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1、energy in progress2022 annual reportPhoto:The hull for our Anchor projects semisubmersible floating production unit arrives in Texas for topsides installation.The unit will sail away in 2023 for installation in the deepwater U.S.Gulf of Mexico.First oil is anticipated in 2024.our strategychevrons st
2、rategy is to leverage our strengths to safely deliver lower carbon energy to a growing worldOur objective is to safely deliver higher returns,lower carbon and superior shareholder value in any business environment.We are building on our capabilities,assets and customer relationships as we aim to lea
3、d in lower carbon intensity oil,products and natural gas,as well as advance new products and solutions that reduce the carbon emissions of major industries.We aim to grow our traditional oil and gas business,lower the carbon intensity of our operations and grow new lower carbon businesses in renewab
4、le fuels,hydrogen,carbon capture,offsets and other emerging technologies.asset class:deepwaterWe are a leader in applying new technologies to tap into the oil that lies deep beneath the ocean floor,and doingso in a lower carbon way.Our deepwater assets include fields offshore of Angola,Australia,Equ
5、atorial Guinea,Indonesia,Israel,Nigeria and Republic of Congo and in the U.S.Gulf of Mexico,with deepwater exploration activities ongoing offshore 12 countries.Our U.S.Gulf of Mexico facilities are some of the lowest carbon intensityproducing assets in the world.872 mboe/dproduced from our deepwater
6、 asset class in 2022$4.3 billionof our 2023 capital budget focused on deepwater resources6kilogramsCO2e/boe carbon intensity in the deepwater U.S.Gulf of MexicoChevron Corporation 2022 Annual ReportItable of contentsto our stockholders .IVhigher returns,lower carbon .Xboard of directors .XIIdirector
7、:oneonone .XIVcorporate officers .XVIchevron at a glance .XIXchevron stock performance .XXfinancial and operating highlights .XXIIprocess safety,reliability and integrity .XXIVfinancials .31glossary of energy and financial terms .112stockholder and investor information .114Chevron Corporation 2022 A
8、nnual ReportIIenergy in progressThe events of the past year have defined the energy challenge facing the world:meeting the energy demands of today while building the lower carbon energy system of tomorrow.This will require advancing technologies,accelerating solutions,harnessing the power of markets
9、 and unleashing human ingenuity.Progress depends on scalable solutions that deliver affordable,reliable and evercleanerenergy.Thats Energy in ProgressPhoto:Our Geismar biorefinery in Louisiana uses a wide variety of lowercarbon feedstocks to produce highquality renewable diesel.Renewable fuels are i
10、mportant products that can help reduce the lifecycle carbon intensity of transportation fuels.to our stockholdersThe events of 2022 demonstrated the vital role that affordable and reliable energy plays in the worldeconomy.The past years volatility illustrates the need for an energy system that balan
11、ces economic prosperity,energy security and environmental protection.Affordable energy is vital for economies to flourish.Reliable energy is essential for national security.Andwe all share a stake in a lower carbon future.executing our strategy;delivering resultsChevrons strategy has remained clear:
12、Leverage our strengths to safely deliver lower carbon energy to a growing world.In 2022,we increased investment by more than 75%versus 2021,helping us deliver the highest U.S.production in our history,at 1.2 million barrels of oilequivalent per day.Execution of our strategy also enabled delivery on
13、our financial priorities:Grow the dividend consistently Invest capital efficiently Maintain a strong balance sheet,and Repurchase shares steadily2022 marked the 35th consecutive year of higher pershare annual dividends,with the company paying out$11 billion to stockholders.And we raised the pershare
14、 dividend another 6%in early 2023.We also returned an additional$11.25 billion to stockholders by repurchasing nearly 70 million shares.Through disciplined investment in highquality assets,Chevron achieved a return on capital employed of more than 20%,the highest since 2011.We strengthened our indus
15、tryleading balance sheet,reducing our debt ratio to 12.8%and net debt ratio to 3.3%.Our efficient deployment of capital is expected to drive the growth of both traditional and new energy businesses while continuing to deliver strong returns to investors.Our financial priorities have remained consist
