Chevron (CVX) 10-Q 7 May 09 2009 Q1 Quarterly report Financial data

00 - Document and Entity Inform

00 - Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	Chevron Corporation
Entity Central Index Key	0000093410
Document Type	10-Q
Document Period End Date	2009-03-31
Amendment Flag	false
Amendment Description	N/A
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$203,659,751,369
Entity Common Stock, Shares Outstanding	2,004,559,279

01 - Consolidated Statement of

01 - Consolidated Statement of Income (USD $)
In Millions, except Share data in Thousands	3 Months Ended Mar. 31, 2009	3 Months Ended Mar. 31, 2008
Revenues and Other Income [Abstract]
Sales and other operating revenues (1)	$34,987	$64,659
Income from equity affiliates	611	1,244
Other income	532	43
Total Revenues and Other Income	36,130	65,946
Costs and Other Deductions
Purchased crude oil and products	20,400	42,528
Operating expenses	4,346	4,455
Selling, general and administrative expenses	977	1,347
Exploration expenses	381	253
Depreciation, depletion and amortization	2,867	2,215
Taxes other than on income (1)	3,978	5,443
Interest and debt expense	8	0
Total Costs and Other Deductions	32,957	56,241
Income Before Income Tax Expense	3,173	9,705
Income Tax Expense	1,319	4,509
Net Income	1,854	5,196
Less: Net income attributable to noncontrolling interests	17	28
Net Income	1,837	5,168
Per Share of Common Stock:
Net Income Per Share Attributable to Chevron Corporation - Basic	0.92	2.5
Net Income Per Share Attributable to Chevron Corporation - Diluted	0.92	2.48
Dividends	0.65	0.58
Weighted Average Number of Shares Outstanding - Basic	1,991,128	2,066,420
Weighted Average Number of Shares Outstanding - Diluted	1,999,509	2,080,209
(1) Includes excise, value-added and similar taxes:	$1,910	$2,537

02 - Consolidated Statement of

02 - Consolidated Statement of Comprehensive Income (USD $)
In Millions	3 Months Ended Mar. 31, 2009	3 Months Ended Mar. 31, 2008
Net Income	$1,854	$5,196
Currency translation adjustment:
Currency translation adjustment	(30)	(3)
Unrealized holding gain on securities:
Net (loss) gain arising during period	(3)	1
Derivatives:
Net derivatives loss on hedge transactions	(49)	0
Reclassification to net income of net realized loss	1	4
Income taxes on derivatives transactions	16	(2)
Total Derivatives	(32)	2
Actuarial Loss
Amortization to net income of net actuarial loss	158	64
Prior Service Cost
Amortization to net income of net prior service credits	(16)	(16)
Defined benefit plans sponsored by equity affiliates	(2)	8
Income taxes on defined benefit plans	(53)	(29)
Total Defined benefit plans	87	27
Other Comprehensive Gain, Net of Tax	22	27
Comprehensive Income	1,876	5,223
Comprehensive income attributable to noncontrolling interests	(17)	(28)
Comprehensive Income Attributable to Chevron Corporation	$1,859	$5,195

03 - Consolidated Balance Sheet

03 - Consolidated Balance Sheet (USD $)
In Millions	Mar. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$9,150	$9,347
Marketable securities	154	213
Accounts and notes receivable, net	14,416	15,856
Inventories:
Crude oil and petroleum products	4,803	5,175
Inventory of Chemicals	373	459
Materials, supplies and other	1,252	1,220
Total inventories	6,428	6,854
Prepaid expenses and other current assets	3,926	4,200
Total Current Assets	34,074	36,470
Long-term receivables, net	2,200	2,413
Investments and advances	21,442	20,920
Properties, plant and equipment, at cost	176,407	173,299
Less: accumulated depreciation, depletion and amortization	83,859	81,519
Properties, plant and equipment, net	92,548	91,780
Deferred charges and other assets	4,451	4,711
Goodwill	4,619	4,619
Assets held for sale	92	252
Total Assets	159,426	161,165
LIABILITIES AND EQUITY
Short-term debt	1,018	2,818
Accounts payable	13,635	16,580
Accrued liabilities	5,935	8,077
Federal and other taxes on income	3,024	3,079
Other taxes payable	1,281	1,469
Total Current Liabilities	24,893	32,023
Long-term debt	10,848	5,742
Capital lease obligations	328	341
Deferred credits and other noncurrent obligations	17,618	17,678
Noncurrent deferred income taxes	11,144	11,539
Reserves for employee benefit plans	6,779	6,725
Total Liabilities	71,610	74,048
Preferred stock (authorized 100,000,000 shares, $1.00 par value, none issued)	0	0
Common stock (authorized 6,000,000,000 shares, $.75 par value, 2,442,676,580 shares issued at March 31, 2009, and December 31, 2008)	1,832	1,832
Capital in excess of par value	14,500	14,448
Retained earnings	101,647	101,102
Accumulated other comprehensive loss	(3,902)	(3,924)
Deferred compensation and benefit plan trust	(413)	(434)
Treasury stock, at cost (438,004,783 and 438,444,795 shares at March 31, 2009, and December 31, 2008, respectively)	(26,351)	(26,376)
Total Chevron Corporation Stockholders' Equity	87,313	86,648
Noncontrolling interests	503	469
Total Equity	87,816	87,117
Total Liabilities and Equity	$159,426	$161,165

