demand for crude oil and its products and for natural gas is largely driven by the conditions of local, national and global economies, although weather patterns, the pace of energy transition and taxation relative to other energy sources also play a significant part. Laws and governmental policies, particularly in the areas of taxation, energy and the environment, affect where and how companies invest, conduct their operations, select feedstocks, and formulate their products and, in some cases, limit their profits directly.

Strong competition exists in all sectors of the petroleum and petrochemical industries in supplying the energy, fuel and chemical needs of industry and individual consumers. In the upstream business, Chevron competes with fully integrated, major global petroleum companies, as well as independent and national petroleum companies, for the acquisition of crude oil and natural gas leases and other properties and for the equipment and labor required to develop and operate those properties. In its downstream business, Chevron competes with fully integrated, major petroleum companies, as well as independent refining and marketing, transportation and chemicals entities and national petroleum companies in the refining, manufacturing, sale ~~or acquisition~~and marketing of ~~various goods or services in many national~~fuels, lubricants, additives and ~~international markets.~~petrochemicals.

Operating Environment

Refer to pages 3032 through 3740 of this Form 10-K in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the company’s current business environment and outlook.

Chevron’s Strategic Direction

Chevron’s strategy is to leverage its strengths to deliver lower carbon energy to a growing world. The company’s primary objective is to deliver ~~industry-leading results~~higher returns, lower carbon and superior shareholder value in any business environment. In the upstream, the company’s strategy is to deliver industry-leading returns while developing high-value resource opportunities. In the downstream, the ~~company's~~company’s strategy is to be the leading downstream and chemicals company that delivers on customer needs. Chevron aims to lower the carbon intensity of its traditional oil and gas operations and grow ~~earnings across~~lower carbon businesses in renewable fuels, hydrogen, carbon capture and offsets. To grow its lower carbon businesses, Chevron plans to target sectors of the ~~value chain~~economy where emissions are harder to abate or that cannot be easily electrified, while leveraging the company’s capabilities, assets and ~~make targeted investments to lead the industry in returns.~~customer relationships.

Information about the company is available on the company’s website at www.chevron.com. Information contained on the company’s website is not part of this Annual Report on Form 10-K. The company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge on the company’s website soon after such reports are filed with or furnished to the U.S. Securities and Exchange Commission (SEC). The reports are also available on the SEC’s website at www.sec.gov.

^* Incorporated in Delaware in 1926 as Standard Oil Company of California, the company adopted the name Chevron Corporation in 1984 and ChevronTexaco Corporation in 2001. In 2005, ChevronTexaco Corporation changed its name to Chevron Corporation. As used in this report, the term “Chevron” and such terms as “the company,” “the corporation,” “our,” “we,” “us” and "its" may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole, but unless stated otherwise they do not include “affiliates” of Chevron — i.e., those companies accounted for by the equity method (generally owned 50 percent or less) or ~~investments accounted for by the cost method.~~non-equity method investments. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.

Human Capital Management

Chevron invests in its employees and culture, with the objective of developing the full potential of its workforce to deliver energy solutions and drive human progress. The Chevron Way explains the company’s beliefs, vision, purpose and values. It guides how the company’s employees work and establishes a common understanding of culture and aspirations. Chevron hires, develops, and strives to retain a diverse workforce of high-performing talent, and fosters a culture that values diversity, inclusion and employee engagement. Chevron leadership is accountable for the company’s investment in people and the company’s culture. This includes reviews of metrics addressing critical function hiring, leadership development, retention, diversity and inclusion, and employee engagement.

The following table summarizes the number of Chevron employees by gender, where data is available, and by region as of December 31, 2021.


	At December 31, 2021
	Female			Male			Gender data not available1			Total Employees
	Number of Employees	Percentage		Number of Employees	Percentage		Number of Employees	Percentage		Number of Employees	Percentage
Non-Service Station Employees
U.S.	5,090	26	%	14,512	74	%	25	—	%	19,627	46	%
Other Americas	925	27	%	2,484	72	%	37	1	%	3,446	8	%
Africa	612	17	%	2,991	83	%	3	—	%	3,606	8	%
Asia	2,493	35	%	4,621	65	%	31	—	%	7,145	17	%
Australia	533	25	%	1,634	75	%	3	—	%	2,170	5	%
Europe	381	25	%	1,121	75	%	2	—	%	1,504	4	%
Total Non-Service Station Employees	10,034	27	%	27,363	73	%	101	—	%	37,498	88	%
Service Station Employees	2,170	43	%	1,732	34	%	1,195	23	%	5,097	12	%
Total Employees	12,204	29	%	29,095	68	%	1,296	3	%	42,595	100	%

1 Includes employees where gender data was not collected or employee chose not to disclose gender.

Hiring, Development and Retention

The company’s approach to attracting, developing and retaining a diverse workforce of high-performing talent is anchored in a long-term employment model that fosters an environment of personal growth and engagement. Chevron’s philosophy is to offer compelling career opportunities and a competitive total compensation and benefits package linked to individual and enterprise performance. Chevron recruits new employees in part through partnerships with universities and diversity associations. In addition, the company recruits experienced hires to provide specialized skills.

Chevron’s learning and development programs are designed to help employees achieve their full potential by building technical, operating and leadership capabilities at all levels to produce energy safely, reliably and efficiently. Chevron’s leadership regularly reviews metrics on employee training and development programs, which are continually evolving to meet the needs of our evolving business. For example, the company delivers learning experiences digitally to empower its employees, in any location, to develop, maintain and enhance critical skills. In addition, to ensure business continuity, leadership regularly reviews the talent pipeline, identifies and develops succession candidates, and builds succession plans for key positions. The Board of Directors provides oversight of CEO and executive succession planning.

Management routinely reviews the retention of its professional population, which includes executives, all levels of management, and the majority of its regular employee population. The annual voluntary attrition for this population was 4.5 percent, which is in line with rates over a five-year comparison period. The voluntary attrition rate generally excludes employee departures under enterprise-wide restructuring programs. Chevron believes its low voluntary attrition rate is in part a result of the company’s commitment to employee development, its long-term employment model, competitive pay and benefits, and its culture.

Diversity and Inclusion

Chevron believes innovative solutions to the most complex challenges emerge when diverse people, ideas, and experiences come together in an inclusive environment. Chevron reinforces the values of diversity and inclusion through recruitment and talent development, equitable selection processes, community partnerships and supplier diversity. Examples of

initiatives to further advance diversity and inclusion include the company’s MARC (Men Advocating Real Change) program launched in 2017 in partnership with the non-profit organization Catalyst to facilitate discussions on gender equity in the workplace, and selection processes that reinforce the importance of diverse selection teams and candidate slates. In addition, Chevron has twelve employee networks (voluntary groups of employees that come together based on shared identity or interests) and a Chairman’s Inclusion Council, which provides the employee network presidents with a direct line of communication to the Chairman and Chief Executive Officer, the Chief Human Resources Officer, the Chief Diversity and Inclusion Officer, and the executive leadership team to collaborate and discuss how employee networks can reinforce Chevron’s values of diversity and inclusion.

Employee Engagement

Employee engagement is an indicator of employee well-being and commitment to the company’s values, purpose and strategies. Chevron regularly conducts employee surveys to assess the health of the company’s culture; recent surveys indicate high employee engagement. In 2021, the company increased survey frequency to better understand employee sentiment throughout the year, including focused efforts to gain insights into employee well-being. Chevron prioritizes the health, safety and well-being of its employees. Chevron’s safety culture empowers every member of its workforce to exercise stop-work authority without repercussion to address any potential unsafe work conditions. Chevron developed new safeguards and operating standards and updated existing protocols to adjust for the ever-changing conditions of the pandemic, including a return to the workplace strategy, with paced, condition-based stages. The company also announced a hybrid work model based on employee feedback and learnings from the pandemic, which will allow certain employees the flexibility to combine in-office and remote work. Additionally, the company offers long-standing employee support programs such as Ombuds, an independent resource designed to equip employees with options to address and resolve workplace issues; a company hotline, where employees can report concerns to the Corporate Compliance department; and an Employee Assistance Program, a confidential consulting service that can help employees resolve a broad range of personal, family and work-related concerns.

Description of Business and Properties

The upstream and downstream activities of the company and its equity affiliates are widely dispersed geographically, with operations and projects^* in North America, South America, Europe, Africa, Asia and Australia. Tabulations of segment sales and other operating revenues, earnings, assets, and income taxes for the three years ending December 31, ~~2017,~~2021, and assets as of the end of ~~2017~~2021 and ~~2016~~2020 — for the United States and the company’s international geographic areas — are in Note 1514 Operating Segments and Geographic Data to the Consolidated Financial ~~Statements beginning on page 67.~~Statements. Similar comparative data for the company’s investments in and income from equity affiliates and property, plant and equipment are in Note 1~~6 beginning on page 70~~15 Investments and Advances and Note ~~24 on page 87.~~18 Property, Plant and Equipment. Refer to page 4145 of this Form 10-K in ~~Management's~~Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the ~~company's~~company’s capital and exploratory expenditures.

Upstream

Reserves

Refer to Table V ~~beginning on page 95~~ for a tabulation of the company’s proved ~~net liquids (including crude oil, condensate, natural gas liquids and synthetic oil) and natural gas~~ reserves by geographic area, at the beginning of ~~2015~~2019 and at each year-end from ~~2015~~2019 through ~~2017.~~2021. Reserves governance, technologies used in establishing proved reserves additions, and major changes to proved reserves by geographic area for the three-year period ended December 31, ~~2017,~~2021, are summarized in the discussion for Table V. Discussion is also provided regarding the nature of, status of, and planned future activities associated with the development of proved undeveloped reserves. The company recognizes reserves for projects with various development periods, sometimes exceeding five years. The external factors that impact the duration of a project include scope and complexity, remoteness or adverse operating conditions, infrastructure constraints, and contractual limitations.

At December 31, ~~2017, 24~~2021, 34 percent of the ~~company's~~company’s net proved oil-equivalent reserves were located in the United States, 2119 percent were located in Australia and 2016 percent were located in Kazakhstan.

The net proved reserve balances at the end of each of the three years ~~2015~~2019 through ~~2017~~2021 are shown in the following table:


	At December 31
	2021	2020	2019
Liquids — Millions of barrels
Consolidated Companies	4,756	4,475	4,771
Affiliated Companies	1,357	1,672	1,750
Total Liquids	6,113	6,147	6,521
Natural Gas — Billions of cubic feet
Consolidated Companies	28,314	27,006	26,587
Affiliated Companies	2,594	2,916	2,870
Total Natural Gas	30,908	29,922	29,457
Oil-Equivalent — Millions of barrels1
Consolidated Companies	9,475	8,976	9,202
Affiliated Companies	1,789	2,158	2,229
Total Oil-Equivalent	11,264	11,134	11,431

At December 31
2017
2016
2015

Liquids — Millions of barrels
  Consolidated Companies 4,530
4,131
4,262

  Affiliated Companies 2,012
2,197
2,000

Total Liquids 6,542
6,328
6,262

Natural Gas — Billions of cubic feet
  Consolidated Companies 27,514
25,432
25,946

  Affiliated Companies 3,222
3,328
3,491

Total Natural Gas 30,736
28,760
29,437

Oil-Equivalent — Millions of barrels^*

  Consolidated Companies 9,116
8,369
8,586

  Affiliated Companies 2,549
2,752
2,582

Total Oil-Equivalent 11,665
11,121
11,168

^*1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.

* As used in this report, the term “project” may describe new upstream development activity, individual phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investments in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term “project” as it relates to any specific governmental law or regulation.

As used in this report, the term “project” may describe new upstream development activity, individual phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investments in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term “project” as it relates to any specific governmental law or regulation.

Net Production of Liquids and Natural Gas

The following table summarizes the net production of liquids and natural gas for ~~2017~~2021 and ~~2016~~2020 by the company and its affiliates. Worldwide oil-equivalent production of ~~2.728~~3.099 million barrels per day in ~~2017~~2021 was up 5approximately 1 percent from ~~2016. Production increases~~2020. Additional production from ~~major capital projects, base business,~~the Noble Energy, Inc. (Noble) acquisition and ~~shale and tight properties,~~lower production curtailments were partially offset by ~~production~~asset sale related decreases of 80,000 barrels per day, expiration of the Rokan concession in Indonesia, unfavorable entitlement effects, ~~in several locations,~~and normal field ~~declines, and the impact of asset sales.~~declines. Refer to the ~~“Results~~“Results of Operations” section beginning on page 3438 for a detailed discussion of the factors explaining the ~~2015 through 2017~~ changes in production for crude oil, ~~and~~condensate, natural gas liquids, synthetic oil and natural gas, and refer to Table V ~~on pages 98 and 99~~ for information on annual production by geographical region.


			Components of Oil-Equivalent
	Oil-Equivalent		Liquids		Natural Gas
Thousands of barrels per day (MBPD)	(MBPD)1		(MBPD)		(MMCFPD)
Millions of cubic feet per day (MMCFPD)	2021	2020	2021	2020	2021	2020
United States2	1,139	1,058	858	790	1,689	1,607
Other Americas
Argentina	33	25	28	21	31	24
Brazil	3	6	3	6	—	1
Canada3	161	159	136	138	150	126
Colombia4	—	2	—	—	—	14
Total Other Americas	197	192	167	165	181	165
Africa
Angola	78	87	70	78	52	53
Equatorial Guinea2	52	11	18	5	204	42
Nigeria	165	183	124	140	246	260
Republic of Congo	39	46	37	44	13	13
Total Africa	334	327	249	267	515	368
Asia
Azerbaijan4	—	7	—	7	—	3
Bangladesh	112	107	2	3	655	622
China	30	32	12	15	104	100
Indonesia	67	138	62	131	30	43
Israel2	91	20	1	—	541	116
Kazakhstan	41	55	24	32	103	136
Kurdistan Region of Iraq	2	—	2	—	—	—
Myanmar	15	15	—	—	92	92
Partitioned Zone5	58	18	56	17	7	3
Philippines4	—	5	—	1	—	25
Thailand	163	207	41	54	736	918
Total Asia	579	604	200	260	2,268	2,058
Australia
Australia	449	441	43	42	2,434	2,392
Total Australia	449	441	43	42	2,434	2,392
Europe
United Kingdom4	14	14	13	13	6	5
Total Europe	14	14	13	13	6	5
Total Consolidated Companies	2,712	2,636	1,530	1,537	7,093	6,595
Affiliates6	387	447	284	331	616	695
Total Including Affiliates7	3,099	3,083	1,814	1,868	7,709	7,290

1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.
2 Includes production associated with the acquisition of Noble commencing October 2020.
3 Includes synthetic oil: Canada, net	55	54	55	54	—	—

4 Chevron sold its interest in various upstream producing assets in 2020 and 2021.
5 Located between Saudi Arabia and Kuwait. Production was shut-in in May 2015 and resumed in July 2020.
6 Volumes represent Chevron’s share of production by affiliates, including Tengizchevroil in Kazakhstan and Angola LNG in Angola.
7 Volumes include natural gas consumed in operations of 592 million and 603 million cubic feet per day in 2021 and 2020, respectively. Total “as sold” natural gas volumes were 7,117 million and 6,687 million cubic feet per day for 2021 and 2020, respectively.

Components of Oil-Equivalent
Oil-Equivalent Liquids Natural Gas
Thousands of barrels per day (MBPD)
(MBPD)¹
(MBPD) (MMCFPD)
Millions of cubic feet per day (MMCFPD) 2017
2016
2017
2016
2017
2016

United States 681
691
519
504
970
1,120

Other Americas
  Argentina 23
26
19
20
27
32

  Brazil 13
16
12
16
4
5

  Canada²
98
92
87
83
65
55

  Colombia 16
21
—
—
96
127

  Trinidad and Tobago³
5
12
—
—
29
74

Total Other Americas 155
167
118
119
221
293

Africa
  Angola 112
114
103
106
57
52

  Democratic Republic of the Congo 2
2
2
2
1
1

  Nigeria 250
235
213
208
223
159

  Republic of Congo 38
25
36
23
14
11

Total Africa 402
376
354
339
295
223

Asia
  Azerbaijan 25
32
23
30
11
13

  Bangladesh 111
114
4
4
642
658

  China 30
27
17
18
81
51

  Indonesia 164
203
137
173
163
182

  Kazakhstan 55
62
33
37
132
154

  Myanmar 19
21
—
—
116
128

  Partitioned Zone⁴
—
—
—
—
—
—

  Philippines 25
26
3
3
129
138

  Thailand 241
245
69
71
1,031
1,051

Total Asia 670
730
286
336
2,305
2,375

Australia/Oceania
  Australia 256
124
27
21
1,372
615

Total Australia/Oceania 256
124
27
21
1,372
615

Europe
  Denmark 23
22
14
14
53
48

  United Kingdom 75
64
50
43
155
122

Total Europe 98
86
64
57
208
170

Total Consolidated Companies 2,262
2,174
1,368
1,376
5,371
4,796

Affiliates^2,5
466
420
355
343
661
456

Total Including Affiliates⁶
2,728
2,594
1,723
1,719
6,032
5,252

¹Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.

² Includes synthetic oil: Canada, net
51
50
51
50
—
—

  Venezuelan affiliate, net 28
28
28
28
—
—

³ Producing fields in Trinidad and Tobago were sold in August 2017.

⁴ Located between Saudi Arabia and Kuwait. Production has been shut-in since May 2015.

⁵Volumes represent Chevron’s share of production by affiliates, including Tengizchevroil in Kazakhstan; Petroboscan, Petroindependiente and Petropiar in Venezuela; and Angola LNG in Angola.

⁶ Volumes include natural gas consumed in operations of 565 million and 486million cubic feet per day in 2017 and 2016, respectively. Total “as sold” natural gas volumes were 5,467 million and 4,766 million cubic feet per day for 2017 and 2016, respectively.

Production Outlook

The company estimates its average worldwide oil-equivalent production in ~~2018 will grow 4~~2022 to 7be flat to down three percent compared to ~~2017,~~2021 assuming a Brent crude oil price of $60 per barrel and excluding the impact of ~~anticipated 2018~~ asset ~~sales.~~sales that may close in 2022. Excluding contract expirations and 2022 asset sales, 2022 production is expected to increase by two to five percent compared to 2021. This estimate is subject to many factors and uncertainties, as described beginning on page ~~32.~~35. Refer to the “Review of Ongoing Exploration and Production Activities in Key Areas,” beginning on page 8,10, for a discussion of the company’s major crude oil and natural gas development projects.

Average Sales Prices and Production Costs per Unit of Production

Refer to Table IV ~~on page 94~~ for the company’s average sales price per barrel of crude (including crude oil ~~condensate~~and condensate) and natural gas liquids and per thousand cubic feet of natural gas produced, and the average production cost per oil-equivalent barrel for ~~2017, 2016~~2021, 2020 and ~~2015.~~2019.

Gross and Net Productive Wells

The following table summarizes gross and net productive wells at year-end ~~2017~~2021 for the company and its affiliates:


	At December 31, 2021
	Productive Oil Wells1		Productive Gas Wells1
	Gross	Net	Gross	Net
United States	37,346	28,321	2,430	2,055
Other Americas	1,094	682	245	161
Africa	1,744	683	50	19
Asia	2,276	1,158	2,454	1,168
Australia	533	299	105	29
Europe	34	7	—	—
Total Consolidated Companies	43,027	31,150	5,284	3,432
Affiliates2	1,662	600	—	—
Total Including Affiliates	44,689	31,750	5,284	3,432
Multiple completion wells included above	731	431	148	116
1 Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron’s ownership interest in gross wells.
2 Includes gross 1,423 and net 480 productive oil wells for interests accounted for by the non-equity method.

At December 31, 2017
Productive Oil Wells* Productive Gas Wells *
Gross
Net
Gross
Net

United States 43,170
29,690
3,273
2,380

Other Americas 1,049
644
129
76

Africa 1,683
639
20
8

Asia 14,958
12,891
3,780
2,182

Australia/Oceania 564
315
95
26

Europe 325
71
170
36

Total Consolidated Companies 61,749
44,250
7,467
4,708

Affiliates 1,583
550
7
2

Total Including Affiliates 63,332
44,800
7,474
4,710

Multiple completion wells included above 819
551
38
32

* Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron's ownership interest in gross wells.

Acreage

At December 31, ~~2017,~~2021, the company owned or had under lease or similar agreements undeveloped and developed crude oil and natural gas properties throughout the world. The geographical distribution of the company’s acreage is shown in the following table:


	Undeveloped2		Developed		Developed and Undeveloped
Thousands of acres1	Gross	Net	Gross	Net	Gross	Net
United States	3,949	3,383	4,513	3,136	8,462	6,519
Other Americas	20,156	11,314	1,088	240	21,244	11,554
Africa	9,066	4,941	2,522	1,051	11,588	5,992
Asia	17,445	6,397	1,593	773	19,038	7,170
Australia	9,999	6,099	2,061	812	12,060	6,911
Europe	109	21	15	3	124	24
Total Consolidated Companies	60,724	32,155	11,792	6,015	72,516	38,170
Affiliates3	697	287	107	49	804	336
Total Including Affiliates	61,421	32,442	11,899	6,064	73,320	38,506
1 Gross acres represent the total number of acres in which Chevron has an ownership interest. Net acres represent the sum of Chevron’s ownership interest in gross acres.
2 The gross undeveloped acres that will expire in 2022, 2023 and 2024 if production is not established by certain required dates are 11,590, 4,778, and 282, respectively.
3 Includes gross 405 and net 141 undeveloped and gross 19 and net 5 developed acreage for interests accounted for by the non-equity method.

Undeveloped²
Developed Developed and Undeveloped
Thousands of acres¹
Gross
Net
Gross
Net
Gross
Net

United States 4,004
3,415
4,189
2,966
8,193
6,381

Other Americas 26,249
14,635
1,183
264
27,432
14,899

Africa 8,432
3,474
2,243
933
10,675
4,407

Asia 23,243
11,637
1,720
975
24,963
12,612

Australia/Oceania 25,947
17,198
2,002
803
27,949
18,001

Europe 2,004
1,004
�� 407
53
2,411
1,057

Total Consolidated Companies 89,879
51,363
11,744
5,994
101,623
57,357

Affiliates 513
224
291
112
804
336

Total Including Affiliates 90,392
51,587
12,035
6,106
102,427
57,693

¹ Gross acres represent the total number of acres in which Chevron has an ownership interest. Net acres represent the sum of Chevron's ownership interest in gross acres.

²The gross undeveloped acres that will expire in 2018, 2019 and 2020 if production is not established by certain required dates are 4,353, 1,695 and 1,321, respectively.

Delivery Commitments

The company sells crude oil and natural gas from its producing operations under a variety of contractual obligations. Most contracts generally commit the company to sell quantities based on production from specified properties, but some natural gas and crude oil sales contracts specify delivery of fixed and determinable ~~quantities, as discussed below.~~quantities.

In the United States, the company is contractually committed to deliver ~~151~~approximately 16 million barrels of crude oil and 759 billion cubic feet of natural gas to third parties from ~~2018~~2022 through ~~2020.~~2024. The company believes it can satisfy these contracts through a combination of equity production from the company’s proved developed U.S. reserves and third-party purchases. These commitments are ~~all~~primarily based on contracts with indexed pricing terms.

Outside the United States, the company is contractually committed to deliver a total of ~~2,380 billion~~2.9 trillion cubic feet of natural gas to third parties from ~~2018~~2022 through ~~2020~~2024 from operations in Australia ~~Colombia, Denmark, Indonesia~~ and ~~the Philippines. These~~Israel. The Australia sales contracts contain variable pricing formulas that ~~are~~ generally ~~referenced to~~reference the prevailing market price for crude oil, natural gas or other petroleum products at the time of delivery. The sales contracts for Israel contain formulas that generally reflect an initial base price subject to price indexation, Brent-linked or other, over the life of the contract. The company believes it can satisfy these contracts from quantities available from production of the company’s proved developed reserves in these countries.

Development Activities

Refer to Table I ~~on page 91~~ for details associated with the company’s development expenditures and costs of proved property acquisitions for ~~2017, 2016~~2021, 2020 and ~~2015.~~2019.

The following table summarizes the company’s net interest in productive and dry development wells completed in each of the past three years, and the status of the company’s development wells drilling at December 31, ~~2017.~~2021. A “development well” is a well drilled within the known area of a crude oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.


	Wells Drilling*		Net Wells Completed							Wells Drilling1		Net Wells Completed
	at 12/31/17		2017		2016		2015			at 12/31/21		2021		2020		2019
	Gross	Net	Prod.	Dry	Prod.	Dry	Prod.	Dry		Gross	Net	Prod.	Dry	Prod.	Dry	Prod.	Dry
United States	220	167	435	4	420	4	873	3	United States	108	66	319	2	539	2	682	1
Other Americas	30	13	40	—	45	—	99	—	Other Americas	7	4	54	—	27	—	36	—
Africa	4	1	34	—	17	—	9	—	Africa	3	1	4	—	5	—	26	—
Asia	9	1	246	2	470	6	828	5	Asia	38	18	35	—	94	2	181	2
Australia/Oceania	—	—	—	—	4	—	4	—
Australia									Australia	—	—	—	—	—	—	—	—
Europe	2	—	4	—	3	—	2	—	Europe	—	—	1	—	1	—	1	—
Total Consolidated Companies	265	182	759	6	959	10	1,815	8	Total Consolidated Companies	156	89	413	2	666	4	926	3
Affiliates	41	17	36	—	38	—	26	—	Affiliates	16	1	8	—	13	—	43	—
Total Including Affiliates	306	199	795	6	997	10	1,841	8	Total Including Affiliates	172	90	421	2	679	4	969	3
* Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron's ownership interest in gross wells.
1 Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron’s ownership interest in gross wells.									1 Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron’s ownership interest in gross wells.

The company holds a 29.6 percent nonoperated working interest in the heavy oil Hebron Field, also offshore Atlantic Canada. The development plan includes a platform with a design capacity of 150,000 barrels of crude oil per day. The

~~platform was installed at the offshore location in June 2017. First oil was achieved in November 2017. The project has an expected economic life of 30 years.~~

In the Flemish Pass Basin offshore Newfoundland, Chevron holds a 40 percent nonoperated working interest in two exploration blocks, EL1125 and EL1126. In addition, the company holds a 35 percent-owned and operated interest in Block EL1138.

The company holds a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) and associated Quest carbon capture and storage project in Alberta. Oil sands are mined from both the Muskeg River and the Jackpine mines, and bitumen is extracted from the oil sands and upgraded into synthetic oil. Carbon dioxide emissions from the ~~upgrade process~~upgrader are reduced by ~~the Quest~~ carbon capture and storage facilities.

~~The company holds approximately 228,000 net acres in the Duvernay Shale in Alberta.~~ Chevron has a 70 percent-owned and operated interest in most of ~~the~~its Duvernay shale acreage. Drilling continued during 2017 on an appraisal and land retention program. In November 2017, Chevron announced plans for the initial development program on approximately 55,000 net acres of its operated position in the Duvernay play. ABy early 2022, a total of 92227 wells ~~had~~have been tied into production ~~facilities by early 2018.~~facilities.

Chevron holds a 5026.9 percent nonoperated working interest in the Hibernia Field and a 24.1 percent nonoperated working interest in the unitized Hibernia Southern Extension areas offshore Atlantic Canada. The company holds a 29.6 percent nonoperated working interest in the heavy oil Hebron Field, also offshore Atlantic Canada, which has an expected remaining economic life of 30 years.

The company holds a 25 percent nonoperated working interest in blocks EL 1145, EL 1146 and EL 1148 and a 40 percent nonoperated working interest in EL 1149 located in offshore Atlantic Canada.

Colombia Chevron holds a 40 percent-owned and operated working interest in the ~~proposed Kitimat LNG~~offshore Colombia-3 and Pacific Trail Pipeline projects and a 50 percent interest in 290,000 net acres in the Horn River and Liard shale gas basins in British Columbia. The horizontal appraisal drilling program progressed during 2017. The Kitimat LNG Project is planned to include a two-train LNG facility and has a 10.0 million-metric-ton-per-year export license. The total production capacity for the project is expected to be 1.6 billion cubic feet of natural gas per day. Spending is being paced until LNG market conditions and reductions in project costs are sufficient to support the development of this project. At the end of 2017, proved reserves had not been recognized for this project.Guajira Offshore-3 Blocks.

~~Greenland~~ ~~Chevron held a 29.2 percent-owned and operated interest in two exploration blocks off the northeast coast of Greenland.~~Mexico The company ~~informed the government of Greenland of its intent to relinquish these blocks in late 2017 following completion of a multi-year seismic program.~~

~~Mexico~~ ~~The company~~owns and operates ~~and holds~~ a 33.3 percent ~~working~~ interest in Block 3 in the Perdido area of the Gulf of Mexico. ~~The block covers 139,000 net acres.~~ In ~~2017, activities for a seismic reprocessing project began. Chevron continues to evaluate additional exploration opportunities. In January 2018, a Chevron-led consortium was~~ the ~~successful bidder on an exploration license for Block 22~~Cuenca Salina area in the deepwater ~~Cuenca Salina area of the~~ Gulf of ~~Mexico. Following license execution expected in May 2018, the company will operate and hold a 37.5 percent working interest in Block 22 which covers 267,000 net acres.~~

~~Argentina~~Mexico, Chevron holds a ~~50 percent nonoperated interest in the Loma Campana and Narambuena concessions in the Vaca Muerta Shale covering 73,000 net acres. Chevron also holds an 85~~37.5 percent-owned and operated interest in the El Trapial concession covering 94,000 net acres with both conventional production and Vaca Muerta Shale potential. Net oil-equivalent production in 2017 averaged 23,000 barrels per day, composed of 19,000 barrels of crude oil and 27 million cubic feet of natural gas.

Nonoperated development activities continued in 2017 at the Loma Campana concession in the Vaca Muerta Shale. During 2017, 24 horizontal wells were drilled, and the drilling program is expected to continue in 2018.

Block 22. The company ~~utilizes waterflood operations to mitigate declines at the operated El Trapial Field~~also holds a 40 percent nonoperated interest in Blocks 20, 21 and ~~continues to evaluate the potential of the Vaca Muerta Shale. The El Trapial concession expires in 2032. Chevron plans to start a shale appraisal program in late 2018.~~23.

~~Evaluation of the nonoperated Narambuena Block continued in 2017.~~Suriname Chevron was the successful bidder in ~~November 2017 on the Loma del Molle Norte Block adjacent to the El Trapial concession.~~

~~Brazil~~ Chevron holds interests in the Frade (51.7 percent-owned and operated) and Papa-Terra (37.5 percent, nonoperated) deepwater fields located in the Campos Basin. In June 2017, the concession that includes the Frade Field was extended from 2025 to 2041, contingent on additional field development. The company is progressingan April 2021 bid round for a redevelopment plan. The concession that includes the Papa-Terra Field expires in 2032, and the remaining scope of the development plan is under evaluation. Drilling operations restarted at year-end 2017. Net oil-equivalent production in 2017 averaged 13,000 barrels per day, composed of 12,000 barrels of crude oil and 4 million cubic feet of natural gas.

~~Additionally, Chevron holds a 50~~40 percent-owned and operated working interest in Block ~~CE-M715, located~~5 and signed the production-sharing contract (PSC) in ~~the Ceara Basin offshore Brazil. Final 3-D seismic data was received in second quarter 2017 and is being evaluated.~~

~~Colombia~~ The company operates the offshore Chuchupa and onshore Ballena natural gas fields and receives 43 percent of the production for the remaining life of each field. Net production in 2017 averaged 96 million cubic feet of natural gas per day.

~~Suriname~~October 2021. Chevron also holds a 33.3 ~~percent and a 50~~ percent nonoperated working interest in deepwater ~~Blocks~~Block 42 ~~and 45 offshore Suriname, respectively. An exploratory~~where one exploration well is ~~planned in Block 45 in 2018.~~expected to be drilled during 2022.

~~Trinidad and Tobago~~ ~~In August 2017, the company sold its nonoperated working interest in the East Coast Marine Area and its operated interest in the Manatee Field.~~

Venezuela ~~Chevron's production activities~~ Chevron’s interests in Venezuela are located in western Venezuela and the Orinoco Belt. ~~Net oil-equivalent production during 2017 averaged 55,000 barrels per day, composed of 52,000 barrels of crude oil,~~At December 31, 2021, no proved reserves are recognized for these interests. In 2021, the company conducted activities in Venezuela consistent with the authorization provided pursuant to general licenses issued by the United States government. The company remains committed to its people, assets, and ~~15 million cubic feet of natural gas.~~operations in Venezuela.

Chevron holds a 39.2 percent interest in Petroboscan, which operates the Boscan Field in western Venezuela under an agreement expiring in 2026. Chevron has a 30 percent interest in ~~the~~ Petropiar, ~~affiliate that~~which operates the ~~Hamaca~~ heavy oil ~~production and upgrading project located in Venezuela’s Orinoco Belt~~Huyapari Field under an agreement expiring in 2033. ~~Petropiar drilled 70 development wells in 2017.~~ Chevron also holds ~~a 39.2 percent interest in the Petroboscan affiliate that operates the Boscan Field in western Venezuela and~~ a 25.2 percent interest in ~~the~~ Petroindependiente, ~~affiliate that~~which operates the LL-652 Field in Lake Maracaibo ~~both of which are~~ under ~~agreements~~a contract expiring in ~~2026. Petroboscan drilled 26 development wells in 2017.~~

~~Chevron also holds~~2026, and a 3435.7 percent interest in ~~the~~ Petroindependencia, ~~affiliate,~~ which includes the Carabobo 3 heavy oil project located ~~within~~in three blocks in the Orinoco Belt. The Petroindependencia contract expires in 2035.

Chevron also operates and holds a 60 percent interest in the Loran gas field offshore Venezuela. This is part of a cross- border field that includes the Manatee Field in Trinidad and Tobago. This license expires in 2039.

Africa

In Africa, the company is engaged in upstream activities in Angola, ~~Democratic~~the Republic of Congo, Cameroon, Egypt, Equatorial Guinea, and Nigeria. Acreage for Africa can be found in the ~~Congo, Liberia, Morocco, Nigeria and Republic of Congo.~~table on page 8. Net daily oil-equivalent production ~~averaged 453~~,~~000 barrels per day during 2017~~from these countries can be found in ~~this region.~~the table on page 7.

Angola The company operates and holds a 39.2 percent interest in Block 0, a concession adjacent to the Cabinda ~~coastline,~~coastline. The Block 0 partners and National Concessionaire signed an extension for an additional 20 years in December 2021. This extension to 2050 is subject to legislative approvals. The Block 0 Sanha Lean Gas Connection Project (SLGC) reached final investment decision in January 2021. SLGC is a new platform that ties the existing complex to new connecting pipelines for gathering and exporting gas from Blocks 0 and 14 to Angola LNG.

Chevron also operates and holds a 31 percent interest in a ~~production-sharing contract (PSC)~~PSC for deepwater Block ~~14. The concession for Block 0 extends through 2030 and the development and production rights for the various producing fields~~14 which expires in 2028. During 2021, drilling operations restarted in Block 14 ~~expire between 2023 and 2028. During 2017, net production averaged 113,000 barrels of liquids and 302 million cubic feet of natural gas per day.~~

~~The main production facility of~~following the second stage of the Mafumeira Field development was brought on line in February 2017 and production ramp-up is expected to continue through 2018. Water injection support began in May 2017, and gas export to Angola LNG began in July 2017.coronavirus (COVID-19) pandemic related shut-down.

Chevron has a 36.4 percent interest in Angola LNG Limited, which operates an onshore natural gas liquefaction plant in Soyo, Angola. The plant has the capacity to process 1.1 billion cubic feet of natural gas per day. This is the ~~world's~~world’s first LNG plant supplied with associated gas, where the natural gas is a byproduct of crude oil production. Feedstock for the plant originates from multiple fields and operators. ~~Total daily production~~During 2021, work continued toward developing non-associated gas in ~~2017 averaged 674 million cubic feet of natural gas (245 million net) and 27,000 barrels of NGLs (10,000 barrels net).~~offshore Angola, which is expected to supply the Angola LNG plant.

Angola-Republic of Congo Joint Development Area Chevron operates and holds a 31.3 percent interest in the Lianzi Unitization Zone, located in an area shared equally by Angola and the Republic of Congo. ~~Production from Lianzi is reflected~~This interest expires in ~~the totals for Angola and Republic of Congo.~~2031.

~~Democratic Republic of the Congo~~ Chevron has a 17.7 percent nonoperated working interest in an offshore concession. In December 2017, the concession was extended 20 years, until 2043. Net production in 2017 averaged 2,000 barrels of crude oil per day.

Republic of Congo Chevron has a 31.5 percent nonoperated working interest in the offshore Haute Mer permit ~~areas (Nkossa,~~area. The permits for Nkossa, Nsoko ~~and Moho-Bilondo). The licenses for Nsoko, Nkossa,~~ and Moho-Bilondo expire in ~~2018,~~ 2027, 2034 and 2030, respectively. ~~Net production averaged 36,000 barrels of liquids per day in 2017.~~

~~In March 2017, production started at~~Cameroon Chevron owns and operates the ~~new TLP and floating production unit (FPU) facilities hub~~YoYo Block in the ~~Moho-Bilondo~~Douala Basin. Preliminary development ~~area. Miocene~~plans include a possible joint development between YoYo and ~~Albian development drilling continued~~the Yolanda Field in ~~2017. Total daily production~~Equatorial Guinea.

Egypt In the Mediterranean Sea, Chevron holds a 90 percent-owned and operated interest in ~~2017 averaged 72,000 barrels of crude oil (20,000 barrels net).~~

~~Two exploration wells are planned to be drilled in 2018, with one in~~North Sidi Barrani (Block 2), North El Dabaa (Block 4) and the ~~Moho Bilondo area and one in the 20.4~~Nargis block, as well as a 27 percent nonoperated working interest ~~Haute Mer B area.~~in both North Marina (Block 6) and North Cleopatra (Block 7). In the Red Sea, the company holds a 45 percent-owned and operated interest in Block 1.

~~Liberia~~Equatorial Guinea Chevron ~~operates~~has a 38 percent-owned and operated interest in the Aseng oil field and the Yolanda natural gas field in Block I and a 45 percent-owned and operated interest in the Alen natural gas and condensate field in Block O. The Alen Gas Project was completed in February 2021, with the first LNG cargo shipped in March 2021.

Chevron signed a production sharing agreement for an 80 percent-owned and operated interest in Block EG-09, offshore Equatorial Guinea, in the Douala Basin located south of the Alen and Aseng oil fields.

The company also holds a 32 percent nonoperated interest in the natural gas and condensate Alba Field, a 28 percent nonoperated interest in the Alba LPG Plant and a 45 percent interest in ~~Block LB-14 off~~ the ~~coast of Liberia. The LB-14 PSC expires in 2018.~~Atlantic Methanol Production Company.

~~Morocco~~ The company holds a 45 percent interest in two operated deepwater areas offshore Morocco. In 2017, the evaluation of 3-D seismic data continued. In 2017, the company surrendered its interest in the Cap Rhir Deep acreage.

Nigeria Chevron operates and holds a 40 percent interest in eight concessions, seven operated ~~concessions~~and one nonoperated in the onshore and near-offshore regions of the Niger Delta. The company also holds acreage positions in three operated and six nonoperated deepwater blocks, with working interests ranging from 20 ~~percent~~ to 100 percent. ~~In 2017,~~

Chevron is the ~~company’s net oil-equivalent production in Nigeria averaged 250,000 barrels per day, composed~~operator of ~~207,000 barrels~~the Escravos Gas Plant (EGP) with a total processing capacity of ~~crude oil, 223~~680 million cubic feet per day of natural gas and ~~6,000~~liquified petroleum gas and condensate export capacity of 58,000 barrels per day. The company is also the operator of ~~liquefied petroleum gas.~~the 33,000-barrel-per-day Escravos Gas to Liquids facility. In addition, the company holds a 36.9 percent interest in the West African Gas Pipeline Company Limited affiliate, which supplies Nigerian natural gas to customers in Benin, Togo and Ghana.

Chevron operates and holds a 67.3 percent interest in the Agbami Field, located in deepwater Oil Mining Lease (OML) 127 and OML 128. ~~The first two phases of infill drilling, Agbami 2 and Agbami 3, are complete. The third phase of infill drilling has commenced to further offset field decline.~~Additionally, Chevron holds a 30 percent nonoperated working interest in the Usan Field in OML 138. The leases that contain the Usan and Agbami ~~Field~~Fields expire in 2023 and ~~2024.~~2024, respectively.

Also, in the deepwater area, the Aparo Field in OML 132 and OML 140 and the third-party-owned Bonga SW Field in OML 118 share a common geologic structure and are planned to be ~~jointly developed.~~developed jointly. Chevron holds a 16.6 percent nonoperated working interest in the unitized area.The development plan involves subsea wells tied back to a floating production, storage and offloading ~~vessel (FPSO).~~vessel. Work continues ~~on optimizing project scope and cost.~~to progress toward a final investment decision. At the end of ~~2017,~~2021, no proved reserves were recognized for this project.

In deepwater exploration, Chevron operates and holds a 55 percent interest in the deepwater Nsiko discoveries in OML 140. ~~A 3-D seismic acquisition is planned for OML 140 in 2018.~~ Chevron also holds ~~a 30 percent nonoperated working interest in OML 138, which includes the Usan Field and several satellite discoveries, and~~ a 27 percent interest in adjacent licenses OML 139 and ~~Oil Prospecting License (OPL) 223. In 2017,~~OML 154. The company continues to work with the ~~company continued~~operator to evaluate development options for the multiple discoveries in the Usan area, including the Owowo Field, ~~that~~which straddles OML 139 and ~~OPL 223.~~OML 154. The development plan for the Owowo field involves a subsea tie-back to the existing Usan floating, production, storage, and offloading vessel.