16、ent for decades.We reward stockholders with predictable dividend growth,invest for longterm returns,maintain a strong balance sheet to mitigate commodity price risk and buy back shares through the cycle.Chevron Corporation 2022 Annual ReportIVthe energy landscape Postpandemic demand recovery,coupled
17、 with supply uncertainty,created energy market volatility during the past year.Geopolitical events threatened to disrupt energy supply,OPEC spare capacity declined and inventories were at low levels relative to demand.At the same time,in much of the world,strong consumer spending and increased trave
18、l drove an oil demand increase estimated at 2.3 million barrels per day.In 2023 demand is projected to grow to greater than 101 million barrels per day,an alltime high.Natural gas demand declined slightly last year,as higher prices related to supply disruptions resulting from the RussiaUkraine confl
19、ict prompted fuel substitution and demand destruction,especially in Europe.Global trade flows of liquefied natural gas(LNG)pivoted to Europe,keeping LNG capacity tight.Global natural gas demand is projected to grow in 2023.As growth in the global economy drives greater overall energy demand,investme
20、nt in lower carbon energy technologies will also continue to grow.“we aim to lead in lower carbon intensity oil,products and natural gas”advancing energy progressOur capabilities,assets and customer relationships are distinct advantages.Were building on these strengths as we aim to lead in lower car
21、bon intensity oil,products and natural gas and at the same time advance new products and solutions that reduce the carbon intensity of major industries.In 2022,our upstream operations produced 3million oilequivalent barrels per day,and we increased upstream capital expenditures by over 40%relative t
22、o the prior year.We added 1.1 billion barrels of net oilequivalent proved reserves,which equates to approximately 97%of net oilequivalent production for the year.Photo:The NYSE welcomed Chevron in celebration of over 100 years of listing CVX.Chevron Corporation 2022 Annual ReportVIIn the Permian Bas
23、in,unconventional production averaged 707,000 barrelsof oilequivalent per day,a 16%increase from 2021 and alltime high.We expect Permian production to grow nearly 10%in 2023.Additional U.S.production increases are expected as deepwater projects in the U.S.Gulf ofMexico come online,including MadDog2
24、in 2023,Anchor and Whale in 2024 and Ballymore in 2025.By 2026,Chevrons Gulf of Mexico production is expected to increase 50%to around 300,000 barrels of oilequivalentperday.We continue to reduce upstream greenhouse gas intensity,which is down 30%from 2016 as teams around the world advance projects
25、focused on energy efficiency,flaring reduction and methane management.Our U.S.Gulf of Mexico facilities are some of the lowest carbon intensity producing assets in the world,and our Permian Basin operations are among the lowest methane emissions per site of any operator.We plan to continue making pr
26、ogress through technology development and partnerships.Our refining system continues to evolve.We received permits for a project at our Pasadena Refinery that is expected to increase light crude oil throughput capacity to 125,000 barrels perday in 2024,allowing the refinery to run more equity crude
27、from the PermianBasin.Andwere doing capitalefficient unit conversions to process renewable feedstocks at our ElSegundo and Pascagoula refineries.As a result of the acquisition of Renewable Energy Group,Chevron is now the second largest U.S.biobased diesel producer.We are steadily advancing toward ou
28、r guidance of renewable fuels production capacity of 100,000 barrels per day by 2030.Were using existing distribution channels to place these products in markets where we believe we can capture the highest margin.And we have a renewable diesel expansion project underway at the Geismar biorefinery,wh
29、ich is expected to come online next year and is projected to increase our overall capacity by 30%.Our Chevron Phillips Chemical Company affiliate,along with Qatar Energy,announced final investment decision on construction of a$6 billion integrated polymers complex in Ras Laffan Industrial City,Qatar
30、,and an$8.5 billion integrated polymers complex in Orange,Texas.Chevron New Energies remains focused on helping customers meet their lower carbon ambitions and reducing the carbon intensity of our operations.Were taking actions to advance the development of largerscale carbon capture,utilization and