031 - Consolidated Balance Shee

031 - Consolidated Balance Sheet (Parenthetical) (USD $)
	Mar. 31, 2009	Mar. 31, 2008
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, par value	$1	$1
Preferred stock, shares issued	0	0
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock, par value	0.75	0.75
Common stock, shares issued	2,442,676,580	2,442,676,580
Treasury stock, shares	438,004,783	438,444,795

04 - Consolidated Statement of

04 - Consolidated Statement of Cash Flows (USD $)
In Millions	3 Months Ended Mar. 31, 2009	3 Months Ended Mar. 31, 2008
Operating Activities
Net Income	$1,837	$5,168
Adjustments
Depreciation, depletion and amortization	2,867	2,215
Dry hole expense	184	84
Distributions (less than) more than income from equity affiliates	(440)	42
Net before-tax gains on asset retirements and sales	(475)	(54)
Net foreign currency effects	112	188
Deferred income tax provision	(232)	241
Net (increase) decrease in operating working capital	(1,413)	462
Net income attributable to noncontrolling interests	17	28
Increase in long-term receivables	(105)	(37)
Decrease (increase) in other deferred charges	103	(2)
Cash contributions to employee pension plans	(91)	(78)
Other	40	(150)
Net Cash Provided by Operating Activities	2,404	8,107
Investing Activities
Capital expenditures	(5,984)	(4,452)
Proceeds and deposits related to asset sales	1,194	257
Net sales of marketable securities	55	259
Proceeds from sale of other short-term investments	126	138
Net Cash Used for Investing Activities	(4,609)	(3,798)
Financing Activities
Net (payments) borrowings of short-term obligations	(1,237)	386
Proceeds from issuance of long-term debt	4,993	0
Repayments of long-term debt and other financing obligations	(421)	(816)
Cash dividends	(1,295)	(1,202)
Dividends paid to noncontrolling interests	(7)	(17)
Net sales (purchases) of treasury shares	11	(1,899)
Net Cash Provided by (Used for) Financing Activities	2,044	(3,548)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(36)	85
Net Change in Cash and Cash Equivalents	(197)	846
Cash and Cash Equivalents at January 1	9,347	7,362
Cash and Cash Equivalents at March 31	$9,150	$8,208

0601 - Interim Financial Statem

0601 - Interim Financial Statements
	3 Months Ended Mar. 31, 2009 USD / shares
Interim Financial Statements [Abstract]
Interim Financial Statements	Note1. Interim Financial Statements The accompanying consolidated financial statements of Chevron Corporation and its subsidiaries (the company) have not been audited by an independent registered public accounting firm. In the opinion of the companys management, the interim data include all adjustments necessary for a fair statement of the results for the interim periods. These adjustments were of a normal recurring nature. The results for the three-month period ended March31, 2009, are not necessarily indicative of future financial results. The term earnings is defined as net income attributable to Chevron Corporation. Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form10-Q. Therefore, these financial statements should be read in conjunction with the companys 2008 Annual Report on Form10-K. In the first quarter 2009, the company recorded after-tax gains of $400million on the sale of international downstream assets.