In the Niger Delta region, Chevron is executing a 36-well infill drilling program to offset oil decline and increase production. The program achieved net production of 13,000 barrels of crude oil per day at the end of 2017. The company is the operator of the Escravos Gas Plant (EGP) with a total processing capacity of 680 million cubic feet per day of natural gas and an LPG and condensate export capacity of 58,000 barrels per day. The company is also the operator of the 33,000-barrel-per-day Escravos gas-to-liquids facility. Optimization of these facilities continued in 2017. Construction activities were completed in 2017 on the 40 percent-owned and operated Sonam Field Development Project, which is designed to process natural gas through the EGP facilities and is expected to deliver 215 million cubic feet of natural gas per dayApril 2021, further to the ~~domestic market and produce~~exercise of a ~~total of 30,000 barrels of liquids per day. Production commenced in June 2017 and is expected to continue ramping up in 2018.~~

~~In addition,~~preemptive right by its joint venture partner, the company ~~holds a 36.7~~signed an agreement to divest its 40 percent operated interest in ~~the West African Gas Pipeline Company Limited affiliate, which supplies Nigerian natural gas~~OML 86 and OML 88. This sale is subject to ~~customers in Benin, Ghana and Togo.~~customary closing conditions.

Asia

In Asia, the company is engaged in upstream activities in ~~Azerbaijan,~~ Bangladesh, China, Cyprus, Indonesia, Israel, Kazakhstan, ~~the~~ Kurdistan Region of Iraq, Myanmar, the Partitioned Zone ~~located~~ between Saudi Arabia and Kuwait, ~~the Philippines,~~ Russia, and Thailand. ~~During 2017, net~~Acreage for Asia can be found in the table on page 8. Net daily oil-equivalent production ~~averaged 1,030,000 barrels per day in this region.~~

~~Azerbaijan~~ ~~Chevron holds a nonoperated interest~~for these countries can be found in the Azerbaijan International Operating Company (AIOC) and the crude oil production from the Azeri-Chirag-Gunashli (ACG) fields. AIOC operations are conducted under a PSC. In November 2017, the PSC was extended from 2024 to 2049. As part of the extension agreement, the company's interest in AIOC was reduced from 11.3 percent to 9.6 percent. Net oil-equivalent production in 2017 averaged 25,000 barrels per day, composed of 23,000 barrels of crude oil and 11 million cubic feet of natural gas.table on page 7.

Chevron also has an 8.9 percent interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline affiliate, which transports the majority of ACG production from Baku, Azerbaijan, through Georgia to Mediterranean deepwater port facilities at Ceyhan, Turkey. The BTC pipeline has a capacity of 1 million barrels per day. Another production export route for crude oil is the Western Route Export Pipeline (WREP), which is operated by AIOC. During 2017, WREP transported approximately 77,000 barrels per day from Baku, Azerbaijan, to a marine terminal at Supsa, Georgia, on the Black Sea.

~~Kazakhstan~~ Chevron has a 50 percent interest in the Tengizchevroil (TCO) affiliate and an 18 percent nonoperated working interest in the Karachaganak Field. Net oil-equivalent production in 2017 averaged 415,000 barrels per day, composed of 326,000 barrels of liquids and 533 million cubic feet of natural gas.

TCO is developing the Tengiz and Korolev crude oil fields in western Kazakhstan under a concession agreement that expires in 2033. Net daily production in 2017 from these fields averaged 272,000 barrels of crude oil, 401 million cubic feet of natural gas and 21,000 barrels of NGLs. All of TCO’s crude oil production was exported through the Caspian Pipeline Consortium (CPC) pipeline.

The Future Growth and Wellhead Pressure Management Project (FGP/WPMP) at Tengiz is being managed as a single integrated project. The FGP is designed to increase total daily production by about 260,000 barrels of crude oil and to expand the utilization of sour gas injection technology proven in existing operations to increase ultimate recovery from the reservoir. The WPMP is designed to maintain production levels in existing plants as reservoir pressure declines. Project execution advanced through 2017. Fabrication of process modules is underway, and gas turbine generators are being constructed. Dredging is complete, and other activities for the initiation of port operations are underway. Infrastructure work and site construction are progressing, and three drilling rigs are in operation on the multi-well pads. First oil is planned for 2022. Proved reserves have been recognized for the FGP/WPMP.

The Capacity and Reliability (CAR) Project is designed to reduce facility bottlenecks and increase plant capacity and reliability at Tengiz. Construction activities for the CAR Project progressed during 2017, with project completion projected for second quarter 2018. Proved reserves have been recognized for the CAR Project.

The Karachaganak Field is located in northwest Kazakhstan, and operations are conducted under a PSC that expires in 2038. During 2017, net daily production averaged 33,000 barrels of liquids and 132 million cubic feet of natural gas. Most of the exported liquids were transported through the CPC pipeline. Work continues on identifying the optimal scope for the future expansion of the field. At year-end 2017, proved reserves had not been recognized for a future expansion.

~~Kazakhstan/Russia~~ Chevron has a 15 percent interest in the CPC. During 2017, CPC transported an average of 1,180,000 barrels of crude oil per day, composed of 1,060,000 barrels per day from Kazakhstan and 120,000 barrels per day from Russia. In 2017, work was completed on the expansion of the pipeline, reaching the design capacity of 1.4 million per day. The expansion provides additional transportation capacity that accommodates a portion of the future growth in TCO production.

Bangladesh Chevron operates and holds a 100 percent interest in Block 12 (Bibiyana Field) and Blocks 13 and 14 (Jalalabad and Moulavi Bazar fields). The rights to produce from Jalalabad expire in ~~2024,~~2030, from Moulavi Bazar in ~~2028~~2033 and from Bibiyana in 2034. ~~Net oil-equivalent~~

China Chevron has nonoperated working interests in several areas in China. The company has a 49 percent nonoperated working interest in the Chuandongbei Project, including the Loujiazhai and Gunziping natural gas fields located onshore in the Sichuan Basin.

The company also has nonoperated working interests of 32.7 percent in Block 16/19 in the Pearl River Mouth Basin and 24.5 percent in the Qinhuangdao (QHD) 32-6 Block in the Bohai Bay. The PSCs for Block 16/19 and QHD 32-6 expire in 2028 and 2024, respectively.

Cyprus The company holds a 35 percent-owned and operated interest in the Aphrodite gas field in Block 12. Chevron operates the field with the Government of Cyprus and has a license that expires in 2044.

Indonesia Chevron has working interests through various PSCs in Indonesia. In offshore eastern Kalimantan, the company operates and holds a 62 percent interest in two PSCs in the Kutei Basin (Rapak and Ganal) and operates and holds a 72 percent interest in the Makassar Strait PSC. The PSCs for offshore eastern Kalimantan expire in December 2027 (Rapak and Makassar Strait) and February 2028 (Ganal). The Chevron-operated Rokan PSC in Sumatra expired in August 2021.

Chevron concluded during 2019 that the Indonesia Deepwater Development held by the Kutei Basin PSCs did not compete in its portfolio and is evaluating strategic alternatives for the participating interest in these PSCs.

Israel Chevron holds a 39.7 percent-owned and operated interest in the Leviathan Field, which operates under a concession that expires in 2044. The company also holds a 25 percent-owned and operated interest in the Tamar gas field, which operates under a concession that expires in 2038. Opportunities to further monetize the existing gas resources are being assessed for both the Tamar and Leviathan fields.

Kazakhstan Chevron has a 50 percent interest in the Tengizchevroil (TCO) affiliate and an 18 percent nonoperated working interest in the Karachaganak Field.

TCO is developing the Tengiz and Korolev crude oil fields in western Kazakhstan under a concession agreement that expires in 2033. All of TCO’s 2021 crude oil production was exported through the Caspian Pipeline Consortium (CPC) pipeline.

In 2021, TCO continued construction on the Future Growth Project and Wellhead Pressure Management Project (FGP/WPMP), with all modules being placed on foundation as of April 2021. The third of four metering stations associated with the project was completed in ~~2017 averaged 111,000~~September 2021, collectively delivering over 100 MBOED of production through existing facilities in the fourth quarter. The project also successfully integrated the utility modules for the 3rd generation plant. At year-end, the project was approximately 89 percent complete. Due to pandemic impacts, it is expected that the WPMP portion will start up in mid-2023, with FGP expected to come online in late-2023 to mid-2024. Proved reserves have been recognized for FGP/WPMP.

The Karachaganak Field is located in northwest Kazakhstan, and operations are conducted under a PSC that expires in 2038. Most of the exported liquids were transported through the CPC pipeline during 2021. Development continued on the Karachaganak Expansion Project Stage 1A during 2021. The initial recognition of proved reserves occurred in 2021 for this project.

Kazakhstan/Russia Chevron has a 15 percent interest in the CPC. Progress continued on the debottlenecking project, which is expected to further increase capacity. During 2021, CPC transported an average of 1.3 million barrels of crude oil per day, composed of ~~642~~1.1 million ~~cubic feet~~barrels per day from Kazakhstan and 0.2 million barrels per day from Russia.

Kurdistan Region of ~~natural gas~~Iraq The company holds a 50 percent nonoperated interest in the Sarta PSC, which expires in 2047, and ~~4,000 barrels~~a 40 percent nonoperated interest in the Qara Dagh PSC. Chevron relinquished operatorship of ~~condensate. In third quarter 2017,~~ the ~~company announced its intent to retain its assets in Bangladesh.~~Sarta block effective January 2022.

Myanmar Chevron has a 28.3 percent nonoperated working interest in a PSC for the production of natural gas from the Yadana, Badamyar and Sein fields, within Blocks M5 and M6, in the Andaman Sea. The PSC expires in 2028. The company also has a 28.3 percent nonoperated working interest in a pipeline company that transports natural gas to the Myanmar-Thailand border for delivery to power plants in Thailand. ~~Net natural gas production in 2017 averaged 116 million cubic feet per day.~~

~~The Badamyar-Low Compression Platform (LCP) expansion project in Block M5 was brought on line in May 2017. The Badamyar-LCP is designed~~In January 2022, Chevron announced its intention to ~~maintain production~~begin the process of a planned and orderly transition that will lead to an exit from the ~~Yadana Field by lowering wellhead pressure.~~country.

Partitioned ZoneChevron ~~also~~ holds a ~~99 percent-owned and operated~~concession to operate the Kingdom of Saudi Arabia’s 50 percent interest in ~~Block A5. Evaluation~~the hydrocarbon resources in the onshore area of ~~a 3-D seismic survey that was completed~~the Partitioned Zone between Saudi Arabia and Kuwait. The concession expires in ~~December 2015 continued in 2017. Additional seismic processing~~2046. Current activities focus on base business optimization and ~~interpretation is expected in 2018.~~production enhancement opportunities.

Thailand Chevron holds operated interests in the Pattani Basin, located in the Gulf of Thailand, with ownership ranging from 35 percent to 80 percent. Concessions for producing areas within this basin expire between 2022 and 2035. Chevron also has a 16 percent nonoperated working interest in the Arthit Field located in the Malay Basin. Concessions for the producing areas within this basin expire between 2036 and 2040. ~~Net oil-equivalent production in 2017 averaged 241,000 barrels per day, composed of 69,000 barrels of crude oil and condensate and 1.0 billion cubic feet of natural gas.~~

InWithin the Pattani Basin, the company holds ownership ranging from 70 to 80 percent of the Erawan concession, which expires in April 2022. Chevron also has a 35 percent-owned and operated interest in the Ubon Project in Block 12/~~27 entered front-end engineering~~27.

Chevron holds between 30 to 80 percent operated and ~~design (FEED) in third quarter 2017 with an updated development concept that optimizes oil and gas production profiles. At the end of 2017, proved reserves have not been recognized for this project.~~

~~During 2017, the company drilled two exploration wells in the Malay Basin, and both wells were successful. The company also holds exploration~~nonoperated working interests in the Thailand-Cambodia ~~overlapping claim area~~Overlapping Claims Area that are inactive, pending resolution of border issues between Thailand and Cambodia.

~~China~~

Australia

Chevron ~~has operated and nonoperated working interests in several areas in China. The company’s net daily production in 2017 averaged 17,000 barrels~~is Australia's largest producer of ~~crude oil and 81 million cubic feet of natural gas.~~

~~The company operates the 49 percent-owned Chuandongbei Project, located onshore~~LNG. Acreage can be found in the ~~Sichuan Basin. The Xuanhan Gas Plant has three gas processing trains with a design outlet capacity of 258 million cubic feet per day. Total~~table on page 8. Net daily oil-equivalent production ~~in 2017 averaged 177 million cubic feet of natural gas (81 million net).~~

~~The company also has nonoperated working interests of 24.5 percent~~can be found in the ~~QHD 32-6 Field and 16.2 percent in Block 11/19 in the Bohai Bay, and 32.7 percent in Block 16/19 in the Pearl River Mouth Basin. The PSCs for these producing assets expire between 2022 and 2028.~~table on page 7.

~~Philippines~~ The company holds a 45 percent nonoperated working interest in the Malampaya natural gas field, offshore Philippines. Net oil-equivalent production in 2017 averaged 25,000 barrels per day, composed of 129 million cubic feet of natural gas and 3,000 barrels of condensate. The concession expires in 2024.

~~In December 2017, the company sold its geothermal assets in the Philippines.~~

~~Indonesia~~ Chevron holds working interests through various PSCs in Indonesia. In Sumatra, the company holds a 100 percent-owned and operated interest in the Rokan PSC. Chevron also operates four PSCs in the Kutei Basin, located offshore eastern Kalimantan. These interests range from 62 percent to 92.5 percent. Net oil-equivalent production in 2017 averaged 164,000 barrels per day, composed of 137,000 barrels of liquids and 163 million cubic feet of natural gas. In 2016, Chevron advised the government of Indonesia of its intent not to extend the East Kalimantan PSC and to return the assets to the government upon PSC expiration in fourth quarter 2018.

The largest producing field is Duri, located in the Rokan PSC. Duri has been under steamflood since 1985 and is one of the world’s largest steamflood developments. Infill drilling and workover programs continued in 2017. The Rokan PSC expires in 2021.

There are two deepwater natural gas development projects in the Kutei Basin progressing under a single plan of development. Collectively, these projects are referred to as the Indonesia Deepwater Development. One of these projects, Bangka, includes a two-well subsea tieback to the West Seno FPU. The company’s interest is 62 percent. Net daily production from Bangka in 2017 averaged 49 million cubic feet of natural gas and 2,000 barrels of condensate.

The other project, Gendalo-Gehem, has a planned design capacity of 1.1 billion cubic feet of natural gas and 47,000 barrels of condensate per day. The company's interest is approximately 63 percent. The company continues to work toward a final investment decision, subject to the timing of government approvals, including extension of the associated PSCs, and securing new LNG sales contracts. The project is being reviewed for opportunities to reduce project cost. At the end of 2017, proved reserves have not been recognized for this project.

~~In March 2017, the company sold its geothermal assets in Indonesia.~~

~~In August 2017, the company sold its South Natuna Sea Block B assets in Indonesia.~~

~~Kurdistan Region of Iraq~~ The company operates and holds 80 percent contractor interests in the Sarta PSC. In fourth quarter 2017, drilling commenced on the first appraisal well. The well is planned to be completed in second-half 2018.

~~Partitioned Zone~~ Chevron holds a concession to operate the Kingdom of Saudi Arabia's 50 percent interest in the hydrocarbon resources in the onshore area of the Partitioned Zone between Saudi Arabia and Kuwait. The concession expires in 2039. Beginning in May 2015, production in the Partitioned Zone was shut in as a result of continued difficulties in securing work and equipment permits. As of early 2018, production remains shut in, and the exact timing of a production restart is uncertain and dependent on dispute resolution between Saudi Arabia and Kuwait.

~~Processing of the 3-D seismic survey, which was acquired in 2016 and covers the entire onshore Partitioned Zone, was completed in second quarter 2017. Work continues to interpret the results.~~

~~Australia/Oceania~~

~~In Australia/Oceania, the company is engaged in upstream activities in Australia and New Zealand. During 2017, net oil-equivalent production averaged 256,000 barrels per day, all from Australia.~~

~~Australia~~Upstream activities in Australia are concentrated offshore Western Australia, where the company is the operator of two major LNG projects, Gorgon and Wheatstone, and has a nonoperated working interest in the North West Shelf (NWS) Venture and exploration acreage in the ~~Browse Basin and the~~ Carnarvon Basin. The company also holds exploration acreage in the Bight Basin offshore South Australia. During 2017, the company's production averaged 27,000 barrels of liquids and 1.4 billion cubic feet of natural gas per day.

Chevron holds a 47.3 ~~percent~~percent-owned and operated interest in ~~and is the operator of the~~ Gorgon ~~Project,~~on Barrow Island, which includes the development of the Gorgon and Jansz-Io ~~fields. The project includes~~fields, a three-train 15.6 million-metric-ton-per-year LNG facility, a carbon ~~dioxide injection~~capture and underground storage facility and a domestic gas ~~plant, which are located~~plant. Progress on ~~Barrow Island.~~the Gorgon Stage 2 project continued in 2021, with the completion of the pipelay in May 2021 and first production expected in third quarter 2022. The ~~total production capacity~~company reached a final investment decision on the Jansz-Io Compression Project in July 2021, and proved reserves have been recognized for the project is approximately 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate per day. LNG Train 3 start-up was achieved in March 2017. Total daily production from all three trains in 2017 averaged 1.9 billion cubic feet of natural gas (905 million net) and 14,000 barrels of condensate (7,000 barrels net). The project'sthis project. Gorgon’s estimated remaining economic life exceeds 40 years.

Chevron holds an 80.2 percent interest in the offshore licenses and a 64.1 ~~percent~~percent-owned and operated interest in the LNG facilities associated with ~~the~~Wheatstone. Wheatstone ~~Project. The project~~ includes the development of the Wheatstone and Iago fields, a two-train, 8.9 million-metric-ton-per-year LNG facility, and a domestic gas plant. The onshore facilities are located at Ashburton North on the coast of Western Australia. The total production capacity for the Wheatstone and Iago fields and nearby third-party fields is expected to be approximately 1.6 billion cubic feet of natural gas and 30,000 barrels of condensate per day. LNG Train 1 start-up and first cargo were achieved in October 2017. Train 2 start-up operations are underway, and first LNG is expected in second quarter 2018. The project'sWheatstone’s estimated remaining economic life exceeds 3020 years.

Chevron has a 16.7 percent nonoperated working interest in the NWS Venture in Western Australia.

The ~~concession for the NWS Venture expires in 2034.~~

~~During 2017, the~~ company ~~acquired 50 percent operated interests in four additional exploration permits in the northern Carnarvon Basin. Chevron expects to continue~~continues to evaluate exploration ~~potential~~and appraisal activity across the Carnarvon Basin in which it holds more than 6.0 million net acres. Chevron relinquished 0.5 million net acres in 2021 in the Carnarvon and Browse basins.

Chevron owns and operates the Clio, Acme and Acme West fields. The company is collaborating with other Carnarvon Basin ~~during 2018.~~participants to assess the possibility of developing Clio and Acme through shared utilization of existing infrastructure.

T~~he company holds nonoperated working interests ranging from 24.8 percent to 50 percent in three exploration blocks~~

United Kingdom

Acreage can be found in the ~~Browse Basin.~~

~~The company operates and holds a 100 percent interest in offshore Blocks EPP44 and EPP45~~table on page 8. Net oil equivalent production for the United Kingdom can be found in the ~~Bight Basin. In October 2017, the company discontinued the exploration program and informed the Government of Australia of the company's intent to exit from the Bight Basin.~~table on page 7.

~~New Zealand~~ Chevron holds a 50 percent interest and operates three deepwater exploration permits in the offshore Pegasus and East Coast basins. Acquisition of 3-D seismic data was completed in second quarter 2017, and processing of the data is continuing.

~~Europe~~

~~In Europe, the company is engaged in upstream activities in Denmark, Norway and the United Kingdom. Net oil-equivalent production averaged 98,000 barrels per day during 2017.~~

~~Denmark~~ ~~Chevron holds a 12~~19.4 percent nonoperated working interest in the Danish Underground Consortium, which produces crude oil and natural gas from 13 North Sea fields. The concession expires in 2042. Net oil-equivalent production in 2017 averaged 23,000 barrels per day, composed of 14,000 barrels of crude oil and 53 million cubic feet of natural gas.

~~United Kingdom~~ ~~The company’s net oil-equivalent production in 2017 averaged 75,000 barrels per day, composed of 50,000 barrels of liquids and 155 million cubic feet of natural gas.~~

~~The Captain Enhanced Oil Recovery Project is the next development phase of the Captain~~Clair Field, and is designed to increase field recovery by injecting a polymer/water mixture. In 2017, two polymer injection pilots were successfully completed and the company reached a final investment decision on Captain EOR Stage 1, which includes an expansion of the existing polymer injection system on the wellhead production platform, six new polymer injection wells and modifications to the platform facilities. At the end of 2017, proved reserves have been recognized for the Stage 1 project. Also during 2017, FEED activities continued to progress on Captain EOR Stage 2, which involves subsea expansion of the technology. At the end of 2017, proved reserves had not been recognized for Stage 2 of the project.

~~During 2017, hook-up and commissioning activities advanced for the Clair Ridge Project,~~ located west of the Shetland ~~Islands, in which the company has a 19.4 percent nonoperated working interest.~~Islands. The ~~project~~Clair Ridge Project is the second development phase of the Clair ~~Field. The~~Field, with a design capacity of ~~the project is~~ 120,000 barrels of crude oil and 100 million cubic feet of natural gas per day. ~~First production is expected in 2018.~~ The Clair Field has an estimated remaining production life extending ~~until~~beyond 2050. ~~Proved reserves have been recognized for the Clair Ridge Project.~~

At the 40 percent-owned and operated Rosebank Project northwest of the Shetland Islands, the selected design is a subsea development tied back to an FPSO with natural gas exported via pipeline. The design capacity of the project is 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day. FEED activities continued to progress in 2017, with focus on subsurface characterization and cost optimization. At the end of 2017, proved reserves had not been recognized for this project.

~~Norway~~The company holds a 20 percent nonoperated working interest in exploration Block PL 859, located in the Barents Sea. An exploration well was drilled in 2017, which resulted in noncommercial quantities of gas. A second well is scheduled for 2018 to further evaluate the potential of the license.

Sales of Natural Gas and Natural Gas Liquids

The company sells natural gas and ~~natural gas liquids (NGLs)~~NGLs from its producing operations under a variety of contractual arrangements. In addition, the company also makes third-party purchases and sales of natural gas and NGLs in connection with its supply and trading activities.

During ~~2017,~~2021, U.S. and international sales of natural gas averaged ~~3.3~~4.0 billion and ~~5.1~~5.2 billion cubic feet per day, respectively, which includes the company’s share of equity affiliates’ sales. Outside the United States, substantially all of the natural gas

sales from the company’s producing interests are from operations in Angola, Argentina, Australia, Bangladesh, ~~Europe,~~Canada, Equatorial Guinea, Kazakhstan, Indonesia, ~~Latin America, Myanmar,~~Israel, Nigeria ~~the Philippines~~ and Thailand.

U.S. and international sales of NGLs averaged ~~139,000~~230,000 and ~~93,000~~180,000 barrels per day, respectively, in ~~2017. Substantially all of the international sales of NGLs from the company's producing interests are from operations in Angola, Australia, Canada, Indonesia, Nigeria and the United Kingdom.~~2021.

Refer to “Selected Operating Data,” on page 3942 in Management’s Discussion and Analysis of Financial Condition and Results of Operations, for further information on the company’s sales volumes of natural gas and natural gas liquids. Refer also to “Delivery Commitments” beginning on page 68 for information related to the company’s delivery commitments for the sale of crude oil and natural gas.

Downstream

Refining Operations

At the end of ~~2017,~~2021, the company had a refining network capable of ~~processing nearly 1.7~~processing 1.8 million barrels of crude oil per day. Operable capacity at December 31, ~~2017,~~2021, and daily refinery inputs for ~~2015~~2019 through ~~2017~~2021 for the company and affiliate refineries, are summarized in the table ~~on the next page.~~below.

Average crude oil distillation capacity utilization ~~during 2017~~ was ~~93 percent, compared with 92~~82 percent in ~~2016.~~2021 and 76 percent in 2020. At the U.S. refineries, crude oil distillation capacity utilization averaged 9883 percent in ~~2017,~~2021, compared with 9373 percent in ~~2016.~~2020. Chevron processes both imported and domestic crude oil in its U.S. refining operations. Imported crude oil accounted for about 7160 percent and 7659 percent of Chevron’s U.S. refinery inputs in ~~2017~~2021 and ~~2016,~~2020, respectively.

In the United States, the company continued work on projects ~~to improve~~aimed at improving refinery flexibility and reliability. At the ~~Richmond,~~El Segundo Refinery in California, ~~refinery, the modernization project continued to progress, with start-up~~production of ~~the new hydrogen plant scheduled for second-half 2018, and full operation of the project expected~~renewable fuels from bio-feedstocks was achieved in ~~2019.~~third quarter 2021. At the refinery in Salt Lake City, Utah, ~~refinery, construction began for~~ the alkylation retrofit project reached start-up in ~~July 2017. Project start-up is expected in 2020.~~April 2021. The Pasadena Refinery enables processing of greater amounts of Permian light crude oil and provides integration with Chevron’s Gulf Coast Pascagoula, Mississippi refinery and Houston Blend Center.

Outside the United States, the company has three large refineries in Singapore, South Korea and Thailand. The Singapore Refining Company (SRC), ~~Chevron's~~a 50 percent-owned joint venture, ~~completed construction~~has a total capacity of ~~gasoline clean fuels facilities~~290,000 barrels of crude per day and manufactures a cogeneration plant. The two trains at the cogeneration plant were commissioned in first-half 2017, enabling SRC to generate its own electricity and steam supply, improve energy efficiency, and significantly reduce greenhouse gas and sulfur oxide emissions. The gasoline clean fuels facilities enable SRC to produce higher-valuewide range of petroleum products, including higher-quality gasoline that meets stricter emission standards.

Refinery upgrades have enabled SRC to produce higher-quality gasoline that meets stricter emission standards. The ~~company completed the sale of its refining assets in British Columbia, Canada, in September 2017. In addition, the company signed an agreement for the sale of its interests in the Cape Town~~50 percent-owned, GS Caltex (GSC) operated, Yeosu Refinery in South ~~Africa~~Korea remains one of the world’s largest refineries with a total crude capacity of 800,000 barrels per day. The company’s 60.6 percent-owned refinery in ~~2017. The sale is expected~~Map Ta Phut, Thailand, continues to ~~close~~supply high-quality petroleum products through the Caltex brand into regional markets.


Petroleum Refineries: Locations, Capacities and Inputs
Capacities and inputs in thousands of barrels per day		December 31, 2021		Refinery Inputs
Locations		Number	Operable Capacity	2021	2020	2019
Pascagoula	Mississippi	1	369	333	305	358
El Segundo	California	1	290	233	176	241
Richmond	California	1	257	211	198	236
Pasadena1	Texas	1	110	76	69	58
Salt Lake City	Utah	1	58	50	45	54
Total Consolidated Companies — United States		5	1,084	903	793	947
Map Ta Phut	Thailand	1	175	135	143	134


Total Consolidated Companies — International		1	175	135	143	134
Affiliates	Various Locations2	2	545	441	441	483
Total Including Affiliates — International		3	720	576	584	617
Total Including Affiliates — Worldwide		8	1,804	1,479	1,377	1,564

1In May 2019, the company acquired the Pasadena, TX refinery.

2 In March 2020, the company sold its interest in ~~2018, pending local government approval.~~

~~Petroleum Refineries: Locations, Capacities and Inputs~~

the Pakistan refinery.

Capacities and inputs in thousands of barrels per day December 31, 2017 Refinery Inputs
Locations Number
Operable Capacity
2017
2016
2015

Pascagoula Mississippi 1
340
349
355
322

El Segundo California 1
269
251
267
258

Richmond California 1
257
248
188
245

Kapolei¹
Hawaii —
—
—
37
47

Salt Lake City Utah 1
53
53
53
52

Total Consolidated Companies — United States 4
919
901
900
924

Map Ta Phut Thailand 1
165
152
162
164

Cape Town²
South Africa 1
110
68
78
69

Burnaby, B.C.³
Canada —
—
40
51
46

Total Consolidated Companies — International 2
275
260
291
279

Affiliates Various Locations 3
544
500
497
499

Total Including Affiliates — International 5
819
760
788
778

Total Including Affiliates — Worldwide 9
1,738
1,661
1,688
1,702


¹	~~In November 2016, the company sold the Hawaii Refinery.~~


²	Chevron holds a 75 percent controlling interest in the shares issued by Chevron South Africa (Pty) Limited, which owns the Cape Town Refinery. A consortium of South African partners, along with the employees of Chevron South Africa (Pty) Limited, own the remaining 25 percent.


³	~~In September 2017, the company sold the Burnaby, B.C. refinery.~~

Marketing Operations

The company markets petroleum products under the principal brands of “Chevron,” “Texaco” and “Caltex” throughout many parts of the world. The following table identifies the company’s and its affiliates’ refined products sales volumes, excluding intercompany sales, for the three years ended December 31, ~~2017.~~2021.

~~Refined Products Sales Volumes~~


Refined Products Sales Volumes
Thousands of barrels per day	2021	2020	2019
United States
Gasoline	655	581	667
Jet Fuel	173	139	256
Diesel/Gas Oil	179	167	191
Residual Fuel Oil	39	33	42
Other Petroleum Products1	93	83	94
Total United States	1,139	1,003	1,250
International2
Gasoline	321	264	289
Jet Fuel	140	143	238
Diesel/Gas Oil	471	438	427
Residual Fuel Oil	177	184	167
Other Petroleum Products1	206	192	206
Total International	1,315	1,221	1,327
Total Worldwide2	2,454	2,224	2,577
1 Principally naphtha, lubricants, asphalt, and coke.
2 Includes share of affiliates’ sales:	357	348	379

Thousands of barrels per day 2017
2016
2015

United States
   Gasoline 625
631
621

   Jet Fuel 242
242
232

   Diesel/Gas Oil 179
182
215

   Residual Fuel Oil 48
59
59

   Other Petroleum Products¹
103
99
101

Total United States 1,197
1,213
1,228

International²

   Gasoline 365
382
389

   Jet Fuel 274
261
271

   Diesel/Gas Oil 490
468
478

   Residual Fuel Oil 162
144
159

   Other Petroleum Products¹
202
207
210

Total International 1,493
1,462
1,507

Total Worldwide²
2,690
2,675
2,735

¹ Principally naphtha, lubricants, asphalt and coke.

² Includes share of affiliates’ sales:
366
377
420

In the United States, the company markets under the Chevron and Texaco brands. At year-end ~~2017,~~2021, the company supplied directly or through retailers and marketers approximately ~~7,700 Chevron-~~8,200 Chevron- and Texaco-branded ~~motor vehicle~~ service stations, primarily in the southern and western states. Approximately ~~320~~310 of these outlets are company-owned or -leased stations.

Outside the United States, Chevron supplied directly or through retailers and marketers approximately ~~5,800~~5,700 branded service stations, including affiliates. The company markets in Latin America using the Texaco brand. In the Asia-Pacific region ~~southern Africa~~ and the Middle East, the company uses the Caltex brand. ~~The company also operates through affiliates under various brand names.~~ In South Korea, the company operates through its 50 percent-owned affiliate, ~~GS Caltex.~~GSC. In ~~2017,~~Australia, Chevron markets primarily under the Puma brand via a network of terminals and service stations. Starting in 2022, the company ~~opened Chevron branded stations~~will begin a rebranding project to transition to the Caltex brand in northwestern Mexico. In September 2017, the company completed the sale of its marketing assets in British Columbia and Alberta, Canada. The company also signed an agreement for the sale of its marketing and lubricants businesses in southern Africa in 2017. The sale is expected to close in 2018, pending local government approval.

Australia.

Chevron markets commercial aviation fuel ~~at approximately 100~~to 69 airports worldwide. The company also markets an extensive line of lubricant and coolant products under the product names Havoline, Delo, Ursa, Meropa, Rando, Clarity and Taro in the United States and worldwide under the three brands: Chevron, Texaco and Caltex.

Chemicals Operations

Chevron Oronite Company develops, manufactures and markets performance additives for lubricating oils and fuels and conducts research and development for additive component and blended packages. At the end of ~~2017,~~2021, the company manufactured, blended or conducted research at 1011 locations around the world. ~~In November 2017,~~Commercial production from the ~~company commissioned a new carboxylate plant in Singapore. In 2017, design work continued for a planned manufacturing~~lubricant additive blending and shipping plant in Ningbo, China ~~with a final investment decision expected~~was achieved in ~~2018.~~second quarter 2021.

Chevron owns a 50 percent interest in ~~its~~ Chevron Phillips Chemical Company LLC (CPChem) ~~affiliate.~~. CPChem produces olefins, polyolefins and alpha olefins and is a supplier of aromatics and polyethylene pipe, in addition to participating in the specialty chemical and specialty plastics markets. At the end of ~~2017,~~2021, CPChem owned or had joint-venture interests in 3028 manufacturing facilities and two research and development centers around the world.

~~During 2017, construction activities were completed~~In addition to continued efforts to debottleneck existing ethylene and polyethylene units, CPChem advanced projects at existing facilities to expand its normal alpha olefins business. In May 2021, CPChem announced plans for a second world-scale unit at Old Ocean, Texas to produce on-purpose 1-hexene with expected capacity of 266,000 metric tons per year. In December 2021, CPChem made final investment decision on a new C3 splitter unit at its Cedar Bayou facility in Baytown, Texas that is expected to have the capacity to produce 1 billion pounds of propylene annually. Target start-up for both units is 2023.

CPChem holds a 51 percent interest in the U.S. Gulf Coast ~~Petrochemicals~~II Petrochemical Project ~~which is expected to capitalize~~(USGC II) and a 30 percent interest in the Ras Laffan Petrochemical Project (RLPP) in Qatar. CPChem continued engineering on advantaged feedstock sourced from shale resource development in North America. The project includes an ethane cracker with an annual design capacity of 1.5 million metric tons of ethylene located at the Cedar Bayou facility and two polyethylene units located in Old Ocean, Texas, with a combined annual design capacity of one million metric tons. Start-up of the polyethylene units was achieved in September 2017. Mechanical completion of the ethane cracker was achieved in December 2017, with commissioning activities continuing in first quarter 2018 and transition to full production expected during second quarter 2018.RLPP as well as continued work toward FID on USGC II.

Chevron also maintains a role in the petrochemical business through the operations of ~~GS Caltex, a~~GSC, the company’s 50 percent-owned affiliate. ~~GS Caltex~~GSC manufactures aromatics, including benzene, toluene and xylene. These base chemicals are used to produce a range of products, including adhesives, plastics and textile fibers. ~~GS Caltex~~GSC also produces polypropylene, which is used to make automotive and home appliance parts, food packaging, laboratory equipment and textiles.

First production from the olefins mixed-feed cracker and associated polyethylene unit within the existing refining and petrochemical facilities in Yeosu, South Korea was achieved in June 2021, ahead of schedule and under budget.

~~Transportation~~

Renewable Fuels

The company continued to advance lower carbon actions in the downstream business, particularly through development of renewable fuels, which include renewable natural gas (RNG), renewable diesel, sustainable aviation fuel, and renewable base oils and lubricants. The company has two partnerships to produce and market dairy biomethane, with CalBioGas and Brightmark RNG Holdings. In fourth quarter 2021, Brightmark RNG Holdings delivered first RNG. Separately, all CalBioGas farms are now online. In June 2021, the company announced its first branded compressed natural gas (CNG) site as part of its plan to have more than 30 CNG sites in California supplied with RNG by 2025. In October 2021, the company closed its acquisition of an equity interest in American Natural Gas LLC (now Beyond6, LLC) and its network of 60 CNG retail sites, in order to meet customers’ needs beyond California.

Progress has continued at the company’s El Segundo Refinery in California to produce renewable diesel and sustainable aviation fuel through the co-processing of bio-feedstock. In third quarter 2021, the refinery began co-processing about 2,000 barrels per day of bio-feedstock, producing renewable diesel at a diesel hydrotreating unit as well as a batch of sustainable aviation fuel at a fluid catalytic cracking unit. In 2022, the company expects to convert the same diesel hydrotreater at the El Segundo refinery to 100 percent renewable capability, increasing capacity to 10,000 barrels per day of renewable diesel.

The company continues development of renewable base oil through our patented technology and majority ownership in Novvi and has made progress integrating this renewable base oil into Chevron’s lubricant product lines. Chevron developed Havoline Pro-RS, with lifecycle emissions that are 35 percent lower than those of conventional motor oil of equal viscosity. In November 2021, the company made this renewable based lubricant available to professional installers in the United States and Canada, and it is expected to be available to U.S. consumers in early 2022.

Transportation

Pipelines Chevron owns and operates a network of crude oil, natural gas and product pipelines and other infrastructure assets in the United States. In addition, Chevron operates pipelines for its 50 percent-owned CPChem affiliate. The company also has direct and indirect interests in other U.S. and international pipelines. Chevron acquired all of the outstanding common units of Noble Midstream Partners LP not already owned by Chevron or any of its affiliates in May 2021.

Refer to pages 1213 and 1314 in the Upstream section for information on the West African Gas Pipeline ~~the Baku-Tbilisi-Ceyhan Pipeline, the Western Route Export Pipeline~~ and the Caspian Pipeline Consortium.

Shipping The ~~company's~~company’s marine fleet includes both ~~U.S.-~~U.S. and ~~foreign-flagged~~foreign flagged vessels. The ~~U.S.-flagged vessels are engaged primarily in transporting refined products in the coastal waters~~operated fleet consists of ~~the United States. The foreign-flagged~~conventional crude tankers, product carriers and LNG carriers. These vessels transport crude oil, LNG, refined products and ~~feedstocks~~feedstock in support of the ~~company's~~company’s global ~~Upstream and Downstream businesses.~~

~~All six of the new LNG carriers in support of the company's growing LNG portfolio are in service, with the final two delivered in 2017.~~

~~Other Businesses~~

~~Research and TechnologyChevron's energy technology organization supports~~ upstream and downstream businesses. In December 2021, Chevron joined the Sea Cargo Charter, a benchmark initiative for responsible shipping activities, transparent greenhouse gas reporting, and improved decision making in line with the United Nations’ decarbonization targets.

Other Businesses

Chevron Technical CenterThe ~~company~~company’s technical center provides expertise to drive the application of technology, initiatives to transform Chevron’s digital future, and innovative breakthrough technologies to support the future of energy. The organization conducts research, develops and qualifies technology, and provides technical services and competency development. The disciplines cover earth sciences, reservoir and production engineering, drilling and completions,

facilities engineering, manufacturing, process technology, catalysis, technical computing and health, environment and safety.

~~Chevron's~~Chevron’s information technology organization integrates computing, telecommunications, data management, cybersecurity and network technology to provide a digital infrastructure to enable Chevron’s global operations and business processes.

~~Chevron's technology ventures company supports Chevron's upstream~~Chevron Technology Ventures (CTV) leverages innovative companies and ~~downstream businesses by bridging~~technologies to strengthen Chevron’s core operations and identifies new opportunities with the ~~gap between business unit needs~~potential to enhance the way Chevron produces and ~~emerging technology solutions developed externally~~delivers affordable, reliable, and ever-cleaner energy. CTV has more than two decades of venture investing, with eight funds that have supported more than 100 startups and worked with more than 200 co-investors. In addition to the company’s own managed funds, Chevron also is a limited partner in ~~areas~~the following funds: the Oil and Gas Climate Initiative (OGCI) Climate Investments fund, which targets the decarbonization of ~~emerging materials,~~oil and gas, industry and commercial transportation; the Emerald Ventures fund, which targets energy, water, ~~management, information technology, power systems~~industrial IT and ~~production enhancement.~~advanced materials; and the HX Venture fund, which targets Houston, Texas high-growth start-up companies.

Chevron continued its participation as a member of OGCI, a global collaboration focused on the industry’s efforts to take actions to accelerate and participate in a lower carbon future. In 2021, the Climate Investments fund made additional investments and deployed or piloted portfolio technologies with member companies, helping enable methane and CO2 emissions reductions, as well as advancing carbon capture utilization and storage (CCUS) technologies.

Some of the investments the company makes in the areas described above are in new or unproven technologies and business ~~processes, and~~processes; therefore, the ultimate technical or commercial successes of these investments are not certain. Refer to Note 27 ~~beginning on page 89~~Other Financial Information for ~~a summary~~quantification of the ~~company's~~company’s research and development expenses.

Chevron New EnergiesThe new energies organization was formed in 2021 and is designed to advance the company’s strategy by bringing together dedicated resources focused on growing new lower carbon businesses that have the potential to scale. Its initial focus will include commercialization opportunities in hydrogen, CCUS, and carbon offsets. These businesses are expected to support the company’s efforts to reduce its greenhouse gas emissions and are also expected to become high-growth opportunities with the potential to generate accretive returns.

Environmental ProtectionThe company designs, operates and maintains its facilities to avoid potential spills or leaks and to minimize the impact of those that may occur. Chevron requires its facilities and operations to have operating standards and processes and emergency response plans that address ~~all credible and~~ significant risks identified through site-specific risk and impact assessments. Chevron also requires that sufficient resources be available to execute these plans. In the unlikely event that a major spill or leak occurs, Chevron also maintains a Worldwide Emergency Response Team comprised of employees who are trained in various aspects of emergency response, including post-incident remediation.