31、 storage projects.Chevron Corporation 2022 Annual ReportVII“chevron is exploring opportunities to commercialize and scale the next generation of emerging technologies”And were making strategic investments to lower costs,using our own assets to pilot new technologies.Investments and partnerships with
32、 companies like Svante and Carbon Clean are helping advance the innovation required to reduce the cost of CO2 capture at different types of industrial facilities.We have acquired pore space on the U.S.Gulf Coast that we believe can store over 1 billion tons of CO2,and are evaluating other potential
33、storage hubs,including three assessment permits offshore Australia.We are leveraging our experience with carbon offsets through our partnership with Restore the Earth Foundation.We have collaborated to plant approximately 3.7 million trees in Louisiana,reforestation work that is expected to deliver
34、naturebased carbonreductions.Chevron has been investing in hydrogen research and development for decades,and we continue to lay the foundation for a highgrowth,competitive business.We are working on multiple projects across California and the U.S.Gulf Coast to support future demand.In the AsiaPacifi
35、c region,were continuing to work with JERA,a longtime partner and customer,to explore codeveloping lower carbon intensity fuels in Australia.In addition,Chevron is exploring opportunities to commercialize and scale the next generation of emerging technologies,including geothermal energy,to grow lowe
36、r carbon solutions.looking to the futureWe believe Chevron is well positioned to lead in both traditional and new energy while safely delivering higher returns,lower carbon and superior shareholder value.Were at the center of one of the worlds greatest challenges meeting the energy needs of a growin
37、g world and doing so in lower carbon ways.We are confident that by harnessing our human energy,we will continue to advance energy progress.Thank you for your support and the continued trust you place in us.Sincerely,Michael K.WirthChairman of the Board and Chief Executive OfficerChevron Corporation
38、2022 Annual ReportVIIIPhoto:More than 90%of our automated oil and natural gas facilities in the DJ Basin are monitored and controlled remotely,in real time,24 hours a day,seven days a week from our Integrated Operations Center in Greeley,Colorado.Chevron Corporation 2022 Annual ReportIXhigher return
39、s lower carbonour objective is to safely deliver higherreturns,lower carbon and superior shareholder value in any business environmentgrowing the dividendIncreased quarterly dividend per share 6%in 2022reinvesting to grow future cash flows Invested with discipline in oil,natural gas and new energy o
40、pportunitiesstrengthening the balance sheetLowered net debt ratio to 3.3%in 2022*returning excess cash to stockholdersRepurchased$11.25 billion in shares in 2022lowering carbonintensityPrioritizing projects expected to return the largest reduction in carbon emissions for every dollar invested,and ho
41、lding ourselves accountable with transparent targetsgrowing lower carbon businessesSeeking to grow lower carbon businesses in renewable fuels,hydrogen,carbon capture,offsets and other emerging technologies*See pages 4849 for additional informationChevron Corporation 2022 Annual ReportXPhoto:A worker
42、 checks instrumentation at our facility near Pecos,Texas.Were digitizing the way we work with advanced data analytics to help develop more productive wells.Chevron Corporation 2022 Annual ReportXIboard of directorsThe Board of Directors of Chevron directs the affairs of the corporation and is commit
43、ted to sound principles of corporate governance.The Directors bring a proven track record of success across a broad range of experiences at the policymaking level.Michael K.(Mike)Wirth,62Chairman of the Board and Chief Executive Officer since February 2018.Prior to his current role,Wirth served as V
44、ice Chairman of the Board in 2017 and Executive Vice President of Midstream&Development from 2016 to 2018.In that role,he was responsible for supply and trading,shipping,pipeline and power operating units;corporate strategy;business development;and corporate affairs.Wirth was Executive Vice Presiden
45、t of Downstream&Chemicals from 2006 to 2015.He served as President of Global Supply and Trading from 2003 to 2006.Wirth serves on the board of directors of Catalyst,is Chairman of the American Petroleum Institute and is a member of the National Petroleum Council,the Business Roundtable,the World Eco