0602 - New Accounting Standard

0602 - New Accounting Standard Noncontrolling Interests
	3 Months Ended Mar. 31, 2009 USD / shares
New Accounting Standard - Noncontrolling Interests [Abstract]
New Accounting Standard - Noncontrolling Interests	Note2. New Accounting Standard Noncontrolling Interests The company adopted FASB Statement No.160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.51 (FAS160), effective January1, 2009, and retroactive to the earliest period presented. Prospectively, certain changes in a parents ownership interest are to be accounted for as equity transactions and when a subsidiary is deconsolidated, any noncontrolling equity investment in the former subsidiary is to be initially measured at fair value. With the adoption of FAS160, ownership interests in the companys subsidiaries held by parties other than the parent are presented separately from the parents 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. Shown in the table below is activity for the equity attributable to noncontrolling interests during the first quarters of 2009 and 2008: Amount 2009 2008 (Millions of dollars) Balance at January 1 $ 469 $ 204 Net income attributable to noncontrolling interests 17 28 Distribution to noncontrolling interests (7 ) (17 ) Other changes, net 24 2 Balance at March 31 $ 503 $ 217

0603 - Information Relating to

0603 - Information Relating to the Consolidated Statement of Cash Flows
	3 Months Ended Mar. 31, 2009 USD / shares
Information Relating to Consolidated Statement of Cash Flows [Abstract]
Information Relating to the Consolidated Statement of Cash Flows	Note3. Information Relating to the Consolidated Statement of Cash Flows The Net (increase) decrease in operating working capital was composed of the following operating changes: Three Months Ended March31 2009 2008 (Millions of dollars) Decrease (increase) in accounts and notes receivable $ 1,791 $ (1,474 ) Decrease (increase) in inventories 308 (343 ) Decrease in prepaid expenses and other current assets 53 320 (Decrease) increase in accounts payable and accrued liabilities (3,367 ) 1,647 (Decrease) increase in income and other taxes payable (198 ) 312 Net (increase) decrease in operating working capital $ (1,413 ) $ 462 In accordance with the cash-flow classification requirements of FAS123R, Share-Based Payment, the Net (increase) decrease in operating working capital includes reductions of $2million and $13million for excess income tax benefits associated with stock options exercised during the three months ended March31, 2009, and 2008, respectively. These amounts are offset by an equal amount in Net sales (purchases) of treasury shares. Net Cash Provided by Operating Activities included the following cash payments for interest on debt and for income taxes: Three Months Ended March31 2009 2008 (Millions of dollars) Interest on debt (net of capitalized interest) $ $ 3 Income taxes 1,173 3,355 The Net sales of marketable securities consisted of the following gross amounts: Three Months Ended March31 2009 2008 (Millions of dollars) Marketable securities purchased $ (3 ) $ (599 ) Marketable securities sold 58 858 Net sales of marketable securities $ 55 $ 259 The Net sales (purchases) of treasury shares represents the cost of common shares less the cost of shares issued for share-based compensation plans. Net sales totaled $11million in the first quarter 2009 and net purchases totaled $1.9billion in the 2008 period. Purchases in the first quarter 2008 were under the companys stock repurchase program initiated in September 2007. No purchases were made under the program in the 2009 period. The major components of Capital expenditures and the reconciliation of this amount to the capital and exploratory expenditures, including equity affiliates are presented in the following table: Three Months Ended March31 2009 2008 (Millions of dollars) Additions to properties, plant and equipment $ 5,664 $ 4,148 Additions to investments 224 274 Current-year dry-hole expenditures 159 79 Payments for other liabilities and assets, net (63

0604 - Operating Segments and G

0604 - Operating Segments and Geographic Data
	3 Months Ended Mar. 31, 2009 USD / shares
Operating Segments and Geographic Data [Abstract]
Operating Segments and Geographic Data	Note4. 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. For this purpose, the investments are grouped as follows: upstream exploration and production; downstream refining, marketing and transportation; chemicals; and all other. The first three of these groupings represent the companys reportable segments and operating segments as defined in Financial Accounting Standards Board (FASB) Statement No.131, Disclosures about Segments of an Enterprise and Related Information (FAS131). The segments are separately managed for investment purposes under a structure that includes segment managers who report to the companys chief operating decision maker (CODM) (terms as defined in FAS131). The CODM is the companys Executive Committee, a committee of senior officers that includes the Chief Executive Officer, and that in turn reports to the Board of Directors of Chevron Corporation. The operating segments represent components of the company as described in FAS131 terms 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 to assess their performance; and (c)for which discrete financial information is available. Segment managers for the reportable segments are directly accountable to and maintain regular contact with the companys CODM to discuss the segments operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the Executive Committee also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM. All other activities include mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels and technology companies. The companys primary country of operation is the United States of America, its country of domicile. Other components of the companys operations are reported as International (outside the United States). 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 c