To complement the company’s capabilities, Chevron maintains active membership in international oil spill response cooperatives, including the Marine Spill Response Corporation, which operates in U.S. territorial waters, and Oil Spill Response, Ltd., which operates globally. The company is a founding member of the Marine Well Containment Company, whose primary mission is to expediently deploy containment equipment and systems to capture and contain crude oil in the unlikely event of a future loss of control of a deepwater well in the Gulf of Mexico. In addition, the company is a member of the Subsea Well Response Project, which has the objective to further develop the industry’s capability to contain and shut in subsea well control incidents in different regions of the world.

The company is committed to ~~improving energy efficiency~~lowering the carbon intensity of its traditional oil and gas operations, in ~~its day-to-day operations and is required~~addition to ~~comply~~complying with the greenhouse gas-related laws and regulations to which it is subject. Refer to Item 1A. Risk Factors on pages 1920 through 2225 for further discussion of greenhouse gas regulation and climate change and the associated risks to Chevron’s business.

Refer to ~~Management's~~Management’s Discussion and Analysis of Financial Condition and Results of Operations on page 4549 for additional information on environmental matters and their impact on Chevron, and on the ~~company's 2017~~company’s 2021 environmental expenditures. Refer to page 4549 and Note 2~~5 on page 88~~24 Other Contingencies and Commitments for a discussion of environmental remediation provisions and year-end reserves.

Item 1A. Risk Factors

~~Chevron is~~As a global energy company, ~~and its operating and financial results are~~Chevron is subject to a variety of risks ~~inherent in the global oil, gas, and petrochemical businesses. Many of these risks are not within the company's control and~~that could materially impact the company’s results of operations and financial condition.

BUSINESS AND OPERATIONAL RISK FACTORS

Impacts of the continuation or further resurgences of the COVID-19 pandemic may have an adverse and potentially material adverse effect on Chevron’s financial and operating results The economic, business, and oil and gas industry impacts from the COVID-19 pandemic and the disruption to capital markets have been and continue to be far reaching. While the oil and gas industry witnessed a substantial recovery of commodity prices and demand for products during 2021, there continues to be uncertainty and unpredictability about the impact of the COVID-19 pandemic on our financial and operating results in future periods. The extent to which the COVID-19 pandemic adversely impacts our future financial and operating results, and for what duration and magnitude, depends on several factors that are continuing to evolve, are difficult to predict and, in many instances, are beyond the company's control. Such factors include the duration and scope of the pandemic, including any further resurgences of the COVID-19 virus and its variants, and the impact on our workforce and operations; the negative impact of the pandemic on the economy and economic activity, including travel restrictions and prolonged low demand for our products; the ability of our affiliates, suppliers and partners to successfully navigate the impacts of the pandemic; the actions taken by governments, businesses and individuals in response to the pandemic; the actions of OPEC and other countries that otherwise impact supply and demand and, correspondingly, commodity prices; the extent and duration of recovery of economies and demand for our products after the pandemic subsides; and Chevron’s ability to keep its cost model in line with changing demand for our products.

The company’s suppliers continue to be impacted by the COVID-19 pandemic and access to materials, supplies, and contract labor has been strained. This strain on the financial health of the company’s suppliers could put pressure on the company’s financial results and may negatively impact supply assurance and supplier performance. In-country conditions, including potential future waves of the COVID-19 virus and its variants in countries that appear to have reduced their infection rates, could impact logistics and material movement and remain a risk to business continuity.

In light of the significant uncertainty around the duration and extent of the impact of the COVID-19 pandemic, management is currently unable to develop with any level of confidence estimates and assumptions that may have a material impact on the company’s consolidated financial statements and financial or operational performance in any given period. In addition, the unprecedented nature of such market conditions could cause current management estimates and assumptions to be challenged in hindsight.

In addition, the continuation or further resurgences of the pandemic could precipitate or aggravate the other risk factors identified in this Form 10-K, which in turn could materially and adversely affect our business, financial condition, liquidity, results of operations and profitability, including in ways not currently known or considered by us to present significant risks.

Chevron is exposed to the effects of changing commodity pricesChevron is primarily in a commodities business that has a history of price volatility. The single largest variable that affects the company’s results of operations is the price of crude oil, which can be influenced by general economic conditions, industry production and inventory levels, technology advancements, production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries ~~(OPEC)~~ or other producers, weather-related damage and disruptions due to other natural or human causes beyond our control (including without limitation due to the COVID-19 pandemic), competing fuel prices, geopolitical risks, the pace of energy transition, and ~~geopolitical risks.~~governmental regulations and policies regarding the development of oil and gas reserves. Chevron evaluates the risk of changing commodity prices as a core part of its business planning process. An investment in the company carries significant exposure to fluctuations in global crude oil prices.

Extended periods of low prices for crude oil can have a material adverse impact on the ~~company's~~company’s results of operations, financial condition and liquidity. Among other things, the company’s upstream earnings, cash flows, and capital and exploratory expenditure programs could be negatively affected, as could its production and proved reserves. Upstream assets may also become impaired. Downstream earnings could be negatively affected because they depend upon the supply and demand for refined products and the associated margins on refined product sales. A significant or sustained decline in liquidity could adversely affect the company’s credit ratings, potentially increase financing costs and reduce access to ~~debt~~capital markets. The company may be unable to realize anticipated cost savings, expenditure reductions and asset sales that are intended to compensate for such ~~downturns.~~downturns, and such downturns may also slow the pace and scale at which we are able to invest in new business lines such as the lower carbon businesses associated with our Chevron New Energies

organization. In some cases, liabilities associated with divested assets may return to the company when an acquirer of those assets subsequently declares bankruptcy. In addition, extended periods of low commodity prices can have a material adverse impact on the results of operations, financial condition and liquidity of the company’s suppliers, vendors, partners and equity affiliates upon which the company’s own results of operations and financial condition depends.

The scope of Chevron’s business will decline if the company does not successfully develop resourcesThe company is in an extractive business; therefore, if it is not successful in replacing the crude oil and natural gas it produces with good prospects for future organic opportunities or through acquisitions, the company’s business will decline. Creating and maintaining an inventory of projects depends on many factors, including obtaining and renewing rights to explore, develop and produce hydrocarbons; drilling success; reservoir optimization; ability to bring long-lead-time, capital-intensive projects to completion on budget and on schedule; and efficient and profitable operation of mature properties.

The company’s operations could be disrupted by natural or human causes beyond its control Chevron operates in both urban areas and remote and sometimes inhospitable regions. The company’s operations are therefore subject to disruption from natural or human causes beyond its control, including ~~physical~~ risks from hurricanes, severe storms, floods, ~~and~~heat waves, other

forms of severe weather, wildfires, ambient temperature increases, sea level rise, war, accidents, civil unrest, political events, fires, earthquakes, system failures, cyber threats, ~~and~~ terrorist acts and epidemic or pandemic diseases such as the COVID-19 pandemic, some of which may be impacted by climate change and any of which could result in suspension of operations or harm to people or the natural environment.

~~Chevron's~~Chevron’s risk management systems are designed to assess potential physical and other risks to its operations and assets and to plan for their resiliency. While capital investment reviews and decisions incorporate potential ranges of physical risks such as storm severity and frequency, sea level rise, air and water temperature, precipitation, fresh water access, wind speed, and earthquake severity, among other factors, it is difficult to predict with certainty the timing, frequency or severity of such events, any of which could have a material adverse effect on the company's results of operations or financial condition.

Cyberattacks targeting Chevron’s process control networks or other digital infrastructure could have a material adverse impact on the company’s business and results of operations There are numerous and evolving risks to Chevron’s cybersecurity and privacy from cyber threat actors, including criminal hackers, state-sponsored intrusions, industrial espionage and employee malfeasance. These cyber threat actors, whether internal or external to Chevron, are becoming more sophisticated and coordinated in their attempts to access the company’s information technology (IT) systems and data, including the IT systems of cloud providers and other third parties with ~~which~~whom the company conducts ~~business.~~business through, without limitation, malicious software; data privacy breaches by employees, insiders or others with authorized access; cyber or phishing-attacks; ransomware; attempts to gain unauthorized access to our data and systems; and other electronic security breaches. Although Chevron devotes significant resources to prevent unwanted intrusions and to protect its systems and data, whether such data is housed internally or by external third parties, the company has experienced and will continue to experience cyber incidents of varying degrees in the conduct of its business. Cyber threat actors could compromise the company’s process control networks or other critical systems and infrastructure, resulting in disruptions to its business operations, injury to people, harm to the environment or its assets, disruptions in access to its financial reporting systems, or loss, misuse or corruption of its critical data and proprietary information, including without limitation its intellectual property and business information and that of its employees, customers, partners and other third parties. Any of the foregoing can be exacerbated by a delay or failure to detect a cyber incident or the full extent of such incident. Further, the company has exposure to cyber incidents and the negative impacts of such incidents related to its critical data and proprietary information housed on third-party IT systems, including the cloud. ~~The company has limited control and visibility over such~~Additionally, authorized third-party IT ~~systems. Cyber~~systems or software can be compromised and used to gain access or introduce malware to Chevron's IT systems that can materially impact the company’s business. Regardless of the precise method or form, cyber events could result in significant financial losses, legal or regulatory violations, reputational harm, and legal liability and could ultimately have a material adverse effect on the company’s business and results of operations.

The company’s operations have inherent risks and hazards that require significant and continuous oversight Chevron’s results depend on its ability to identify and mitigate the risks and hazards inherent to operating in the crude oil and natural gas industry. The company seeks to minimize these operational risks by carefully designing and building its facilities and conducting its operations in a safe and reliable manner. However, failure to manage these risks effectively could impair our ability to operate and result in unexpected incidents, including releases, explosions or mechanical failures resulting in personal injury, loss of life, environmental damage, loss of revenues, legal liability and/or disruption to operations. Chevron has implemented and maintains a system of corporate policies, processes and systems, behaviors and compliance

mechanisms to manage safety, health, environmental, reliability and efficiency risks; to verify compliance with applicable laws and policies; and to respond to and learn from unexpected incidents. In certain situations where Chevron is not the operator, the company may have limited influence and control over third parties, which may limit its ability to manage and control such risks.

~~Chevron’s business subjects the company to liability risks from litigation or government action~~ The company produces, transports, refines and markets potentially hazardous materials, and it purchases, handles and disposes of other potentially hazardous materials in the course of its business. Chevron's operations also produce byproducts, which may be considered pollutants. Often these operations are conducted through joint ventures over which the company may have limited influence and control. Any of these activities could result in liability or significant delays in operations arising from private litigation or government action, either as a result of an accidental, unlawful discharge or as a result of new conclusions about the effects of the company’s operations on human health or the environment. In addition, to the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to the company’s causation of or contribution to the asserted damage, or to other mitigating factors.

~~For information concerning some of the litigation in which the company is involved, see~~ ~~Note 17 to the Consolidated Financial Statements, beginning on page 71.~~

The company does not insure against all potential losses, which could result in significant financial exposure The company does not have commercial insurance or third-party indemnities to fully cover all operational risks or potential liability in the event of a significant incident or series of incidents causing catastrophic loss. As a result, the company is, to a substantial extent, self-insured for such events. The company relies on existing liquidity, financial resources and borrowing capacity to meet short-term obligations that would arise from such an event or series of events. The occurrence of a significant incident, series of events, or unforeseen liability for which the company is self-insured, not fully insured or for which insurance recovery is significantly delayed could have a material adverse effect on the company’s results of operations or financial condition.

LEGAL, REGULATORY AND ESG-RELATED RISK FACTORS

Chevron’s business subjects the company to liability risks from litigation or government action The company produces, transports, refines and markets potentially hazardous materials, and it purchases, handles and disposes of other potentially hazardous materials in the course of its business. Chevron's operations also produce byproducts, which may be considered pollutants. Often these operations are conducted through joint ventures over which the company may have limited influence and control. Any of these activities could result in liability or significant delays in operations arising from private litigation or government action. For example, liability or delays could result from an accidental, unlawful discharge or from new conclusions about the effects of the company’s operations on human health or the environment. In addition, to the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to the company’s causation of or contribution to the asserted damage, or to other mitigating factors.

For information concerning some of the litigation in which the company is involved, see Note 16 Litigation.

Political instability and significant changes in the legal and regulatory environment could harm Chevron’s business The company’s operations, particularly exploration and production, can be affected by changing ~~economic,~~political, regulatory and ~~political~~economic environments in the various countries in which it operates. As has occurred in the past, actions could be taken by governments to increase public ownership of the company’s partially or wholly owned businesses, to force contract renegotiations, or to impose additional taxes or royalties. In certain locations, governments have proposed or imposed restrictions on the company’s operations, ~~export and~~trade, currency exchange controls, burdensome taxes, and public disclosure requirements that might harm the company’s competitiveness or relations with other governments or third parties. In other countries, political conditions have existed that may threaten the safety of employees and the company’s continued presence in those countries, and internal unrest, acts of violence or strained relations between a government and the company or other governments may adversely affect the company’s operations. Those developments have, at times, significantly affected the company’s operations and results and are carefully considered by management when evaluating the level of current and future activity in such countries. Further, Chevron is required to comply with ~~U.S.~~ sanctions and other trade laws and regulations of the United States and other jurisdictions where we operate which, depending upon their scope, could adversely impact the ~~company's~~company’s operations and financial results in certain countries.In addition, litigation or changes in national, state or local environmental regulations or laws, including those designed to stop or impede the development or production of oil and gas, such as those related to the use of hydraulic fracturing or bans on drilling, or any law or regulation that impacts the demand for our products, could adversely affect the ~~company's~~company’s current or anticipated future operations and profitability.

~~Regulation~~Legislative or regulatory changes in tax laws may expose Chevron to additional tax liabilities Changes in tax laws and regulations around the world are regularly enacted due to political or economic factors beyond the company’s control. Chevron’s taxes in the jurisdictions where the company conducts business activities have been and may be adversely affected by changes in tax laws or regulations. Furthermore, Chevron’s tax returns are subject to audit by taxing authorities around the world. There is no assurance that taxing authorities or courts will agree with the positions that Chevron has reflected on the company’s tax returns, in which case interest and penalties could be imposed that may have a material adverse effect on the company’s results of operations or financial condition.

For information concerning the company’s tax liabilities, see Note 17 Taxes and Note 24 Other Contingencies and Commitments.

Legislation, regulation, and other government actions and shifting customer preferences and other private efforts related to greenhouse gas (GHG) emissions and climate change could continue to increase Chevron’s operational costs and reduce demand for Chevron’s hydrocarbon and other products,~~In the years ahead, companies~~ resulting in the energy industry, like Chevron, may be challenged by an increase in international and domestic regulation relating to GHG emissions. Like any significant changes in the regulatory environment, GHG regulation could have the impact of curtailing profitability in the oil and gas sector or rendering the extraction of the company’s oil and gas resources economically infeasible. Although the IEA’s World Energy Outlook scenarios anticipate oil and gas continuing to make up a significant portion of the global energy mix through 2040 and beyond given their respective advantages in transportation and power generation, if a new onset of regulation contributes to a decline in the demand for the company’s products, this could have a material adverse effect on the ~~company~~company’s results of operations and ~~its~~ financial ~~condition.~~

condition Chevron has experienced and may be further challenged by increases in the impacts of international and domestic legislation, regulation, or other government actions relating to GHG emissions (e.g., carbon dioxide and methane) and climate change. International agreements and national, regional, and state legislation ~~(e.g., California AB32, SB32 and AB398)~~ and regulatory measures that aim to directly or indirectly limit or reduce GHG emissions are ~~currently~~ in various stages of implementation. ~~For example, the Paris Agreement went into effect in November 2016, and a number of countries are studying and adopting policies to meet their Paris Agreement goals. In some jurisdictions, the~~The company is ~~already~~currently subject to ~~currently~~ implemented programs in certain jurisdictions such as the U.S. Renewable Fuel Standard program, the European Union Emissions Trading System, and the California cap-and-trade program and ~~related~~ low carbon fuel standard obligations. ~~Other~~Further, the Paris Agreement went into effect in November 2016, and a number of countries in which we operate may adopt additional policies to meet their Paris Agreement goals. Globally, multiple jurisdictions are considering adopting or are in the process of implementing laws or regulations to directly regulate GHG emissions through similar or other mechanisms, such as ~~for example, via~~ a carbon tax, ~~(e.g., Singapore and Canada) or via~~ a cap-and-trade program, ~~(e.g., Mexico and China). The landscape continues~~or performance standards, or to ~~be in a state~~indirectly advance reduction of ~~constant re-assessment and legal challenge with respect to these laws and regulations, making it difficult to predict with certainty the ultimate impact they will have on the company in the aggregate.~~

GHG emissions-related laws and related regulations and the effects of operating in a potentially carbon-constrained environment may result in increased and substantial capital, compliance, operating and maintenance costs and could, among other things, reduce demand for hydrocarbons and the company’s hydrocarbon-based products, make the company’s products more expensive, adversely affect the economic feasibility of the company’s resources, and adversely affect the company’s sales volumes, revenues and margins. GHG emissions ~~(e.g., carbon dioxide~~through restrictive permitting, trade tariffs, minimum renewable usage requirements, increased GHG reporting and ~~methane)~~climate-related disclosure requirements, or tax advantages or other incentives to promote the use of alternative energy, fuel sources or lower-carbon technologies. GHG emissions that ~~could~~may be directly regulated through such efforts include, among others, those associated with the company’s exploration and production of ~~hydrocarbons such as crude oil and natural gas;~~hydrocarbons; the upgrading of production from oil sands into synthetic oil; power generation; the conversion of crude oil and natural gas into refined hydrocarbon products; the processing, liquefaction, and regasification of natural gas; the transportation of crude oil, natural gas, and related ~~products~~products; and ~~consumers’ or~~ customers’ use of the company’s hydrocarbon products. Indirect regulation of GHG emissions could include, among other things, bans or restrictions on technologies or products that use the company’s hydrocarbon products. Many of these ~~activities, such~~actions, as ~~consumers’~~well as customers’ preferences and ~~customers’~~ use of the company’s products ~~as well as~~or substitute products, and actions taken by the company’s competitors in response to ~~such laws~~legislation and regulations, are beyond the company’s control. 

Similar to any significant changes in the regulatory environment, GHG emissions and climate change-related legislation, regulation, or other government actions may curtail profitability in the oil and gas sector, or render the extraction of the company’s hydrocarbon resources economically infeasible. In ~~addition, increasing attention to climate change risks has resulted~~particular, GHG emissions-related legislation, regulations, and other government actions and shifting customer preferences and other private efforts aimed at reducing GHG emissions may result in an increased ~~possibility of governmental investigations~~ and ~~additional private litigation against the company.~~

~~Consideration of GHG issues~~substantial capital, compliance, operating, and maintenance costs and could, among other things, reduce demand for hydrocarbons and the ~~responses to those issues through international agreements~~company’s hydrocarbon-based products; increase demand for lower carbon products and ~~national, regional or state legislation or regulations are integrated into~~alternative energy sources; make the company’s ~~strategy and planning, capital investment reviews, and risk management tools and processes, where applicable. They are also factored into~~products more expensive; adversely affect the economic feasibility of the company’s ~~long-range supply, demand~~resources; impact or limit our business plans; and energy price forecasts. These forecasts reflect long-range effects from renewable fuel penetration, energy efficiency standards, climate-related policy actions, and demand response to oil and natural gas prices. Additionally, the company assesses carbon pricing risks by considering carbon costs in these forecasts. The actual level of expenditure required to comply with new or potential climate change-related laws and regulations and amount of additional investments in new or

existing technology or facilities, such as carbon dioxide injection, is difficult to predict with certainty and is expected to vary depending on the actual laws and regulations enacted in a jurisdiction,adversely affect the company’s ~~activities in it~~sales volumes, revenues, margins and ~~market conditions.~~

reputation. The ultimate effect of international ~~agreements and~~agreements; national, regional, and state legislation and ~~regulatory measures~~regulation; and government and private actions related to ~~limit~~ GHG emissions and climate change on the company’s financial performance, and the timing of these effects, will depend on a number of factors. Such factors include, among others, the sectors covered, the ~~greenhouse gas~~GHG emissions reductions required, the extent to which Chevron would be entitled to receive emission allowance allocations or would need to purchase compliance instruments on the open market or through auctions, the price and availability of emission allowances and credits and the extent to which the company is able to recover the costs incurred through the pricing of the company’s products in the competitive marketplace. Further, the ultimate impact of GHG ~~emissions-related~~emissions and climate change-related agreements, legislation, regulation, and ~~measures~~government actions on the company’s financial performance is highly uncertain because the company is unable to predict with certainty, for a multitude of individual jurisdictions, the outcome of political decision-making processes, including the actual laws and regulations enacted, the variables and tradeoffs that inevitably occur in connection with such ~~processes.~~processes, and market conditions.

Increasing attention to environmental, social, and governance (ESG) matters may impact our business Increasing attention to ESG matters, including those related to climate change and sustainability, increasing societal, investor and legislative pressure on companies to address ESG matters, and potential customer use of substitutes to Chevron’s products may result in increased costs, reduced demand for our products, reduced profits, increased investigations and litigation or threats thereof, negative impacts on our stock price and access to capital markets, and damage to our reputation. Increasing attention to climate change, for example, may result in demand shifts for our hydrocarbon products and additional governmental investigations and private litigation, or threats thereof, against the company. For instance, we have received investigative requests and demands from the U.S. Congress for information relating to climate change, methane leak

detection and repair, and other topics, and further requests and/or demands are possible. At this time, Chevron cannot predict the ultimate impact any Congressional or other investigations may have on the company.

In addition, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters, including climate change and climate-related risks. Such ratings are used by some investors to inform their investment and voting decisions. Also, some stakeholders, including but not limited to sovereign wealth, pension, and endowment funds, have been divesting and promoting divestment of or screening out of fossil fuel equities and urging lenders to limit funding to companies engaged in the extraction of fossil fuel reserves. Unfavorable ESG ratings and investment community divestment initiatives, among other actions, may lead to negative investor sentiment toward Chevron and to the diversion of investment to other industries, which could have a negative impact on our stock price and our access to and costs of capital. Additionally, evolving expectations on various ESG matters, including biodiversity, waste and water, may increase costs, require changes in how we operate and lead to negative stakeholder sentiment.

Our aspirations, targets and disclosures related to ESG matters expose us to numerous risks, including risks to our reputation and stock price In October 2021, Chevron announced an aspiration to achieve net zero Scope 1 and 2 emissions in Upstream by 2050. The company also has set nearer-term GHG emission-related targets for zero routine flaring, upstream carbon intensity, portfolio carbon intensity, and refining carbon intensity. These aspirations, targets or objectives reflect our current plans and aspirations and are not guarantees that we will be able to achieve them. Our efforts to accomplish and accurately report on these goals and objectives present numerous operational, regulatory, reputational, financial, legal, and other risks, any of which could have a material negative impact, including on our reputation and stock price.

Our ability to achieve any aspiration, target or objective, including with respect to climate-related initiatives, our new lower carbon strategy outlined in the Management’s Discussion and Analysis of Financial Condition and Results of Operations, pages 32 through 34, and any lower carbon new energy businesses, is subject to numerous risks, many of which are outside of our control. Examples of such risks include: (1) the continuing progress of commercially viable technologies and low- or non-carbon-based energy sources; (2) the granting of necessary permits by governing authorities; (3) the availability of cost-effective, verifiable carbon credits; (4) the availability of suppliers that can meet our sustainability and other standards; (5) evolving regulatory requirements affecting ESG standards or disclosures; (6) evolving standards for tracking and reporting on emissions and emission reductions and removals; (7) customers’ preferences and use of the company’s products or substitute products; and (8) actions taken by the company’s competitors in response to legislation and regulations.

The standards for tracking and reporting on ESG matters are relatively new, have not been harmonized and continue to evolve. Our selection of disclosure frameworks that seek to align with various voluntary reporting standards may change from time to time and may result in a lack of comparative data from period to period. In addition, our processes and controls may not always align with evolving voluntary standards for identifying, measuring, and reporting ESG metrics, our interpretation of reporting standards may differ from those of others, and such standards may change over time, any of which could result in significant revisions to our goals or reported progress in achieving such goals.

Achievement of or efforts to achieve aspirations and targets such as the foregoing and future internal climate-related initiatives may increase costs, require purchase of carbon credits, or limit or impact the company’s business plans and financial results, potentially resulting in the reduction to the economic end-of-life of certain assets, an impairment of the associated net book value, among other material adverse impacts. Our failure or perceived failure to pursue or fulfill such aspirations and targets or to satisfy various reporting standards within the timelines we announce, or at all, could have a negative impact on investor sentiment, ratings outcomes for evaluating the company’s approach to ESG matters, stock price, and cost of capital and expose us to government enforcement actions and private litigation, among other material adverse impacts.

GENERAL RISK FACTORS

Changes in management’s estimates and assumptions may have a material impact on the company’s consolidated financial statements and financial or operational performance in any given periodIn preparing the company’s periodic reports under the Securities Exchange Act of 1934, including its financial statements, Chevron’s management is required under applicable rules and regulations to make estimates and assumptions as of a specified date. These estimates and assumptions are based on management’s best estimates and experience as of that date and are subject to substantial risk and uncertainty. Materially different results may occur as circumstances change and additional information becomes known.

Areas requiring significant estimates and assumptions by management include impairments to property, plant and ~~equipment;~~equipment and investments in affiliates; estimates of crude oil and natural gas recoverable reserves; accruals for estimated liabilities, including litigation reserves; and measurement of benefit obligations for pension and other postretirement benefit plans. Changes in estimates or assumptions or the information underlying the assumptions, such as changes in the company’s business plans, general market conditions, the pace of energy transition, or changes in the company’s outlook on commodity prices, could affect reported amounts of assets, liabilities or expenses.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

The location and character of the company’s crude oil and natural gas properties and its refining, marketing, transportation, and chemicals facilities are described beginning on page 3 under Item 1. Business. Information required by Subpart 1200 of Regulation S-K (“Disclosure by Registrants Engaged in Oil and Gas Producing Activities”) is also contained in Item 1 and in Tables I through VII on pages 9197 through ~~101.~~ 109 and Note ~~24, “Properties,~~18 Properties, Plant and Equipment~~” to the company’s financial statements is on page 87.~~.

Item 3. Legal Proceedings

~~Governmental Proceedings~~The following is a description of legal proceedings that involve governmental authorities as a party and the company reasonably believes would result in $1.0 million or more of monetary sanctions, exclusive of interest and costs, under federal, state and local laws that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment.

As previously disclosed, the refinery in Pasadena, Texas acquired by Chevron ~~facilities within the jurisdiction of California’s South Coast Air Quality Management District (SCAQMD) currently have~~on May 1, 2019 (Pasadena Refining System, Inc. and PRSI Trading LLC) has multiple outstanding Notices of Violation (NOVs) that were issued by ~~SCAQMD.~~the Texas Commission on Environmental Quality related to air emissions at the refinery. The Pasadena refinery is currently negotiating a resolution of the NOVs with the Texas Attorney General. Resolution of ~~the~~these alleged violations ~~may~~is expected to result in the payment of a civil penalty of ~~$100,000~~$1.0 million or more. ~~In addition,~~

As previously disclosed, the California Department of Conservation, California Geologic Energy Management Division (CalGEM) (previously known as ~~initially disclosed~~the Division of Oil, Gas and Geothermal Resources) promulgated revised rules pursuant to the Underground Injection Control program that took effect April 1, 2019. Subsequent to that date, CalGEM issued NOVs and two orders to Chevron related to seeps that occurred in the ~~Quarterly Report on Form 10-Q for the quarter ended March 31, 2016,~~Cymric Oil Field in April 2016, Chevron received a proposal from the SCAQMD seeking to collectively resolve certain NOVs issued in 2012 and 2013 to Chevron’s El Segundo Refinery. Subsequently, the SCAQMD provided notice to Chevron that it was also seeking to resolve certain NOVs issued to the refinery in 2014. In December 2017, Chevron and the SCAQMD entered into a settlement agreement to resolve allegations in six NOVs forKern County, California. An October 2, 2019 CalGEM order seeks a civil penalty of ~~$375,500. In January 2018,~~approximately $2.7 million. Chevron ~~and the SCAQMD entered into~~has filed an appeal of this order. Chevron is currently in discussions with CalGEM to explore a global settlement ~~agreement~~ to resolve ~~allegations associated with~~ the ~~remaining three NOVs for a civil~~order and all past and present seeps in the Cymric Field, which would increase the amount of penalty ~~of $5,137,250.~~paid.

As ~~initially~~previously disclosed, in the Annual Report on Form 10-K for the year ended December 31, 2013, on August 6, 2012, a piping failure and fire occurred at the Chevron refinery in Richmond, California. The United States Environmental Protection Agency (EPA) issued alleged findings of violation related to the incident on December 17, 2013, pursuant to its authority under the Clean Air Act Risk Management Plan program (RMP). Following the Richmond incident, EPA also conducted RMP inspections at Chevron’s El Segundo, California; Pascagoula, Mississippi; Kapolei, Hawaii; and Salt Lake City, Utah refineries. With the participation of the United States Department of Justice ~~Chevron~~ and ~~EPA are negotiating~~the United States Environmental Protection Agency notified Noble Energy, Inc., Noble Midstream Partners LP and Noble Midstream Services, LLC of potential penalties for alleged Clean Water Act violations at two facilities in Weld County, Colorado relating to a ~~potential combined~~2014 flood event and requirements for a Spill Prevention and Countermeasures Plan and Facility Response Plan. The parties have negotiated a resolution ~~that may include all~~ of ~~EPA’s alleged findings~~these issues with the agencies, which was approved by the U.S. District Court, District of ~~violation related to the Richmond incident and subsequent RMP inspections.~~Colorado on September 28, 2021. Resolution of ~~those~~these alleged ~~findings of violation may result~~violations resulted in the payment of a civil penalty of ~~$100,000 or more.~~

~~As initially disclosed in the Annual Report~~$1.0 million on Form 10-K for the year ended December 31, 2016, on December 5, 2016, Chevron received a NOV from the California Air Resources Board (CARB) alleging that for compliance years 2011-2015, Chevron failed to deduct some exported volumes of fuel from the sales that must be reported under the state’s Low Carbon

Fuel Standard (LCFS) program. The allegation is that Chevron purchased and retired more LCFS credits than were required. Chevron and CARB are negotiating a potential resolution of the alleged violation. Resolution of this NOV may result in the payment of a civil penalty of $100,000 or more.

~~As initially disclosed in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2017,~~on November 18, 2016, Chevron received an Administrative Order (AO) from the EPA alleging noncompliance with the water permit that governed conveyances of captured groundwater and spring water from the former Questa mine located in New Mexico to its associated tailing facility. Chevron is concluding its negotiations with EPA regarding this matter.

As initially disclosed in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, on August 3, 2017, Chevron received a Notice of Intent to File an Administrative Complaint from the EPA in connection with certain waste matters at the Kapolei, Hawaii refinery during the period of time that the facility was owned and operated by Chevron. Chevron is evaluating the allegations stated in the Notice. Resolution of these matters may result in the payment of a civil penalty of $100,000 or more.

Chevron facilities within the jurisdiction of California’s Bay Area Air Quality Management District (BAAQMD) currently have multiple outstanding NOVs issued by BAAQMD. Resolution of the alleged violations may result in the payment of a civil penalty of $100,000 or more. On October 26, 2017, Chevron received a proposal from the BAAQMD seeking to resolve certain NOVs related to violations that occurred at Chevron’s Richmond Refinery and Avon, California terminal in 2015. Resolution of the alleged violations may result in the payment of a civil penalty of $100,000 or more.2021.

~~Other ProceedingsInformation~~Please see information related to other legal proceedings ~~is included beginning on page 71~~ in Note 1~~7 to the Consolidated Financial Statements.~~16 Litigation.

Item 4. Mine Safety Disclosures

Not applicable.

Information about our Executive Officers

Information relating to the company’s executive officers is included under “Information about our Executive Officers” in Part III, Item 10, “Directors, Executive Officers and Corporate Governance” on page 28, and is incorporated herein by reference.

PART II

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The company’s common stock is listed on the New York Stock Exchange (trading symbol: CVX). As of February 10, 2022, stockholders of record numbered approximately 109,000. There are no restrictions on the company’s ability to pay dividends. The information on Chevron’s ~~common stock market prices,~~ dividends ~~principal exchanges on which the stock is traded and number of stockholders of record is~~are contained in the Quarterly Results ~~and Stock Market Data~~ tabulations on page ~~49.~~54.

Chevron Corporation Issuer Purchases of Equity Securitiesfor Quarter Ended December 31, ~~2017~~2021


	Total Number	Average	Total Number of Shares	Approximate Dollar Values of Shares that
	of Shares	Price Paid	Purchased as Part of Publicly	May Yet be Purchased Under the Program
Period	Purchased 1,2	per Share	Announced Program	(Billions of dollars) 2
October 1 – October 31, 2021	1,998,279	$109.20	1,997,367	$18.7
November 1 – November 30, 2021	2,759,499	$114.35	2,757,758	$18.4
December 1 – December 31, 2021	1,861,236	$116.38	1,860,752	$18.2
Total October 1 – December 31, 2021	6,619,014	$113.36	6,615,877

Total Number
Average
Total Number of Shares
Maximum Number of Shares
of Shares
Price Paid
Purchased as Part of Publicly
That May Yet be Purchased
Period
Purchased^1,2

per Share
Announced Program
Under the Program²

Oct. 1 – Oct. 31, 2017 312

$117.42
—
—
Nov. 1 – Nov. 30, 2017 —

—
—
Dec. 1 – Dec. 31, 2017 —

—
—
Total Oct. 1 – Dec. 31, 2017 312

$117.42
—
—
1Includes common shares repurchased from participants in the company's deferred compensation plans for personal income tax withholdings.


2Refer to “Liquidity and Capital Resources” on page 44 for additional detail regarding the company's authorized stock repurchase program. ¹	Includes common shares repurchased from company employees and directors for required personal income tax withholdings on the exercise of the stock options and shares delivered or attested to in satisfaction of the exercise price by holders of the employee and director stock options. The options were issued to and exercised by management under Chevron long-term incentive plans.

In July 2010, the Board of Directors approved an ongoing share repurchase program with no set term or monetary limits, under which common shares would be acquired by the company through open market purchases or in negotiated transactions at prevailing prices, as permitted by securities laws and other legal requirements and subject to market conditions and other factors. From inception of the program through 2014, the company had purchased 180,886,291 shares under this program (some pursuant to a Rule 10b5-1 plan and some pursuant to accelerated share repurchase plans) for $20 billion at an average price of approximately $111 per share. The company did not acquire any shares under the program in 2015, 2016 or 2017.

Item 6. ~~Selected Financial Data~~Reserved

~~The selected financial data for years 2013 through 2017 are presented on page 90.~~

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The index to Management’s Discussion and Analysis of Financial Condition and Results of Operations ~~Consolidated Financial Statements and Supplementary Data~~ is presented on page ~~29.~~31.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The company’s discussion of interest rate, foreign currency and commodity price market risk is contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations — “Financial and Derivative Instrument Market Risk,” beginning on page 4347 and in Note ~~11 to the Consolidated~~10 Financial ~~Statements, “Financial~~ and Derivative Instruments~~” beginning on page 65.~~.

Item 8. Financial Statements and Supplementary Data

The index to ~~Management’s Discussion and Analysis, Consolidated~~ Financial Statements and Supplementary Data is presented on page ~~29.~~31.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures The company’s management has evaluated, with the participation of the Chief Executive Officer and the Chief Financial Officer, the effectiveness of the company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ~~(the “Exchange Act”)~~(Exchange Act)) as of the end of the period covered by this report. Based on this evaluation, management concluded that the company’s disclosure controls and procedures were effective as of December 31, ~~2017.~~2021.

(b) Management’s Report on Internal Control Over Financial Reporting The company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as ~~such term is~~ defined in the Exchange Act ~~Rule~~Rules 13a-15(f) and 15d-15(f). The company’s management, including the Chief Executive Officer and ~~the~~ Chief Financial Officer, conducted an evaluation of the effectiveness of the company’s internal control over financial reporting based on the Internal Control —– Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the results of this evaluation, the company’s management concluded that internal control over financial reporting was effective as of December 31, ~~2017.~~2021.

The effectiveness of the company’s internal control over financial reporting as of December 31, ~~2017,~~2021, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report included ~~on page 51.~~herein.

(c) Changes in Internal Control Over Financial Reporting During the quarter ended December 31, ~~2017,~~2021, there were no changes in the company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

Item 9B. Other Information

Rule 10b5-1 Plan Elections

~~R. Hewitt Pate, Vice President and General Counsel,~~Michael K. Wirth, Chairman of the Board, entered into a pre-arranged stock trading plan in November ~~2017.~~2021. Mr. ~~Pate’s~~Wirth’s plan provides for the potential exercise of vested stock options and the associated sale of up to ~~51,000~~93,000 shares of Chevron common stock between February ~~2018~~2022 and ~~November 2018.~~March 2023.

~~This~~Pierre R. Breber, Vice President and Chief Financial Officer, entered into a pre-arranged stock trading plan ~~was~~in November 2021. Mr. Breber’s plan provides for the potential exercise of vested stock options and the associated sale of up to 18,500 shares of Chevron common stock between February 2022 and January 2023.

Rhonda J. Morris, Vice President and Chief Human Resources Officer, and her spouse each entered into ~~during an open insider~~pre-arranged stock trading ~~window~~plans in November 2021. The plans for Ms. Morris and ~~is intended~~her spouse provide for the potential exercise of vested stock options and the associated sale of up to ~~satisfy Rule 10b5-1(c)~~17,300 and 11,300 shares of Chevron common stock, respectively, between February 2022 and January 2023.

Colin E. Parfitt, Vice President, Midstream, entered into a pre-arranged stock trading plan in November 2021. Mr. Parfitt’s plan provides for the ~~Securities Exchange Act~~potential exercise of ~~1934, as amended,~~vested stock options and ~~Chevron’s policies regarding transactions in~~the associated sale of up to 55,500 shares of Chevron ~~securities.~~common stock between February 2022 and January 2023.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information about our Executive Officers ~~of the Registrant~~ at February ~~22, 2018~~24, 2022

Members of the ~~Corporation's~~Corporation’s Executive Committee are the Executive Officers of the Corporation:



Name			Age	Current and Prior Positions (up to five years)	~~Current~~Primary Areas of Responsibility
~~M.K.~~Michael K. Wirth			5761	Chairman of the Board and Chief Executive Officer (since ~~February~~ Feb 2018) Vice Chairman of the Board (Feb 2017 - Jan 2018) and Executive ~~Vice President, Midstream~~ ~~and Development (February 2017 to January 2018)~~ ~~Executive~~ Vice President, Midstream and Development ~~(February~~(Jan 2016 ~~through January 2017)~~ ~~Executive Vice President, Downstream (2006 through 2015)~~ - Jan 2018)	Chairman of the Board and Chief Executive Officer
~~J.W. Johnson~~Joseph C. Geagea			5862	Executive Vice President ~~Upstream~~and Senior Advisor to Chairman and CEO (since ~~2015)~~ ~~Senior Vice President, Upstream (2014)~~ ~~President, Europe, Eurasia and Middle East Exploration and~~ ~~Production (2011 through 2013)~~	~~Worldwide Exploration and Production Activities~~
~~P.R. Breber~~	53	~~Executive Vice President, Downstream (since 2016)~~ ~~Corporate Vice President and President, Gas and Midstream~~ ~~(2014 through 2015)~~ ~~Managing Director, Asia South Business Unit (2012 through 2013)~~	~~Worldwide Refining, Marketing and Lubricants; Chemicals~~
~~J.C. Geagea~~	58	Aug 2021) Executive Vice President, Technology, Projects and Services ~~(since 2015)~~ ~~Senior~~ (Jun 2015 - Aug 2021)	Advisor to the Chairman and CEO
James W. Johnson			62	Executive Vice President, ~~Technology, Projects~~Upstream (since Jun 2015)	Worldwide Exploration and ~~Services (2014)~~ ~~Corporate~~Production Activities
Mark A. Nelson			58	Executive Vice President, ~~and President, Gas and Midstream~~ ~~(2012 through 2013)~~	~~Technology; Health, Environment and Safety; Project Resources Company; Procurement~~
~~M.A. Nelson~~	54	Downstream (since Mar 2019) Vice President, Midstream, Strategy and Policy ~~(since February 2018)~~ (Feb 2018 - Feb 2019) Vice President, Strategic Planning ~~(May~~(Apr 2016 ~~through January~~- Jan 2018)	Worldwide Manufacturing, Marketing and Lubricants; Chemicals
Eimear P. Bonner			47	Vice President ~~International Products (2010 through April 2016)~~(since Aug 2021), Chief Technology Officer and President of Chevron Technical Center (since Feb 2021) General Director of Tengizchevroil (Dec 2018 - Jan 2021) General Manager of Operations of Tengizchevroil (Nov 2015 - Nov 2018)	~~Corporate Strategy; Policy, Government~~Information Technology; Subsurface; Global Reserves; Wells; Asset Performance and ~~Public Affairs;~~ Process Safety; Facilities Designs and Solutions; Capital Projects; Health, Safety and Environment; Downstream Technology
Pierre R. Breber			57	Vice President and Chief Financial Officer (since Apr 2019) Executive Vice President, Downstream (Jan 2016 - Mar 2019)	Finance
Rhonda J. Morris			56	Vice President and Chief Human Resources Officer (since Feb 2019) Vice President, Human Resources (Oct 2016 - Jan 2019)	Human Resources; Diversity and Inclusion
Colin E. Parfitt			57	Vice President, Midstream (since Mar 2019) President, Supply and Trading (Jun 2013 - Feb 2019)	Supply and Trading Activities; Shipping; Pipeline; Power and Energy Management
~~P.E. Yarrington~~R. Hewitt Pate			6159	~~Vice President and Chief Financial Officer (since 2009)~~	~~Finance~~
~~R.H. Pate~~	55	Vice President and General Counsel (since Aug 2009)	Law, Governance and Compliance

The information about directors required by Item ~~401 (a)~~401(a), (d), (e) and (f) of Regulation S-K and contained under the heading “Election of Directors” in the Notice of the ~~2018~~2022 Annual Meeting of Stockholders and ~~2018~~2022 Proxy Statement, to be filed pursuant to Rule 14a-6(b) under the ~~Securities~~ Exchange Act ~~of 1934 (the “Exchange Act”),~~ in connection with the company’s ~~2018~~2022 Annual Meeting (the ~~“2018~~2022 Proxy ~~Statement”)~~Statement), ~~is incorporated by reference into this Annual Report on Form 10-K.~~

The information required by Item 405 of Regulation S-K and contained under the heading “Stock Ownership Information — Section 16(a) Beneficial Ownership Reporting Compliance” in the 2018 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

The information required by Item 406 of Regulation S-K and contained under the heading “Corporate Governance — Business Conduct and Ethics Code” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

The information required by Item 407(d)(4) and (5) of Regulation S-K and contained under the heading “Corporate Governance — Board Committees” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

Item 11. Executive Compensation

The information required by Item 402 of Regulation S-K and contained under the headings “Executive ~~Compensation”~~Compensation,” “CEO Pay Ratio” and “Director Compensation” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

The information required by Item 407(e)(4) of Regulation S-K and contained under the heading “Corporate Governance — Board Committees” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

The information required by Item 407(e)(5) of Regulation S-K and contained under the heading “Corporate Governance — Management Compensation Committee Report” in the ~~2018~~2022 Proxy Statement is incorporated herein by reference into this Annual Report on Form 10-K. Pursuant to the rules and regulations of the SEC under the Exchange Act, the information under such caption incorporated by reference from the ~~2018~~2022 Proxy Statement shall not be deemed to be “soliciting material,” or to be “filed” with the Commission, or subject to Regulation 14A or 14C or the liabilities of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by Item 403 of Regulation S-K and contained under the heading “Stock Ownership Information — Security Ownership of Certain Beneficial Owners and Management” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

The information required by Item 201(d) of Regulation S-K and contained under the heading “Equity Compensation Plan Information” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by Item 404 of Regulation S-K and contained under the heading “Corporate Governance — Related Person Transactions” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

The information required by Item 407(a) of Regulation S-K and contained under the heading “Corporate Governance — Director Independence” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

Item 14. Principal Accounting Fees and Services

The information required by Item 9(e) of Schedule 14A and contained under the heading “Board Proposal to Ratify PricewaterhouseCoopers LLP as the Independent Registered Public Accounting Firm for ~~2018"~~2022” in the ~~2018~~2022 Proxy Statement is incorporated by reference into this Annual Report on Form 10-K.