46、nomic Forum International Business Council and the American Society of Corporate Executives.Wirth joined Chevron in 1982 as a design engineer.He earned a bachelors degree in chemical engineering from the University of Colorado.Wanda M.Austin,68Lead Director since 2022 and a Director since 2016.She h
47、olds an adjunct Research Professor appointment at the University of Southern Californias Viterbi Schools Department of Industrial and Systems Engineering.She is a retired President and Chief Executive Officer of The Aerospace Corporation,a leading architect for the United States national security sp
48、ace programs.She is also a Director of Amgen Inc.and Virgin Galactic Holdings,Inc.(2,3)John B.Frank,66Director since 2017.He is Vice Chairman of Oaktree Capital Group LLC,a global investment management company with expertise in credit strategies.He is one of four members of Oaktrees Executive Commit
49、tee and was previously the firms Principal Executive Officer.He is also a Director of Daily Journal Corporation and Oaktree Capital Group LLC and its subsidiary,Oaktree Specialty Lending Corporation.(1)Alice P.Gast,64Director since 2012.She was President of Imperial College London,a public research
50、university specializing in science,engineering,medicine and business.Previously,she was President of Lehigh University in Pennsylvania.Prior to that,she was Vice President for Research,Associate Provost and Robert T.Haslam Chair in Chemical Engineering at the Massachusetts Institute of Technology.(2
51、,4)Enrique Hernandez,Jr.,67Director since 2008.He is Executive Chairman of InterCon Security Systems Inc.,a global provider of security and facility support services to governments,utilities and industrial customers.He is also Chairman of the Board of McDonalds Corporation and a Director of The Mace
52、rich Company.(3,4)Chevron Corporation 2022 Annual ReportXIIMarillyn A.Hewson,69Director since 2021.She was Executive Chairman,Chairman,President and Chief Executive Officer of Lockheed Martin Corporation,a security and aerospace company.She is also a Director of Johnson&Johnson.(1)Jon M.Huntsman Jr.
53、,63Director since 2020 and from 2014 to 2017 when he resigned to serve as the U.S.Ambassador to Russia.He served as Vice Chair of Policy at Ford Motor Company from May 2021 to January 2023.Previously,he served as U.S.Ambassador to China and was Governor of Utah for two consecutive terms.He is also a
54、 Director of Ford Motor Company andMobileye.(3,4)Charles W.Moorman,71Director since 2012.He is a retired Chairman of the Board,Chief Executive Officer and President of Norfolk Southern Corporation,a freight and transportation company.He is a Senior Advisor to Amtrak,a passenger rail service provider
55、,having previously served as Amtraks President and Chief Executive Officer.He is also a Director of OracleCorporation.(2,3)Dambisa F.Moyo,54Director since 2016.She is CoPrincipal of Versaca Investments,a family office focused on growth investing globally.She sits as a member of the House of Lords in
56、 Britain,as Baroness Moyo of Knightsbridge.Previously,she served as Chief Executive Officer of Mildstorm LLC,focusing on the global economy and international affairs.Prior to that,she worked at Goldman Sachs in various roles and at the World Bank in Washington,D.C.She is also a Director of 3M Compan
57、y(retiring May 9,2023).(1)Debra ReedKlages,66Director since 2018.She is a retired Chairman,Chief Executive Officer and President of Sempra Energy,an energy services holding company.Previously,she was Executive Vice President of Sempra Energy and President and Chief Executive Officer of San Diego Gas
58、&Electric and Southern California Gas Co.She is also a Director of Caterpillar Inc.and Lockheed Martin Corporation.(1)D.James Umpleby III,65Director since 2018.He is Chairman and Chief Executive Officer of Caterpillar Inc.,a leading manufacturer of construction and mining equipment,diesel and natura
59、l gas engines,industrial gas turbines and dieselelectric locomotives.Previously,he was Group President of Caterpillars Energy and Transportation business segment.(2,4)Cynthia J.Warner,64Director since 2022.She was President and Chief Executive Officer of Renewable Energy Group,Inc.(REG)and a member
60、of REGs board of directors.Previously,she was Executive Vice President,Operations for Andeavor.She is also a Director of Sempra Energy,a Trustee of the Committee for Economic Development and a member of the National Petroleum Council.(4)committees of the board1 Audit:Debra ReedKlages,Chair2 Board No