0605 - Summarized Financial Dat

0605 - Summarized Financial Data Chevron U.S.A. Inc
	3 Months Ended Mar. 31, 2009 USD / shares
Summarized Financial Data Chevron USA Inc [Abstract]
Summarized Financial Data - Chevron U.S.A. Inc	Note5. 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 Chevrons 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 refining, marketing, supply and distribution of products derived from petroleum, excluding most of the regulated pipeline operations of Chevron. CUSA also holds the companys investment in the Chevron Phillips Chemical Company LLC joint venture, which is accounted for using the equity method. During 2008, Chevron implemented legal reorganizations in which certain Chevron subsidiaries transferred assets to or under CUSA. The summarized financial information for CUSA and its consolidated subsidiaries presented in the table below gives retroactive effect to the reorganizations as if they had occurred on January1, 2008. However, the financial information below may not reflect the financial position and operating results in the future or the historical results in the period presented if the reorganization actually had occurred on that date. The summarized financial information for CUSA and its consolidated subsidiaries is presented in the table below: Three Months Ended March31 2009 2008 (Millions of dollars) Sales and other operating revenues $ 23,811 $ 47,649 Costs and other deductions 23,876 46,013 Net (loss) income (193 ) 1,047 At March31 At December31 2009 2008 (Millions of dollars) Current assets $ 30,605 $ 32,759 Other assets 31,657 31,807 Current liabilities 11,910 14,322 Other liabilities 15,131 14,805 Net equity $ 35,221 $ 35,439 Memo: Total debt $ 6,888 $ 6,813

0606 - Summarized Financial Dat

0606 - Summarized Financial Data Chevron Transport Corporation
	3 Months Ended Mar. 31, 2009 USD / shares
Summarized Financial Data Chevron Transport Corporation [Abstract]
Summarized Financial Data - Chevron Transport Corporation	Note6. Summarized Financial Data Chevron Transport Corporation Chevron Transport Corporation Limited (CTC), incorporated in Bermuda, is an indirect, wholly owned subsidiary of Chevron Corporation. CTC is the principal operator of Chevrons international tanker fleet and is engaged in the marine transportation of crude oil and refined petroleum products. Most of CTCs shipping revenue is derived by providing transportation services to other Chevron companies. Chevron Corporation has fully and unconditionally guaranteed this subsidiarys obligations in connection with certain debt securities issued by a third party. Summarized financial information for CTC and its consolidated subsidiaries is presented as follows: Three Months Ended March31 2009 2008 (Millions of dollars) Sales and other operating revenues $ 182 $ 241 Costs and other deductions 192 219 Net (loss) income (10 ) 63 At March31 At December31 2009 2008 (Millions of dollars) Current assets $ 483 $ 482 Other assets 171 172 Current liabilities 113 98 Other liabilities 94 88 Net equity $ 447 $ 468 There were no restrictions on CTCs ability to pay dividends or make loans or advances at March31, 2009.

0607 - Income Taxes

0607 - Income Taxes
	3 Months Ended Mar. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	Note7. Income Taxes Taxes on income for the first quarter of 2009 were $1.3billion, compared with $4.5billion for the comparable period in 2008. The associated effective tax rates (calculated as the amount of Income Tax Expense divided by Income Before Income Tax Expense) were 42percent and 46percent, respectively. The rate in the first quarter of 2009 was lower due to proportionally higher income being earned in international downstream businesses that were taxed at relatively low rates compared with average rates in international upstream tax jurisdictions.