THIS PAGE INTENTIONALLY LEFT BLANK

Financial Table of Contents






Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Key Financial Results	3032
	Earnings by Major Operating Area	3032
	Business Environment and Outlook	3032
	Operating Developments	3437
	Results of Operations	3438
	Consolidated Statement of Income	3740
	Selected Operating Data	3942
	Liquidity and Capital Resources	4043
	Financial Ratios and Metrics	4246
	~~Off-Balance-Sheet Arrangements, Contractual Obligations,~~ ~~Guarantees and Other Contingencies~~	42
	Financial and Derivative Instrument Market Risk	4347
	Transactions With Related Parties	4448
	Litigation and Other Contingencies	4448
	Environmental Matters	4549
	Critical Accounting Estimates and Assumptions	4550
	New Accounting Standards	4853
	Quarterly Results ~~and Stock Market Data~~	4954





Consolidated Financial Statements
	Reports of Management	5055
	Report of Independent Registered Public Accounting Firm (PCAOB ID: 238)	5156
	Consolidated Statement of Income	5258
	Consolidated Statement of Comprehensive Income	5359
	Consolidated Balance Sheet	5460
	Consolidated Statement of Cash Flows	5561
	Consolidated Statement of Equity	5662






Notes to the Consolidated Financial Statements
Note 1			Summary of Significant Accounting Policies		5763
Note 22			Changes in Accumulated Other Comprehensive Losses		5966

Note 33			~~Noncontrolling Interests~~		60
~~Note 4~~	Information Relating to the Consolidated Statement of Cash Flows	6067
Note 45			New Accounting Standards		6168
Note 56			Lease Commitments		6268
Note 67			Summarized Financial Data – Chevron U.S.A. Inc.		6370


Note 78			Summarized Financial Data –- Tengizchevroil LLLLPP		6370
Note 89			Summarized Financial Data - Chevron Phillips Chemical Company LLC		6470
Note 910			Fair Value Measurements		6471
Note 1011			Financial and Derivative Instruments		6572
Note 1112			Assets Held for Sale		6673
Note 1123			Equity		6673
Note 1413			Earnings Per ~~Shar~~Shaere		6774
Note 1514			Operating Segments and Geographic Data		6774
Note 1615			Investments and Advances		7077
Note 17			~~Litigatio~~16n	71Litigation		78
Note 18			~~Taxes~~17	75Taxes		79
Note 19			~~Short-Term Debt~~18	78Properties, Plant and Equipment		82
Note 20			~~Long-Term Debt~~19	79Short-Term Debt		83
Note 20			Long-Term Debt		84
Note 21			Accounting for Suspended Exploratory Wells		8085
Note 22			Stock Options and Other Share-Based Compensation		8186
Note 23			Employee Benefit Plans		8287
Note 24			~~Properties, Plant and Equipment~~24	87
~~Note 25~~	Other Contingencies and Commitments	8792
Note 262 5			Asset Retirement Obligations		8993

Note 272 6			Revenue		94
Note 2 7			Other Financial Information		8994

~~Five-Year Financial Summary~~		90
Note 28			Financial Instruments - Credit Losses		95
Note 29			Acquisition of Noble Energy, Inc.		95

Supplemental Information on Oil and Gas Producing Activities					9197

Management's Discussion and Analysis of Financial Condition and Results of Operations

Key Financial Results


Millions of dollars, except per-share amounts	2017			2016			2015			Millions of dollars, except per-share amounts	2021			2020			2019
Net Income (Loss) Attributable to Chevron Corporation	$	9,195		$	(497	)	$	4,587		Net Income (Loss) Attributable to Chevron Corporation	$	15,625		$	(5,543)		$	2,924
Per Share Amounts:										Per Share Amounts:
Net Income (Loss) Attributable to Chevron Corporation										Net Income (Loss) Attributable to Chevron Corporation
– Basic	$	4.88		$	(0.27	)	$	2.46		– Basic	$	8.15		$	(2.96)		$	1.55
– Diluted	$	4.85		$	(0.27	)	$	2.45		– Diluted	$	8.14		$	(2.96)		$	1.54
Dividends	$	4.32		$	4.29		$	4.28		Dividends	$	5.31		$	5.16		$	4.76
Sales and Other Operating Revenues	$	134,674		$	110,215		$	129,925		Sales and Other Operating Revenues	$	155,606		$	94,471		$	139,865
Return on:										Return on:
Capital Employed	5.0		%	(0.1		)%	2.5		%	Capital Employed	9.4		%	(2.8)		%	2.0		%
Stockholders’ Equity	6.3		%	(0.3		)%	3.0		%	Stockholders’ Equity	11.5		%	(4.0)		%	2.0		%
Earnings by Major Operating Area	Earnings by Major Operating Area									Earnings by Major Operating Area
Millions of dollars	2017			2016			2015			Millions of dollars	2021			2020			2019
Upstream										Upstream
United States	$	3,640		$	(2,054	)	$	(4,055	)	United States	$	7,319		$	(1,608)		$	(5,094)
International	4,510			(483		)	2,094			International	8,499			(825)			7,670
Total Upstream	8,150			(2,537		)	(1,961		)	Total Upstream	15,818			(2,433)			2,576
Downstream										Downstream
United States	2,938			1,307			3,182			United States	2,389			(571)			1,559
International	2,276			2,128			4,419			International	525			618			922
Total Downstream	5,214			3,435			7,601			Total Downstream	2,914			47			2,481
All Other	(4,169		)	(1,395		)	(1,053		)	All Other	(3,107)			(3,157)			(2,133)
Net Income (Loss) Attributable to Chevron Corporation^1,2	$	9,195		$	(497	)	$	4,587		Net Income (Loss) Attributable to Chevron Corporation1,2	$	15,625		$	(5,543)		$	2,924
¹ Includes foreign currency effects:	$	(446	)	$	58		$	769		1 Includes foreign currency effects:	$	306		$	(645)		$	(304)
²Income net of tax, also referred to as “earnings” in the discussions that follow.	²Income net of tax, also referred to as “earnings” in the discussions that follow.									2 Income net of tax, also referred to as “earnings” in the discussions that follow.

Refer to the “Results of Operations” section beginning on page 3438 for a discussion of financial results by major operating area for the three years ended December 31, ~~2017.~~2021.

Business Environment and Outlook

Chevron Corporation is a global energy company with substantial business activities in the following countries: Angola, Argentina, Australia, ~~Azerbaijan,~~ Bangladesh, Brazil, Canada, China, ~~Colombia, Democratic Republic~~Egypt, Equatorial Guinea, Israel, Kazakhstan, Kurdistan Region of ~~the Congo, Denmark, Indonesia, Kazakhstan, Myanmar,~~Iraq, Mexico, Nigeria, the Partitioned Zone between Saudi Arabia and Kuwait, the Philippines, Republic of Congo, Singapore, South ~~Africa, South~~ Korea, Thailand, the United Kingdom, the United States, and Venezuela.

The company’s objective is to deliver higher returns, lower carbon and superior shareholder value in any business environment. Earnings of the company depend mostly on the profitability of its upstream business segment. The ~~biggest~~most significant factor affecting the results of operations for the upstream segment is the price of crude ~~oil. The price~~oil, which is determined in global markets outside of the company’s control. In the company’s downstream business, crude oil ~~has fallen significantly since mid-year 2014. The downturn in~~is the ~~price~~largest cost component of ~~crude oil has impacted the company's results~~refined products. Periods of ~~operations, cash flows, leverage, capital and exploratory investment program and production outlook. A~~ sustained lower ~~price environment~~commodity prices could result in the impairment or write-off of specific assets in future ~~periods. The~~periods and cause the company ~~has responded with reductions in~~to adjust operating expenses, ~~pacing~~including employee reductions, and ~~re-focusing of~~ capital and exploratory expenditures, along with other measures intended to improve financial performance.

Governments, companies, communities, and ~~increased asset sales.~~other stakeholders are increasingly supporting efforts to address climate change, recognizing that individuals and society benefit from access to affordable, reliable, and ever-cleaner energy. International initiatives and national, regional and state legislation and regulations that aim to directly or indirectly reduce GHG emissions are in various stages of adoption and implementation. These policies, some of which support the global net zero emissions ambitions of the Paris Agreement, can change the amount of energy consumed, the rate of energy-demand growth, the energy mix, and the relative economics of one fuel versus another. Implementation of these policies can be dependent on, and can affect the pace of, technological advancements, the granting of necessary permits by governing authorities, the availability of cost-effective, verifiable carbon credits, the availability of suppliers that can meet sustainability and other standards, evolving regulatory requirements affecting ESG standards or other disclosures, and evolving standards for tracking and reporting on emissions and emission reductions and removals. Beyond the legislative and regulatory landscape, ever changing customer and consumer behavior can also influence energy demand by affecting preferences and use of the company’s products or competitors’ products, now and in the future.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Chevron supports the Paris Agreement’s global approach to governments addressing climate change and is committed to taking actions to help lower the carbon intensity of its operations while continuing to meet the need for energy that supports society. Chevron integrates climate change-related issues and the regulatory and other responses to these issues into its strategy and planning, capital investment reviews, and risk management tools and processes, where it believes they are applicable. They are also factored into the company’s long-range supply, demand, and energy price forecasts. These forecasts reflect estimates of long-range effects from climate change-related policy actions, such as renewable fuel penetration and energy efficiency standards, and demand response to oil and natural gas prices. The actual level of expenditure required to comply with new or potential climate change-related laws and regulations and amount of additional investments in new or existing technology or facilities, such as carbon capture and storage, is difficult to predict with certainty and is expected to vary depending on the actual laws and regulations enacted or customer and consumer preference in a jurisdiction, the company’s activities in it, and market conditions. As discussed in more detail below, the company has announced planned capital spend of $10 billion through 2028 in lower carbon investments.

Although the future is uncertain, many published outlooks conclude that fossil fuels will remain a significant part of an energy system that increasingly incorporates lower carbon sources of supply. The company ~~anticipates~~will continue to develop oil and gas resources to meet customers’ demand for energy. At the same time, Chevron believes that ~~crude~~the future of energy is lower carbon. The company will continue to maintain flexibility in its portfolio to be responsive to changes in policy, technology, and customer preferences. Chevron aims to grow its traditional oil ~~prices will~~and gas business, lower the carbon intensity of its operations and grow lower carbon businesses in renewable fuels, hydrogen, carbon capture and offsets. To grow its lower carbon businesses, Chevron plans to target sectors of the economy where emissions are harder to abate or that cannot be easily electrified, while leveraging the company’s capabilities, assets and customer relationships. The company’s traditional oil and gas business may increase or decrease depending upon regulatory or market forces, among other factors.

In 2021, Chevron announced the following aspiration and targets that are aligned with its lower carbon strategy:

2050 Net Zero Upstream Aspiration Chevron aspires to achieve net zero for Upstream production Scope 1 and 2 GHG Emissions on an equity basis by 2050.The company believes accomplishing this aspiration depends on, among other things, partnerships with multiple stakeholders, continuing progress on commercially viable technology, government policy, successful negotiations for carbon capture and storage and nature-based projects, availability of cost-effective, verifiable offsets in the ~~future,~~global market, and granting of necessary permits by governing authorities.

2028 Upstream Production GHG Intensity Targets These metrics include Scope 1, direct emissions, and Scope 2, indirect emissions from imported electricity and steam, and are net of emissions from exported electricity and steam. The targeted 2028 reductions from 2016 on an equity ownership basis include a:

•40 percent reduction in oil production GHG intensity to 24 kilograms (kg) carbon dioxide equivalent per barrel of oil-equivalent (CO2e/boe),

•26 percent reduction in gas production GHG intensity to 24 kg CO2e/boe,

•53 percent reduction in methane intensity to 2 kg CO2e/boe, and

•66 percent reduction in flaring GHG intensity to 3 kg CO2e/boe.

The company also targets no routine flaring by 2030. We have set 2016 as ~~continued growth~~our baseline to align with the year the Paris Agreement entered into force, and the company plans to update the metrics every five years in line with the Paris Agreement stocktakes. We believe these updates will provide additional transparency on the company’s progress toward its net zero aspiration.

2028 Portfolio Carbon Intensity Target The company also introduced a portfolio carbon intensity (PCI) metric, which is a measure of the carbon intensity across the full value chain of Chevron’s entire business. This metric encompasses the company’s Upstream and Downstream business and includes Scope 1 (direct emissions), Scope 2 (indirect emissions from imported electricity and steam), and certain Scope 3 (primarily emissions from use of sold products) emissions. The company’s PCI target is 71 grams (g) carbon dioxide equivalent (CO e) per megajoules (MJ) by 2028, a greater than five percent reduction from 2016.

Planned Lower-Carbon Capital Spend through 2028 The company increased its planned capital spend to approximately $10 billion through 2028 to advance its lower carbon strategy, which includes approximately $2 billion to lower the carbon intensity of its traditional oil and gas operations, and approximately $8 billion for lower carbon investments in renewable fuels, hydrogen and carbon capture and offsets. We anticipate setting additional capital spending targets as the company

Management's Discussion and Analysis of Financial Condition and Results of Operations

progresses toward its 2050 Upstream production Scope 1 and 2 net zero aspiration and further grows its lower carbon business lines.

Refer to “Risk Factors” in Part I, Item 1A, on pages 20 through 25 for further discussion of greenhouse gas regulation and climate change and the associated risks to Chevron’s business, including the risks impacting Chevron’s lower carbon strategy and its aspirations, targets and plans.

Response to Market Conditions and COVID-19Commodity prices and demand for most of our products have largely recovered from the impacts of COVID-19 in 2020. However, some countries face a resurgence of the virus and ~~a slowing in supply growth should bring global markets into balance; however, the~~its variants (e.g., Delta, Omicron) that could impact demand for some of our products (e.g., jet fuel), workforce availability, timing of ~~any such increase~~project start-ups and materials movement and pose a risk to our business and future financial results.

Chevron’s operations have continued with a combination of on-site and at-home work, while monitoring local vaccine and transmission rates. In refining, the company continued to take steps to maximize diesel and motor gasoline production, given the decline in jet fuel demand.

In TCO, progress continued on FGP/WPMP. Staffing is ~~unknown. In~~at targeted levels and at the ~~company's downstream business, crude oil is~~end of December 2021, over 90 percent of the ~~largest cost component of refined products. It is the company's objective to deliver competitive results and shareholder value in any business environment.~~TCO workforce on-site was fully vaccinated.

The effective tax rate for the company can change substantially during periods of significant earnings volatility. This is mainly due to ~~the~~ mix effects that are impacted both by the absolute level of earnings or losses and whether they arise in higher or lower tax rate jurisdictions. As a result, a decline or increase in the effective income tax rate in one period may not be indicative of expected results in future periods. Note 1817 Taxes provides the company’s effective income tax rate for the last three years.

Refer to the ~~"Cautionary Statement~~“Cautionary Statements Relevant to Forward-Looking ~~Information"~~Information” on page 2 and to ~~"Risk Factors"~~“Risk Factors” in Part I, Item 1A, on pages 1920 through 2225 for a discussion of some of the inherent risks that could materially impact the ~~company's~~company’s results of operations or financial condition.

The company continually evaluates opportunities to dispose of assets that are not expected to provide sufficient long-term value orand to acquire assets or operations complementary to its asset base to help augment the company’s financial

~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~

performance and value growth. The company's asset sale program for 2016 and 2017 targeted before-tax proceeds of $5-10 billion. Proceeds and deposits related to asset sales were $2.8 billion in 2016 and $5.2 billion in 2017. Refer to the “Results of Operations” section beginning on page 34 for discussions of net gains on asset sales during 2017. Asset dispositions and restructurings may ~~also occur in future periods and could~~ result in significant gains or ~~losses.~~losses in future periods.

The company closely monitors developments in the financial and credit markets, the level of worldwide economic activity, and the implications for the company of movements in prices for crude oil and natural gas. Management takes these developments into account in the conduct of daily operations and for business planning.

Comments related to earnings trends for the company’s major business areas are as follows:

UpstreamEarnings for the upstream segment are closely aligned with industry prices for crude oil and natural gas. Crude oil and natural gas prices are subject to external factors over which the company has no control, including product demand connected with global economic conditions, industry production and inventory levels, technology advancements, production quotas or other actions imposed by ~~the Organization of Petroleum Exporting Countries (OPEC) or other producers,~~OPEC+ countries, actions of regulators, weather-related damage and disruptions, competing fuel prices, natural and human causes beyond the company’s control such as the COVID-19 pandemic, and regional supply interruptions or fears thereof that may be caused by military conflicts, civil unrest or political uncertainty. Any of these factors could also inhibit the company’s production capacity in an affected region. The company closely monitors developments in the countries in which it operates and holds investments and seeks to manage risks in operating its facilities and businesses.

The longer-term trend in earnings for the upstream segment is also a function of other factors, including the company’s ability to find or acquire and efficiently produce crude oil and natural gas, changes in fiscal terms of contracts, the pace of energy transition, and changes in tax, environmental and other applicable laws and regulations.

The company ~~continues to~~is actively ~~manage~~managing its schedule of work, contracting, procurement, and ~~supply-chain~~supply chain activities to effectively manage ~~costs. However, price levels~~costs and ensure supply chain resiliency and continuity in support of operational goals. Third party costs for capital, ~~and exploratory costs~~exploration, and operating expenses ~~associated with the production of crude oil and natural gas~~ can be subject to external factors beyond the company’s control including, ~~among other things,~~but not limited to: severe weather or civil unrest, delays in construction, global and local supply chain distribution issues, the general level of inflation, ~~commodity prices~~tariffs or other taxes imposed on goods or services, and market based prices charged by the industry’s material and service ~~providers, which can~~providers. Chevron utilizes contracts with various pricing mechanisms, so there may be ~~affected by~~a lag before the ~~volatility~~company’s costs reflect changes in market trends.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Prices for goods and services in various sectors have risen over the ~~industry’s own supply-and-demand conditions~~past year. A key factor behind this trend is the accelerated demand for ~~such~~goods and transportation as companies restock materials and ~~services. Industry cost inflation~~expand working inventories as a hedge against future disruptions. Shifts in ~~most onshore segments, including North America unconventionals, started to modestly rise in 2017 with increases in commodity prices and higher levels of activity and investment. Offshore costs~~the labor market continue to ~~decline driven by lower offshore~~create issues for companies seeking to fill positions. Geographic mismatches between skills required and available labor, reductions in the overall labor supply, and perceptions of working conditions have resulted in tight labor markets.

As U.S. and international drilling activity ~~levels~~continues to accelerate, continued upward market pressure is expected for oil and ~~increased~~gas industry inputs (such as rigs and well services). The pace of economic growth and shifting spending patterns may lead to more cross-industry competition ~~among suppliers. Capital~~for resources, which could impact the cost of certain non-oil and ~~exploratory expenditures~~gas industry goods and ~~operating expenses could also be affected by damage to production facilities caused by severe weather or civil unrest, delays in construction, or other factors.~~services.

The chart above shows the trend in benchmark prices for Brent crude oil, West Texas Intermediate (WTI) crude oil and U.S. Henry Hub natural gas. The Brent price averaged ~~$54~~$71 per barrel for the full-year ~~2017,~~2021, compared to ~~$44~~$42 in ~~2016.~~2020. As of mid-February ~~2018,~~2022, the Brent price was ~~$62~~$100 per barrel. The WTI price averaged $68 per barrel for the full-year 2021, compared to $39 in 2020. As of mid-February 2022, the WTI price was $95 per barrel. The majority of the company’s equity crude production is priced based on the Brent benchmark.

Crude prices increased in 2021 driven by production curtailment by OPEC+ countries and steadily increasing demand for transportation fuels. The company’s average realization for U.S. crude oil ~~prices were better supported~~and natural gas liquids in ~~2017 amid firming demand, rising geopolitical tensions, and ongoing output reductions by OPEC and certain non-OPEC producers. However, upside~~2021 was limited as rebounding U.S. and other non-OPEC production resulted in ongoing oversupplied conditions. Prices weakened gradually over the first half of 2017 due to concerns that OPEC cuts would be allowed to expire in June 2017, but firmed over the

~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~

second half of 2017 after OPEC’s decision on May 25, 2017, to extend cuts through the first quarter of 2018. Price support was reinforced on November 30, 2017, when OPEC and their non-OPEC partners agreed to further extend output cuts through December 2018.

~~The WTI price averaged $51~~$56 per barrel, for the full-year 2017, compared to $43 in 2016. As of mid-February 2018, the WTI price was $59 per barrel. WTI traded at a discount to Brent throughout 2017. After starting 2017 at a $2 discount to Brent, the WTI discount expanded to about $6 by year-end due to rising U.S. crude production, rebounding inventories, and growing concerns that pipeline infrastructure constraints would again restrict flows to export outlets on the Gulf Coast.

~~A differential in crude oil prices exists between high-gravity, low-sulfur crudes and low-gravity, high-sulfur crudes.~~up 84 percent from 2020. The amount of the differential in any period is associated with the relative supply/demand balances for each crude type. In second-half 2017, the differential held generally steady in North America as robust refinery demand supported heavy crude values, while light sweet crude prices in the U.S. were supported by rising exports of domestic production. Outside of North America, differentials were steady to modestly wider amid well-supplied light sweet crude markets in the Atlantic Basin, while rising U.S. exports to Asia increased competitive pressure on Middle East exports to the region. Chevron has producing interests in heavy crude oil in California, Indonesia, the Partitioned Zone between Saudi Arabia and Kuwait, Venezuela and in certain fields in Angola, China and the United Kingdom sector of the North Sea. (See page 39 for the company’s average ~~U.S. and~~realization for international crude oil ~~realizations.)~~and natural gas liquids in 2021 was $65 per barrel, up 79 percent from 2020.

~~In contrast to price movements in the global market for crude oil, price changes~~Prices for natural gas ~~in many regional markets~~ are more closely aligned with seasonal supply-and-demand and infrastructure conditions in ~~those~~local markets. ~~Fluctuations in the price of natural gas in the United States are closely associated with customer demand relative to the volumes produced and stored in North America.~~ In the United States, prices at Henry Hub averaged ~~$2.97~~$3.85 per thousand cubic feet (MCF) during ~~2017,~~2021, compared with ~~$2.46~~$1.98 per MCF during ~~2016.~~2020. As of mid-February ~~2018,~~2022, the Henry Hub spot price was ~~$2.57~~$3.93 per MCF.

Outside the United States, ~~price changes~~prices for natural gas depend on a wide range of supply, demand and regulatory circumstances. Chevron sells natural gas into the domestic pipeline market in most locations. In some locations, Chevron has invested in long-term projects to produce and liquefy natural gas for transport by tanker to other markets. The ~~company's~~company’s long-term contract prices for liquefied natural gas (LNG) are typically linked to crude oil prices. Most of the equity LNG offtake from the operated Australian LNG projects is committed under binding long-term contracts, with ~~the remainder to be~~some sold in the Asian spot LNG market. ~~The Asian spot market reflects the supply and demand for LNG in the Pacific Basin and is not directly linked to crude oil prices.~~ International natural gas realizations averaged ~~$4.62~~$5.93 per MCF during ~~2017,~~2021, compared with ~~$4.02~~$4.59 per MCF during ~~2016.~~2020. (See page 3942 for the company’s average natural gas realizations for the U.S. and international regions.)

The company’s worldwide net oil-equivalent production in ~~2017 averaged 2.728~~2021 was a record 3.099 million barrels per day. About ~~one-sixth~~27 percent of the company’s net oil-equivalent production in ~~2017~~2021 occurred in ~~the OPEC-member~~OPEC+ member countries of Angola, Equatorial Guinea, Kazakhstan, Nigeria, the Partitioned Zone between Saudi Arabia and ~~Venezuela. OPEC quotas had no effect on the company’s net crude oil production in 2017 or 2016.~~Kuwait and Republic of Congo.

The company estimates that its net oil-equivalent production in ~~2018~~2022 will ~~grow 4~~be flat to 7down 3 percent compared to ~~2017,~~2021, assuming a Brent crude oil price of $60 per barrel and excluding the impact of ~~anticipated 2018~~ asset ~~sales.~~sales that may close in 2022. This estimate is subject to many factors and uncertainties, including quotas or other actions that may be imposed by ~~OPEC;~~OPEC+; price effects on entitlement volumes; changes in fiscal terms or restrictions on the scope of company operations; delays in ~~construction,~~construction; reservoir performance; greater-than-expected declines in production from mature fields; start-up or ramp-up of projects; fluctuations in demand for crude oil and natural gas in various markets; weather conditions that may shut in

Management's Discussion and Analysis of Financial Condition and Results of Operations

production; civil unrest; changing geopolitics; delays in completion of maintenance turnarounds; ~~greater-than-expected declines in production from mature fields;~~storage constraints or economic conditions that could lead to shut-in production; or other disruptions to operations. The outlook for future production levels is also affected by the size and number of economic investment opportunities and ~~for new, large-scale projects,~~ the time lag between initial exploration and the beginning of production. ~~Investments~~The company has increased its investment emphasis on short-cycle projects.

In January 2022, Chevron announced its intent to begin the process of exiting from its nonoperated interests in ~~upstream projects generally begin well in advance~~Myanmar. At December 31, 2021, the carrying value of the ~~start of the associated crude oil and natural gas production.~~company’s assets was approximately $200 million.

~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~

In the Partitioned Zone between Saudi Arabia and Kuwait, production was shut-in beginning in May 2015 as a result of difficulties in securing work and equipment permits. Net oil-equivalent production in the Partitioned Zone in 2014 was 81,000 barrels per day. During 2015, net oil-equivalent production averaged 28,000 barrels per day. As of early 2018, production remains shut in and the exact timing of a production restart is uncertain and dependent on dispute resolution between Saudi Arabia and Kuwait. The financial effects from the loss of production in 2017 were not significant and are not expected to be significant in 2018.

Net proved reserves for consolidated companies and affiliated companies totaled ~~11.7~~11.3 billion barrels of oil-equivalent at year-end ~~2017,~~2021, an increase of 51 percent from year-end ~~2016.~~2020. The reserve replacement ratio in ~~2017~~2021 was ~~155~~112 percent. The 5 and 10 year reserve replacement ratios were 103 percent and 100 percent, respectively. Refer to Table V ~~beginning on page 95~~ for a tabulation of the company’s proved net oil and gas reserves by geographic area, at the beginning of ~~2015~~2019 and each year-end from ~~2015~~2019 through ~~2017,~~2021, and an accompanying discussion of major changes to proved reserves by geographic area for the three-year period ending December 31, ~~2017.~~2021.

Refer to the “Results of Operations” section on pages ~~34 through 37~~39 and 40 for additional discussion of the company’s upstream business.

Downstream Earnings for the downstream segment are closely tied to margins on the refining, manufacturing and marketing of products that include gasoline, diesel, jet fuel, lubricants, fuel oil, fuel and lubricant additives, petrochemicals and ~~petrochemicals.~~renewable fuels. Industry margins are sometimes volatile and can be affected by the global and regional supply-and-demand balance for refined products and petrochemicals, and by changes in the price of crude oil, other refinery and petrochemical feedstocks, and natural gas. Industry margins can also be influenced by inventory levels, geopolitical events, costs of materials and services, refinery or chemical plant capacity utilization, maintenance programs, and disruptions at refineries or chemical plants resulting from unplanned outages due to severe weather, fires or other operational events.

Other factors affecting profitability for downstream operations include the reliability and efficiency of the company’s refining, marketing and petrochemical assets, the effectiveness of its crude oil and product supply functions, and the volatility of tanker-charter rates for the company’s shipping operations, which are driven by the industry’s demand for crude oil and product tankers. Other factors beyond the company’s control include the general level of inflation and energy costs to operate the company’s refining, marketing and petrochemical ~~assets.~~assets, and changes in tax, environmental, and other applicable laws and regulations.

The company’s most significant marketing areas are the West Coast and Gulf Coast of the United States and Asia ~~and southern Africa.~~Pacific. Chevron operates or has significant ownership interests in refineries in each of these areas. Additionally, the company has a small but growing presence in renewable fuels.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Refer to the “Results of Operations” section on ~~pages 34 through 37~~page 40 for additional discussion of the company’s downstream operations.

All Otherconsists 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 2021 and early 2022 included the following:

Upstream

AngolaChevron’s affiliate, Cabinda Gulf Oil Company Limited (CABGOC), signed an agreement to extend the Block 0 concession for 20 years, through 2050.

Australia Sanctioned the Jansz-Io compression project, a part of the Gorgon development and an important source of natural gas supply to the Gorgon LNG facility.

Brazil Completed the sale of the company's 37.5 percent nonoperated interest in the Papa-Terra oil field.

Equatorial Guinea Announced the start-up and first LNG cargo from the Alen Gas Monetization Project.

JapanAnnounced the signing of a binding Sale and Purchase Agreement with Hokkaido Gas Co., Ltd. for the delivery of about a half million tons of LNG over a period of five years, starting in 2022.

United States Entered FEED for the Ballymore project, which is being developed as a subsea tieback to the existing Blind Faith facility, in the deepwater Gulf of Mexico.

United StatesSanctioned the Whale project in the deepwater Gulf of Mexico.

Downstream

Finland Announced an agreement to acquire Neste Oyj’s Group III base oil business, including its related sales and marketing business, and brand NEXBASETM.

South Korea Chevron’s 50 percent owned affiliate, GS Caltex, started up an olefins mixed-feed cracker and associated polyethylene unit at its Yeosu refinery ahead of schedule and under budget.

United States Announced the commissioning and start-up of the world’s first commercial-scale ISOALKY™ process unit at the Salt Lake City Refinery. This proprietary technology uses ionic liquids to produce a high octane gasoline blending component as a cost-effective alternative to conventional alkylation technologies and offers environmental and process safety advantages.

United States Began producing renewable diesel at the El Segundo, California refinery by co-processing bio-feedstock.

United StatesAnnounced establishment of its first branded Compressed Natural Gas (CNG) station, as part of its plan to sell RNG through more than 30 CNG stations in California by 2025.

United States Acquired an equity interest in American Natural Gas LLC (now Beyond6, LLC) and its network of 60 compressed natural gas stations across the United States to grow its RNG value chain.

United States Announced the second expansion of its joint venture, Brightmark RNG Holdings LLC, to own projects across the United States to produce and market dairy biomethane, a RNG. First gas delivery at the Lawnhurst site in New York was announced in November.

United States Announced the launch of Havoline® PRO-RS™ Renewable Full Synthetic Motor Oil made with 25 percent sustainably sourced plant-based oils.

United States Celebrated the opening of the 1,000th ExtraMile Convenience store.

United States Chevron’s 50 percent owned affiliate, CPChem, announced the first commercial sales of their Marlex® Anew™ Circular Polyethylene, which uses advanced recycling technology to process pyrolysis oil, a feedstock made from difficult-to-recycle waste plastics.

United States Announced the signing of definitive transaction agreements to create a joint venture with Bunge North America, Inc., to own and operate soybean processing facilities.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Other

~~Operating Developments~~United StatesAnnounced the launch of Chevron’s $300 million Future Energy Fund II focused on technologies that have the potential to enable affordable, reliable, and ever-cleaner energy for all.

~~Key operating developments~~United StatesAnnounced plans with partners to develop carbon negative bioenergy in Mendota, California.

United StatesAnnounced memorandums of understanding with Toyota Motors North America, Inc. to explore a strategic alliance to catalyze and lead the development of commercially viable, large-scale businesses in hydrogen; with Cummins Inc. to explore a strategic alliance to develop commercially viable business opportunities in hydrogen and other ~~events during 2017~~alternative energy sources; with Delta Air Lines, Inc. and ~~early 2018 included the following:~~Google LLC to track sustainable aviation fuel test batch emissions data using cloud-based technology; and with Progress Rail Locomotive Inc., a Caterpillar company, and BNSF Railway Company to demonstrate hydrogen-fueled locomotives.

~~Upstream~~

~~AngolaCommenced production from the main production facility~~United StatesAcquired all of the ~~Mafumeira Sul Project.~~publicly held common units representing limited partner interests in Noble Midstream Partners LP not already owned by Chevron and its affiliates.

~~AustraliaAchieved start-up of Train 3 at the Gorgon LNG Project and Train 1 at the Wheatstone LNG Project.~~

~~CanadaAchieved start-up of the Hebron Project.~~

~~Indonesia~~ ~~Completed the sale of the geothermal business.~~

United StatesAnnounced ~~significant crude oil discoveries~~a collaboration agreement with Caterpillar Inc. to develop hydrogen demonstration projects in transportation and stationary power applications, including prime power.

United States Announced a letter of intent with Gevo, Inc. to jointly invest in building and operating one or more new facilities that process inedible corn to produce sustainable aviation fuel.

United States Announced agreement on a framework to acquire an equity interest in ACES Delta, LLC that owns the Advanced Clean Energy Storage project. This project aims to produce, store and transport green hydrogen at ~~the Whale~~utility scale.

United States Announced a framework with Enterprise Product Partners L.P. to study and ~~Ballymore prospects~~evaluate opportunities for carbon dioxide capture, utilization, and storage from their respective business operations in the U.S. Midcontinent and Gulf ~~of Mexico.~~Coast.

~~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~~Invested in companies to access lower-carbon technologies, including Baseload Capital AB (low-temperature geothermal and ~~reached mechanical completion of a new ethane cracker at its U.S. Gulf Coast Petrochemicals Project in Texas.~~heat power), Starfire Energy (carbon-free ammonia and carbon-free hydrogen), Ocergy, Inc. (floating offshore and wind turbine technology), Mainspring (lower-carbon generators for electric grids), Raygen (solar-hydro plant with storage), Boomitra (soil carbon offset platform), Natel Energy (hydro-power based technology), Raven SR Inc. (modular waste-to-green hydrogen and renewable synthetic fuel facilities), Sapphire Technologies (waste energy recovery systems), Hydrogenious LOHC Technologies (liquid organic hydrogen carriers), gr3n SA (plastics recycling technology), Malta Inc. (thermal energy storage) and Ionomr Innovations Inc. (ion-exchange membranes and polymers).

~~Other~~

Common Stock Dividends The ~~2017~~2021 annual dividend was ~~$4.32~~$5.31 per share, making ~~2017~~2021 the ~~30th~~34th consecutive year that the company increased its annual per share dividend payout. In January ~~2018,~~2022, the ~~company's~~company’s Board of Directors ~~approved a $0.04~~increased its quarterly dividend by $0.08 per share, ~~increase in the quarterly dividend~~approximately six percent, to ~~$1.12~~$1.42 per share payable in March ~~2018.~~2022.

Common Stock Repurchase Program The company resumed stock repurchases in third quarter 2021 and purchased $1.4 billion of its common stock in 2021 under its stock repurchase program. The company currently expects to repurchase $1.25 billion of its common stock during the first quarter of 2022.

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 1~~5, beginning on page 67,~~14 Operating Segments and Geographic Data 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 3032 through ~~33.~~37. Refer to the “Selected Operating Data” table on page 42 for a three-year comparison of production volumes, refined product sales volumes, and refinery inputs. A discussion of variances between 2020 and 2019 can be found in the “Results of Operations” section on pages 37 through 38 of the company’s 2020 Annual Report on Form 10-K filed with the SEC on February 25, 2021.

~~U.S. Upstream~~

Millions of dollars 2017
2016
2015
Earnings $ 3,640
$ (2,054 ) $ (4,055 )

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

Management's Discussion and Analysis of Financial Condition and Results of Operations

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


Millions of dollars	2021		2020		2019
Earnings (Loss)	$	7,319	$	(1,608)	$	(5,094)

U.S. upstream ~~operations incurred a loss~~reported earnings of ~~$2.05~~$7.3 billion in ~~2016,~~2021, compared with a loss of ~~$4.06~~$1.6 billion ~~from 2015.~~in 2020. The ~~improvement~~increase was due to ~~lower depreciation expense~~higher realizations of $6.9 billion, the absence of 2020 impairments and write-offs of $1.2 billion, ~~and lower exploration expense~~higher sales volumes of ~~$780 million primarily reflecting a decrease in impairments and project cancellations. Also contributing to the improvement were lower operating expenses of $600~~$760 million, and ~~lower tax items~~higher asset sales gains of ~~$190 million. Partially offsetting these effects were lower crude oil and natural gas realizations of $920~~$640 million.

The company’s average realization for U.S. crude oil and natural gas liquids in ~~2017~~2021 was ~~$44.53~~$56.06 per barrel compared with ~~$35.00~~$30.53 in ~~2016 and $42.70 in 2015.~~2020. The average natural gas realization was ~~$2.10~~$3.11 per thousand cubic feet in ~~2017,~~2021, compared with ~~$1.59~~$0.98 in ~~2016 and $1.92 in 2015.~~2020.

Net oil-equivalent production in ~~2017~~2021 averaged ~~681,000~~1.14 million barrels per day, ~~down 1~~up 8 percent from 2016 and down 5 percent from 2015. Between 2017 and 2016, production increases from shale and tight properties in the Permian Basin in Texas and New Mexico and base business in the Gulf of Mexico were more than offset by the effect of asset sales of 59,0002020. The increase was due to an additional 162,000 barrels per day ~~and normal field declines. Between 2016 and 2015,~~of production ~~increases~~ from ~~shale and tight properties in~~ the ~~Permian Basin in Texas and New Mexico, and base business were more than~~Noble Energy acquisition, partially offset by a 63,000 barrels per day decrease related to the ~~effect of~~Appalachian asset ~~sales and normal field declines.~~sale.

The net liquids component of oil-equivalent production for ~~2017~~2021 averaged ~~519,000~~858,000 barrels per day, up 39 percent from ~~2016 and 4 percent from 2015.~~2020. Net natural gas production averaged ~~about 970 million~~1.69 billion cubic feet per day in ~~2017, down 13~~2021, an increase of 5 percent from ~~2016 and 26 percent from 2015, primarily as a result of asset sales. Refer to the “Selected Operating Data” table on page 39 for a three-year comparison of production volumes in the United States.~~2020.

International Upstream


Millions of dollars	2017			2016			2015		Millions of dollars	2021		2020		2019
Earnings^*	$	4,510		$	(483	)	$	2,094
Earnings (Loss)*									Earnings (Loss)*	$	8,499	$	(825)	$	7,670
^*Includes foreign currency effects:	$	(456	)	$	122		$	725	*Includes foreign currency effects:	$	302	$	(285)	$	(323)

International upstream reported earnings ~~were $4.51~~of $8.5 billion in ~~2017,~~2021, compared with a loss of ~~$483~~$825 million in ~~2016.~~2020. The increase ~~in earnings~~ was primarily due to higher ~~crude oil~~ realizations of ~~$2.59~~$7.6 billion, along with the absence of 2020 impairments and write-offs of $3.6 billion and severance charges of $290 million. Partially offsetting these increases are higher ~~natural gas~~tax charges of $630 million, the absence of 2020 asset sales gains of $550 million, and higher depreciation expenses of $670 million and lower sales volumes of ~~$1.22 billion, higher gains on asset sales of $750 million, and lower operating expenses of $410~~$540 million. Foreign currency effects had ~~an unfavorable~~a favorable impact on earnings of ~~$578 million between periods.~~

International upstream incurred a loss of $483 million in 2016, compared with earnings of $2.09 billion in 2015. The decrease in earnings was primarily due to lower crude oil realizations of $1.89 billion, lower natural gas realizations of $600 million, lower gains on asset sales of $450 million and higher tax items of $330 million. Partially offsetting the decrease were lower exploration and operating expenses of $640 million and $520 million, respectively, and higher natural gas sales volumes of $330 million. Foreign currency effects had an unfavorable impact on earnings of $603$587 million between periods.