61、minating and Governance:Wanda M.Austin,Chair3 Management Compensation:Charles W.Moorman,Chair4 Public Policy and Sustainability:Enrique Hernandez,Jr.,Chairretiring directorRonald D.Sugar,74Lead Director from 2015 to 2022 and a Director since 2005.He is a retired Chairman and Chief Executive Officer
62、of Northrop Grumman Corporation,an aerospace and defense company.He is a Senior Advisor to Ares Management LLC;Bain&Company;Temasek Americas Advisory Panel,Singapore;G100 Network;and World 50.He is a Director of Amgen Inc.,Apple Inc.and Uber Technologies,Inc.Chevron Corporation 2022 Annual ReportXII
63、Idirector:one-on-onelead independent director wanda m.austin offers insights on her first year in her new roleDr.Wanda M.Austin was appointed Lead Director in 2022 after six years on the Board.In 20182019,Dr.Austin served as interim president for the University of Southern California.She was preside
64、nt and CEO of The Aerospace Corporation from 2008 to 2016.She is the first woman and the first African American to hold all of these positions.Dr.Austin is recognized for her work in aeronautics and systems engineering and is a member of the National Academy of Engineering and an honorary fellow of
65、the American Institute of Aeronautics and Astronautics.Dr.Austin embodies the leadership skills,business acumen,broad experience and technical expertise required to guide our company as Lead Independent Director.how does the board approach governance?The Board of Directors takes seriously our oversi
66、ght obligations to ensure that we have the right leadership in place and the right strategy moving forward.We also ensure the company is operating at a prudent level of business risk.We represent Chevron stockholders as independent,accomplished and diverse Directors with experience in global busines
67、s,public policy,finance,technology and environmental matters.Our approach to governance and oversight is informed by feedback from our stakeholders.We continue to engage stakeholders yearround to discuss concerns like climate change and describe our approach to the energy transition.In 2022,those en
68、gagements included meeting with stakeholders and employees at our operations in the Eastern Mediterranean.The viewpoints we hear on energy markets,geopolitics and technology trends enable us to effectively deploy our capital and human talent to achieve our higher return and lower carbon objectives.w
69、hat accomplishments stand out in your first year?There are many.Representing stockholders,the Board is proud of achieving 36 years of consecutive dividend increases along with recently authorizing$75 billion of stock buybacks.Providing oversight for the acquisition of Renewable Energy Group(REG)is a
70、lso a highlight.Looking at leadership,the simplified organizational structure and senior leadership changes announced in May should strengthen execution and the pace to deliver on the companys objectives.Endorsing and overseeing Chevrons climate strategy is paramount,though.That begins with the righ
71、t composition on the Board itself,the right experience and talent.Im confident were charting the right course with$8 billion in lower carbon investments and$2 billion in carbon reduction projects over five years.Lowering the carbon intensity of Chevrons operations is central to meeting the energy ne
72、eds of today as we help build the energy system of tomorrow.what progress is being made on transparency?Chevron has long been committed to increasing transparency on climaterelated matters.Additional transparency on methane emissions reporting is a natural extension of that commitment.In 2022,Chevro
73、n received a stockholder proposal to report on the reliability of methane emissions disclosures.While we do not agree with certain statements made by the proponents,there was no need to oppose last years stockholders proposal where we had fundamental alignment with the intent and approach on these i
74、ssues.Addressing methane emissions is a key part of being a responsible producer of oil,products and natural gas.Methane detection and measurement are evolving,which presents challenges and opportunities,including the need for reliable measurement protocols.As I said in the methane report,published
75、in November,Chevrons role is to help develop and implement best practices and share whats working to prevent methane emissions associated with the production of oil,products and natural gas.This report highlights our efforts to advance the deployment of methane detection technology and actions to im