0608 - Employee Benefits

0608 - Employee Benefits
	3 Months Ended Mar. 31, 2009 USD / shares
Employee Benefits [Abstract]
Employee Benefits	Note8. Employee Benefits The company has defined-benefit pension plans for many employees. The company typically prefunds defined-benefit plans as required by local regulations or in certain situations where pre-funding provides economic advantages. In the United States, this includes all qualified plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) minimum funding standard. The company does not typically fundU.S.nonqualified pension plans that are not subject to funding requirements under applicable laws and regulations because contributions to these pension plans may be less economic and investment returns may be less attractive than the companys other investment alternatives. The company also sponsors other postretirement plans that provide medical and dental benefits, as well as life insurance for some active and qualifying retired employees. The plans are unfunded, and the company and the retirees share the costs. Medical coverage for Medicare-eligible retirees in the companys main U.S.medical plan is secondary to Medicare (including PartD)and the increase to the company contribution for retiree medical coverage is limited to no more than 4percent each year. Certain life insurance benefits are paid by the company. The components of net periodic benefit costs for 2009 and 2008 were: Three Months Ended March31 2009 2008 (Millions of dollars) Pension Benefits United States Service cost $ 67 $ 63 Interest cost 120 125 Expected return on plan assets (99 ) (148 ) Amortization of prior-service credits (2 ) (2 ) Amortization of actuarial losses 75 15 Settlement losses 50 19 Total United States 211 72 International Service cost 30 33 Interest cost 69 73 Expected return on plan assets (46 ) (70 ) Amortization of prior-service costs 6 6 Amortization of actuarial losses 26 20 Total International 85 62 Net Periodic Pension Benefit Costs $ 296 $ 134 Other Benefits* Service cost $ 8 $ 7 Interest cost 44 44 Amortization of prior-service credits (20 ) (20 ) Amortization of actuarial losses 7 10 Curtailment gains (5 ) Net Periodic Other Benefit Costs $ 34 $ 41 * Includes costs for U.S.and international other postretirement benefit plans. Obligations for plans outside the U.S.are not significant relative to the companys total other postretirement benefit obligation. At the end of 2008, the

0609 - Accounting for Suspended

0609 - Accounting for Suspended Exploratory Wells
	3 Months Ended Mar. 31, 2009 USD / shares
Accounting for Suspended Exploratory Wells [Abstract]
Accounting for Suspended Exploratory Wells	Note9. Accounting for Suspended Exploratory Wells The company accounts for the cost of exploratory wells in accordance with FASB Statement No.19, Financial Accounting and Reporting by Oil and Gas Producing Companies, as amended by FASB Staff Position FAS19-1, Accounting for Suspended Well Costs, which provides that an exploratory well continues to be capitalized after the completion of drilling if certain criteria are met. The companys capitalized cost of suspended wells at March31, 2009, was $2.2billion, an increase of $100million from year-end 2008 due to drilling activities in the United States. For the category of exploratory well costs at year-end 2008 that were suspended more than one year, a total of $48million was expensed in the first three months of 2009.

0610 - Litigation

0610 - Litigation
	3 Months Ended Mar. 31, 2009 USD / shares
Litigation [Abstract]
Litigation	Note10. Litigation MTBEChevron and many other companies in the petroleum industry have used methyl tertiary butyl ether (MTBE) as a gasoline additive. Chevron is a party to 36 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 companys ultimate exposure related to pending lawsuits and claims is not currently determinable, but could be material to net income in any one period. The company no longer uses MTBE in the manufacture of gasoline in the United States. EcuadorChevron is a defendant in a civil lawsuit before the Superior Court of Nueva Loja in Lago Agrio, Ecuador, brought 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 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 of the consortium and following an independent third-party environmental audit of the concession area, Texpet entered into a formal agreement with the Republic of Ecuador and Petroecuador for Texpet to remediate specific sites assigned by the government in proportion to Texpets ownership share of the consortium. Pursuant to that agreement, Texpet conducted a three-year remediation program at a cost of $40million. After certifying that the sites were properly remediated, the government granted Texpet and all related corporate entities 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 to Chevron; third, that the claims are barred by the statute of limitations in Ecuador; and, fourth, that the lawsuit is also barred by the releases from liability previously given to Texpet by the Republic of Ecuador and Petroecuador. With regard to the facts, the company believes that the evidence confirms that Texpets remediation was properly conducted and that the remaining environmental damage reflects Petroecuadors failure to timely fulfill its legal obligations and Petroecuadors further conduct since assuming full control over the operations. In April 2008,