The company’s average realization for international crude oil and natural gas liquids in ~~2017~~2021 was ~~$49.46~~$64.53 per barrel compared with ~~$38.61~~$36.07 in ~~2016 and $46.52 in 2015.~~2020. The average natural gas realization was ~~$4.62~~$5.93 per thousand cubic feet in ~~2017,~~2021 compared with ~~$4.02 and $4.53~~$4.59 in ~~2016 and 2015, respectively.~~2020.

International net oil-equivalent production was ~~2.05~~1.96 million barrels per day in 2017, up 8 percent from 2016 and 2015. Between 2017 and 2016, production increases from major capital projects and lower planned maintenance-related downtime were partially offset by production entitlement effects in several locations and normal field declines. Between 2016 and 2015, production increases from major capital projects, base business, and shale and tight properties were largely offset by normal field declines, the Partitioned Zone shut-in, the impact of civil unrest in Nigeria and planned turnaround activity.

~~The net liquids component of international oil-equivalent production was 1.20 million barrels per day in 2017, down 1 percent from 2016 and~~2021, down 3 percent from ~~2015. International net natural gas production~~2020. The decrease was primarily due to the absence of ~~5.1 billion cubic feet~~69,000 barrels per day ~~in 2017 was up 23 percent from 2016 and 28 percent from 2015.~~

~~Refer to~~following expiration of the ~~“Selected Operating Data” table, on page 39, for a three-year comparison of international production volumes.~~

Rokan concession in

Management's Discussion and Analysis of Financial Condition and Results of Operations

Indonesia, unfavorable entitlement effects, normal field declines and the effect of asset sales, partially offset by 113,000 barrels per day associated with the Noble Energy acquisition and lower production curtailments.

The net liquids component of international oil-equivalent production was 956,000 barrels per day in 2021, a decrease of 11 percent from 2020. International net natural gas production of 6.02 billion cubic feet per day in 2021 increased 6 percent from 2020.

U.S. Downstream


Millions of dollars	2017		2016		2015		Millions of dollars	2021		2020		2019
Earnings	$	2,938	$	1,307	$	3,182
Earnings (Loss)							Earnings (Loss)	$	2,389	$	(571)	$	1,559

U.S. downstream ~~operations earned $2.94~~reported earnings of $2.4 billion in ~~2017,~~2021, compared with ~~$1.31 billion~~a loss of $571 million in ~~2016.~~2020. The increase was primarily due to ~~a $1.16 billion benefit from U.S. tax reform,~~ higher margins on refined product sales of ~~$380~~$1.6 billion, higher earnings from 50 percent-owned CPChem of $1.0 billion and higher sales volumes of $470 million, ~~lower~~partially offset by higher operating expenses of ~~$160 million, and the absence of an asset impairment of $110~~$150 million. ~~Partially offsetting this increase were lower gains on asset~~

Total refined product sales of ~~$90~~1.14 million barrels per day in 2021 increased 14 percent from 2020, mainly due to higher gasoline, jet fuel, and ~~lower earnings from~~diesel demand as travel restrictions associated with the ~~50 percent-owned Chevron Phillips Chemicals Company LLC of $70~~COVID-19 pandemic continue to ease.

International Downstream


Millions of dollars	2021		2020		2019
Earnings*	$	525	$	618	$	922
*Includes foreign currency effects:	$	185	$	(152)	$	17

International downstream earned $525 million ~~primarily reflecting the impacts from Hurricane Harvey.~~

~~U.S. downstream operations earned $1.31 billion~~ in ~~2016,~~2021, compared with ~~$3.18 billion~~$618 million in ~~2015.~~2020. The decrease in earnings was largely due to lower margins on refined product sales of ~~$1.45 billion, lower earnings from the 50 percent-owned Chevron Phillips Chemicals Company LLC of $400~~$330 million and ~~an asset impairment of $110 million. Partially offsetting this decrease were lower~~higher operating expenses of ~~$80 million and higher gains on asset sales of $110 million.~~

Refined product sales of 1.20 million barrels per day in 2017 were down 1 percent, primarily due to divestment of Hawaii refining and marketing assets in fourth quarter 2016. Sales volumes of refined products were 1.21 million barrels per day in 2016, a decrease of 1 percent from 2015, mainly reflecting lower sales of diesel. U.S. branded gasoline sales of 528,000 barrels per day in 2017 decreased 1 percent from 2016 and increased 1 percent from 2015.

~~Refer to the “Selected Operating Data” table on page 39 for a three-year comparison of sales volumes of gasoline and other refined products and refinery input volumes.~~

~~International Downstream~~

Millions of dollars 2017
2016
2015
Earnings^*
$ 2,276
$ 2,128
$ 4,419
^*Includes foreign currency effects:
$ (90 ) $ (25 ) $ 47

~~International downstream earned $2.28 billion in 2017, compared with $2.13 billion in 2016. The increase in earnings was primarily due to higher gains on asset sales of $360~~$100 million, partially offset by ~~higher operating expenses of $140 million. Foreign~~a favorable swing in foreign currency effects ~~had an unfavorable impact on earnings~~ of ~~$65 million between periods.~~

International downstream earned $2.13 billion in 2016, compared with $4.42 billion in 2015. The decrease in earnings was primarily due to the absence of a $1.6 billion gain from the sale of the company's interest in Caltex Australia Limited in 2015, partially offset by 2016 asset sales gains of $420 million. Lower margins on refined product sales of $1.14 billion also contributed to the decline. Partially offsetting these decreases were lower operating expenses of $240 million. Foreign currency effects had an unfavorable impact on earnings of $72$337 million between periods.

Total refined product sales of ~~1.49~~1.32 million barrels per day in ~~2017~~2021 were up 28 percent from ~~2016, primarily~~2020, mainly due to the second quarter 2020 acquisition of Puma Energy (Australia) Holdings Pty Ltd. and higher diesel and gasoline demand, partially offset by lower jet fuel sales. Sales of 1.46 million barrels per day in 2016 were down 3 percent from 2015. Excluding the effects of the Caltex Australia Limited divestment, refined product sales were down 1 percent, primarily reflecting lower fuel oil sales.demand.

~~Refer to the “Selected Operating Data” table, on page 39, for a three-year comparison of sales volumes of gasoline and other refined products and refinery input volumes.~~

All Other


Millions of dollars	2017			2016			2015			Millions of dollars	2021		2020		2019
Net charges^*	$	(4,169	)	$	(1,395	)	$	(1,053	)	Net charges*	$	(3,107)	$	(3,157)	$	(2,133)
^*Includes foreign currency effects:	$	100		$	(39	)	$	(3	)	*Includes foreign currency effects:	$	(181)	$	(208)	$	2

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

Net charges in ~~2017 increased $2.77 billion~~2021 decreased $50 million from ~~2016,~~2020. The change between periods was mainly due to ~~higher tax items, primarily reflecting a $2.47 billion expense from U.S. tax reform, higher interest expense~~the absence of 2020 severance, Noble acquisition and ~~a reclamation related charge for a former~~ mining ~~asset,~~remediation costs, and lower corporate charges, partially offset by ~~lower~~higher employee ~~expense.~~benefit costs and a loss on early retirement of debt. Foreign currency effects decreased net charges by ~~$139~~$27 million between periods. ~~Net~~

Consolidated Statement of Income

Comparative amounts for certain income statement categories are shown below. A discussion of variances between 2020 and 2019 can be found in the “Consolidated Statement of Income” section on pages 39 and 40 of the company’s 2020 Annual Report on Form 10-K.


Millions of dollars	2021		2020		2019
Sales and other operating revenues	$	155,606	$	94,471	$	139,865

Sales and other operating revenues increased in 2021 mainly due to higher refined product, crude oil, and natural gas prices and sales volumes.

Management's Discussion and Analysis of Financial Condition and Results of Operations

charges in 2016 increased $342 million from 2015, mainly due to higher corporate charges, interest expense and corporate tax items, partially offset by lower environmental reserve additions and lower charges related to reductions in corporate staffs.

~~Consolidated Statement of Income~~

~~Comparative amounts for certain income statement categories are shown below:~~

Millions of dollars 2017
2016
2015
Sales and other operating revenues $ 134,674
$ 110,215
$ 129,925

Sales and other operating revenues increased in 2017 mainly due to higher refined product and crude oil prices, higher crude oil volumes, and higher natural gas volumes. The decrease between 2016 and 2015 was primarily due to lower refined product and crude oil prices, partially offset by higher crude oil volumes.


Millions of dollars	2017		2016		2015		Millions of dollars	2021		2020		2019
Income from equity affiliates	$	4,438	$	2,661	$	4,684
Income (loss) from equity affiliates							Income (loss) from equity affiliates	$	5,657	$	(472)	$	3,968

Quarterly Results ~~and Stock Market Data~~

Unaudited


	2021								2020
Millions of dollars, except per-share amounts	4th Q		3rd Q		2nd Q		1st Q			4th Q		3rd Q		2nd Q		1st Q
Revenues and Other Income
Sales and other operating revenues	$	45,861	$	42,552	$	36,117	$	31,076		$	24,843	$	23,997	$	15,926	$	29,705
Income from equity affiliates	1,657		1,647		1,442		911			568		510		(2,515)		965
Other income	611		511		38		42			(165)		(56)		83		831
Total Revenues and Other Income	48,129		44,710		37,597		32,029			25,246		24,451		13,494		31,501
Costs and Other Deductions
Purchased crude oil and products	27,341		23,834		20,629		17,568			13,387		13,448		8,144		15,509
Operating expenses	5,507		5,353		4,899		4,967			4,898		4,604		5,530		5,291
Selling, general and administrative expenses	1,271		657		1,096		990			1,129		832		1,569		683
Exploration expenses	192		158		113		86			367		117		895		158
Depreciation, depletion and amortization	4,813		4,304		4,522		4,286			4,486		4,017		6,717		4,288
Taxes other than on income	1,779		2,075		1,566		1,420			1,276		1,091		965		1,167
Interest and debt expense	155		174		185		198			199		164		172		162
Other components of net periodic benefit costs	86		100		165		337			461		222		99		98
Total Costs and Other Deductions	41,144		36,655		33,175		29,852			26,203		24,495		24,091		27,356
Income (Loss) Before Income Tax Expense	6,985		8,055		4,422		2,177			(957)		(44)		(10,597)		4,145
Income Tax Expense (Benefit)	1,903		1,940		1,328		779			(301)		165		(2,320)		564
Net Income (Loss)	$	5,082	$	6,115	$	3,094	$	1,398		$	(656)	$	(209)	$	(8,277)	$	3,581
Less: Net income attributable to noncontrolling interests	27		4		12		21			9		(2)		(7)		(18)
Net Income (Loss) Attributable to Chevron Corporation	$	5,055	$	6,111	$	3,082	$	1,377		$	(665)	$	(207)	$	(8,270)	$	3,599
Per Share of Common Stock
Net Income (Loss) Attributable to Chevron Corporation
– Basic	$	2.63	$	3.19	$	1.61	$	0.72		$	(0.33)	$	(0.12)	$	(4.44)	$	1.93
– Diluted	$	2.63	$	3.19	$	1.60	$	0.72		$	(0.33)	$	(0.12)	$	(4.44)	$	1.93
Dividends per share	$	1.34	$	1.34	$	1.34	$	1.29		$	1.29	$	1.29	$	1.29	$	1.29

2017 2016
Millions of dollars, except per-share amounts 4th Q
3rd Q
2nd Q
1st Q
4th Q
3rd Q
2nd Q
1st Q

Revenues and Other Income

   Sales and other operating revenues¹
$ 36,381
$ 33,892
$ 32,877
$ 31,524
$ 30,142
$ 29,159
$ 27,844
$ 23,070

   Income from equity affiliates 936
1,036
1,316
1,150
778
555
752
576

   Other income 299
1,277
287
747
577
426
686
(93 )
Total Revenues and Other Income 37,616
36,205
34,480
33,421
31,497
30,140
29,282
23,553

Costs and Other Deductions
   Purchased crude oil and products 21,158
18,776
18,325
17,506
16,976
15,842
15,278
11,225

   Operating expenses 5,182
4,937
4,662
4,656
5,144
4,666
5,054
5,404

   Selling, general and administrative expenses 1,349
1,238
991
870
1,544
1,109
1,033
998

   Exploration expenses 356
239
125
144
191
258
214
370

   Depreciation, depletion and amortization 4,735
5,109
5,311
4,194
4,203
4,130
6,721
4,403

   Taxes other than on income¹
3,182
3,213
3,065
2,871
2,869
2,962
2,973
2,864

   Interest and debt expense 173
35
48
51
58
64
79
—

Total Costs and Other Deductions 36,135
33,547
32,527
30,292
30,985
29,031
31,352
25,264

Income (Loss) Before Income Tax Expense 1,481
2,658
1,953
3,129
512
1,109
(2,070 ) (1,711 )
Income Tax Expense (Benefit) (1,637 ) 672
487
430
74
(192 ) (607 ) (1,004 )
Net Income (Loss) $ 3,118
$ 1,986
$ 1,466
$ 2,699
$ 438
$ 1,301
$ (1,463 ) $ (707 )
Less: Net income attributable to
noncontrolling interests 7
34
16
17
23
18
7
18

Net Income (Loss) Attributable to Chevron Corporation $ 3,111
$ 1,952
$ 1,450
$ 2,682
$ 415
$ 1,283
$ (1,470 ) $ (725 )
Per Share of Common Stock
   Net Income (Loss) Attributable to Chevron Corporation
– Basic $ 1.65
$ 1.03
$ 0.77
$ 1.43
$ 0.22
$ 0.68
$ (0.78 ) $ (0.39 )
– Diluted $ 1.64
$ 1.03
$ 0.77
$ 1.41
$ 0.22
$ 0.68
$ (0.78 ) $ (0.39 )
Dividends $ 1.08
$ 1.08
$ 1.08
$ 1.08
$ 1.08
$ 1.07
$ 1.07
$ 1.07

Common Stock Price Range – High²
$ 126.20
$118.33 $ 110.67
$ 119.00
$ 119.00
$ 107.58
$ 105.00
$ 97.91

– Low²
$ 112.57
$102.55 $ 102.55
$ 105.85
$ 99.61
$ 97.53
$ 92.43
$ 75.33

¹ Includes excise, value-added and similar taxes:
$ 1,874
$ 1,867
$ 1,771
$ 1,677
$ 1,697
$ 1,772
$ 1,784
$ 1,652

² Intraday price.

The company’s common stock is listed on the New York Stock Exchange (trading symbol: CVX). As of February 12, 2018, stockholders of record numbered approximately 131,000. There are no restrictions on the company’s ability to pay dividends.

Management’s Responsibility for Financial Statements

To the Stockholders of Chevron Corporation

Management of Chevron Corporation is responsible for preparing the accompanying consolidated financial statements and the related information appearing in this report. The statements were prepared in accordance with accounting principles generally accepted in the United States of America and fairly represent the transactions and financial position of the company. The financial statements include amounts that are based on management’s best estimates and judgments.

As stated in its report included herein, the independent registered public accounting firm of PricewaterhouseCoopers LLP has audited the company’s consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).

The Board of Directors of Chevron has an Audit Committee composed of directors who are not officers or employees of the company. The Audit Committee meets regularly with members of management, the internal auditors and the independent registered public accounting firm to review accounting, internal control, auditing and financial reporting matters. Both the internal auditors and the independent registered public accounting firm have free and direct access to the Audit Committee without the presence of management.

The ~~company's~~company’s management has evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the ~~company's~~company’s disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, ~~2017.~~2021. Based on that evaluation, management concluded that the ~~company's~~company’s disclosure controls are effective in ensuring that information required to be recorded, processed, summarized and reported, are done within the time periods specified in the U.S. Securities and Exchange ~~Commission's~~Commission’s rules and forms.

Management’s Report on Internal Control Over Financial Reporting

The company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f). The company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the company’s internal control over financial reporting based on the Internal Control – Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the results of this evaluation, the company’s management concluded that internal control over financial reporting was effective as of December 31, ~~2017.~~2021.

~~/s/ MICHAEL K. WIRTH~~

~~/s/ PATRICIA E. YARRINGTON~~

~~/s/ JEANETTE L. OURADA~~

Michael K. Wirth

~~Patricia E. Yarrington~~Pierre R. Breber

~~Jeanette L. Ourada~~David A. Inchausti

Chairman of the Board

Vice President

and Chief Executive Officer

and Chief Financial Officer

and ~~Comptroller~~Controller

February ~~22, 2018~~24, 2022




	Report of Independent Registered Public Accounting Firm
			To theBoard of Directors and ~~Shareholders~~Stockholders of Chevron ~~Corporation:~~ Corporation
			Opinions on the Financial Statements and Internal Control over Financial Reporting
			We have audited the accompanying consolidated balance ~~sheets~~sheet of Chevron Corporation and its subsidiaries (the “Company”) as of December 31, ~~2017~~2021 and ~~2016,~~2020, and the related consolidated statements of income, of comprehensive income, of equity and of cash flows ~~and equity~~ for each of the three years in the period ended December 31, ~~2017,~~2021, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2)~~(collectively~~ (collectively referred to as the “consolidated financial statements”).We also have audited the Company's internal control over financial reporting as of December 31, ~~2017,~~2021, based on criteria established in Internal Control - Integrated Framework(2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
			In our opinion, the consolidatedfinancial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, ~~2017~~2021 and ~~2016~~2020, and the results of ~~their~~its operations and ~~their~~its cash flows for each of the three years in the period ended December 31, ~~2017~~2021 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2017,~~2021, based on criteria established in Internal Control - Integrated Framework(2013)issued by the COSO.
			Basis for Opinions The Company's management is responsible for these consolidated financial statements, formaintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in ~~Management's~~the accompanying Management’s Report on Internal Control ~~over~~Over Financial ~~Reporting appearing under Item 9A.~~Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ~~("PCAOB")~~(PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidatedfinancial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
			Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.


			Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
			~~/s/ PRICEWATERHOUSECOOPERS LLP~~ Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
			The Impact of Proved Crude Oil and Natural Gas Reserves on Upstream Property, Plant, and Equipment, Net As described in Notes 1 and 18 to the consolidated financial statements, the Company’s upstream property, plant and equipment, net balance was $130.8 billion as of December 31, 2021, and depreciation, depletion and amortization expense was $16.5 billion for the year ended December 31, 2021. The Company follows the successful efforts method of accounting for crude oil and natural gas exploration and production activities. Depreciation and depletion of all capitalized costs of proved crude oil and natural gas producing properties, except mineral interests, are expensed using the unit-of-production method, generally by individual field, as the proved developed reserves are produced. Depletion expenses for capitalized costs of proved mineral interests are recognized using the unit-of-production method by individual field as the related proved reserves are produced. As disclosed by management, variables impacting the Company’s estimated volumes of crude oil and natural gas reserves include field performance, available technology, commodity prices, and development, production and carbon costs. Reserves are estimated by Company asset teams composed of earth scientists and engineers. As part of the internal control process related to reserves estimation, the Company maintains a Reserves Advisory Committee (RAC) (the Company’s earth scientists, engineers and RAC are collectively referred to as “management’s specialists”). The principal considerations for our determination that performing procedures relating to the impact of proved crude oil and natural gas reserves on upstream property, plant, and equipment, net is a critical audit matter are (i) the significant judgment by management, including the use of management’s specialists, when developing the estimates of proved crude oil and natural gas reserve volumes, which in turn led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence obtained related to the data, methods and assumptions used by management and its specialists in developing the estimates of proved crude oil and natural gas reserve volumes. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s estimates of proved crude oil and natural gas reserve volumes. The work of management’s specialists was used in performing the procedures to evaluate the reasonableness of the proved crude oil and natural gas reserve volumes. As a basis for using this work, the specialists’ qualifications were understood and the Company’s relationship with the specialists was assessed. The procedures performed also included evaluation of the methods and assumptions used by the specialists, tests of the data used by the specialists and an evaluation of the specialists’ findings.
			.

			PricewaterhouseCoopers LLP
			San Francisco, California
			February ~~22, 2018~~24, 2022
			We have served as the Company’s auditor since 1935.

Consolidated Statement of Income

Millions of dollars, except per-share amounts



	Year ended December 31
	2021		2020		2019
Revenues and Other Income
Sales and other operating revenues	$	155,606	$	94,471	$	139,865
Income (loss) from equity affiliates	5,657		(472)		3,968
Other income	1,202		693		2,683
Total Revenues and Other Income	162,465		94,692		146,516
Costs and Other Deductions
Purchased crude oil and products	89,372		50,488		80,113
Operating expenses	20,726		20,323		21,385
Selling, general and administrative expenses	4,014		4,213		4,143
Exploration expenses	549		1,537		770
Depreciation, depletion and amortization	17,925		19,508		29,218
Taxes other than on income	6,840		4,499		4,136
Interest and debt expense	712		697		798
Other components of net periodic benefit costs	688		880		417
Total Costs and Other Deductions	140,826		102,145		140,980
Income (Loss) Before Income Tax Expense	21,639		(7,453)		5,536
Income Tax Expense (Benefit)	5,950		(1,892)		2,691
Net Income (Loss)	15,689		(5,561)		2,845
Less: Net income (loss) attributable to noncontrolling interests	64		(18)		(79)
Net Income (Loss) Attributable to Chevron Corporation	$	15,625	$	(5,543)	$	2,924
Per Share of Common Stock
Net Income (Loss) Attributable to Chevron Corporation
- Basic	$	8.15	$	(2.96)	$	1.55
- Diluted	$	8.14	$	(2.96)	$	1.54
See accompanying Notes to the Consolidated Financial Statements.

Year ended December 31
2017
2016
2015

Revenues and Other Income

Sales and other operating revenues^*
$ 134,674
$ 110,215
$ 129,925

Income from equity affiliates 4,438
2,661
4,684

Other income 2,610
1,596
3,868

Total Revenues and Other Income 141,722
114,472

138,477

Costs and Other Deductions
Purchased crude oil and products 75,765
59,321
69,751

Operating expenses 19,437
20,268
23,034

Selling, general and administrative expenses 4,448
4,684
4,443

Exploration expenses 864
1,033
3,340

Depreciation, depletion and amortization 19,349

19,457

21,037

Taxes other than on income^*
12,331
11,668
12,030

Interest and debt expense 307
201
—

Total Costs and Other Deductions 132,501
116,632
133,635

Income (Loss) Before Income Tax Expense 9,221
(2,160 ) 4,842

Income Tax Expense (Benefit) (48 ) (1,729 ) 132

Net Income (Loss) 9,269
(431 ) 4,710

Less: Net income attributable to noncontrolling interests 74
66
123

Net Income (Loss) Attributable to Chevron Corporation $ 9,195
$ (497 ) $ 4,587

Per Share of Common Stock
Net Income (Loss) Attributable to Chevron Corporation
- Basic $ 4.88
$ (0.27 ) $ 2.46

- Diluted $ 4.85
$ (0.27 ) $ 2.45

^*Includes excise, value-added and similar taxes.
$ 7,189
$ 6,905
$ 7,359

See accompanying Notes to the Consolidated Financial Statements.

Consolidated Statement of Comprehensive Income

Millions of dollars


	Year ended December 31
	2021		2020		2019
Net Income (Loss)	$	15,689	$	(5,561)	$	2,845
Currency translation adjustment
Unrealized net change arising during period	(55)		35		(18)
Unrealized holding gain (loss) on securities
Net gain (loss) arising during period	(1)		(2)		2
Derivatives
Net derivatives loss on hedge transactions	(6)		—		(1)

Reclassification to net income	6		—		—
Income taxes on derivatives transactions	—		—		3
Total	—		—		2
Defined benefit plans
Actuarial gain (loss)
Amortization to net income of net actuarial loss and settlements	1,069		1,107		519
Actuarial gain (loss) arising during period	1,244		(2,004)		(2,404)
Prior service credits (cost)
Amortization to net income of net prior service costs and curtailments	(14)		(23)		4
Prior service (costs) credits arising during period	—		—		(28)
Defined benefit plans sponsored by equity affiliates - benefit (cost)	127		(104)		(33)
Income tax benefit (cost) on defined benefit plans	(647)		369		510
Total	1,779		(655)		(1,432)
Other Comprehensive Gain (Loss), Net of Tax	1,723		(622)		(1,446)
Comprehensive Income	17,412		(6,183)		1,399
Comprehensive loss (income) attributable to noncontrolling interests	(64)		18		79
Comprehensive Income (Loss) Attributable to Chevron Corporation	$	17,348	$	(6,165)	$	1,478
See accompanying Notes to the Consolidated Financial Statements.

Year ended December 31
2017
2016
2015

Net Income (Loss) $ 9,269
$ (431 ) $ 4,710

Currency translation adjustment
Unrealized net change arising during period 57
(22 ) (44 )
Unrealized holding (loss) gain on securities
Net (loss) gain arising during period (3 ) 27
(21 )
Defined benefit plans
Actuarial gain (loss)
Amortization to net income of net actuarial loss and settlements 817
918
794

Actuarial (loss) gain arising during period (571 ) (315 ) 109

Prior service credits (cost)
Amortization to net income of net prior service costs and curtailments (20 ) 19
30

Prior service (costs) credits arising during period (1 ) 345
6

Defined benefit plans sponsored by equity affiliates - benefit (cost) 19
(19 ) 30

Income (taxes) benefit on defined benefit plans (44 ) (505 ) (336 )
Total 200
443
633

Other Comprehensive Gain, Net of Tax 254
448
568

Comprehensive Income 9,523
17
5,278

Comprehensive income attributable to noncontrolling interests (74 ) (66 ) (123 )
Comprehensive Income (Loss) Attributable to Chevron Corporation $ 9,449
$ (49 ) $ 5,155

See accompanying Notes to the Consolidated Financial Statements.

Consolidated Balance Sheet

Millions of dollars, except per-share ~~amount~~amounts



	At December 31
	2021		2020
Assets
Cash and cash equivalents	$	5,640	$	5,596

Marketable securities	35		31
Accounts and notes receivable (less allowance: 2021 - $303; 2020 - $284)	18,419		11,471
Inventories:
Crude oil and petroleum products	4,248		3,576
Chemicals	565		457
Materials, supplies and other	1,492		1,643
Total inventories	6,305		5,676
Prepaid expenses and other current assets	3,339		3,304
Total Current Assets	33,738		26,078
Long-term receivables, net (less allowances: 2021 - $442; 2020 - $387)	603		589
Investments and advances	40,696		39,052
Properties, plant and equipment, at cost	336,045		345,232
Less: Accumulated depreciation, depletion and amortization	189,084		188,614
Properties, plant and equipment, net	146,961		156,618
Deferred charges and other assets	12,384		11,950
Goodwill	4,385		4,402
Assets held for sale	768		1,101
Total Assets	$	239,535	$	239,790
Liabilities and Equity
Short-term debt	$	256	$	1,548
Accounts payable	16,454		10,950
Accrued liabilities	6,972		7,812
Federal and other taxes on income	1,700		921
Other taxes payable	1,409		952
Total Current Liabilities	26,791		22,183
Long-term debt1	31,113		42,767

Deferred credits and other noncurrent obligations	20,778		20,328
Noncurrent deferred income taxes	14,665		12,569
Noncurrent employee benefit plans	6,248		9,217
Total Liabilities2	$	99,595	$	107,064
Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued)	—		—
Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares issued at December 31,2021 and 2020)	1,832		1,832
Capital in excess of par value	17,282		16,829
Retained earnings	165,546		160,377
Accumulated other comprehensive losses	(3,889)		(5,612)
Deferred compensation and benefit plan trust	(240)		(240)
Treasury stock, at cost (2021 - 512,870,523 shares; 2020 - 517,490,263 shares)	(41,464)		(41,498)
Total Chevron Corporation Stockholders’ Equity	139,067		131,688
Noncontrolling interests (includes redeemable noncontrolling interest of $135 and $120 at December 31, 2021 and 2020)	873		1,038
Total Equity	139,940		132,726
Total Liabilities and Equity	$	239,535	$	239,790
1 Includes finance lease liabilities of $449 and $447 at December 31, 2021 and 2020, respectively.
2 Refer to Note 24 Other Contingencies and Commitments.
See accompanying Notes to the Consolidated Financial Statements.

At December 31
2017
2016

Assets
Cash and cash equivalents $ 4,813
$ 6,988

Marketable securities 9
13

Accounts and notes receivable (less allowance: 2017 - $490; 2016 - $373) 15,353
14,092

Inventories:
Crude oil and petroleum products 3,142
2,720

Chemicals 476
455

Materials, supplies and other 1,967
2,244

Total inventories 5,585
5,419

Prepaid expenses and other current assets 2,800
3,107

Total Current Assets 28,560
29,619

Long-term receivables, net 2,849
2,485

Investments and advances 32,497
30,250

Properties, plant and equipment, at cost 344,485
336,077

Less: Accumulated depreciation, depletion and amortization 166,773
153,891

Properties, plant and equipment, net 177,712
182,186

Deferred charges and other assets 7,017
6,838

Goodwill 4,531
4,581

Assets held for sale 640
4,119

Total Assets $ 253,806
$ 260,078

Liabilities and Equity

Short-term debt(net of unamortized discount and debt issuance costs: $2 in 2017, $3 in 2016)
$ 5,192
$ 10,840

Accounts payable 14,565
13,986

Accrued liabilities 5,267
4,882

Federal and other taxes on income 1,600
1,050

Other taxes payable 1,113
1,027

Total Current Liabilities 27,737
31,785

Long-term debt(net of unamortized discount and debt issuance costs: $35 in 2017, $41 in 2016)
33,477
35,193

Capital lease obligations 94
93

Deferred credits and other noncurrent obligations 21,106
21,553

Noncurrent deferred income taxes 14,652
17,516

Noncurrent employee benefit plans 7,421
7,216

Total Liabilities^*
$ 104,487
$ 113,356

Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) —
—

Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares
issued at December 31, 2017 and 2016) 1,832
1,832

Capital in excess of par value 16,848
16,595

Retained earnings 174,106
173,046

Accumulated other comprehensive loss (3,589 ) (3,843 )
Deferred compensation and benefit plan trust (240 ) (240 )
Treasury stock, at cost (2017 - 537,974,695 shares; 2016 - 551,170,158 shares) (40,833 ) (41,834 )
Total Chevron Corporation Stockholders' Equity 148,124
145,556

Noncontrolling interests 1,195
1,166

Total Equity 149,319
146,722

Total Liabilities and Equity $ 253,806
$ 260,078

See accompanying Notes to the Consolidated Financial Statements.

^*Refer to Note 25, "Other Contingencies and Commitments" beginning on page 87.

Consolidated Statement of Cash Flows

Millions of dollars



	Year ended December 31
	2021		2020		2019
Operating Activities
Net Income (Loss)	$	15,689	$	(5,561)	$	2,845
Adjustments
Depreciation, depletion and amortization	17,925		19,508		29,218
Dry hole expense	118		1,036		172
Distributions more (less) than income from equity affiliates	(1,998)		2,015		(2,073)
Net before-tax gains on asset retirements and sales	(1,021)		(760)		(1,367)
Net foreign currency effects	(7)		619		272
Deferred income tax provision	700		(3,604)		(1,966)
Net decrease (increase) in operating working capital	(1,361)		(1,652)		1,494
Decrease (increase) in long-term receivables	21		296		502
Net decrease (increase) in other deferred charges	(320)		(248)		(69)
Cash contributions to employee pension plans	(1,751)		(1,213)		(1,362)
Other	1,192		141		(352)
Net Cash Provided by Operating Activities	29,187		10,577		27,314
Investing Activities
Cash acquired from Noble Energy, Inc.	—		373		—
Capital expenditures	(8,056)		(8,922)		(14,116)
Proceeds and deposits related to asset sales and returns of investment	1,791		2,968		2,951
Net maturities of (investments in) time deposits	—		—		950
Net sales (purchases) of marketable securities	(1)		35		2
Net repayment (borrowing) of loans by equity affiliates	401		(1,419)		(1,245)
Net Cash Used for Investing Activities	(5,865)		(6,965)		(11,458)
Financing Activities
Net borrowings (repayments) of short-term obligations	(5,572)		651		(2,821)
Proceeds from issuances of long-term debt	—		12,308		—
Repayments of long-term debt and other financing obligations	(7,364)		(5,489)		(5,025)
Cash dividends - common stock	(10,179)		(9,651)		(8,959)
Net contributions from (distributions to) noncontrolling interests	(36)		(24)		(18)
Net sales (purchases) of treasury shares	38		(1,531)		(2,935)
Net Cash Provided by (Used for) Financing Activities	(23,113)		(3,736)		(19,758)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(151)		(50)		332
Net Change in Cash, Cash Equivalents and Restricted Cash	58		(174)		(3,570)
Cash, Cash Equivalents and Restricted Cash at January 1	6,737		6,911		10,481
Cash, Cash Equivalents and Restricted Cash at December 31	$	6,795	$	6,737	$	6,911
See accompanying Notes to the Consolidated Financial Statements.

Year ended December 31
2017
2016
2015

Operating Activities
Net Income (Loss) $ 9,269
$ (431 ) $ 4,710

Adjustments
   Depreciation, depletion and amortization 19,349
19,457
21,037

   Dry hole expense 198
489
2,309

   Distributions less than income from equity affiliates (2,214 ) (1,227 ) (760 )
   Net before-tax gains on asset retirements and sales (2,195 ) (1,149 ) (3,215 )
   Net foreign currency effects 131
186
(82 )
   Deferred income tax provision (3,203 ) (3,835 ) (1,861 )
   Net decrease (increase) in operating working capital 476
(550 ) (1,979 )
   Increase in long-term receivables (368 ) (131 ) (59 )
   (Increase) decrease in other deferred charges (199 ) 235
25

   Cash contributions to employee pension plans (980 ) (870 ) (868 )
   Other 251
672
199

Net Cash Provided by Operating Activities 20,515
12,846
19,456

Investing Activities
Capital expenditures (13,404 ) (18,109 ) (29,504 )
Proceeds and deposits related to asset sales 5,247
2,777
5,739

Net maturities of time deposits —
—
8

Net sales of marketable securities 4
297
122

Net borrowing of loans by equity affiliates (16 ) (2,034 ) (217 )
Net (purchases) sales of other short-term investments (32 ) 217
44

�� Net Cash Used for Investing Activities (8,201 ) (16,852 ) (23,808 )
Financing Activities
Net (repayments) borrowings of short-term obligations (5,142 ) 2,130
(335 )
Proceeds from issuances of long-term debt 3,991
6,924
11,091

Repayments of long-term debt and other financing obligations (6,310 ) (1,584 ) (32 )
Cash dividends - common stock (8,132 ) (8,032 ) (7,992 )
Distributions to noncontrolling interests (78 ) (63 ) (128 )
Net sales of treasury shares 1,117
650
211

Net Cash (Used for) Provided by Financing Activities (14,554 ) 25
2,815

Effect of Exchange Rate Changes on Cash and Cash Equivalents 65
(53 ) (226 )
Net Change in Cash and Cash Equivalents (2,175 ) (4,034 ) (1,763 )
Cash and Cash Equivalents at January 1 6,988
11,022
12,785

Cash and Cash Equivalents at December 31 $ 4,813
$ 6,988
$ 11,022

See accompanying Notes to the Consolidated Financial Statements.

Consolidated Statement of Equity

~~Shares in thousands; amounts~~Amounts in millions of dollars


					Acc. Other		Treasury		Chevron Corp.
	Common		Retained		Comprehensive		Stock		Stockholders’		Noncontrolling		Total
	Stock1		Earnings		Income (Loss)		(at cost)		Equity		Interests		Equity
Balance at December 31, 2018	$	18,704	$	180,987	$	(3,544)	$	(41,593)	$	154,554	$	1,088	$	155,642
Treasury stock transactions	153		—		—		—		153		—		153
Net income (loss)	—		2,924		—		—		2,924		(79)		2,845
Cash dividends ($4.76 per share)	—		(8,959)		—		—		(8,959)		(18)		(8,977)
Stock dividends	—		(3)		—		—		(3)		—		(3)
Other comprehensive income	—		—		(1,446)		—		(1,446)		—		(1,446)
Purchases of treasury shares	—		—		—		(4,039)		(4,039)		—		(4,039)
Issuances of treasury shares	—		—		—		1,033		1,033		—		1,033
Other changes, net	—		(4)		—		—		(4)		4		—
Balance at December 31, 2019	$	18,857	$	174,945	$	(4,990)	$	(44,599)	$	144,213	$	995	$	145,208
Treasury stock transactions	84		—		—		—		84		—		84
Noble Acquisition2	(520)		—		—		4,629		4,109		779		4,888
Net income (loss)	—		(5,543)		—		—		(5,543)		(18)		(5,561)
Cash dividends ($5.16 per share)	—		(9,651)		—		—		(9,651)		(24)		(9,675)
Stock dividends	—		(5)		—		—		(5)		—		(5)
Other comprehensive income	—		—		(622)		—		(622)		—		(622)
Purchases of treasury shares	—		—		—		(1,757)		(1,757)		—		(1,757)
Issuances of treasury shares	—		—		—		229		229		—		229
Other changes, net	—		631		—		—		631		(694)		(63)
Balance at December 31, 2020	$	18,421	$	160,377	$	(5,612)	$	(41,498)	$	131,688	$	1,038	$	132,726
Treasury stock transactions	315		—		—		—		315		—		315
NBLX Acquisition	138		(148)		—		377		367		(321)		46
Net income (loss)	—		15,625		—		—		15,625		64		15,689
Cash dividends ($5.31 per share)	—		(10,179)		—		—		(10,179)		(53)		(10,232)
Stock dividends	—		(3)		—		—		(3)		—		(3)
Other comprehensive income	—		—		1,723		—		1,723		—		1,723
Purchases of treasury shares	—		—		—		(1,383)		(1,383)		—		(1,383)
Issuances of treasury shares	—		—		—		1,040		1,040		—		1,040
Other changes, net	—		(126)		—		—		(126)		145		19
Balance at December 31, 2021	$	18,874	$	165,546	$	(3,889)	$	(41,464)	$	139,067	$	873	$	139,940

					Common Stock Share Activity
			Issued3				Treasury				Outstanding
Balance at December 31, 2018			2,442,676,580				(539,838,890)				1,902,837,690
Purchases			—				(33,955,300)				(33,955,300)
Issuances			—				13,285,711				13,285,711
Balance at December 31, 2019			2,442,676,580				(560,508,479)				1,882,168,101
Purchases			—				(17,577,457)				(17,577,457)
Issuances			—				60,595,673				60,595,673
Balance at December 31, 2020			2,442,676,580				(517,490,263)				1,925,186,317
Purchases			—				(13,015,737)				(13,015,737)
Issuances			—				17,635,477				17,635,477
Balance at December 31, 2021			2,442,676,580				(512,870,523)				1,929,806,057
1 Beginning and ending balances for all periods include capital in excess of par, common stock issued at par for $1,832, and $(240) associated with Chevron’s Benefit Plan Trust. Changes reflect capital in excess of par.
2 Includes $120 redeemable noncontrolling interest.
3 Beginning and ending total issued share balances include 14,168,000 shares associated with Chevron’s Benefit Plan Trust.
See accompanying Notes to the Consolidated Financial Statements.

2017 2016 2015
Shares
Amount
Shares
Amount
Shares
Amount

Preferred Stock —
$ —
—
$ —
—
$ —

Common Stock 2,442,677
$ 1,832
2,442,677
$ 1,832
2,442,677
$ 1,832

Capital in Excess of Par
Balance at January 1 $ 16,595
$ 16,330
$ 16,041

Treasury stock transactions 253
265
289

Balance at December 31 $ 16,848
$ 16,595
$ 16,330

Retained Earnings
Balance at January 1 $ 173,046
$ 181,578
$ 184,987

Net income (loss) attributable to Chevron Corporation 9,195
(497 ) 4,587

Cash dividends on common stock (8,132 ) (8,032 ) (7,992 )
Stock dividends (3 ) (3 ) (3 )
Tax (charge) benefit from dividends paid on
unallocated ESOP shares and other —
—
(1 )
Balance at December 31 $ 174,106
$ 173,046
$ 181,578

Accumulated Other Comprehensive Loss
Currency translation adjustment
Balance at January 1 $ (162 ) $ (140 ) $ (96 )
Change during year 57
(22 ) (44 )
Balance at December 31 $ (105 ) $ (162 ) $ (140 )
Unrealized net holding (loss) gain on securities
Balance at January 1 $ (2 ) $ (29 ) $ (8 )
Change during year (3 ) 27
(21 )
Balance at December 31 $ (5 ) $ (2 ) $ (29 )
Net derivatives (loss) gain on hedge transactions
Balance at January 1 $ (2 ) $ (2 ) $ (2 )
Change during year —
—
—

Balance at December 31 $ (2 ) $ (2 ) $ (2 )
Pension and other postretirement benefit plans
Balance at January 1 $ (3,677 ) $ (4,120 ) $ (4,753 )
Change during year 200
443
633

Balance at December 31 $ (3,477 ) $ (3,677 ) $ (4,120 )
Balance at December 31 $ (3,589 ) $ (3,843 ) $ (4,291 )
Benefit Plan Trust (Common Stock) 14,168
(240 ) 14,168
(240 ) 14,168
(240 )
Balance at December 31 14,168
$ (240 ) 14,168
$ (240 ) 14,168
$ (240 )
Treasury Stock at Cost
Balance at January 1 551,170
$ (41,834 ) 559,863
$ (42,493 ) 563,028
$ (42,733 )
Purchases 10
(1 ) 20
(2 ) 15
(2 )
Issuances - mainly employee benefit plans (13,205 ) 1,002
(8,713 ) 661
(3,180 ) 242

Balance at December 31 537,975
$ (40,833 ) 551,170
$ (41,834 ) 559,863
$ (42,493 )
Total Chevron Corporation Stockholders' Equity at December 31 $ 148,124
$ 145,556
$ 152,716

Noncontrolling Interests $ 1,195
$ 1,166
$ 1,170

Total Equity $ 149,319
$ 146,722
$ 153,886

See accompanying Notes to the Consolidated Financial Statements.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Note 1

Summary of Significant Accounting Policies

General The company’s Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America. These require the use of estimates and assumptions that affect the assets, liabilities, revenues and expenses reported in the financial statements, as well as amounts included in the notes thereto, including discussion and disclosure of contingent liabilities. Although the company uses its best estimates and judgments, actual results could differ from these estimates as ~~future confirming events occur.~~circumstances change and additional information becomes known.