76、prove our performance.Through our voluntary reports,including the upcoming annual Corporate Sustainability Report,we continue to strive to improve consistency and transparency in our reporting.what does the right leadership look like?We are fortunate to have a Board with great depth and breadth of e
77、xpertise and experience.Former REG president and CEO Cynthia“CJ”Warner is our latest addition.She serves on the Public Policy and Sustainability Committee that oversees an evolving landscape of social,political,environmental,human rights and public policy issues for us.With 40 years of business lead
78、ership across both the traditional and renewable energy sectors,CJ is invaluable in helping us execute Chevrons strategy to safely deliver lower carbon energy to a growing world.Chevrons bylaws call for a strong Lead Director to ensure the independent Directors exercise rigorous oversight.Im dedicat
79、ed to that mandate as I succeed Dr.RonaldD.Sugar.I thank him for a surehanded transition and his 18 years of strong leadership.Chevron Corporation 2022 Annual ReportXVcorporate officersPaul R.Antebi,51Vice President and General Tax Counsel since 2021.Responsible for directing Chevrons worldwide tax
80、activities.Previously,the companys Deputy General Tax Counsel.Joined the company in 1998.Marissa Badenhorst,47Vice President,Health,Safety and Environment(HSE)since 2022.Responsible for leading the companys HSE efforts,including audit and assurance and emergency response.Previously,General Manager o
81、f Enterprise Process Safety.Prior to that,Technical Manager,Chevron Australia.Joined the company in 2000.Eimear P.Bonner,49Vice President,President Chevron Technical Center and Chief Technology Officer since 2021.Responsible for leading the Chevron Technical Center,which provides expertise to suppor
82、t Chevrons global operations and new energy businesses,anddevelops and applies innovative technologies and digital solutions to support the current and future energy system.Previously,General Director of Tengizchevroil.Joined the company in 1998.Pierre R.Breber,58Vice President and Chief Financial O
83、fficer since 2019.Responsible for audit,controller,investor relations,procurement,tax and treasury activities worldwide.Previously,Executive Vice President of Downstream and Chemicals.Joined the company in 1989.Mary A.Francis,58Corporate Secretary and Chief Governance Officer since 2015.Responsible
84、for providing advice and counsel to the Board of Directors and senior management on corporate governance matters,managing the companys corporate governance function,and serving on the Law Function Executive Committee.Previously,Chief Corporate Counsel.Joined the company in 2002.Jeff B.Gustavson,50Vi
85、ce President,Lower Carbon Energies since 2021.Responsible for lower carbon business solutions that have the potential to scale,including commercialization opportunities in hydrogen,carbon capture and offsets and support of ongoing growth in biofuels.Previously,Vice President,MidContinent Business Un
86、it;and President,Chevron Canada Limited.Joined the company in 1999.A.Nigel Hearne,55Executive Vice President,Oil,Products and Gas since 2022.Responsible for the entire value chain,ensuring a more integrated approach to capital allocation,asset class excellence and value chain optimization.Previously
87、,President of Chevron EurasiaPacific Exploration and Production Company.Prior to that,President of Chevron Asia Pacific Exploration and Production Company.Joined the company in 1989.Alana K.Knowles,58Vice President and Controller since 2023.Responsible for corporatewide accounting,financial reportin
88、g and analysis,internal controls,accounting policy,and digital finance.Previously,Vice President,Finance,Downstream&Chemicals and Midstream;and Assistant Treasurer,Operating Company Financing.Joined the company in 1988.Chevron Corporation 2022 Annual ReportXVIBalaji Krishnamurthy,46Vice President,St
89、rategy and Sustainability since 2022.Responsible for guiding development of the companys key strategies,including capital allocation and sustainability efforts.Previously,President of Chevron Canada Limited;General Manager of the Corporate Transformation and Integration Management Office;and Deputy
90、Managing Director,Eurasia Business Unit.Joined the company in 2002.Navin K.Mahajan,56Vice President and Treasurer since 2019.Responsible for Chevrons banking,financing,cash management,insurance,pension investments,and credits and receivables activities.Previously,Vice President of Finance for Downst