0611 - Other Contingencies and

0611 - Other Contingencies and Commitments
	3 Months Ended Mar. 31, 2009 USD / shares
Other Contingencies and Commitments [Abstract]
Other Contingencies and Commitments	Note11. Other Contingencies and Commitments GuaranteesThe company and its subsidiaries have certain other contingent liabilities with respect to guarantees, direct or indirect, of debt of affiliated companies or third parties. Under the terms of the guarantee arrangements, generally the company would be required to perform should the affiliated company or third party fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements may have recourse provisions that would enable the company to recover any payments made under the terms of the guarantees from assets provided as collateral. Off-Balance-Sheet ObligationsThe company and its subsidiaries have certain other contractual obligations relating to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which relate to suppliers financing arrangements. The agreements typically provide goods and services, such as pipeline, storage and regasification capacity, drilling rigs, utilities and petroleum products, to be used or sold in the ordinary course of the companys business. IndemnificationsThe company provided certain indemnities of contingent liabilities of Equilon and Motiva to Shell and Saudi Refining, Inc., in connection with the February 2002 sale of the companys interests in those investments. The company would be required to perform if the indemnified liabilities become actual losses. Were that to occur, the company could be required to make future payments up to $300million. Through the end of March 2009, the company paid $48million under these indemnities and continues to be obligated for possible additional indemnification payments in the future. The company has also provided indemnities relating to contingent environmental liabilities related to assets originally contributed by Texaco to the Equilon and Motiva joint ventures and environmental conditions that existed prior to the formation of Equilon and Motiva or that occurred during the period of Texacos ownership interest in the joint ventures. In general, the environmental conditions or events that are subject to these indemnities must have arisen prior to December 2001. Claims had to be asserted by February 2009 for Equilon indemnities and must be asserted no later than February 2012 for Motiva indemnities. Under the terms of these indemnities, there is no maximum limit on the amount of potential future payments. In February 2009, Shell delivered a letter to the company purporting to preserve unmatured claims for certain Equilon indemnities. The letter itself provides no estimate of the ultimate claim amount, and management does not believe the letter provides a basis to estimate the amount, if any, of a range of loss or potential range of loss with respect to the Equilon or the Motiva indemnities. The company posts no assets as collateral and has made no payments under the indemnities. The amounts payable for the indemnities described above are to be net of amounts recovered from insurance carriers and others and net of liabilities recorded by Equilon or Motiva prior to September30, 2001, for any

0612 - Fair Value Measurements

0612 - Fair Value Measurements
	3 Months Ended Mar. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	Note12. Fair Value Measurements FASB Statement No.157, Fair Value Measurements(FAS157), and its various amendments, establishes a framework for measuring fair value and stipulates disclosures about fair-value measurements. FAS157 generally applies to recurring and nonrecurring financial and nonfinancial assets and liabilities under other accounting pronouncements that require or permit fair-value measurements. FAS157 became effective for Chevron on January1, 2008, for all financial assets and liabilities and recurring nonfinancial assets and liabilities. On January1, 2009, FAS157 became effective for nonrecurring nonfinancial assets and liabilities. Among the required disclosures is the fair-value hierarchy of inputs the company uses to value an asset or a liability. The three levels of the fair-value hierarchy are described as follows: Level1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded. Level2: Inputs other than Level1 that are observable, either directly or indirectly. For the company, Level2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract. Level3: Unobservable inputs. The company does not use Level3 inputs for any of its recurring fair-value measurements. Level3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities. In the first quarter, the company used Level3 inputs to determine the fair value of a nonrecurring nonfinancial asset. The fair value hierarchy for recurring assets and liabilities measured at fair value at March31, 2009, is as follows: Assets and Liabilities Measured at Fair Value on a Recurring Basis Prices in Active Other Markets for Observable Unobservable At March31 Identical Assets Inputs Inputs 2009 (Level 1) (Level 2) (Level 3) (Millions of dollars) Marketable Securities $ 154 $ 154 $ $ Derivatives 380 171 209 Total Recurring Assets at Fair Value $ 534 $ 325 $ 209 $ Derivatives $ 301 $ 114 $ 187 $ Total Recurring Liabilities at Fair Value $ 301 $ 114 $ 187 $ Marketable securitiesThe company calculates fair value for its marketable securities based on quoted market prices for identical assets and liabilities. DerivativesThe company reco