Subsidiary and Affiliated Companies The Consolidated Financial Statements include the accounts of controlled subsidiary companies more than 50 percent-owned and any ~~variable-interest~~variable interest entities in which the company is the primary beneficiary. Undivided interests in oil and gas joint ventures and certain other assets are consolidated on a proportionate basis. Investments in and advances to affiliates in which the company has a substantial ownership interest of approximately 20 percent to 50 percent, or for which the company exercises significant influence but not control over policy decisions, are accounted for by the equity method. As part of that accounting, the company recognizes gains and losses that arise from the issuance of stock by an affiliate that results in changes in the company’s proportionate share of the dollar amount of the affiliate’s equity currently in income.

Investments in affiliates are assessed for possible impairment when events indicate that the fair value of the investment may be below the company’s carrying value. When such a condition is deemed to be other than temporary, the carrying value of the investment is written down to its fair value, and the amount of the write-down is included in net income. In making the determination as to whether a decline is other than temporary, the company considers such factors as the duration and extent of the decline, the investee’s financial performance, and the company’s ability and intention to retain its investment for a period that will be sufficient to allow for any anticipated recovery in the investment’s market value. The new cost basis of investments in these equity investees is not changed for subsequent recoveries in fair value.

Differences between the company’s carrying value of an equity investment and its underlying equity in the net assets of the affiliate are assigned to the extent practicable to specific assets and liabilities based on the company’s analysis of the various factors giving rise to the difference. When appropriate, the company’s share of the affiliate’s reported earnings is adjusted quarterly to reflect the difference between these allocated values and the affiliate’s historical book values.

Noncontrolling Interests Ownership interests in the company’s subsidiaries held by parties other than the parent are presented separately from the parent’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the parent and the noncontrolling interests are both presented on the face of the Consolidated Statement of Income and Consolidated Statement of Equity. Included within noncontrolling interest is redeemable noncontrolling interest.

Fair Value MeasurementsThe three levels of the fair value hierarchy of inputs the company uses to measure the fair value of an asset or a liability are as follows. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability. Level 3 inputs are inputs that are not observable in the market.

DerivativesThe majority of the company’s activity in derivative commodity instruments is intended to manage the financial risk posed by physical transactions. For some of this derivative activity, ~~generally limited to large, discrete or infrequently occurring transactions,~~ the company may elect to apply fair value or cash flow hedge ~~accounting.~~accounting with changes in fair value recorded as components of accumulated other comprehensive income (loss). For other similar derivative instruments, generally because of the short-term nature of the contracts or their limited use, the company does not apply hedge accounting, and changes in the fair value of those contracts are reflected in current income. For the company’s commodity trading activity, gains and losses from derivative instruments are reported in current income. The company may enter into interest rate swaps from time to time as part of its overall strategy to manage the interest rate risk on its debt. Interest rate swaps related to a portion of the company’s fixed-rate debt, if any, may be accounted for as fair value hedges. Interest rate swaps related to floating-rate debt, if any, are recorded at fair value on the balance sheet with resulting gains and losses reflected in income. Where Chevron is a party to master netting arrangements, fair value receivable and payable amounts recognized for derivative instruments executed with the same counterparty are generally offset on the balance sheet.

~~Short-Term Investments~~ All short-term investments are classified as available for sale and are in highly liquid debt securities. Those investments that are part of the company’s cash management portfolio and have original maturities of three months or less are reported as “Cash equivalents.” Bank time deposits with maturities greater than 90 days are reported as “Time deposits.” The balance of short-term investments is reported as “Marketable securities” and is marked-to-market, with any unrealized gains or losses included in “Other comprehensive income.”

InventoriesCrude oil, petroleum products and chemicals inventories are generally stated at cost, using a last-in, first-out method. In the aggregate, these costs are below market. “Materials, supplies and other” inventories are primarily stated at cost or net realizable value.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Properties, Plant and EquipmentThe successful efforts method is used for crude oil and natural gas exploration and production activities. All costs for development wells, related plant and equipment, proved mineral interests in crude oil and natural gas

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

properties, and related asset retirement obligation (ARO) assets are capitalized. Costs of exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. All other exploratory wells and costs are expensed. Refer to Note 2~~1, beginning on page 80,~~21 Accounting for Suspended Exploratory Wells for additional discussion of accounting for suspended exploratory well costs.

Long-lived assets to be held and used, including proved crude oil and natural gas properties, are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price ~~forecast)~~forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved crude oil and natural gas properties, the company performs impairment reviews on a country, concession, PSC, development area or field basis, as appropriate. In Downstream, impairment reviews are performed on the basis of a refinery, a plant, a marketing/lubricants area or distribution area, as appropriate. Impairment amounts are recorded as incremental “Depreciation, depletion and amortization” expense.

Long-lived assets that are held for sale are evaluated for possible impairment by comparing the carrying value of the asset with its fair value less the cost to sell. If the net book value exceeds the fair value less cost to sell, the asset is considered impaired and adjusted to the lower value. Refer to Note ~~10, beginning on page 64,~~9 Fair Value Measurements relating to fair value measurements. The fair value of a liability for an ARO is recorded as an asset and a liability when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. Refer also to Note 2~~6, on page 89,~~25 Asset Retirement Obligations relating to AROs.

Depreciation and depletion of all capitalized costs of proved crude oil and natural gas producing properties, except mineral interests, are expensed using the unit-of-production method, generally by individual field, as the proved developed reserves are produced. Depletion expenses for capitalized costs of proved mineral interests are recognized using the unit-of-production method by individual field as the related proved reserves are produced. Impairments of capitalized costs of unproved mineral interests are expensed.

The capitalized costs of all other plant and equipment are depreciated or amortized over their estimated useful lives. In general, the declining-balance method is used to depreciate plant and equipment in the United States; the straight-line method is generally used to depreciate international plant and equipment and to amortize ~~all capitalized leased~~finance lease right-of-use assets.

Gains or losses are not recognized for normal retirements of properties, plant and equipment subject to composite group amortization or depreciation. Gains or losses from abnormal retirements are recorded as expenses, and from sales as “Other income.”

Expenditures for maintenance (including those for planned major maintenance projects), repairs and minor renewals to maintain facilities in operating condition are generally expensed as incurred. Major replacements and renewals are capitalized.

Leases Leases are classified as operating or finance leases. Both operating and finance leases recognize lease liabilities and associated right-of-use assets. The company has elected the short-term lease exception and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The company has elected the practical expedient to not separate non-lease components from lease components for most asset classes except for certain asset classes that have significant non-lease (i.e., service) components.

Where leases are used in joint ventures, the company recognizes 100 percent of the right-of-use assets and lease liabilities when the company is the sole signatory for the lease (in most cases, where the company is the operator of a joint venture). Lease costs reflect only the costs associated with the operator’s working interest share. The lease term includes the committed lease term identified in the contract, taking into account renewal and termination options that management is

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

reasonably certain to exercise. The company uses its incremental borrowing rate as a proxy for the discount rate based on the term of the lease unless the implicit rate is available.

Goodwill Goodwill resulting from a business combination is not subject to amortization. The company tests such goodwill at the reporting unit level for impairment annually at December 31, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.

Environmental Expenditures Environmental expenditures that relate to ongoing operations or to conditions caused by past operations are expensed. Expenditures that create future benefits or contribute to future revenue generation are capitalized.

Liabilities related to future remediation costs are recorded when environmental assessments or cleanups or both are probable and the costs can be reasonably estimated. For crude oil, natural gas and mineral-producing properties, a liability for an ARO is made in accordance with accounting standards for asset retirement and environmental obligations. Refer to Note 2~~6, on page 89,~~25 Asset Retirement Obligations for a discussion of the company’s AROs.

For U.S. federal Superfund sites and analogous sites under state laws, the company records a liability for its designated share of the probable and estimable costs, and probable amounts for other potentially responsible parties when mandated by the regulatory agencies because the other parties are not able to pay their respective shares. The gross amount of environmental liabilities is based on the company’s best estimate of future costs using currently available technology and applying current regulations and the company’s own internal environmental policies. Future amounts are not discounted. Recoveries or reimbursements are recorded as assets when receipt is reasonably assured.

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

Currency Translation The U.S. dollar is the functional currency for substantially all of the company’s consolidated operations and those of its equity affiliates. For those operations, all gains and losses from currency remeasurement are included in current period income. The cumulative translation effects for those few entities, both consolidated and affiliated, using functional currencies other than the U.S. dollar are included in “Currency translation adjustment” on the Consolidated Statement of Equity.

Revenue Recognition ~~Revenues associated with sales~~The company accounts for each delivery order of crude oil, natural gas, petroleum and ~~chemicals~~chemical products ~~and all other sources are recorded~~as a separate performance obligation. Revenue is recognized when ~~title passes~~the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfers to the ~~customer, net~~customer. Payment is generally due within 30 days of ~~royalties,~~delivery. The company accounts for delivery transportation as a fulfillment cost, not a separate performance obligation, and recognizes these costs as an operating expense in the period when revenue for the related commodity is recognized.

Revenue is measured as the amount the company expects to receive in exchange for transferring commodities to the customer. The company’s commodity sales are typically based on prevailing market-based prices and may include discounts and allowances. Until market prices become known under terms of the company’s contracts, the transaction price included in revenue is based on the company’s estimate of the most likely outcome.

Discounts and allowances ~~as applicable. Revenues from natural gas production from properties~~are estimated using a combination of historical and recent data trends. When deliveries contain multiple products, an observable standalone selling price is generally used to measure revenue for each product. The company includes estimates in ~~which Chevron has an interest with other producers are generally recognized using~~ the ~~entitlement method. Excise, value-added and similar taxes assessed by a governmental authority on a revenue-producing~~ transaction ~~between a seller and a customer are presented on a gross basis. The associated amounts are shown as a footnote~~price only to the ~~Consolidated Statement~~extent that a significant reversal of ~~Income, on page 52. Purchases and sales of inventory with the same counterparty that are entered into~~revenue is not probable in ~~contemplation of one another (including buy/sell arrangements) are combined and recorded on a net basis and reported in “Purchased crude oil and products” on the Consolidated Statement of Income.~~subsequent periods.

Stock Options and Other Share-Based CompensationThe company issues stock options and other share-based compensation to certain employees. For equity awards, such as stock options, total compensation cost is based on the grant date fair value, and for liability awards, such as stock appreciation rights, total compensation cost is based on the settlement value. The company recognizes stock-based compensation expense for all awards over the service period required to earn the award, which is the shorter of the vesting period or the time period in which an employee becomes eligible to retain the award at retirement. The company’s Long-Term Incentive Plan (LTIP) awards include stock options and stock appreciation rights, which have graded vesting provisions by which one-third of each award vests on each of the first, second and third anniversaries of the date of grant. In addition, performance shares granted under the ~~company's~~company’s LTIP will vest at the end of the ~~three-year~~three-year performance period. For awards granted under the ~~company's~~company’s LTIP beginning in 2017, stock options and stock appreciation rights have graded vesting by which one third of each award vests annually on each January 31 on or after the first anniversary of the grant date. Standard restricted stock unit awards have cliff vesting by which the total award will vest on January 31 on or after the fifth anniversary of the grant date, subject to adjustment upon termination pursuant to the satisfaction of certain criteria. The company amortizes these awards on a straight-line basis.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Note 2

Changes in Accumulated Other Comprehensive Losses

The change in Accumulated Other Comprehensive Losses (AOCL) presented on the Consolidated Balance Sheet and the impact of significant amounts reclassified from AOCL on information presented in the Consolidated Statement of Income for the year ~~ending~~ended December 31, ~~2017,~~2021, are reflected in the table below.


	Currency Translation Adjustments		Unrealized Holding Gains (Losses) on Securities		Derivatives		Defined Benefit Plans		Total
Balance at December 31, 2018	$	(124)	$	(10)	$	(2)	$	(3,408)	$	(3,544)
Components of Other Comprehensive Income (Loss)1:
Before Reclassifications	(18)		2		(1)		(1,838)		(1,855)
Reclassifications3	—		—		3		406		409
Net Other Comprehensive Income (Loss)	(18)		2		2		(1,432)		(1,446)
Balance at December 31, 2019	$	(142)	$	(8)	$	—	$	(4,840)	$	(4,990)
Components of Other Comprehensive Income (Loss)1:
Before Reclassifications	35		(2)		—		(1,487)		(1,454)
Reclassifications3	—		—		—		832		832
Net Other Comprehensive Income (Loss)	35		(2)		—		(655)		(622)

Balance at December 31, 2020	$	(107)	$	(10)	$	—	$	(5,495)	$	(5,612)
Components of Other Comprehensive Income (Loss)1:
Before Reclassifications	(55)		(1)		(6)		949		887
Reclassifications2, 3	—		—		6		830		836
Net Other Comprehensive Income (Loss)	(55)		(1)		—		1,779		1,723

Balance at December 31, 2021	$	(162)	$	(11)	$	—	$	(3,716)	$	(3,889)

1 All amounts are net of tax.

2 Refer to Note 10 Financial and Derivative Instruments for cash flow hedging.

3 Refer to Note 23 Employee Benefit Plans, for reclassified components, including amortization of actuarial gains or losses, amortization of prior service costs and settlement losses, totaling $1,055 that are included in employee benefit costs for the year ended December 31, 2021. Related income taxes for the same period, totaling $225, are reflected in Income Tax Expense on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

Year Ended December 31, 2017¹

Currency Translation Adjustments
Unrealized Holding Gains (Losses) on Securities
Derivatives
Defined Benefit Plans
Total
Balance at January 1 $ (162 ) $ (2 ) $ (2 ) $ (3,677 ) $ (3,843 )
Components of Other Comprehensive Income (Loss):
Before Reclassifications 57
(3 ) —
(310 ) (256 )
Reclassifications²
—
—
—
510
510
Net Other Comprehensive Income (Loss) 57
(3 ) —
200
254
Balance at December 31 $ (105 ) $ (5 ) $ (2 ) $ (3,477 ) $ (3,589 )


¹	~~All amounts are net of tax.~~


²	~~Refer to~~ ~~Note 23~~ beginning on page 82, for reclassified components totaling $796 that are included in employee benefit costs for the year ending December 31, 2017. Related income taxes for the same period, totaling $286, are reflected in Income Tax Expense on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Note 3

~~Noncontrolling Interests~~

Ownership interests in the company’s subsidiaries held by parties other than the parent are presented separately from the parent’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the parent and the noncontrolling interests are both presented on the face of the Consolidated Statement of Income. The term “earnings” is defined as “Net Income (Loss) Attributable to Chevron Corporation.”

~~Activity for the equity attributable to noncontrolling interests for 2017, 2016 and 2015 is as follows:~~

2017
2016
2015
Balance at January 1 $ 1,166
$ 1,170
$ 1,163
Net income 74
66
123
Distributions to noncontrolling interests (78 ) (63 ) (128 )
Other changes, net 33
(7 ) 12
Balance at December 31 $ 1,195
$ 1,166
$ 1,170

~~Note 4~~

Information Relating to the Consolidated Statement of Cash Flows

Year ended December 31
2017
2016
2015
Net decrease (increase) in operating working capital was composed of the following:
(Increase) decrease in accounts and notes receivable $ (915 ) $ (2,121 ) $ 3,631
(Increase) decrease in inventories (267 ) 603
85
Decrease in prepaid expenses and other current assets 252
439
713
Increase (decrease) in accounts payable and accrued liabilities 875
533
(5,769 )
Increase (decrease) in income and other taxes payable 531
(4 ) (639 )
Net decrease (increase) in operating working capital $ 476
$ (550 ) $ (1,979 )
Net cash provided by operating activities includes the following cash payments for interest on debt and for income taxes:
Interest on debt (net of capitalized interest) $ 265
$ 158
$ —
Income taxes 3,132
1,935
4,645
Net sales of marketable securities consisted of the following gross amounts:
Marketable securities purchased $ (3 ) $ (9 ) $ (6 )
Marketable securities sold 7
306
128
Net sales of marketable securities $ 4
$ 297
$ 122
Net maturities of time deposits consisted of the following gross amounts:
Investments in time deposits $ —
$ —
$ —
Maturities of time deposits —
—
8
Net maturities of time deposits $ —
$ —
$ 8
Net (borrowing) repayment of loans by equity affiliates:
Borrowing of loans by equity affiliates $ (142 ) $ (2,341 ) $ (223 )
Repayment of loans by equity affiliates 126
307
6
Net (borrowing) repayment of loans by equity affiliates $ (16 ) $ (2,034 ) $ (217 )
Net (purchases) sales of other short-term investments:
Purchases of other short-term investments $ (41 ) $ (1 ) $ (75 )
Sales of other short-term investments 9
218
119
Net (purchases) sales of other short-term investments $ (32 ) $ 217
$ 44
Net borrowings (repayments) of short-term obligations consisted of the following gross and net amounts:
Proceeds from issuances of short-term obligations $ 5,051
$ 14,778
$ 13,805
Repayments of short-term obligations (8,820 ) (12,558 ) (16,379 )
Net (repayments) borrowings of short-term obligations with three months or less maturity (1,373 ) (90 ) 2,239
Net (repayments) borrowings of short-term obligations $ (5,142 ) $ 2,130
$ (335 )

~~A loan to Tengizchevroil LLP for the development of the Future Growth and Wellhead Pressure Management Project represents the majority of "Net borrowing of loans by equity affiliates" in 2016.~~


	Year ended December 31
	2021		2020		2019
Distributions more (less) than income from equity affiliates includes the following:
Distributions from equity affiliates	$	3,659	$	1,543	$	1,895
(Income) loss from equity affiliates	(5,657)		472		(3,968)
Distributions more (less) than income from equity affiliates	$	(1,998)	$	2,015	$	(2,073)
Net decrease (increase) in operating working capital was composed of the following:
Decrease (increase) in accounts and notes receivable	$	(7,548)	$	2,423	$	1,852
Decrease (increase) in inventories	(530)		284		7
Decrease (increase) in prepaid expenses and other current assets	19		(87)		(323)
Increase (decrease) in accounts payable and accrued liabilities	5,475		(3,576)		(109)
Increase (decrease) in income and other taxes payable	1,223		(696)		67
Net decrease (increase) in operating working capital	$	(1,361)	$	(1,652)	$	1,494
Net cash provided by operating activities includes the following cash payments:
Interest on debt (net of capitalized interest)	$	699	$	720	$	810
Income taxes	4,355		2,987		4,817
Proceeds and deposits related to asset sales and returns of investment consisted of the following gross amounts:
Proceeds and deposits related to asset sales	$	1,352	$	2,891	$	2,809
Returns of investment from equity affiliates	439		77		142
Proceeds and deposits related to asset sales and returns of investment	$	1,791	$	2,968	$	2,951
Net maturities (investments) of time deposits consisted of the following gross amounts:
Investments in time deposits	$	—	$	—	$	—
Maturities of time deposits	—		—		950
Net maturities of (investments in) time deposits	$	—	$	—	$	950
Net sales (purchases) of marketable securities consisted of the following gross amounts:
Marketable securities purchased	$	(4)	$	—	$	(1)
Marketable securities sold	3		35		3
Net sales (purchases) of marketable securities	$	(1)	$	35	$	2
Net repayment (borrowing) of loans by equity affiliates:
Borrowing of loans by equity affiliates	$	—	$	(3,925)	$	(1,350)
Repayment of loans by equity affiliates	401		2,506		105
Net repayment (borrowing) of loans by equity affiliates	$	401	$	(1,419)	$	(1,245)
Net borrowings (repayments) of short-term obligations consisted of the following gross and net amounts:
Proceeds from issuances of short-term obligations	$	4,448	$	10,846	$	2,586
Repayments of short-term obligations	(6,906)		(9,771)		(1,430)
Net borrowings (repayments) of short-term obligations with three months or less maturity	(3,114)		(424)		(3,977)
Net borrowings (repayments) of short-term obligations	$	(5,572)	$	651	$	(2,821)
Net sales (purchases) of treasury shares consists of the following gross and net amounts:
Shares issued for share-based compensation plans	$	1,421	$	226	$	1,104
Shares purchased under share repurchase and deferred compensation plans	(1,383)		(1,757)		(4,039)
Net sales (purchases) of treasury shares	$	38	$	(1,531)	$	(2,935)
Net contributions from (distributions to) noncontrolling interests consisted of the following gross and net amounts:
Distributions to noncontrolling interests	$	(53)	$	(26)	$	(18)
Contributions from noncontrolling interests	17		2		—
Net contributions from (distributions to) noncontrolling interests	$	(36)	$	(24)	$	(18)

The ~~“Net sales of treasury shares” represents~~“Other” line in the ~~cost of common shares acquired less the cost of shares issued for share-based compensation plans. Purchases totaled $1, $2 and $2~~Operating Activities section includes changes in ~~2017, 2016 and 2015, respectively. No purchases were made under the company's share repurchase program in 2017, 2016, or 2015.~~

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

In 2017, 2016 and 2015, “Net (purchases) sales of other short-term investments” generally consisted of restricted cash associated with upstream abandonment activities, tax payments and certain pension fund payments that was invested in cash and short-term securities and reclassified from “Cash and cash equivalents” to “Deferred chargespostretirement benefits obligations and other ~~assets” on the Consolidated Balance Sheet.~~long-term liabilities.

The Consolidated Statement of Cash Flows excludes changes to the Consolidated Balance Sheet that did not affect cash. ~~In 2017, an approximate $400 increase~~“Distributions more (less) than income from equity affiliates,” “Depreciation, depletion and amortization,” “Deferred income tax provision,” and “Dry hole expense,” collectively include approximately $4.8 billion in ~~“Deferred credits and other noncurrent obligations” and a corresponding increase~~non-cash reductions to ~~“Properties,~~properties, plant and equipment ~~at cost” were considered~~in 2020 relating to impairments and other non-cash ~~transactions and excluded from “Net increase~~charges. The company did not have any material impairments in ~~operating working capital” and “Capital expenditures.” The amount is related~~2021.

Notes to ~~upstream operating agreements outside~~the Consolidated Financial Statements

Millions of ~~the United States.~~dollars, except per-share amounts

Refer also to Note 2~~6, on page 89,~~25 Asset Retirement Obligations for a discussion of revisions to the company’s AROs that also did not involve cash receipts or payments for the three years ending December 31, ~~2017.~~2021.

The major components of “Capital expenditures” and the reconciliation of this amount to the reported capital and exploratory expenditures, including equity affiliates, are presented in the following ~~table:~~table.


	Year ended December 31
	2021		2020		2019
Additions to properties, plant and equipment *	$	7,515	$	8,492	$	13,839
Additions to investments	460		136		140
Current-year dry hole expenditures	83		327		124
Payments for other assets and liabilities, net	(2)		(33)		13
Capital expenditures	8,056		8,922		14,116
Expensed exploration expenditures	431		500		598
Assets acquired through finance leases and other obligations	64		53		181
Payments for other assets and liabilities, net	2		42		(13)
Capital and exploratory expenditures, excluding equity affiliates	8,553		9,517		14,882
Company’s share of expenditures by equity affiliates	3,167		3,982		6,112
Capital and exploratory expenditures, including equity affiliates	$	11,720	$	13,499	$	20,994

Year ended December 31
2017
2016
2015
Additions to properties, plant and equipment ^*
$ 13,222
$ 17,742
$ 28,213
Additions to investments 25
55
555
Current-year dry hole expenditures 157
313
736
Payments for other liabilities and assets, net —
(1 ) —
Capital expenditures 13,404
18,109
29,504
Expensed exploration expenditures 666
544
1,031
Assets acquired through capital lease obligations and other financing obligations 8
5
47
Capital and exploratory expenditures, excluding equity affiliates 14,078
18,658
30,582
Company's share of expenditures by equity affiliates 4,743
3,770
3,397
Capital and exploratory expenditures, including equity affiliates $ 18,821
$ 22,428
$ 33,979


^*	~~Excludes noncash additions of $1,183 in 2017, $56 in 2016 and $1,362 in 2015.~~

* Excludes non-cash movements of $316 in 2021, $816 in 2020 and $(239) in 2019.

~~Note 5~~

~~New Accounting Standards~~

~~Revenue Recognition (Topic 606): Revenue from Contracts with CustomersIn July 2015,~~The table below quantifies the ~~FASB approved a one-year deferral~~beginning and ending balances of the effective date of ASU 2014-09, which becomes effective for the company January 1, 2018. The standard provides a single comprehensive revenue recognition model for contracts with customers, eliminates most industry-specific revenue recognition guidance, and expands disclosure requirements. The company has elected to adopt the standard using the modified retrospective transition method. "Sales and Other Operating Revenues” on the Consolidated Statement of Income includes excise, value-added and similar taxes on sales transactions. Upon adoption of the standard, revenue will exclude sales-based taxes collected on behalf of third parties, which will have no impact to earnings. The company completed its accounting policy and system enhancements necessary to meet the standard's requirements. The company does not expect the implementation of the standard to have a material effect on its consolidated financial statements.

~~Leases (Topic 842)~~In February 2016, the FASB issued ASU 2016-02, which becomes effective for the company January 1, 2019. The standard requires that lessees present right-of-use assets and lease liabilities on the balance sheet. The company's implementation efforts are focused on accounting policy and disclosure updates and system enhancements necessary to meet the standard's requirements. The company is evaluating the effect of the standard on the company’s consolidated financial statements.

~~Financial Instruments - Credit Losses (Topic 326)~~ In June 2016, the FASB issued ASU 2016-13, which becomes effective for the company beginning January 1, 2020. The standard requires companies to use forward-looking information to calculate credit loss estimates. The company is evaluating the effect of the standard on the company’s consolidated financial statements.

~~Intangibles - Goodwill and Other (Topic 350)~~ In January 2017, the FASB issued ASU 2017-04. The standard simplifies the accounting for goodwill impairment, and the company has chosen to early adopt beginning January 1, 2017. Early adoption has no effect on the company's consolidated financial statements.

~~Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)In March 2017, the FASB issued ASU 2017-05, which becomes effective for the company January 1, 2018. The standard provides clarification regarding~~

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

the guidance on accounting for the derecognition of nonfinancial assets. The company does not expect the implementation of the standard to have a material effect on its consolidated financial statements.

~~Compensation - Retirement Benefits (Topic 715)~~In March 2017, the FASB issued ASU 2017-07, which becomes effective for the company January 1, 2018. The standard requires the disaggregation of the service cost component from the other components of net periodic benefit cost and allows only the service cost component of net benefit cost to be eligible for capitalization. The company does not expect the implementation of the standard to have a material effect on its consolidated financial statements.

~~Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments~~ In August 2016, the FASB issued ASU 2016-15, which becomes effective for the company January 1, 2018 on a retrospective basis. The standard provides clarification on how certain cash receipts and cash payments are presented and classified on the statement of cash flows. The company does not expect the adoption of this ASU to have a material impact on its Consolidated Statement of Cash Flows.

~~Statement of Cash Flows (Topic 230) Restricted Cash~~ In November 2016, the FASB issued ASU 2016-18, which becomes effective for the company January 1, 2018 on a retrospective basis. The standard requires an entity to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents onin the ~~statement of cash flows and to provide a reconciliation to the balance sheet when the cash, cash equivalents, restricted cash and restricted cash equivalents~~Consolidated Balance Sheet:


	Year ended December 31
		2021		2020		2019
Cash and cash equivalents		$	5,640	$	5,596	$	5,686
Restricted cash included in “Prepaid expenses and other current assets”		333		365		452
Restricted cash included in “Deferred charges and other assets”		822		776		773
Total cash, cash equivalents and restricted cash		$	6,795	$	6,737	$	6,911

Note 4

New Accounting Standards

There are not ~~separately presented~~currently any new or ~~are presented in more than one line item~~pending accounting standards that have a significant impact on ~~the balance sheet. Upon adoption, the company’s restricted cash balances will be included in the beginning and ending balances on the Consolidated Statement of Cash Flows.~~Chevron.

Note 65

Lease Commitments

~~Certain noncancellable leases are classified as capital leases, and the leased assets are included as part of “Properties, plant and equipment, at cost” on the Consolidated Balance Sheet. Such~~The company enters into leasing arrangements as a lessee; any lessor arrangements are not significant. Operating lease arrangements mainly involve ~~crude oil production and processing equipment, service stations,~~land, bareboat charters, terminals, drill ships, drilling rigs, time chartered vessels, office buildings and ~~other facilities. Other~~warehouses, and exploration and production equipment. Finance leases ~~are classified as operating leases~~primarily include facilities, vessels, office buildings, and ~~are not capitalized. The payments on operating leases are recorded as expense.~~ production equipment.

Details of the ~~capitalized leased~~right-of-use assets and lease liabilities for operating and finance leases, including the balance sheet presentation, are as follows:

At December 31
2017
2016
Upstream $ 678
$ 676
Downstream 99
99
All Other —
—
Total 777
775
Less: Accumulated amortization 515
383
Net capitalized leased assets $ 262
$ 392

~~Rental expenses incurred for operating leases during 2017, 2016 and 2015 were as follows:~~

Year ended December 31
2017
2016
2015
Minimum rentals $ 726
$ 943
$ 1,041
Contingent rentals 1
2
2
Total 727
945
1,043
Less: Sublease rental income 6
7
9
Net rental expense $ 721
$ 938
$ 1,034

Contingent rentals are based on factors other than the passage of time, principally sales volumes at leased service stations. Certain leases include escalation clauses for adjusting rentals to reflect changes in price indices, renewal options ranging up to 25 years, and options to purchase the leased property during or at the end of the initial or renewal lease period for the fair market value or other specified amount at that time.

At December 31, 2017, the estimated future minimum lease payments (net of noncancelable sublease rentals) under operating and capital leases, which at inception had a noncancelable term of more than one year, were as follows:

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts


	At December 31, 2021						At December 31, 2020
	Operating Leases			Finance Leases			Operating Leases			Finance Leases

Deferred charges and other assets	$	3,668		$	—		$	3,949		$	—
Properties, plant and equipment, net	—			429			—			455
Right-of-use assets*	$	3,668		$	429		$	3,949		$	455
Accrued Liabilities	$	995		$	—		$	1,291		$	—
Short-term Debt	—			48			—			186
Current lease liabilities	995��			48			1,291			186
Deferred credits and other noncurrent obligations	2,508			—			2,615			—
Long-term Debt	—			449			—			447
Noncurrent lease liabilities	2,508			449			2,615			447
Total lease liabilities	$	3,503		$	497		$	3,906		$	633

Weighted-average remaining lease term (in years)	7.8			13.2			7.2			10.4
Weighted-average discount rate	2.2		%	4.2		%	2.8		%	3.9		%

* Includes non-cash additions of $1,063 and $60 in 2021, and $1,353 and $164 in 2020 for right-of-use assets obtained in exchange for new and modified lease liabilities for operating and finance leases, respectively. 2020 includes $566 in operating lease right-of-use assets and $566 lease liabilities associated with the Puma acquisition. 2020 also includes $124 in operating lease right-of-use assets and $148 lease liabilities, and $112 in finance lease right-of-use assets and $309 lease liabilities associated with the Noble acquisition.

Total lease costs consist of both amounts recognized in the Consolidated Statement of Income during the period and amounts capitalized as part of the cost of another asset. Total lease costs incurred for operating and finance leases were as follows:


	Year-ended December 31
	2021		2020		2019
Operating lease costs*	$	2,199	$	2,551	$	2,621
Finance lease costs	66		45		66
Total lease costs	$	2,265	$	2,596	$	2,687

* Includes variable and short-term lease costs.

Cash paid for amounts included in the measurement of lease liabilities was as follows:


	Year-ended December 31
	2021		2020		2019
Operating cash flows from operating leases	$	1,670	$	1,744	$	1,574
Investing cash flows from operating leases	398		762		1,047
Operating cash flows from finance leases	21		14		13
Financing cash flows from finance leases	193		34		24

At December 31, 2021, the estimated future undiscounted cash flows for operating and finance leases were as follows:


		At December 31, 2021
		Operating Leases		Finance Leases

Year	2022	$	1,054	$	64
	2023	674		62
	2024	487		61
	2025	376		58
	2026	245		55
	Thereafter	1,049		316
	Total	$	3,885	$	616
Less: Amounts representing interest		382		119
Total lease liabilities		$	3,503	$	497

Additionally, the company has $1,074 in future undiscounted cash flows for operating leases not yet commenced. These leases are primarily for a drill ship and drilling rigs. For those leasing arrangements where the underlying asset is not yet constructed, the lessor is primarily involved in the design and construction of the asset.

At December 31
Operating Leases
Capital Leases
Year 2018 $ 693
$ 26
2019 628
22
2020 474
13
2021 339
12
2022 223
11
Thereafter 538
142
Total $ 2,895
$ 226
Less: Amounts representing interest and executory costs $ (117 )
Net present values 109
Less: Capital lease obligations included in short-term debt (15 )
Long-term capital lease obligations $ 94

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Note 76

Summarized Financial Data – Chevron U.S.A. Inc.

Chevron U.S.A. Inc. (CUSA) is a major subsidiary of Chevron Corporation. CUSA and its subsidiaries manage and operate most of Chevron’s U.S. businesses. Assets include those related to the exploration and production of crude oil, natural gas and natural gas liquids and those associated with the refining, marketing, supply and distribution of products derived from petroleum, excluding most of the regulated pipeline operations of Chevron. CUSA also holds the company’s investment in the Chevron Phillips Chemical Company LLC joint venture, which is accounted for using the equity method. The summarized financial information for CUSA and its consolidated subsidiaries is as follows:


	Year ended December 31
	2021		2020		2019
Sales and other operating revenues	$	120,380	$	67,950	$	109,314
Total costs and other deductions	114,641		72,575		116,365
Net income (loss) attributable to CUSA	6,904		(2,676)		(5,061)


	At December 31
	2021		2020
Current assets	$	20,216	$	10,555
Other assets	47,355		48,054
Current liabilities	17,824		12,403
Other liabilities	18,438		14,102
Total CUSA net equity	$	31,309	$	32,104
Memo: Total debt	$	11,693	$	7,133

Note 7

Year ended December 31
2017
2016
2015
Sales and other operating revenues $ 104,054
$ 83,715
$ 97,766
Total costs and other deductions 103,904
87,429
101,565
Net income (loss) attributable to CUSA 4,842
(1,177 ) (1,054 )

2017
2016
Current assets $ 12,163
$ 11,266
Other assets 54,994
55,722
Current liabilities 17,379
16,660
Other liabilities 12,541
21,701
Total CUSA net equity $ 37,237
$ 28,627

Memo: Total debt $ 3,056
$ 9,418

~~Note 8~~

Summarized Financial Data – Tengizchevroil LLP

Chevron has a 50 percent equity ownership interest in Tengizchevroil LLP (TCO). Refer to Note 1~~6, beginning on page 70,~~15 Investments and Advances for a discussion of TCO operations. Summarized financial information for 100 percent of TCO is presented in the table below:


	Year ended December 31
	2021		2020		2019
Sales and other operating revenues	$	15,927	$	9,194	$	16,281
Costs and other deductions	8,186		6,076		7,903
Net income attributable to TCO	5,418		2,196		5,884


	At December 31
	2021		2020
Current assets	$	3,307	$	2,114
Other assets	51,473		48,390
Current liabilities	3,436		1,686
Other liabilities	12,060		12,553
Total TCO net equity	$	39,284	$	36,265

Year ended December 31

2017
2016
2015
Sales and other operating revenues $ 13,363

$ 10,460

$ 12,811
Costs and other deductions 6,507

6,822

7,257
Net income attributable to TCO 4,841

2,563

3,897

At December 31

2017
2016
Current assets $ 4,239

$ 7,001
Other assets 26,411

20,476
Current liabilities 2,517

2,841
Other liabilities 6,266

6,210
Total TCO net equity $ 21,867

$ 18,426

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

Note 98

Summarized Financial Data – Chevron Phillips Chemical Company LLC

Chevron has a 50 percent equity ownership interest in Chevron Phillips Chemical Company LLC (CPChem). Refer to Note 1~~6, beginning on page 70,~~15 Investments and Advances for a discussion of CPChem operations. Summarized financial information for 100 percent of CPChem is presented in the table below:


	Year ended December 31
	2021		2020		2019
Sales and other operating revenues	$	14,104	$	8,407	$	9,333
Costs and other deductions	10,862		7,221		7,863
Net income attributable to CPChem	3,684		1,260		1,760

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Year ended December 31
2017
2016
2015
Sales and other operating revenues $ 9,063
$ 8,455
$ 9,248
Costs and other deductions 8,126
7,017
7,136
Net income attributable to CPChem 1,446
1,687
2,651


	At December 31
	2021		2020
Current assets	$	3,381	$	2,816
Other assets	14,396		14,210
Current liabilities	1,854		1,394
Other liabilities	3,160		3,380
Total CPChem net equity	$	12,763	$	12,252

At December 31
2017
2016
Current assets $ 2,944
$ 2,695
Other assets 13,823
12,770
Current liabilities 1,439
1,418
Other liabilities 2,932
2,569
Total CPChem net equity $ 12,396
$ 11,478

Note 109

Fair Value Measurements

The tables below ~~and on the next page~~ show the fair value hierarchy for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, ~~2017,~~2021 and December 31, ~~2016.~~2020.

Marketable Securities The company calculates fair value for its marketable securities based on quoted market prices for identical assets. The fair values reflect the cash that would have been received if the instruments were sold at December 31, ~~2017.~~2021.

DerivativesThe company records most of its derivative instruments – other than any commodity derivative contracts that are ~~designated~~accounted for as normal purchase and normal sale – on the Consolidated Balance Sheet at fair value, with the offsetting amount to the Consolidated Statement of Income. The company designates certain derivative instruments as cash flow hedges that, if applicable, are reflected in the table below. Derivatives classified as Level 1 include futures, swaps and options contracts traded in active markets such as the New York Mercantile Exchange. Derivatives classified as Level 2 include swaps, options and forward contracts principally with financial institutions and other oil and gas companies, the fair values of which are obtained from third-party broker quotes, industry pricing services and exchanges. The company obtains multiple sources of pricing information for the Level 2 instruments. Since this pricing information is generated from observable market data, it has historically been very consistent. The company does not materially adjust this information.

Properties, Plant and Equipment The company did not have any individually material impairments in ~~2017.~~2021. The company reported impairments for certain upstream properties in 2020 primarily due to downward revisions to its oil and gas ~~properties during 2016 primarily due to reservoir performance and lower crude oil prices. The impairments in 2016 were primarily in Brazil and the United States.~~price outlook.

Investments and Advances ~~The~~In 2021, the company did not have any ~~individually~~ material impairments of investments and advances measured at fair value on a nonrecurring basis. In 2020, the company fully impaired its investments in ~~2017 or 2016.~~Petropiar and Petroboscan in Venezuela. The impact of these impairments is included in “Income (loss) from equity affiliates” on the Consolidated Statement of Income.

Assets and Liabilities Measured at Fair Value on a Recurring Basis


	At December 31, 2021								At December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Marketable securities	$	35	$	35	$	—	$	—	$	31	$	31	$	—	$	—
Derivatives - not designated	313		285		28		—		74		37		37		—
Total assets at fair value	$	348	$	320	$	28	$	—	$	105	$	68	$	37	$	—
Derivatives - not designated	72		24		48		—		173		58		115		—

Total liabilities at fair value	$	72	$	24	$	48	$	—	$	173	$	58	$	115	$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis


	At December 31										At December 31
									Before-Tax Loss										Before-Tax Loss
	Total		Level 1		Level 2		Level 3		Year 2021		Total		Level 1		Level 2		Level 3		Year 2020
Properties, plant and equipment, net (held and used)	$	124	$	—	$	—	$	124	$	414	$	2,443	$	—	$	20	$	2,423	$	2,599
Properties, plant and equipment, net (held for sale)	—		—		—		—		—		1,418		—		1,418		—		193
Investments and advances	16		—		—		16		32		28		—		—		28		2,555
Total nonrecurring assets at fair value	$	140	$	—	$	—	$	140	$	446	$	3,889	$	—	$	1,438	$	2,451	$	5,347

At December 31, 2017 At December 31, 2016
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Marketable securities $ 9
$ 9
$ —
$ —
$ 13
$ 13
$ —
$ —
Derivatives 22
—
22
—
32
15
17
—
Total assets at fair value $ 31
$ 9
$ 22
$ —
$ 45
$ 28
$ 17
$ —
Derivatives 124
78
46
—
109
78
31
—
Total liabilities at fair value $ 124
$ 78
$ 46
$ —
$ 109
$ 78
$ 31
$ —

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

At year-end 2021, the company had assets measured at fair value Level 3 using unobservable inputs of $140. The carrying value of these assets were written down to fair value based on estimates derived from internal discounted cash flow models. Cash flows were determined using estimates of future production, an outlook of future price based on published prices and a discount rate believed to be consistent with those used by principal market participants.