91、ream and Chemicals;Assistant Treasurer of Operating Company Financing;and Chief Compliance Officer.Joined the company in 1996.Rhonda J.Morris,57Vice President since 2016 and Chief Human Resources Officer since 2019.Responsible for human resources,diversity and inclusion,ombuds,and employee assistanc
92、e/work life services.Previously,Vice President,Human Resources,Downstream and Chemicals.Joined the company in 1991.Mark A.Nelson,59Vice Chairman and Executive Vice President,Strategy,Policy and Development since 2023.Responsible for Strategy and Sustainability,Corporate Affairs,and Corporate Busines
93、s Development.Previously,Executive Vice President,Downstream and Chemicals.Joined the company in 1985.Colin E.Parfitt,59Vice President,Midstream since 2019.Responsible for Chevrons Midstream business,including shipping,pipeline and power,value chain optimization,and supply and trading operating unit
94、s.Previously,President,Supply and Trading;and Vice President,Sales and Marketing,Chevron Oronite Company LLC.Joined the company in1995.R.Hewitt Pate,60Vice President and General Counsel since 2009.Responsible for directing the companys worldwide legal affairs.Previously,Chair,Competition Practice,Hu
95、nton&Williams LLP,Washington,D.C.;and Assistant Attorney General,Antitrust Division,U.S.Department of Justice.Joined the company in 2009.Albert J.Williams,54Vice President,Corporate Affairs since 2021.Responsible for overseeing government affairs,public affairs,social investment and performance,and
96、the companys worldwide efforts to protect and enhance its reputation.Previously,Managing Director of Chevron Australia and head of the Australasia Business Unit.Joined the company in 1991.executive committeeMichael K.Wirth,Eimear P.Bonner,Pierre R.Breber,Jeff B.Gustavson,A.Nigel Hearne,Rhonda J.Morr
97、is,Mark A.Nelson,and R.Hewitt Pate.departing officersDavid A.Inchausti,Vice President and Controller since 2019.Previously,Deputy Comptroller and Upstream Comptroller.Joined the company in 1988.James W.Johnson,Executive Vice President,Senior Advisor since 2022.Previously,Executive VicePresident,Upst
98、ream.Joined the company in 1981.Jay R.Pryor,Vice President,Business Development since 2006.Previously,Managing Director,Chevron Nigeria Ltd.Joined thecompany in 1979.Chevron Corporation 2022 Annual ReportXVIIPhoto:Chevron holds a 50%interest in Tengizchevroil,which operates the Tengiz Field in Kazak
99、hstan,the worlds deepest producing supergiant oil field.Our thirdgeneration expansion project is nearing completion as part of a 20year process that has steadily increased production from the field.Chevron Corporation 2022 Annual ReportXVIIIchevron at a glanceChevron is one of the worlds leading int
100、egrated energy companies.We believe affordable,reliable and evercleaner energy is essential to enabling human progress.Chevron produces crude oil and natural gas;manufactures transportation fuels,lubricants,petrochemicals and additives;and develops technologies that enhance our business and the indu
101、stry.We aim to grow our traditional oil and gas business,lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels,hydrogen,carbon capture,offsets and other emerging technologies.Our success is driven by a dedicated,diverse andhighly skilled global workforc
102、e united by The Chevron Way,our enduring statement of culture,and our focus on delivering industryleading results and superior stockholder value.We aim to lead our industry in health,safety and environmental performance.The protection of people,assets,communities and the environment is our highest p
103、riority.3.0millionbarrels net oilequivalent daily production1$257.7billiontotal assets211.2billionbarrels net oilequivalent proved reserves2,3$235.7billionsales and other operating revenues1Chevron Corporation 2022 Annual ReportXIX1 Year ended December 31,20222 At December 31,20223 For definition of
104、“reserves,”see glossary of energy and financial terms,page 112chevron stock performanceIndexed dividend growthBasis 2007=100$50$100$150$200$250$300202220076.3%CVX compound annual growth rateTotal stockholder returns*(as of 12/31/2022)1-year-30%0%30%60%90%S&P -18.1%58.1%5-year0%5%10%15%S&P 9.4%12.2%1
105、0-year0%5%10%15%S&P 12.6%9.6%*Annualized total stockholder return(TSR)as of 12/31/2022.Includes stock price appreciation and reinvested dividends when paid.For TSR comparison purposes,ADR/ADS prices and dividends are used for nonU.S.based companies.Dividends include bothcash and scrip share distribu
106、tions.S&P 500Peer group:BP p.l.c.(ADS),ExxonMobil,Shell p.l.c.(ADS),TotalEnergies SE(ADR).Dividends include both cash and scrip share distributions for European peers.ChevronPeer group:BP p.l.c.(ADS),ExxonMobil,Shell p.l.c.(ADS),TotalEnergies SE(ADR)ChevronChevron Corporation 2022 Annual ReportXX202