0613 - Derivative Instruments a

0613 - Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2009 USD / shares
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	Note13. Derivative Instruments and Hedging Activities The company implemented FASB Statement No.161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No.133 (FAS161), as of January1, 2009. Implementation of FAS161 did not have any effect on the companys results of operations or consolidated financial position and similarly had no effect on the companys existing use of derivative instruments or hedging activities. However, FAS161 amended and expanded the disclosures required by FAS133 in order that they provide an enhanced understanding of how and why the company uses derivative instruments, how derivative instruments and related hedged items are accounted for under FAS133 and its related interpretations, and how derivative instruments affect the companys financial position, financial performance and cash flows. The companys derivative instruments principally include crude-oil, natural-gas and refined-product futures, swaps, options and forward contracts, as well as foreign-currency forward contracts. None of the companys derivative instruments are designated as hedging instruments. The companys derivatives that are not designated as hedging instruments have no material effect on the companys financial position, financial performance or cash flows. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodities and other derivatives activities, including forward-exchange contracts. Derivative instruments, measured at fair value at March31, 2009, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows: Consolidated Balance Sheet: Fair Value of Derivatives not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value (Millions of dollars) Type of Balance Sheet At March31 At December31 Balance Sheet At March31 At December31 Derivative Contract Classification 2009 2008 Classification 2009 2008 Foreign Exchange Accounts and notes receivable, net $ $ 5 Accrued liabilities $ 26 $ 89 Commodity Accounts and notes receivable, net 357 764 Accounts payable 246 344 Commodity Long-term receivables, net 23 30 Deferred credits and other noncurrent obligations 29 83 $ 380 $ 799 $ 301 $ 516 Consolidated Statement of Income: The Effect of Derivatives not Designated as Hedging Instruments Gain/(Loss) Three Months Ended Type of March31 Derivative Contract Statement of Income Classification 2009 2008 (Millions of dollar

0614 - Assets Held For Sale

0614 - Assets Held For Sale
	3 Months Ended Mar. 31, 2009 USD / shares
Assets Held For Sale [Abstract]
Assets Held for Sale	Note14. Assets Held For Sale At March31, 2009, the company classified $92million of net properties, plant and equipment as Assets held for sale on the Consolidated Balance Sheet. These assets relate to upstream and downstream and are anticipated to be sold in 2009.

0615 - Other New Accounting Sta

0615 - Other New Accounting Standards
	3 Months Ended Mar. 31, 2009 USD / shares
Other New Accounting Standards [Abstract]
Other New Accounting Standards	Note15. Other New Accounting Standards FASB Staff Position FAS141(R)-1 Accounting for Assets Acquired and Liabilities Assumed in a Business Combination (FSP FAS141(R)-1) The FASB issued FSP FAS141(R)-1 in April 2009, which became effective for business combinations having an acquisition date on or after January1, 2009. This standard requires an asset or liability arising from a contingency in a business combination to be recognized at fair value if fair value can be reasonably determined. If it cannot, the asset or liability must be recognized in accordance with FASB Statement No.5, Accounting for Contingencies, and FASB Interpretation No.14, Reasonable Estimation of the Amount of the Loss. FASB Staff Position No.FAS157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP FAS157-4) In April 2009, the FASB issued FSP FAS157-4, which will become effective for the companys interim and annual reporting beginning in the second quarter 2009. The FSP provides additional guidance related to the estimation of fair value when the volume and level of activity for the asset or liability have significantly decreased, the identification of transactions that are not orderly, and the use of judgment in evaluating the relevance of inputs such as transaction prices. The company does not anticipate the implementation of this new accounting standard will significantly change its valuation or disclosure of financial and nonfinancial assets and liabilities under the scope of FAS157. FASB Staff Position No.FAS115-2 and FAS124-2, Recognition and Presentation of Other-Than-Temporary Impairments (FSP FAS115-2 and FAS124-2) The FASB issued FSP FAS115-2 and FAS124-2 during April 2009, and the standard became effective as of April1, 2009. This FSP changes the requirements for recognition and disclosure of other-than-temporary impairment for debt securities and changes the trigger used to assess the collectability of cash flows. The company does not anticipate the implementation of this new accounting standard will significantly change the valuation and disclosure of its investments in debt securities because the securities are primarily short-term, highly liquid, investment-grade instruments. FASB Staff Position No.107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (FSP FAS107-1 and APB 28-1) The FASB issued FSP FAS107-1 and APB 28-1 during April 2009 to require the associated disclosures to be presented in both interim and annual reports. The FSP becomes effective for the companys reporting in the second quarter 2009.