~~Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis~~

At December 31 At December 31
Before-Tax Loss
Before-Tax Loss
Total
Level 1
Level 2
Level 3
Year 2017
Total
Level 1
Level 2
Level 3
Year 2016
Properties, plant and equipment, net (held and used) $ 603
$ —
$ —
$ 603
$ 658
$ 582
$ —
$ 15
$ 567
$ 2,507
Properties, plant and equipment, net (held for sale) 1,378
—
1,378
—
363
891
—
888
3
679
Investments and advances 28
—
1
27
26
26
—
20
6
234
Total nonrecurring assets at fair value $ 2,009
$ —
$ 1,379
$ 630
$ 1,047
$ 1,499
$ —
$ 923
$ 576
$ 3,420

Assets and Liabilities Not Required to Be Measured at Fair Value The company holds cash equivalents ~~and time deposits~~ in U.S. and non-U.S. portfolios. The instruments classified as cash equivalents are primarily bank time deposits with maturities of 90 days or less and money market funds. “Cash and cash equivalents” had carrying/fair values of ~~$4,813~~$5,640 and ~~$6,988~~$5,596 at December 31, ~~2017,~~2021, and December 31, ~~2016,~~2020, respectively. The fair values of cash and cash equivalents are classified as Level 1 and reflect the cash that would have been received if the instruments were settled at December 31, ~~2017.~~2021.

"“Cash and cash equivalents” do not include investments with a carrying/fair value of ~~$1,130~~$1,155 and ~~$1,426~~$1,141 at December 31, ~~2017,~~2021, and December 31, ~~2016,~~2020, respectively. At December 31, ~~2017,~~2021, these investments are classified as Level 1 and include restricted funds related to certain upstream ~~abandonment~~decommissioning activities, tax payments and ~~refundable deposits related to pending asset sales, which are reported in “Deferred charges and other assets” on the Consolidated Balance Sheet.~~ a financing program.

Long-term debt, excluding finance lease liabilities, of ~~$23,477~~$22,164 and ~~$26,193~~$30,805 at December 31, ~~2017,~~2021, and December 31, ~~2016,~~2020, respectively, had estimated fair values of ~~$23,943~~$23,670 and ~~$26,627,~~$34,390, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of corporate bonds is ~~$23,245~~$22,835 and classified as Level 1. The fair value of other long-term debt is ~~$698~~$835 and classified as Level 2.

The carrying values of short-term financial assets and liabilities on the Consolidated Balance Sheet approximate their fair values. Fair value remeasurements of other financial instruments at December 31, ~~2017~~2021 and ~~2016,~~2020, were not material.

Note 1110

Financial and Derivative Instruments

Derivative Commodity Instruments The company’s derivative commodity instruments principally include crude oil, natural gas, liquefied natural gas and refined product futures, swaps, options, and forward contracts. ~~None~~The company applies cash flow hedge accounting to certain commodity transactions, where appropriate, to manage the market price risk associated with forecasted sales of ~~the company’s derivative instruments is designated as a hedging instrument, although certain of the company’s affiliates make such designation.~~crude oil. The company’s derivatives are not material to the company’s financial position, results of operations or liquidity. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodity derivative activities.

The company uses derivative commodity instruments traded on the New York Mercantile Exchange and on electronic platforms of the Inter-Continental Exchange and Chicago Mercantile Exchange. In addition, the company enters into swap contracts and option contracts principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets, which are governed by International Swaps and Derivatives Association agreements and other master netting arrangements. Depending on the nature of the derivative transactions, bilateral collateral arrangements may also be required.

Derivative instruments measured at fair value at December 31, ~~2017, December 31, 2016,~~2021, 2020 and ~~December 31, 2015,~~2019, and their classification on the Consolidated Balance Sheet below and Consolidated Statement of Income ~~are~~ on the ~~next~~following page:

Consolidated Balance Sheet: Fair Value of Derivatives


				At December 31
Type of Contract	Balance Sheet Classification	2021		2020
Commodity	Accounts and notes receivable, net	$	251	$	73
Commodity	Long-term receivables, net	62		1
Total assets at fair value		$	313	$	74
Commodity	Accounts payable	$	71	$	172
Commodity	Deferred credits and other noncurrent obligations	1		1
Total liabilities at fair value		$	72	$	173

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

~~Consolidated Balance Sheet: Fair Value of Derivatives Not Designated as Hedging Instruments~~

At December 31
Type of Contract Balance Sheet Classification 2017
2016
Commodity Accounts and notes receivable, net $ 22
$ 30
Commodity Long-term receivables, net —
2
Total assets at fair value $ 22
$ 32
Commodity Accounts payable $ 122
$ 99
Commodity Deferred credits and other noncurrent obligations 2
10
Total liabilities at fair value $ 124
$ 109

Consolidated Statement of Income: The Effect of Derivatives ~~Not Designated as Hedging Instruments~~


		Gain/(Loss)
Type of Derivative	Statement of	Year ended December 31
Contract	Income Classification	2021		2020		2019
Commodity	Sales and other operating revenues	$	(685)	$	69	$	(291)
Commodity	Purchased crude oil and products	(64)		(36)		(17)
Commodity	Other income	(46)		7		(2)
		$	(795)	$	40	$	(310)

Gain/(Loss)
Type of Derivative Statement of Year ended December 31
Contract Income Classification 2017
2016
2015
Commodity Sales and other operating revenues $ (105 ) $ (269 ) $ 277
Commodity Purchased crude oil and products (9 ) (31 ) 30
Commodity Other income (2 ) —
(3 )
$ (116 ) $ (300 ) $ 304
All designated cash flow hedges during the year were settled by December 31, 2021. The impact on sales and other operating revenues from designated hedges in 2021 was immaterial.

The table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at December 31, ~~2017~~2021 and December 31, ~~2016.~~2020.

Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities

Gross Amounts Recognized
Gross Amounts Offset
Net Amounts Presented
Gross Amounts Not Offset
Net Amounts
At December 31, 2017
Derivative Assets $ 1,169
$ 1,147
$ 22
$ —
$ 22
Derivative Liabilities $ 1,271
$ 1,147
$ 124
$ —
$ 124
At December 31, 2016
Derivative Assets $ 1,052
$ 1,020
$ 32
$ —
$ 32
Derivative Liabilities $ 1,129
$ 1,020
$ 109
$ —
$ 109


	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Gross Amounts Not Offset		Net Amounts
At December 31, 2021
Derivative Assets - not designated	$	1,684	$	1,371	$	313	$	—	$	313
Derivative Liabilities - not designated	$	1,443	$	1,371	$	72	$	—	$	72
At December 31, 2020
Derivative Assets - not designated	$	818	$	744	$	74	$	—	$	74
Derivative Liabilities - not designated	$	917	$	744	$	173	$	—	$	173

Derivative assets and liabilities are classified on the Consolidated Balance Sheet as accounts and notes receivable, long-term receivables, accounts payable, and deferred credits and other noncurrent obligations. Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for "a“a right of offset." ”

Concentrations of Credit Risk The company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash equivalents, marketable securities, derivative financial instruments and trade receivables. The company’s short-term investments are placed with a wide array of financial institutions with high credit ratings. Company investment policies limit the company’s exposure both to credit risk and to concentrations of credit risk. Similar policies on diversification and creditworthiness are applied to the company’s counterparties in derivative instruments.

~~The trade receivable balances, reflecting the company’s diversified sources of revenue, are dispersed among the company’s broad customer base worldwide. As~~ For a ~~result, the company believes concentrations~~discussion of credit risk are limited. The company routinely assesses the financial strength of its customers. When the financial strength of a customer is not considered sufficient, alternative risk mitigation measures may be deployed, including requiring pre-payments, letters of credit or other acceptable collateral instruments to support sales to customers.on trade receivables, see Note 28 Financial Instruments - Credit Losses.

Note 1211

Assets Held for Sale

At December 31, ~~2017,~~2021, the company classified ~~$640~~$768 of net properties, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheet. These assets are ~~primarily~~ associated with ~~downstream and~~ upstream operations that are anticipated to be sold in the next 12 months. The revenues and earnings contributions of these assets in ~~2017~~2021 were not material.

Note 1312

Equity

Retained earnings at December 31, ~~2017~~2021 and ~~2016,~~2020, included ~~approximately $18,473~~$28,876 and ~~$16,479,~~$26,532, respectively, for the company’s share of undistributed earnings of equity affiliates.

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

At December 31, ~~2017,~~2021, about 8266 million shares of Chevron’s common stock remained available for issuance from the 260 million shares that were reserved for issuance under the Chevron Long-Term Incentive Plan. In addition, ~~800,468~~614,768 shares remain available for issuance from the 1,600,000 shares of the company’s common stock that were reserved for awards under the Chevron Corporation Non-Employee Directors’ Equity Compensation and Deferral Plan.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Note 1413

Earnings Per Share

Basic earnings per share (EPS) is based upon “Net Income (Loss) Attributable to Chevron Corporation” (“earnings”) and includes the effects of deferrals of salary and other compensation awards that are invested in Chevron stock units by certain officers and employees of the company. Diluted EPS includes the effects of these items as well as the dilutive effects of outstanding stock options awarded under the company’s stock option programs (refer to Note 2~~2, “Stock~~22 Stock Options and Other Share-Based Compensation~~” beginning on page 81)~~). The table below sets forth the computation of basic and diluted EPS:


	Year ended December 31
	2021		2020		2019
Basic EPS Calculation
Earnings available to common stockholders - Basic1	$	15,625	$	(5,543)	$	2,924
Weighted-average number of common shares outstanding2	1,916		1,870		1,882
Add: Deferred awards held as stock units	—		—		—
Total weighted-average number of common shares outstanding	1,916		1,870		1,882
Earnings per share of common stock - Basic	$	8.15	$	(2.96)	$	1.55
Diluted EPS Calculation
Earnings available to common stockholders - Diluted1	$	15,625	$	(5,543)	$	2,924
Weighted-average number of common shares outstanding2	1,916		1,870		1,882
Add: Deferred awards held as stock units	—		—		—
Add: Dilutive effect of employee stock-based awards	4		—		13
Total weighted-average number of common shares outstanding	1,920		1,870		1,895
Earnings per share of common stock - Diluted	$	8.14	$	(2.96)	$	1.54
1 There was no effect of dividend equivalents paid on stock units or dilutive impact of employee stock-based awards on earnings.
2 Millions of shares; 1 million shares of employee-based awards were not included in the 2020 diluted EPS calculation as the result would be anti-dilutive.

Year ended December 31
2017
2016
2015
Basic EPS Calculation
Earnings available to common stockholders - Basic¹
$ 9,195
$ (497 ) $ 4,587
Weighted-average number of common shares outstanding²
1,882
1,872
1,867
     Add: Deferred awards held as stock units 1
1
1
Total weighted-average number of common shares outstanding 1,883
1,873
1,868
Earnings per share of common stock - Basic $ 4.88
$ (0.27 ) $ 2.46
Diluted EPS Calculation
Earnings available to common stockholders - Diluted¹
$ 9,195
$ (497 ) $ 4,587
Weighted-average number of common shares outstanding²
1,882
1,872
1,867
     Add: Deferred awards held as stock units 1
1
1
     Add: Dilutive effect of employee stock-based awards 15
—
7
Total weighted-average number of common shares outstanding 1,898
1,873
1,875
Earnings per share of common stock - Diluted $ 4.85
$ (0.27 ) $ 2.45

¹There was no effect of dividend equivalents paid on stock units or dilutive impact of employee stock-based awards on earnings.
² Millions of shares; 10 million shares of employee-based awards were not included in the 2016 diluted EPS calculation as the result would be anti-dilutive.

Note 1514

Operating Segments and Geographic Data

Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into ~~two~~2 business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments.” Upstream operations consist primarily of exploring for, developing, producing and ~~producing~~transporting crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil, refined products, and ~~refined products;~~lubricants; manufacturing and marketing of renewable fuels; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. All Other activities of the company include worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology ~~companies.~~activities.

The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM). The segments represent components of the company that engage in activities (a) from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the CODM, which makes decisions about resources to be allocated to the segments and assesses their performance; and (c) for which discrete financial information is available.

The company’s primary country of operation is the United States of America, its country of domicile. Other components of the company’s operations are reported as ~~"International”~~“International” (outside the United States).

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

Segment EarningsThe company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs ~~and assets~~ are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. ~~Nonbillable~~Non-billable costs remain at the corporate level in “All Other.” Earnings by major operating area are presented in the following table:

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts


	Year ended December 31										Year ended December 31
	2017			2016			2015				2021		2020		2019
Upstream										Upstream
United States	$	3,640		$	(2,054	)	$	(4,055	)	United States	$	7,319	$	(1,608)	$	(5,094)
International	4,510			(483		)	2,094			International	8,499		(825)		7,670
Total Upstream	8,150			(2,537		)	(1,961		)	Total Upstream	15,818		(2,433)		2,576
Downstream										Downstream
United States	2,938			1,307			3,182			United States	2,389		(571)		1,559
International	2,276			2,128			4,419			International	525		618		922
Total Downstream	5,214			3,435			7,601			Total Downstream	2,914		47		2,481
Total Segment Earnings	13,364			898			5,640			Total Segment Earnings	18,732		(2,386)		5,057
All Other										All Other
Interest expense	(264		)	(168		)	—			Interest expense	(662)		(658)		(761)
Interest income	60			58			65			Interest income	36		52		181
Other	(3,965		)	(1,285		)	(1,118		)	Other	(2,481)		(2,551)		(1,553)
Net Income (Loss) Attributable to Chevron Corporation	$	9,195		$	(497	)	$	4,587		Net Income (Loss) Attributable to Chevron Corporation	$	15,625	$	(5,543)	$	2,924

Segment AssetsSegment assets do not include intercompany investments or receivables. Assets at year-end ~~2017~~2021 and ~~2016~~2020 are as follows:


	At December 31
	2021		2020
Upstream
United States	$	41,870	$	42,431
International	138,157		144,476
Goodwill	4,385		4,402
Total Upstream	184,412		191,309
Downstream
United States	26,376		23,490
International	18,848		16,096
Total Downstream	45,224		39,586
Total Segment Assets	229,636		230,895
All Other
United States	5,746		4,017
International	4,153		4,878
Total All Other	9,899		8,895
Total Assets – United States	73,992		69,938
Total Assets – International	161,158		165,450
Goodwill	4,385		4,402
Total Assets	$	239,535	$	239,790

At December 31
2017
2016
Upstream
   United States $ 40,770
$ 42,596
   International 159,612
164,068
   Goodwill 4,531
4,581
Total Upstream 204,913
211,245
Downstream
   United States 23,202
22,264
   International 17,434
15,816
Total Downstream 40,636
38,080
Total Segment Assets 245,549
249,325
All Other
   United States 4,938
4,852
   International 3,319
5,901
Total All Other 8,257
10,753
Total Assets – United States 68,910
69,712
Total Assets – International 180,365
185,785
Goodwill 4,531
4,581
Total Assets $ 253,806
$ 260,078

Segment Sales and Other Operating RevenuesOperating segment sales and other operating revenues, including internal transfers, for the years ~~2017, 2016~~2021, 2020 and ~~2015,~~2019, are presented in the table on the next page. Products are transferred between operating segments at internal product values that approximate market prices.

Revenues for the upstream segment are derived primarily from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil. This segment also generates revenues from the manufacture and sale of fuel and lubricant additives and the transportation and trading of refined products and crude oil. ~~"All Other"~~“All Other” activities include revenues from insurance operations, real estate activities and technology companies.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts


	Year ended December 311
	2021		2020		2019
Upstream
United States	$	29,219	$	14,577	$	23,358
International	40,921		26,804		35,628
Subtotal	70,140		41,381		58,986
Intersegment Elimination — United States	(15,154)		(8,068)		(14,944)
Intersegment Elimination — International	(10,994)		(7,002)		(12,335)
Total Upstream	43,992		26,311		31,707
Downstream
United States	57,209		32,589		55,271
International	58,098		38,936		57,654
Subtotal	115,307		71,525		112,925
Intersegment Elimination — United States	(2,296)		(2,150)		(3,924)
Intersegment Elimination — International	(1,521)		(1,292)		(1,089)
Total Downstream	111,490		68,083		107,912
All Other
United States	506		744		1,064
International	2		15		20
Subtotal	508		759		1,084
Intersegment Elimination — United States	(382)		(667)		(818)
Intersegment Elimination — International	(2)		(15)		(20)
Total All Other	124		77		246
Sales and Other Operating Revenues
United States	86,934		47,910		79,693
International	99,021		65,755		93,302
Subtotal	185,955		113,665		172,995
Intersegment Elimination — United States	(17,832)		(10,885)		(19,686)
Intersegment Elimination — International	(12,517)		(8,309)		(13,444)
Total Sales and Other Operating Revenues	$	155,606	$	94,471	$	139,865

Year ended December 31^*

2017
2016
2015
Upstream
   United States $ 3,901
$ 3,148
$ 4,117
     Intersegment 9,341
7,217
8,631
     Total United States 13,242
10,365
12,748
   International 17,209
13,262
15,587
     Intersegment 11,471
9,518
11,492
     Total International 28,680
22,780
27,079
Total Upstream 41,922
33,145
39,827
Downstream
   United States 48,728
40,366
48,420
     Excise and similar taxes 4,398
4,335
4,426
     Intersegment 14
16
26
     Total United States 53,140
44,717
52,872
   International 57,438
46,388
54,296
     Excise and similar taxes 2,791
2,570
2,933
     Intersegment 1,166
1,068
1,528
     Total International 61,395
50,026
58,757
Total Downstream 114,535
94,743
111,629
All Other
   United States 208
145
141
     Intersegment 814
960
1,372
     Total United States 1,022
1,105
1,513
   International 1
1
5
     Intersegment 25
36
37
     Total International 26
37
42
Total All Other 1,048
1,142
1,555
Segment Sales and Other Operating Revenues
   United States 67,404
56,187
67,133
   International 90,101
72,843
85,878
Total Segment Sales and Other Operating Revenues 157,505
129,030
153,011
Elimination of intersegment sales (22,831 ) (18,815 ) (23,086 )
Total Sales and Other Operating Revenues $ 134,674
$ 110,215
$ 129,925
^*Other than the United States, no other country accounted for 10 percent or more of the company’s Sales and Other Operating Revenues.

1 Other than the United States, no other country accounted for 10 percent or more of the company’s Sales and Other Operating Revenues.

Segment Income TaxesSegment income tax expense for the years ~~2017, 2016~~2021, 2020 and ~~2015~~2019 is as follows:


	Year ended December 31
	2021		2020		2019
Upstream
United States	$	1,934	$	(570)	$	(1,550)
International	4,192		(415)		3,492
Total Upstream	6,126		(985)		1,942
Downstream
United States	547		(192)		392
International	203		253		170
Total Downstream	750		61		562
All Other	(926)		(968)		187
Total Income Tax Expense (Benefit)	$	5,950	$	(1,892)	$	2,691

Year ended December 31
2017
2016
2015
Upstream
   United States $ (3,538 ) $ (1,172 ) $ (2,041 )
   International 2,249
166
1,214
Total Upstream (1,289 ) (1,006 ) (827 )
Downstream
   United States (419 ) 503
1,320
   International 650
484
1,313
Total Downstream 231
987
2,633
All Other 1,010
(1,710 ) (1,674 )
Total Income Tax Expense (Benefit) $ (48 ) $ (1,729 ) $ 132

Other Segment InformationAdditional information for the segmentation of major equity affiliates is contained in Note 1~~6, on page 70.~~15 Investments and Advances. Information related to properties, plant and equipment by segment is contained in Note ~~24, on page 87.~~18 Properties, Plant and Equipment.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Note 15

~~Note 16~~

Investments and Advances

Equity in earnings, together with investments in and advances to companies accounted for using the equity method and other investments accounted for at or below cost, is shown in the following table. For certain equity affiliates, Chevron pays its share of some income taxes directly. For such affiliates, the equity in earnings does not include these taxes, which are reported on the Consolidated Statement of Income as “Income tax expense.”


Investments and Advances	Investments and Advances						Equity in Earnings									Investments and Advances					Equity in Earnings
	At December 31						Year ended December 31										At December 31				Year ended December 31
	2017			2016			2017			2016			2015				2021		2020		2021		2020		2019
Upstream																Upstream
Tengizchevroil	$	13,121		$	11,414		$	2,581		$	1,380		$	1,939		Tengizchevroil	$	23,727	$	22,685	$	2,831	$	1,238	$	3,067
Petropiar	1,152			977			175			326			180			Petropiar	—		—		—		(1,396)		80
Petroboscan																Petroboscan	—		—		—		(1,112)		(11)
Caspian Pipeline Consortium	1,151			1,245			155			145			162			Caspian Pipeline Consortium	805		835		155		159		155
Petroboscan	1,080			982			154			(133		)	219
Angola LNG Limited	2,625			2,744			31			(282		)	(417		)	Angola LNG Limited	2,180		2,258		336		(166)		(26)
Other	1,714			1,791			100			(193		)	135

Other*																Other*	1,859		1,875		187		137		(478)
Total Upstream	20,843			19,153			3,196			1,243			2,218			Total Upstream	28,571		27,653		3,509		(1,140)		2,787
Downstream																Downstream
Chevron Phillips Chemical Company LLC																Chevron Phillips Chemical Company LLC	6,455		6,181		1,842		630		880
GS Caltex Corporation	3,826			3,767			290			373			824			GS Caltex Corporation	3,616		3,547		85		(185)		13
Chevron Phillips Chemical Company LLC	6,200			5,767			723			840			1,367
Caltex Australia Ltd.	—			—			—			—			92
Other	1,251			1,118			230			209			186			Other	1,725		1,389		220		223		288
Total Downstream	11,277			10,652			1,243			1,422			2,469			Total Downstream	11,796		11,117		2,147		668		1,181
All Other																All Other
Other	(15		)	(16		)	(1		)	(4		)	(3		)	Other	(10)		(14)		1		—		—
Total equity method	32,105			$	29,789		$	4,438		$	2,661		$	4,684		Total equity method	$	40,357	$	38,756	$	5,657	$	(472)	$	3,968
Other at or below cost	392			461
Other non-equity method investments																Other non-equity method investments	339		296
Total investments and advances	$	32,497		$	30,250											Total investments and advances	$	40,696	$	39,052
Total United States	$	7,582		$	7,258		$	788		$	802		$	1,342		Total United States	$	8,540	$	7,978	$	1,889	$	709	$	641
Total International	$	24,915		$	22,992		$	3,650		$	1,859		$	3,342		Total International	$	32,156	$	31,074	$	3,768	$	(1,181)	$	3,327

* Upstream Other line includes amounts previously reported as Noble Midstream equity affiliates.

Descriptions of major affiliates and non-equity investments, including significant differences between the company’s carrying value of its investments and its underlying equity in the net assets of the affiliates, are as follows:

Tengizchevroil Chevron has a 50 percent equity ownership interest in Tengizchevroil (TCO), which operates the Tengiz and Korolev crude oil fields in Kazakhstan. At December 31, ~~2017,~~2021, the company’s carrying value of its investment in TCO was about ~~$130~~$100 higher than the amount of underlying equity in TCO’s net assets. This difference results from Chevron acquiring a portion of its interest in TCO at a value greater than the underlying book value for that portion of TCO’s net assets. Included in the investment is a loan to TCO to fund the development of the ~~Future Growth and Wellhead Pressure Management Project~~FGP/WPMP with a balance of ~~$2,060, including accrued interest. See~~ ~~Note~~ ~~8, on page 63, for summarized financial information for 100 percent of TCO.~~$4,500.

Petropiar Chevron has a 30 percent interest in Petropiar, a joint stock company which operates the ~~Hamaca heavy-oil production~~heavy oil Huyapari Field and upgrading project in Venezuela’s Orinoco Belt. ~~At December 31, 2017,~~In 2020, the ~~company’s carrying value of~~company fully impaired its investment in Petropiar was approximately $145 less than the amount of underlying equity in Petropiar’s net assets. The difference represents the excess of Chevron’s underlying equity in Petropiar’s net assets over the net book value of the assets contributed to the venture.

~~Caspian Pipeline Consortium~~ ~~Chevron has a 15 percent interest~~investments in the ~~Caspian Pipeline Consortium,~~Petropiar affiliate and, effective July 1, 2020, began accounting for this venture as a variable interest entity, which provides the critical export route for crude oil from both TCO and Karachaganak. The company has investments and advances totaling $1,151, which includes long-term loans of $727 at year-end 2017. The loans were provided to fund 30 percent of the initial pipeline construction. The company is not the primary beneficiary of the consortium because it does not direct activities of the consortium and only receives its proportionate share of the financial returns.non-equity method investment.

Petroboscan Chevron has a 39.2 percent interest in Petroboscan, a joint stock company which operates the Boscan Field in Venezuela. ~~At December 31, 2017,~~In 2020, the ~~company’s carrying value of~~company fully impaired its ~~investment~~investments in the Petroboscan was approximately $105 higher than the amount of underlying equity in Petroboscan’s net assets. The difference reflects the excess of the net book value of the assets contributed by Chevron over its underlying equity in Petroboscan’s net assets.affiliate and, effective July 1, 2020, began accounting for this venture as a non-equity method investment. The company also has an outstanding long-term loan to Petroboscan of ~~$686~~$560, which has been fully provisioned for at year-end ~~2017.~~2021.

Caspian Pipeline Consortium Chevron has a 15 percent interest in the Caspian Pipeline Consortium, which provides the critical export route for crude oil from both TCO and Karachaganak.

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

Angola LNG LimitedChevron has a 36.4 percent interest in Angola LNG Limited, which processes and liquefies natural gas produced in Angola for delivery to international markets.

~~GS Caltex Corporation~~Chevron owns 50 percent of GS Caltex Corporation, a joint venture with GS Energy. The joint venture imports, refines and markets petroleum products, petrochemicals and lubricants, predominantly in South Korea.

Chevron Phillips Chemical Company LLC Chevron owns 50 percent of Chevron Phillips Chemical Company LLC. The other half is owned by Phillips 66.

GS Caltex CorporationChevron owns 50 percent of GS Caltex Corporation, a joint venture with GS Energy in South Korea. The joint venture imports, refines and markets petroleum products, petrochemicals and lubricants.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Other Information “Sales and other operating revenues” on the Consolidated Statement of Income includes ~~$8,165, $5,786~~$10,796, $6,038 and ~~$4,850~~$8,006 with affiliated companies for ~~2017, 2016~~2021, 2020 and ~~2015,~~2019, respectively. “Purchased crude oil and products” includes ~~$4,800, $3,468~~$5,778, $3,003 and ~~$4,240~~$5,694 with affiliated companies for ~~2017, 2016~~2021, 2020 and ~~2015,~~2019, respectively.

“Accounts and notes receivable” on the Consolidated Balance Sheet includes ~~$1,141~~$1,454 and ~~$676~~$807 due from affiliated companies at December 31, ~~2017~~2021 and ~~2016,~~2020, respectively. “Accounts payable” includes ~~$498~~$552 and ~~$383~~$244 due to affiliated companies at December 31, ~~2017~~2021 and ~~2016,~~2020, respectively.

The following table provides summarized financial information on a 100 percent basis for all equity affiliates as well as Chevron’s total share, which includes ~~Chevron's~~Chevron’s net loans to affiliates of ~~$3,853, $3,535~~$4,704, $5,153 and ~~$410~~$4,331 at December 31, ~~2017, 2016~~2021, 2020 and ~~2015,~~2019, respectively.


	Affiliates						Chevron Share
Year ended December 31	2021		2020		2019		2021		2020		2019
Total revenues	$	71,241	$	49,093	$	66,473	$	34,359	$	21,641	$	32,628
Income before income tax expense	15,175		5,682		13,197		6,984		2,550		5,954
Net income attributable to affiliates	12,598		4,704		9,809		5,670		2,034		4,366
At December 31
Current assets	$	21,871	$	17,087	$	30,791	$	9,267	$	7,328	$	12,998
Noncurrent assets	100,235		97,468		97,177		44,360		43,247		41,531
Current liabilities	17,275		12,164		26,032		7,492		5,052		10,610
Noncurrent liabilities	24,219		25,586		21,593		5,982		5,884		5,068
Total affiliates’ net equity	$	80,612	$	76,805	$	80,343	$	40,153	$	39,639	$	38,851

Affiliates Chevron Share
Year ended December 31 2017
2016
2015
2017
2016
2015
Total revenues $ 70,744
$ 59,253
$ 71,389
$ 33,460
$ 27,787
$ 33,492
Income before income tax expense 13,487
6,587
13,129
5,712
3,670
6,279
Net income attributable to affiliates 10,751
5,127
10,649
4,468
2,876
4,691
At December 31
Current assets $ 33,883
$ 33,406
$ 27,162
$ 13,568
$ 13,743
$ 10,657
Noncurrent assets 82,261
75,258
71,650
32,643
28,854
26,607
Current liabilities 26,873
24,793
20,559
10,201
8,996
7,351
Noncurrent liabilities 21,447
22,671
18,560
4,224
4,255
3,909
Total affiliates' net equity $ 67,824
$ 61,200
$ 59,693
$ 31,786
$ 29,346
$ 26,004

Note 1716

Litigation

~~MTBE~~ Chevron and many other companies in the petroleum industry have used methyl tertiary butyl ether (MTBE) as a gasoline additive. Chevron is a party to eight pending lawsuits and claims, the majority of which involve numerous other petroleum marketers and refiners. Resolution of these lawsuits and claims may ultimately require the company to correct or ameliorate the alleged effects on the environment of prior release of MTBE by the company or other parties. Additional lawsuits and claims related to the use of MTBE, including personal-injury claims, may be filed in the future. The company’s ultimate exposure related to pending lawsuits and claims is not determinable. The company no longer uses MTBE in the manufacture of gasoline in the United States.Ecuador

~~Ecuador~~

~~Background~~ Chevron is a defendant in a civil lawsuit initiated in the Superior Court of Nueva Loja in Lago Agrio, Ecuador, in May 2003 by plaintiffs who claim to be representatives of certain residents of an area where an oil production consortium formerly had operations. The lawsuit alleges damage to the environment from the oil exploration and production operations and seeks unspecified damages to fund environmental remediation and restoration of the alleged environmental harm, plus a health monitoring program. Until 1992, Texaco Petroleum Company (Texpet), a subsidiary of Texaco Inc., was a minority member of ~~this~~an oil production consortium with ~~Petroecuador, the~~ Ecuadorian state-owned ~~oil company, as the majority partner; since 1990, the operations have been conducted solely by Petroecuador. At the conclusion~~Petroecuador from 1967 until 1992. After termination of the consortium and ~~following an independent~~a third-party environmental audit, ofEcuador and the ~~concession area, Texpet~~consortium parties entered into a ~~formal~~settlement agreement ~~with~~specifying Texpet’s remediation obligations. Following Texpet’s completion of a three-year remediation program, Ecuador certified the ~~Republic~~remediation as proper and released Texpet and its affiliates from environmental liability. In May 2003, plaintiffs alleging environmental harm from the consortium’s activities sued Chevron in the Superior Court in Lago Agrio, Ecuador. In February 2011, that court entered a judgment against Chevron for approximately $9,500 plus additional punitive damages. An appellate panel affirmed, and Ecuador’s National Court of Justice ratified the judgment but nullified the punitive damages, resulting in a judgment of approximately $9,500. Ecuador’s highest Constitutional Court rejected Chevron’s final appeal in July 2018.

In February 2011, Chevron sued the Lago Agrio plaintiffs and several of their lawyers and supporters in the U.S. District Court for the Southern District of New York (SDNY) for violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act and state law. The SDNY court ruled that the Ecuadorian judgment had been procured through fraud, bribery, and corruption, and prohibited the RICO defendants from seeking to enforce the Ecuadorian judgment in the United States or profiting from their illegal acts. The Court of Appeals for the Second Circuit affirmed, and the U.S. Supreme Court denied certiorari in June 2017, rendering final the U.S. judgment in favor of Chevron. The Lago Agrio plaintiffs sought to have the Ecuadorian judgment recognized and enforced in Canada, Brazil, and Argentina. All of those recognition and enforcement actions were dismissed and resolved in Chevron’s favor. Chevron and Texpet filed an arbitration claim against Ecuador in September 2009 before an arbitral tribunal administered by the Permanent Court of Arbitration in The Hague, under the United States-Ecuador Bilateral Investment Treaty. In August 2018, the Tribunal issued an award holding that the Ecuadorian judgment was based on environmental claims that Ecuador had settled and released, and that it was procured through fraud, bribery, and corruption. According to the Tribunal, the Ecuadorian judgment “violates international public policy” and “should not be recognized or enforced by the courts of other States.” The Tribunal ordered Ecuador to remove the status of enforceability from the Ecuadorian judgment and to compensate Chevron for any injuries resulting from the judgment. The third and final phase of the arbitration, to determine the amount of compensation Ecuador owes to Chevron, is ongoing. In September 2020, the District Court of The Hague denied Ecuador’s request to set aside the Tribunal’s award, stating that it now is “common ground” between Ecuador and Petroecuador for Texpet to remediate specific sites assigned by the government in proportion to Texpet’s ownership share of the consortium. Pursuant to that agreement, Texpet conducted a three-year remediation program at a cost of $40. After certifyingChevron that the ~~sites were properly remediated,~~Ecuadorian judgment is fraudulent. In December 2020, Ecuador appealed the ~~government granted Texpet and all related corporate entities~~District Court’s decision to The Hague Court of Appeals. In a ~~full release from any and all environmental liability arising from the consortium operations.~~

Based on the history described above, Chevron believes that this lawsuit lacks legal or factual merit. As to matters of law, the company believes first, that the court lacks jurisdiction over Chevron; second, that the law under which plaintiffs bring the action, enacted in 1999, cannot be applied retroactively; third, that the claims are barred by the statute of limitations in

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

~~Ecuador; and, fourth,~~separate proceeding, Ecuador also admitted that the ~~lawsuit~~Ecuadorian judgment is ~~also barred by~~fraudulent in a public filing with the ~~releases from liability previously given to Texpet by the Republic~~Office of Ecuador and Petroecuador and by the pertinent provincial and municipal governments. With regard to the facts, the company believes that the evidence confirms that Texpet’s remediation was properly conducted and that the remaining environmental damage reflects Petroecuador’s failure to timely fulfill its legal obligations and Petroecuador’s further conduct since assuming full control over the operations.

~~Lago Agrio Judgment~~In 2008, a mining engineer appointed by the court to identify and determine the cause of environmental damage, and to specify steps needed to remediate it, issued a report recommending that the court assess $18,900, which would, according to the engineer, provide financial compensation for purported damages, including wrongful death claims, and pay for, among other items, environmental remediation, health care systems and additional infrastructure for Petroecuador. The engineer’s report also asserted that an additional $8,400 could be assessed against Chevron for unjust enrichment. In 2009, following the disclosure by Chevron of evidence that the judge participated in meetings in which businesspeople and individuals holding themselves out as government officials discussed the case and its likely outcome, the judge presiding over the case was recused. In 2010, Chevron moved to strike the mining engineer’s report and to dismiss the case based on evidence obtained through discovery in the United States indicating that the report was prepared by consultants for the plaintiffs before being presented as the mining engineer’s independent and impartial work and showing further evidence of misconduct. In August 2010, the judge issued an order stating that he was not bound by the mining engineer’s report and requiring the parties to provide their positions on damages within 45 days. Chevron subsequently petitioned for recusal of the judge, claiming that he had disregarded evidence of fraud and misconduct and that he had failed to rule on a number of motions within the statutory time requirement.

~~In September 2010, Chevron submitted its position on damages, asserting that no amount should be assessed against it. The plaintiffs’ submission, which relied~~Trade Representative in part on the mining engineer’s report, took the position that damages are between approximately $16,000 and $76,000 and that unjust enrichment should be assessed in an amount between approximately $5,000 and $38,000. The next day, the judge issued an order closing the evidentiary phase of the case and notifying the parties that he had requested the case file so that he could prepare a judgment. Chevron petitioned to have that order declared a nullity in light of Chevron’s prior recusal petition, and because procedural and evidentiary matters remained unresolved. In October 2010, Chevron’s motion to recuse the judge was granted. A new judge took charge of the case and revoked the prior judge’s order closing the evidentiary phase of the case. On December 17, 2010, the judge issued an order closing the evidentiary phase of the case and notifying the parties that he had requested the case file so that he could prepare a judgment.

On February 14, 2011, the provincial court in Lago Agrio rendered an adverse judgment in the case. The court rejected Chevron’s defenses to the extent the court addressed them in its opinion. The judgment assessed approximately $8,600 in damages and approximately $900 as an award for the plaintiffs’ representatives. It also assessed an additional amount of approximately $8,600 in punitive damages unless the company issued a public apology within 15 days of the judgment, which Chevron did not do. On February 17, 2011, the plaintiffs appealed the judgment, seeking increased damages, and on March 11, 2011, Chevron appealed the judgment seeking to have the judgment nullified. On January 3, 2012, an appellate panel in the provincial court affirmed the February 14, 2011 decision and ordered that Chevron pay additional attorneys’ fees in the amount of “0.10% of the values that are derived from the decisional act of this judgment.” The plaintiffs filed a petition to clarify and amplify the appellate decision on January 6, 2012, and the court issued a ruling in response on January 13, 2012, purporting to clarify and amplify its January 3, 2012 ruling, which included clarification that the deadline for the company to issue a public apology to avoid the additional amount of approximately $8,600 in punitive damages was within 15 days of the clarification ruling, or February 3, 2012. Chevron did not issue an apology because doing so might be mischaracterized as an admission of liability and would be contrary to facts and evidence submitted at trial. On January 20, 2012, Chevron appealed (called a petition for cassation) the appellate panel’s decision to Ecuador’s National Court of Justice. As part of the appeal, Chevron requested the suspension of any requirement that Chevron post a bond to prevent enforcement under Ecuadorian law of the judgment during the cassation appeal. On February 17, 2012, the appellate panel of the provincial court admitted Chevron’s cassation appeal in a procedural step necessary for the National Court of Justice to hear the appeal. The provincial court appellate panel denied Chevron’s request for suspension of the requirement that Chevron post a bond and stated that it would not comply with the First and Second Interim Awards of the international arbitration tribunal discussed below. On March 29, 2012, the matter was transferred from the provincial court to the National Court of Justice, and on November 22, 2012, the National Court agreed to hear Chevron's cassation appeal. On August 3, 2012, the provincial court in Lago Agrio approved a court-appointed liquidator’s report on damages that calculated the total judgment in the case to be $19,100. On November 13, 2013, the National Court ratified the judgment but nullified the $8,600 punitive damage assessment, resulting in a judgment of $9,500. On December 23, 2013, Chevron appealed the decision to the Ecuador Constitutional Court, Ecuador's highest court. The reporting justice of the Constitutional Court heard oral arguments on the appeal on July ~~16, 2015.~~

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

~~Lago Agrio Plaintiffs' Enforcement Actions~~Chevron has no assets in Ecuador and the Lago Agrio plaintiffs' lawyers have stated in press releases and through other media that they will seek to enforce the Ecuadorian judgment in various countries and otherwise disrupt Chevron's operations. On May 30, 2012, the Lago Agrio plaintiffs filed an action against Chevron Corporation, Chevron Canada Limited, and Chevron Canada Finance Limited in the Ontario Superior Court of Justice in Ontario, Canada, seeking to recognize and enforce the Ecuadorian judgment. On May 1, 2013, the Ontario Superior Court of Justice held that the Court has jurisdiction over Chevron and Chevron Canada Limited for purposes of the action, but stayed the action due to the absence of evidence that Chevron Corporation has assets in Ontario. The Lago Agrio plaintiffs appealed that decision and on December 17, 2013, the Court of Appeals for Ontario affirmed the lower court’s decision on jurisdiction and set aside the stay, allowing the recognition and enforcement action to be heard in the Ontario Superior Court of Justice. Chevron appealed the decision to the Supreme Court of Canada and, on September 4, 2015, the Supreme Court dismissed the appeal and affirmed that the Ontario Superior Court of Justice has jurisdiction over Chevron and Chevron Canada Limited for purposes of the action. The recognition and enforcement proceeding and related preliminary motions are proceeding in the Ontario Superior Court of Justice. On January 20, 2017, the Ontario Superior Court of Justice granted Chevron Canada Limited’s and Chevron Corporation’s motions for summary judgment, concluding that the two companies are separate legal entities with separate rights and obligations. As a result, the Superior Court dismissed the recognition and enforcement claim against Chevron Canada Limited. Chevron Corporation still remains as a defendant in the action. On February 3, 2017, the Lago Agrio plaintiffs appealed the Superior Court's January 20, 2017 decision.

On June 27, 2012, the Lago Agrio plaintiffs filed a complaint against Chevron Corporation in the Superior Court of Justice in Brasilia, Brazil, seeking to recognize and enforce the Ecuadorian judgment. Chevron has answered the complaint. In accordance with Brazilian procedure, the matter was referred to the public prosecutor for a nonbinding opinion of the issues raised in the complaint. On May 13, 2015, the public prosecutor issued its nonbinding opinion and recommended that the Superior Court of Justice reject the plaintiffs' recognition and enforcement request, finding, among other things, that the Lago Agrio judgment was procured through fraud and corruption and cannot be recognized in Brazil because it violates Brazilian and international public order. On November 29, 2017, the Superior Court of Justice issued a decision dismissing the Lago Agrio plaintiffs’ recognition and enforcement proceeding based on jurisdictional grounds.

On October 15, 2012, the provincial court in Lago Agrio issued an ex parte embargo order that purports to order the seizure of assets belonging to separate Chevron subsidiaries in Ecuador, Argentina and Colombia. On November 6, 2012, at the request of the Lago Agrio plaintiffs, a court in Argentina issued a Freeze Order against Chevron Argentina S.R.L. and another Chevron subsidiary, Ingeniero Norberto Priu, requiring shares of both companies to be "embargoed," requiring third parties to withhold 40 percent of any payments due to Chevron Argentina S.R.L. and ordering banks to withhold 40 percent of the funds in Chevron Argentina S.R.L. bank accounts. On December 14, 2012, the Argentinean court rejected a motion to revoke the Freeze Order but modified it by ordering that third parties are not required to withhold funds but must report their payments. The court also clarified that the Freeze Order relating to bank accounts excludes taxes. On January 30, 2013, an appellate court upheld the Freeze Order, but on June 4, 2013 the Supreme Court of Argentina revoked the Freeze Order in its entirety. On December 12, 2013, the Lago Agrio plaintiffs served Chevron with notice of their filing of an enforcement proceeding in the National Court, First Instance, of Argentina. Chevron filed its answer on February 27, 2014, to which the Lago Agrio plaintiffs responded on December 29, 2015. On April 19, 2016, the public prosecutor in Argentina issued a non-binding opinion recommending to the National Court, First Instance, of Argentina that it reject the Lago Agrio plaintiffs' request to recognize the Ecuadorian judgment in Argentina. On February 24, 2017, the public prosecutor in Argentina issued a supplemental opinion reaffirming its previous recommendations. On November 1, 2017, the National Court, First Instance, of Argentina issued a decision dismissing the Lago Agrio plaintiffs' recognition and enforcement proceeding based on jurisdictional grounds. On November 2, 2017, the Lago Agrio plaintiffs appealed this decision to the Federal Civil Court of Appeals.

~~Chevron~~2020. Management continues to believe that the ~~provincial court’s~~Ecuadorian judgment is illegitimate and unenforceable and will vigorously defend against any further attempts to have it recognized or enforced.

Climate Change

Governmental and other entities in ~~Ecuador,~~various jurisdictions across the United States have filed legal proceedings against fossil fuel producing companies, including Chevron entities, purporting to seek legal and equitable relief to address alleged impacts of climate change. Chevron entities are or were among the codefendants in 21 separate lawsuits brought by 17 U.S. cities and counties, two U.S. states, the District of Columbia and a trade group. One of the city lawsuits was dismissed on the merits, and one of the county lawsuits was voluntarily dismissed by the plaintiff. The lawsuits assert various causes of action, including public nuisance, private nuisance, failure to warn, design defect, product defect, trespass, negligence, impairment of public trust, and violations of consumer protection statutes, based upon the company’s production of oil and gas products and alleged misrepresentations or omissions relating to climate change risks associated with those products. The unprecedented legal theories set forth in these proceedings entail the possibility of damages liability (both compensatory and punitive), injunctive and other ~~countries.~~forms of equitable relief, including without limitation abatement and disgorgement of profits, civil penalties and liability for fees and costs of suits, that, while we believe remote, could have a material adverse effect on the company’s results of operations and financial condition. Further such proceedings are likely to be filed by other parties. Management believes that these proceedings are legally and factually meritless and detract from constructive efforts to address the important policy issues presented by climate change, and will vigorously defend against such proceedings.

Louisiana

Seven coastal parishes and the State of Louisiana have filed lawsuits in Louisiana against numerous oil and gas companies seeking damages for coastal erosion in or near oil fields located within Louisiana’s coastal zone under Louisiana’s State and Local Coastal Resources Management Act (SLCRMA). Chevron entities are defendants in 39 of these cases. The ~~company also believes~~lawsuits allege that the ~~judgment is~~defendants’ historical operations were conducted without necessary permits or failed to comply with permits obtained and seek damages and other relief, including the ~~product~~costs of ~~fraud, and contrary to~~restoring coastal wetlands allegedly impacted by oil field operations. Plaintiffs’ SLCRMA theories are unprecedented; thus, there remains significant uncertainty about the ~~legitimate scientific evidence. Chevron cannot predict the timing or ultimate outcome~~scope of the ~~appeals process in Ecuador or any enforcement action. Chevron expects to continue a vigorous defense of any imposition of liability in the Ecuadorian courts~~claims and ~~to contest and defend any and all enforcement actions.~~

~~Company's Bilateral Investment Treaty Arbitration Claims~~Chevron and Texpet filed an arbitration claim in September 2009 against the Republic of Ecuador before an arbitral tribunal presiding in the Permanent Court of Arbitration in The Hague under the Rules of the United Nations Commission on International Trade Law. The claim alleges violations of the Republic of Ecuador’s obligations under the United States–Ecuador Bilateral Investment Treaty (BIT) and breaches of the settlement and release agreements between the Republic of Ecuador and Texpet (described above), which are investment

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

agreements protected by the BIT. Through the arbitration, Chevron and Texpet are seeking relief against the Republic of Ecuador, including a declaration that any judgment against Chevron in the Lago Agrio litigation constitutes a violation of Ecuador’s obligations under the BIT. On January 25, 2012, the Tribunal issued its First Interim Measures Award requiring the Republic of Ecuador to take all measures at its disposal to suspend or cause to be suspended the enforcement or recognition within and without Ecuador of any judgment against Chevron in the Lago Agrio case pending further order of the Tribunal. On February 16, 2012, the Tribunal issued a Second Interim Award mandating that the Republic of Ecuador take all measures necessary (whether by its judicial, legislative or executive branches) to suspend or cause to be suspended the enforcement and recognition within and without Ecuador of the judgment against Chevron. On February 27, 2012, the Tribunal issued a Third Interim Award confirming its jurisdiction to hear Chevron's arbitration claims. On February 7, 2013, the Tribunal issued its Fourth Interim Award in which it declared that the Republic of Ecuador “has violated the First and Second Interim Awards under the [BIT], the UNCITRAL Rules and international law in regard to the finalization and enforcement subject to execution of the Lago Agrio Judgment within and outside Ecuador, including (but not limited to) Canada, Brazil and Argentina.” The Republic of Ecuador subsequently filed in the District Court of the Hague a request to set aside the Tribunal’s Interim Awards and the First Partial Award (described below), and on January 20, 2016, the District Court denied the Republic's request. ~~On April 13, 2016, the Republic of Ecuador appealed the decision. On July 18, 2017, the Appeals Court of the Hague denied the Republic's appeal.~~ ~~On October 18, 2017, the Republic appealed the decision of the Appeals Court of the Hague to the Supreme Court of the Netherlands.~~

The Tribunal has divided the merits phase of the proceeding into three phases. On September 17, 2013, the Tribunal issued its First Partial Award from Phase One, finding that the settlement agreements between the Republic of Ecuador and Texpet applied to Texpet and Chevron, released Texpet and Chevron from claims based on "collective" or "diffuse" rights arising from Texpet's operations in the former concession area and precluded third parties from asserting collective/diffuse rights environmental claims relating to Texpet's operations in the former concession area but did not preclude individual claims for personal harm. The Tribunal held a hearing on April 29-30, 2014, to address remaining issues relating to Phase One, and on March 12, 2015, it issued a nonbinding decision that the Lago Agrio plaintiffs' complaint, on its face, includes claims not barred by the settlement agreement between the Republic of Ecuador and Texpet. In the same decision, the Tribunal deferred to Phase Two remaining issues from Phase One, including whether the Republic of Ecuador breached the 1995 settlement agreement and the remedies that are available to Chevron and Texpet as a result of that breach. Phase Two issues were addressed at a hearing held in April and May 2015. The Tribunal has not set a date for Phase Three, the damages phase of the arbitration.

~~Company's RICO Action~~Through a series of U.S. court proceedings initiated by Chevron to obtain discovery relating to the Lago Agrio litigation and the BIT arbitration, Chevron obtained evidence that it believes shows a pattern of fraud, collusion, corruption, and other misconduct on the part of several lawyers, consultants and others acting for the Lago Agrio plaintiffs. In February 2011, Chevron filed a civil lawsuit in the Federal District Court for the Southern District of New York against the Lago Agrio plaintiffs and several of their lawyers, consultants and supporters, alleging violations of the Racketeer Influenced and Corrupt Organizations Act and other state laws. Through the civil lawsuit, Chevron sought relief that included a declaration that any judgment against Chevron in the Lago Agrio litigation is the result of fraud and other unlawful conduct and is therefore unenforceable. The trial commenced on October 15, 2013 and concluded on November 22, 2013. On March 4, 2014, the Federal District Court entered a judgment in favor of Chevron, prohibiting the defendants from seeking to enforce the Lago Agrio judgment in the United States and further prohibiting them from profiting from their illegal acts. The defendants appealed the Federal District Court's decision, and, on April 20, 2015, a panel of the U.S. Court of Appeals for the Second Circuit heard oral arguments. On August 8, 2016, the Second Circuit issued a unanimous opinion affirming in full the judgment of the Federal District Court in favor of Chevron. On October 27, 2016, the Second Circuit denied the defendants' petitions for en banc rehearing of the opinion on their appeal. On March 27, 2017, two of the defendants filed a petition for a Writ of Certiorari to the United States Supreme Court. On June 19, 2017, the United States Supreme Court denied the defendants' petition for a Writ of Certiorari.

~~Management's Assessment~~ The ultimate outcome of the foregoing matters, including any financial effect on Chevron, remains uncertain. Management does not believe an estimate of a reasonably possible loss (or a range of loss) can be made in this case. Due to the defects associated with the Ecuadorian judgment, the 2008 engineer’s report on alleged damages and any potential effects on the ~~September 2010 plaintiffs’ submission on alleged damages, management does not believe these documents have any utility in calculating a reasonably possible loss (or a range~~company’s results of ~~loss). Moreover,~~operations and financial condition. Management believes that the ~~highly uncertain~~claims lack legal ~~environment surrounding the case provides no basis for management~~and factual merit and will continue to ~~estimate a reasonably possible loss (or a range of loss).~~vigorously defend against such proceedings.

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

Note 1817

Taxes


Income Taxes	Year ended December 31									Income Taxes	Year ended December 31
	2017			2016			2015				2021		2020		2019
Income tax expense (benefit)										Income tax expense (benefit)
U.S. federal										U.S. federal
Current	$	(382	)	$	(623	)	$	(817	)	Current	$	174	$	(182)	$	(73)
Deferred	(2,561		)	(1,558		)	(580		)	Deferred	1,004		(1,315)		(1,074)
State and local										State and local
Current	(97		)	(15		)	(187		)	Current	222		65		153
Deferred	66			(121		)	(109		)	Deferred	202		(152)		(172)
Total United States	(2,974		)	(2,317		)	(1,693		)	Total United States	1,602		(1,584)		(1,166)
International										International
Current	3,634			2,744			2,997			Current	4,854		1,833		4,577
Deferred	(708		)	(2,156		)	(1,172		)	Deferred	(506)		(2,141)		(720)
Total International	2,926			588			1,825			Total International	4,348		(308)		3,857
Total income tax expense (benefit)	$	(48	)	$	(1,729	)	$	132		Total income tax expense (benefit)	$	5,950	$	(1,892)	$	2,691

The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate is detailed in the following table:

2017
2016
2015
Income (loss) before income taxes
United States $ (441 ) $ (4,317 ) $ (2,877 )
International 9,662
2,157
7,719
Total income (loss) before income taxes 9,221
(2,160 ) 4,842
Theoretical tax (at U.S. statutory rate of 35%) 3,227
(756 ) 1,695
Effect of U.S. tax reform (2,020 ) —
—
Equity affiliate accounting effect (1,373 ) (704 ) (1,286 )
Effect of income taxes from international operations^*
(130 ) 608
72
State and local taxes on income, net of U.S. federal income tax benefit 39
(44 ) (74 )
Prior year tax adjustments, claims and settlements (39 ) (349 ) 84
Tax credits (199 ) (188 ) (35 )
Other U.S.^*
447
(296 ) (324 )
Total income tax expense (benefit) $ (48 ) $ (1,729 ) $ 132

Effective income tax rate (0.5 )% 80.0 % 2.7 %

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts



	2021			2020			2019
Income (loss) before income taxes
United States	$	9,674		$	(5,700)		$	(5,483)
International	11,965			(1,753)			11,019
Total income (loss) before income taxes	21,639			(7,453)			5,536
Theoretical tax (at U.S. statutory rate of 21% )	4,544			(1,565)			1,163
Effect of U.S. tax reform	—			—			3
Equity affiliate accounting effect	(890)			211			(687)
Effect of income taxes from international operations	2,692			(39)			2,196
State and local taxes on income, net of U.S. federal income tax benefit	216			(65)			(18)
Prior year tax adjustments, claims and settlements 1	362			(236)			192
Tax credits	(173)			(33)			(18)
Other U.S. 1, 2	(801)			(165)			(140)
Total income tax expense (benefit)	$	5,950		$	(1,892)		$	2,691

Effective income tax rate	27.5		%	25.4		%	48.6		%

1 Includes one-time tax costs (benefits) associated with changes in uncertain tax ~~positions and~~positions.

2 Includes one-time tax costs (benefits) associated with changes in valuation ~~allowances.~~allowances (2021 - $(624); 2020 - $0; 2019 - $0).

The ~~2017 decline~~2021 increase in income tax ~~benefit~~expense of ~~$1,681, from a benefit of $1,729 in 2016 to a benefit of $48 in 2017,~~$7,842 is a result of the year-over-year increase in total income before income tax expense, which is primarily due to ~~effects~~higher upstream realizations, the absence of 2020 impairment and write-offs and higher crude oil prices and gains on asset sales primarily in Indonesia and Canada. In addition, the tax benefit for the year includes a provisional benefit of $2,020 from U.S. tax reform, which primarily reflects the remeasurement of U.S. deferred tax assets and liabilities.downstream margins. The company’s effective tax rate changed from 8025.4 percent in ~~2016~~2020 to ~~(0.5)~~27.5 percent in ~~2017.~~2021. The change in effective tax rate is ~~primarily a consequence of the~~mainly due to mix ~~effect~~effects resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate ~~jurisdictions and the 2017 impact of U.S. tax reform.~~

As noted above, U.S. tax reform resulted in the remeasurement of U.S. deferred tax assets and liabilities. The final impact will not be known until the actual 2017 U.S. tax return is submitted in 2018, and this may result in a change to the provisional amounts that have been recognized.

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

jurisdictions.

The company records its deferred taxes on a tax-jurisdiction basis. The reported deferred tax balances are composed of the following:


				At December 31						At December 31
	2017			2016				2021		2020
Deferred tax liabilities							Deferred tax liabilities
Properties, plant and equipment	$	19,869		$	25,180		Properties, plant and equipment	$	17,169	$	16,603
Investments and other	4,796			5,222			Investments and other	4,105		5,617
Total deferred tax liabilities	24,665			30,402			Total deferred tax liabilities	21,274		22,220
Deferred tax assets							Deferred tax assets
Foreign tax credits	(11,872		)	(10,976		)	Foreign tax credits	(11,718)		(10,585)
Asset retirement obligations/environmental reserves	(5,511		)	(6,251		)	Asset retirement obligations/environmental reserves	(4,553)		(4,721)
Employee benefits	(3,129		)	(4,392		)	Employee benefits	(3,037)		(3,856)
Deferred credits	(1,769		)	(1,950		)	Deferred credits	(996)		(1,056)
Tax loss carryforwards	(5,463		)	(6,030		)	Tax loss carryforwards	(4,175)		(6,701)
Other accrued liabilities	(842		)	(510		)	Other accrued liabilities	(239)		(228)
Inventory	(336		)	(374		)	Inventory	(289)		(633)
Operating leases							Operating leases	(1,255)		(1,234)
Miscellaneous	(2,415		)	(3,121		)	Miscellaneous	(3,657)		(3,685)
Total deferred tax assets	(31,337		)	(33,604		)	Total deferred tax assets	(29,919)		(32,699)
Deferred tax assets valuation allowance	16,574			16,069			Deferred tax assets valuation allowance	17,651		17,762
Total deferred taxes, net	$	9,902		$	12,867		Total deferred taxes, net	$	9,006	$	7,283

Deferred tax liabilities ~~at the end of 2017~~ decreased by ~~approximately $5,700~~$946 from year-end ~~2016.~~2020. The decrease to Investments and other was driven by a consolidated subsidiary restructuring, partially offset with an increase to Properties, plant and equipment. Deferred tax assets decreased by $2,780 from year-end 2020. This decrease was primarily related to ~~property, plant~~decreases in tax loss carryforwards for various locations, and ~~equipment temporary differences mainly due to the change in the enacted U.S. tax rate.~~

~~Deferred tax assets decreased by approximately $2,300 in 2017. Decreases were mainly due to the change in the enacted U.S. tax rate and primarily impacted asset retirement obligations,~~ employee benefits, ~~and tax loss carry forwards. The decrease was~~ partially ~~reduced~~offset by anthe increase in foreign tax ~~credits arising from earnings in high-tax rate international jurisdictions, which was substantially offset by valuation allowances.~~credits.

The overall valuation allowance relates to deferred tax assets for U.S. foreign tax credit carryforwards, tax loss carryforwards and temporary differences. ItThe valuation allowance reduces the deferred tax assets to amounts that are, in management’s assessment, more likely than not to be realized. At the end of ~~2017,~~2021, the company had gross tax loss carryforwards of approximately ~~$16,102~~$10,750 and tax credit carryforwards of approximately ~~$1,379,~~$993, primarily related to various international tax jurisdictions. Whereas some of these tax loss carryforwards do not have an expiration date, others expire at various times from ~~2018~~2022 through ~~2034.~~2040. U.S. foreign tax credit carryforwards of ~~$11,872~~$11,718 will expire between ~~2018~~2022 and ~~2027.~~2032.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

At December 31, ~~2017~~2021 and ~~2016,~~2020, deferred taxes were classified on the Consolidated Balance Sheet as follows:


	At December 31
	2021		2020
Deferred charges and other assets	$	(5,659)	$	(5,286)
Noncurrent deferred income taxes	14,665		12,569
Total deferred income taxes, net	$	9,006	$	7,283

At December 31
2017
2016
Deferred charges and other assets $ (4,750 ) $ (4,649 )
Noncurrent deferred income taxes 14,652
17,516
Total deferred income taxes, net $ 9,902
$ 12,867

~~Enactment of U.S. tax reform imposed a one-time U.S. federal tax on the deemed repatriation of~~Income taxes are not accrued for unremitted earnings ~~indefinitely~~of international operations that have been or are intended to be reinvested ~~abroad, which did not have a material impact on the company’s financial results.~~indefinitely. The indefinite reinvestment assertion continues to apply for the purpose of determining deferred tax liabilities for U.S. state and foreign withholding tax purposes.

U.S. state and foreign withholding taxes are not accrued for unremitted earnings of international operations that have been or are intended to be reinvested indefinitely. Undistributed earnings of international consolidated subsidiaries and affiliates for which no deferred income tax provision has been made for possible future remittances totaled approximately ~~$57,300~~$49,200 at December 31, ~~2017.~~2021. This amount represents earnings reinvested as part of the company’s ongoing international business. It is not practicable to estimate the amount of state and foreign taxes that might be payable on the possible remittance of earnings that are intended to be reinvested indefinitely. The company does not anticipate incurring significant additional taxes on remittances of earnings that are not indefinitely reinvested.

Uncertain Income Tax Positions The company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” in the accounting standards for income taxes refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods.

~~Notes to the Consolidated Financial Statements~~

~~Millions of dollars, except per-share amounts~~

The following table indicates the changes to the company’s unrecognized tax benefits for the years ended December 31, ~~2017, 2016~~2021, 2020 and ~~2015.~~2019. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. Interest and penalties are not included.

2017
2016
2015
Balance at January 1 $ 3,031
$ 3,042
$ 3,552
Foreign currency effects 43
1
(27 )
Additions based on tax positions taken in current year 1,853
245
154
Additions for tax positions taken in prior years 1,166
181
218
Reductions for tax positions taken in prior years (90 ) (390 ) (678 )
Settlements with taxing authorities in current year (1,173 ) (36 ) (5 )
Reductions as a result of a lapse of the applicable statute of limitations (2 ) (12 ) (172 )
Balance at December 31 $ 4,828
$ 3,031
$ 3,042

The increase in unrecognized tax benefits between December 31, 2016 and December 31, 2017 was primarily due to foreign tax credits associated with the deemed repatriation. The increase in unrecognized tax benefits related to these foreign tax credits had no impact on the effective tax rate since the change to the deferred tax asset was fully offset with a change to the valuation allowance. The resolution of numerous issues with various tax jurisdictions during the year also impacted the movement from December 31, 2016 and December 31, 2017.


	2021		2020		2019
Balance at January 1	$	5,018	$	4,987	$	5,070
Foreign currency effects	(1)		2		1
Additions based on tax positions taken in current year	194		253		94
Additions for tax positions taken in prior years	218		437		313
Reductions for tax positions taken in prior years	(36)		(216)		(194)
Settlements with taxing authorities in current year	(18)		(429)		(78)
Reductions as a result of a lapse of the applicable statute of limitations	(87)		(16)		(219)
Balance at December 31	$	5,288	$	5,018	$	4,987

Approximately 8182 percent of the ~~$4,828~~$5,288 of unrecognized tax benefits at December 31, ~~2017,~~2021, would have an impact on the effective tax rate if subsequently recognized. Certain of these unrecognized tax benefits relate to tax carryforwards that may require a full valuation allowance at the time of any such recognition.

Tax positions for Chevron and its subsidiaries and affiliates are subject to income tax audits by many tax jurisdictions throughout the world. For the company’s major tax jurisdictions, examinations of tax returns for certain prior tax years had not been completed as of December 31, ~~2017.~~2021. For these jurisdictions, the latest years for which income tax examinations had been finalized were as follows: United States – ~~2011,~~2013, Nigeria – ~~2000,~~2007, Australia – ~~2006, Angola – 2016 and~~2009, Kazakhstan – ~~2007.~~2012 and Saudi Arabia – 2015.

The company engages in ongoing discussions with tax authorities regarding the resolution of tax matters in the various jurisdictions. Both the outcome of these tax matters and the timing of resolution and/or closure of the tax audits are highly uncertain. However, it is reasonably possible that developments on tax matters in certain tax jurisdictions may result in significant increases or decreases in the company’s total unrecognized tax benefits within the next 12 months. Given the number of years that still remain subject to examination and the number of matters being examined in the various tax jurisdictions, the company is unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits.

~~On April 21, 2017, an adverse decision was issued by~~

Notes to the full Federal Court on Australia regarding the interest rate to be applied on certain Chevron intercompany loans. On August 14, 2017, an agreement was reached with the Australian Taxation Office to settle this dispute. Management believes the agreed terms to be a reasonable resolutionConsolidated Financial Statements

Millions of ~~the dispute, which did not have a material impact on the 2017 results of the company.~~dollars, except per-share amounts

On the Consolidated Statement of Income, the company reports interest and penalties related to liabilities for uncertain tax positions as “Income tax expense.” As of December 31, ~~2017, accruals~~2021, accrual benefit of ~~$178~~$(76) for anticipated interest and penalty ~~obligations were~~was included on the Consolidated Balance Sheet, compared with ~~accruals~~accrual benefit of ~~$424~~$(95) as of year-end ~~2016.~~2020. Income tax expense (benefit) associated with interest and penalties was ~~$(161), $38~~$19, $(124) and ~~$195~~$(3) in ~~2017, 2016~~2021, 2020 and ~~2015,~~2019, respectively.


Taxes Other Than on Income
	Year ended December 31
	2021		2020		2019
United States
Import duties and other levies	7		7		2
Property and other miscellaneous taxes	3,378		2,248		1,785
Payroll taxes	302		235		254
Taxes on production	628		317		355
Total United States	4,315		2,807		2,396
International
Import duties and other levies	49		39		35
Property and other miscellaneous taxes	2,225		1,461		1,435
Payroll taxes	113		117		125
Taxes on production	138		75		145
Total International	2,525		1,692		1,740
Total taxes other than on income	$	6,840	$	4,499	$	4,136

Note 18

Properties, Plant and Equipment1


	At December 31												Year ended December 31
	Gross Investment at Cost						Net Investment						Additions at Cost2						Depreciation Expense3
	2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019
Upstream
United States	$	93,393	$	96,555	$	82,117	$	36,027	$	38,175	$	31,082	$	4,520	$	13,067	$	7,751	$	5,675	$	6,841	$	15,222
International	202,757		209,846		206,292		94,770		102,010		102,639		2,349		11,069		3,664		10,824		11,121		12,618
Total Upstream	296,150		306,401		288,409		130,797		140,185		133,721		6,869		24,136		11,415		16,499		17,962		27,840
Downstream
United States	26,888		26,499		25,968		10,766		11,101		11,398		543		638		1,452		833		851		869
International	8,134		7,993		7,480		3,300		3,395		3,114		234		573		355		296		283		256
Total Downstream	35,022		34,492		33,448		14,066		14,496		14,512		777		1,211		1,807		1,129		1,134		1,125
All Other
United States	4,729		4,195		4,719		2,078		1,916		2,236		143		194		324		290		403		243
International	144		144		146		20		21		25		7		5		9		7		9		10
Total All Other	4,873		4,339		4,865		2,098		1,937		2,261		150		199		333		297		412		253
Total United States	125,010		127,249		112,804		48,871		51,192		44,716		5,206		13,899		9,527		6,798		8,095		16,334
Total International	211,035		217,983		213,918		98,090		105,426		105,778		2,590		11,647		4,028		11,127		11,413		12,884
Total	$	336,045	$	345,232	$	326,722	$	146,961	$	156,618	$	150,494	$	7,796	$	25,546	$	13,555	$	17,925	$	19,508	$	29,218

1Other than the United States and Australia, no other country accounted for 10 percent or more of the company’s net properties, plant and equipment (PP&E) in 2021. Australia had PP&E of $46,395, $48,060 and $51,359 in 2021, 2020 and 2019, respectively. Gross Investment at Cost, Net Investment and Additions at Cost for 2020 each include $16,703 associated with the Noble acquisition.

2Net of dry hole expense related to prior years’ expenditures of $35, $709 and $49 in 2021, 2020 and 2019, respectively.

3Depreciation expense includes accretion expense of $616, $560 and $628 in 2021, 2020 and 2019, respectively, and impairments of $414, $2,792 and $10,797 in 2021, 2020 and 2019, respectively.

Notes to the Consolidated Financial Statements

Millions of dollars, except per-share amounts

Taxes Other Than on Income Year ended December 31
2017
2016
2015
United States
Excise and similar taxes on products and merchandise $ 4,398
$ 4,335
$ 4,426
Import duties and other levies 11
9
4
Property and other miscellaneous taxes 1,824
1,680
1,367
Payroll taxes 241
252
270
Taxes on production 206
159
157
Total United States 6,680
6,435
6,224
International
Excise and similar taxes on products and merchandise 2,791
2,570
2,933
Import duties and other levies 45
33
40
Property and other miscellaneous taxes 2,563
2,379
2,548
Payroll taxes 137
145
161
Taxes on production 115
106
124
Total International 5,651
5,233
5,806
Total taxes other than on income $ 12,331
$ 11,668
$ 12,030

Note 19

Short-Term Debt


	At December 31							At December 31
	2017			2016				2021		2020
Commercial paper¹	$	5,379		$	10,410		Commercial paper1	$	—	$	5,612
Notes payable to banks and others with originating terms of one year or less	—			50			Notes payable to banks and others with originating terms of one year or less	62		15
Current maturities of long-term debt²	6,720			6,253
Current maturities of long-term capital leases	15			14
Current maturities of long-term debt							Current maturities of long-term debt	4,946		2,600
Current maturities of long-term finance leases							Current maturities of long-term finance leases	48		186
Redeemable long-term obligations							Redeemable long-term obligations	2,959		2,960
Long-term debt	3,078			3,113
Capital leases	—			—

Subtotal	15,192			19,840			Subtotal	8,015		11,373
Reclassified to long-term debt	(10,000		)	(9,000		)	Reclassified to long-term debt	(7,759)		(9,825)
Total short-term debt	$	5,192		$	10,840		Total short-term debt	$	256	$	1,548
¹Weighted-average interest rates at December 31, 2017 and 2016, were 1.30 percent and 0.74 percent, respectively.
²Net of unamortized discounts and issuance costs.
1 Weighted-average interest rate at December 31, 2020 was 0.15%.							1 Weighted-average interest rate at December 31, 2020 was 0.15%.


ITEM		PAGE
PART I
1.	Business	3
	General Development of Business	3
	Description of Business and Properties	6
	Upstream	6
	Downstream	16
	Other Businesses	18
1A.	Risk Factors	20
1B.	Unresolved Staff Comments	25
2.	Properties	25
3.	Legal Proceedings	25
4.	Mine Safety Disclosures	25
	Information about our Executive Officers	25
PART II
5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	26
6.	Reserved	26
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
7A.	Quantitative and Qualitative Disclosures About Market Risk	26
8.	Financial Statements and Supplementary Data	26
9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	26
9A.	Controls and Procedures	26
9B.	Other Information	27
9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	27
PART III
10.	Directors, Executive Officers and Corporate Governance	28
11.	Executive Compensation	29
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	29
13.	Certain Relationships and Related Transactions, and Director Independence	29
14.	Principal Accounting Fees and Services	29
PART IV
15.	Exhibit and Financial Statement Schedules	110
	Schedule II — Valuation and Qualifying Accounts	110
16.	Form 10-K Summary	110
	Signatures	113



	At December 31, 2017
	Productive Oil Wells*		Productive Gas Wells *
	Gross	Net	Gross	Net
United States	43,170	29,690	3,273	2,380
Other Americas	1,049	644	129	76
Africa	1,683	639	20	8
Asia	14,958	12,891	3,780	2,182
Australia/Oceania	564	315	95	26
Europe	325	71	170	36
Total Consolidated Companies	61,749	44,250	7,467	4,708
Affiliates	1,583	550	7	2
Total Including Affiliates	63,332	44,800	7,474	4,710
Multiple completion wells included above	819	551	38	32
* Gross wells represent the total number of wells in which Chevron has an ownership interest. Net wells represent the sum of Chevron's ownership interest in gross wells.



	Undeveloped²			Developed		Developed and Undeveloped
Thousands of acres¹	Gross	Net		Gross	Net	Gross	Net
United States	4,004	3,415		4,189	2,966	8,193	6,381
Other Americas	26,249	14,635		1,183	264	27,432	14,899
Africa	8,432	3,474		2,243	933	10,675	4,407
Asia	23,243	11,637		1,720	975	24,963	12,612
Australia/Oceania	25,947	17,198		2,002	803	27,949	18,001
Europe	2,004	1,004	��	407	53	2,411	1,057
Total Consolidated Companies	89,879	51,363		11,744	5,994	101,623	57,357
Affiliates	513	224		291	112	804	336
Total Including Affiliates	90,392	51,587		12,035	6,106	102,427	57,693
¹ Gross acres represent the total number of acres in which Chevron has an ownership interest. Net acres represent the sum of Chevron's ownership interest in gross acres.
²The gross undeveloped acres that will expire in 2018, 2019 and 2020 if production is not established by certain required dates are 4,353, 1,695 and 1,321, respectively.



Capacities and inputs in thousands of barrels per day		December 31, 2017		Refinery Inputs
Locations		Number	Operable Capacity	2017	2016	2015
Pascagoula	Mississippi	1	340	349	355	322
El Segundo	California	1	269	251	267	258
Richmond	California	1	257	248	188	245
Kapolei¹	Hawaii	—	—	—	37	47
Salt Lake City	Utah	1	53	53	53	52
Total Consolidated Companies — United States		4	919	901	900	924
Map Ta Phut	Thailand	1	165	152	162	164
Cape Town²	South Africa	1	110	68	78	69
Burnaby, B.C.³	Canada	—	—	40	51	46
Total Consolidated Companies — International		2	275	260	291	279
Affiliates	Various Locations	3	544	500	497	499
Total Including Affiliates — International		5	819	760	788	778
Total Including Affiliates — Worldwide		9	1,738	1,661	1,688	1,702


	Year Ended December 31, 2021		Year Ended December 31, 2020
	(Millions of dollars) (unaudited)
Sales and other operating revenues	$	88,038	$	49,636
Sales and other operating revenues - related party	28,499		17,044
Total costs and other deductions	86,369		57,575
Total costs and other deductions - related party	28,277		14,052
Net income (loss)	$	5,515	$	(1,610)


	At December 31, 2021		At December 31, 2020
	(Millions of dollars) (unaudited)
Current assets	$	15,567	$	9,196
Current assets - related party	12,227		5,719
Other assets	48,461		48,993
Current liabilities	22,554		20,965
Current liabilities - related party	79,778		55,273
Other liabilities	32,825		34,983
Total net equity (deficit)	$	(58,902)	$	(47,313)



	Payments Due by Period
Millions of dollars	Total¹		2018		2019-2020		2021-2022		After 2022
On Balance Sheet:²
Short-Term Debt³	$	5,194	$	5,194	$	—	$	—	$	—
Long-Term Debt³	33,512		—		20,054		6,104		7,354
Noncancelable Capital Lease Obligations	226		26		35		23		142
Interest	4,078		786		1,173		850		1,269
Off Balance Sheet:
Noncancelable Operating Lease Obligations	2,895		693		1,102		562		538
Throughput and Take-or-Pay Agreements⁴	5,277		655		1,285		866		2,471
Other Unconditional Purchase Obligations⁴	2,560		747		1,109		609		95


¹	~~Excludes contributions for pensions and other postretirement benefit plans. Information on employee benefit plans is contained in~~ ~~Note 2~~3 ~~beginning on page 82.~~


²	Does not include amounts related to the company’s income tax liabilities associated with uncertain tax positions. The company is unable to make reasonable estimates of the periods in which such liabilities may become payable. The company does not expect settlement of such liabilities to have a material effect on its consolidated financial position or liquidity in any single period.


³	$10.0 billion of short-term debt that the company expects to refinance is included in long-term debt. The repayment schedule above reflects the projected repayment of the entire amounts in the 2019–2020 period. The amounts represent only the principal balance.


⁴	Does not include commodity purchase obligations that are not fixed or determinable. These obligations are generally monetized in a relatively short period of time through sales transactions or similar agreements with third parties. Examples include obligations to purchase LNG, regasified natural gas and refinery products at indexed prices.



	Commitment Expiration by Period
Millions of dollars	Total		2018		2019-2020		2021-2022		After 2022
Guarantee of nonconsolidated affiliate or joint-venture obligations	$	1,082	$	114	$	577	$	214	$	177


1.	the nature of the estimates and assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters, or the susceptibility of such matters to change; and


2.	~~the impact of the estimates and assumptions on the company’s financial condition or operating performance is material.~~



	Year Ended December 31, 2017¹
	Currency Translation Adjustments			Unrealized Holding Gains (Losses) on Securities			Derivatives			Defined Benefit Plans			Total
Balance at January 1	$	(162	)	$	(2	)	$	(2	)	$	(3,677	)	$	(3,843	)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	57			(3		)	—			(310		)	(256		)
Reclassifications²	—			—			—			510			510
Net Other Comprehensive Income (Loss)	57			(3		)	—			200			254
Balance at December 31	$	(105	)	$	(5	)	$	(2	)	$	(3,477	)	$	(3,589	)



	At December 31, 2017								At December 31, 2016
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Marketable securities	$	9	$	9	$	—	$	—	$	13	$	13	$	—	$	—
Derivatives	22		—		22		—		32		15		17		—
Total assets at fair value	$	31	$	9	$	22	$	—	$	45	$	28	$	17	$	—
Derivatives	124		78		46		—		109		78		31		—
Total liabilities at fair value	$	124	$	78	$	46	$	—	$	109	$	78	$	31	$	—



	Year ended December 31^*
	2017			2016			2015
Upstream
United States	$	3,901		$	3,148		$	4,117
Intersegment	9,341			7,217			8,631
Total United States	13,242			10,365			12,748
International	17,209			13,262			15,587
Intersegment	11,471			9,518			11,492
Total International	28,680			22,780			27,079
Total Upstream	41,922			33,145			39,827
Downstream
United States	48,728			40,366			48,420
Excise and similar taxes	4,398			4,335			4,426
Intersegment	14			16			26
Total United States	53,140			44,717			52,872
International	57,438			46,388			54,296
Excise and similar taxes	2,791			2,570			2,933
Intersegment	1,166			1,068			1,528
Total International	61,395			50,026			58,757
Total Downstream	114,535			94,743			111,629
All Other
United States	208			145			141
Intersegment	814			960			1,372
Total United States	1,022			1,105			1,513
International	1			1			5
Intersegment	25			36			37
Total International	26			37			42
Total All Other	1,048			1,142			1,555
Segment Sales and Other Operating Revenues
United States	67,404			56,187			67,133
International	90,101			72,843			85,878
Total Segment Sales and Other Operating Revenues	157,505			129,030			153,011
Elimination of intersegment sales	(22,831		)	(18,815		)	(23,086		)
Total Sales and Other Operating Revenues	$	134,674		$	110,215		$	129,925
^*Other than the United States, no other country accounted for 10 percent or more of the company’s Sales and Other Operating Revenues.


Aging based on drilling completion date of individual wells:	Amount		Number of wells
2000-2009	$	312	16
2010-2014	1,146		50
2015-2020	586		17
Total	$	2,044	83

Aging based on drilling completion date of last suspended well in project:	Amount		Number of projects
2003-2012	$	341	3
2013-2016	1,318		9
2017-2021	385		3
Total	$	2,044	15


	Shares (Thousands)	Weighted-Average Exercise Price			Averaged Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2021	90,150		$	108.17
Granted	6,948		$	88.20
Exercised	(12,831)		$	99.64
Forfeited	(6,868)		$	102.61
Outstanding at December 31, 2021	77,399		$	108.10	4.17		$	1,020
Exercisable at December 31, 2021	66,499		$	109.80	3.45		$	806



	Pension Benefits
	2017						2016						Other Benefits
	U.S.			Int’l.			U.S.			Int’l.			2017			2016
Change in Benefit Obligation
Benefit obligation at January 1	$	13,271		$	5,169		$	13,563		$	5,336		$	2,549		$	3,324
Service cost	489			151			494			159			32			60
Interest cost	366			219			377			261			95			128
Plan participants' contributions	—			4			—			5			78			148
Plan amendments	—			1			—			—			—			(345		)
Actuarial (gain) loss	1,168			(37		)	903			426			266			(437		)
Foreign currency exchange rate changes	—			374			—			(524		)	10			8
Benefits paid	(1,714		)	(310		)	(2,066		)	(494		)	(229		)	(337		)
Divestitures	—			(31		)	—			—			(13		)	—
Benefit obligation at December 31	13,580			5,540			13,271			5,169			2,788			2,549
Change in Plan Assets
Fair value of plan assets at January 1	9,550			4,174			10,274			4,109			—			—
Actual return on plan assets	1,384			319			936			642			—			—
Foreign currency exchange rate changes	—			358			—			(552		)	—			—
Employer contributions	728			252			406			464			151			189
Plan participants' contributions	—			4			—			5			78			148
Benefits paid	(1,714		)	(310		)	(2,066		)	(494		)	(229		)	(337		)
Divestitures	—			(31		)	—			—			—			—
Fair value of plan assets at December 31	9,948			4,766			9,550			4,174			—			—
Funded status at December 31	$	(3,632	)	$	(774	)	$	(3,721	)	$	(995	)	$	(2,788	)	$	(2,549	)



	1 Percent Increase		1 Percent Decrease
Effect on total service and interest cost components	$	12	$	(10	)
Effect on postretirement benefit obligation	$	188	$	(155	)


¹	~~2016 has been adjusted to conform to the 2017 presentation of investments measured at Net Asset Value (NAV).~~


²	~~U.S. equities include investments in the company’s common stock in the amount of $12 at December 31, 2017, and $12 at December 31, 2016.~~


³	~~Collective Trusts/Mutual Funds for U.S. plans are entirely index funds; for International plans, they are mostly unit trust and index funds.~~


⁴	~~Certain International Fixed Income investments previously disclosed as Government or Corporate have been reclassified to Collective Trusts/Mutual Funds to conform to the 2017 presentation.~~


⁵	~~Mixed funds are composed of funds that invest in both equity and fixed-income instruments in order to diversify and lower risk.~~


⁶	~~The year-end valuations of the U.S. real estate assets are based on third-party appraisals that occur at least once a year for each property in the portfolio.~~


⁷	~~Alternative investments focus on market-neutral strategies that have a low expected correlation to traditional asset classes.~~


⁸	The “Other” asset class includes net payables for securities purchased but not yet settled (Level 1); dividends and interest- and tax-related receivables (Level 2); insurance contracts (Level 3); and investments in private-equity limited partnerships (NAV).


	Equity		Fixed Income
	International		Corporate		Bank Loans		Real Estate		Other		Total
Total at December 31, 2019	$	1	$	3	$	7	$	55	$	46	$	112
Actual Return on Plan Assets:
Assets held at the reporting date	—		—		—		—		1		1
Assets sold during the period	—		—		—		(10)		—		(10)
Purchases, Sales and Settlements	—		(3)		(5)		—		(2)		(10)
Transfers in and/or out of Level 3	—		—		—		—		—		—
Total at December 31, 2020	$	1	$	—	$	2	$	45	$	45	$	93
Actual Return on Plan Assets:
Assets held at the reporting date	—		—		—		—		4		4
Assets sold during the period	—		—		—		(3)		—		(3)
Purchases, Sales and Settlements	—		—		(2)		—		4		2
Transfers in and/or out of Level 3	—		—		—		—		108		108
Total at December 31, 2021	$	1	$	—	$	—	$	42	$	161	$	204