107、2 marked the 35th consecutive year we increased the annual per-share dividend payoutFive-year cumulative total returns(calendar years ended December 31)$157$178$142$50$75$100$125$150$175$200$225$2502022202182017ChevronS&P 500Peer group:BP p.l.c.(ADS),ExxonMobil,Shell p.l.c.(ADS),TotalEner
108、gies SE(ADR)Chevron Corporation 2022 Annual ReportXXIPerformance graphThe stock performance graph above shows how an initial investment of$100 in Chevron stock would have compared with an equal investment in the S&P 500 Index or the Competitor Peer Group.The comparison covers a fiveyear period begin
109、ning December 31,2017,and ending December 31,2022,and for the peer group is weighted by market capitalization as of the beginning of each year.It includes the reinvestment of all dividends that an investor would be entitled to receive and is adjusted for stock splits.The interim measurement points s
110、how the value of$100 invested on December 31,2017,as of the end of each year between 2018 and 2022.financial and operating highlightsfinancial highlights20Net income(loss)attributable to Chevron Corporation$35,465$15,625$(5,543)Sales and other operating revenues$235,717$155,606$94,471 Cas
111、h flow from operating activities$49,602$29,187$10,577Capital expenditures(Capex)$11,974$8,056$8,922Capital and exploratory expenditures(C&E)$12,296$8,553$9,517Acquisitions of businesses,net of cash received$2,862$(373)C&E plus acquisitions(Company investment)$15,158$8,553$9,144Affiliate C&E$3,366$3,
112、167$3,982Total assets at yearend$257,709$239,535$239,790 Total debt and finance lease obligations at yearend$23,339$31,369$44,315 Chevron Corporation stockholders equity at yearend$159,282$139,067$131,688 Common shares outstanding at yearend(Thousands)2 1,901,048 1,915,638 1,911,018 Pershare dataNet
113、 income(loss)attributable to Chevron Corporation diluted$18.28$8.14$(2.96)Cash dividends$5.68$5.31$5.16Chevron Corporation stockholders equity$83.79$72.60$68.91Debt ratio312.8%18.4%25.2%Net debt ratio33.3%15.6%22.7%Return on stockholders equity323.8%11.5%(4.0)%Return on average capital employed320.3
114、%9.4%(2.8)%1 Millions of dollars,except pershare amounts2 Net of Chevron Benefit Plan Trust shares,see page 64 for more information3 See pages 4849 for additional informationChevron Corporation 2022 Annual ReportXXIIDebt ratio and net debt ratio(Percent)0%10%20%30%2022202182017Debt Ratio
115、Total debt as a percentage of total debt plus Chevron Corporation Stockholders Equity,which indicates the companys leverage.Net Debt Ratio Total debt less cash and cash equivalents and marketable securities as a percentage of total debt less cash and cash equivalents and marketable securities,plus C
116、hevron Corporation Stockholders Equity,which indicates the companys leverage,net of its cash balances.Return on capital employed(Percent)-5%5%15%25%2022202182017Return on Average Capital Employed(ROCE)Net income attributable to Chevron(adjusted for aftertax interest expense and noncontrol
117、ling interest)divided by average capital employed.Chevron Corporation 2022 Annual ReportXXIIIoperating highlights20Net production of crude oil,condensate and synthetic oil(Thousands of barrels per day)1,4401,5531,635Net production of natural gas liquids(Thousands of barrels per day)279261
118、233Net production of natural gas(Millions of cubic feet per day)7,677 7,709 7,290Total net oil equivalent production(Thousands of oil equivalent barrels per day)2,999 3,099 3,083Net proved reserves of crude oil,condensate and synthetic oil2(Millions of barrels)4,9975,0755,319Net proved reserves of n
119、atural gas liquids2(Millions of barrels)1,0881,038828Net proved reserves of natural gas2(Billions of cubic feet)30,864 30,908 29,922Net proved oil equivalent reserves2(Millions of barrels)11,229 11,264 11,134Refinery crude oil input(Thousands of barrels per day)1,504 1,479 1,377Refined products sale
120、s volumes(Thousands of barrels per day)2,614 2,454 2,224Number of employees at year end338,258 37,49842,6281 Includes equity in affiliates,except number of employees2 At year end3 2022 excludes 5,588 service station employeesprocess safety,reliability and integrityLaunched in 2004,our Operational Ex
121、cellence Management System(OEMS)is a comprehensive approach to systematically manage workforce safety and health,process safety,reliability and integrity,environment,efficiency,security,and stakeholders in order to meet our operational excellence(OE)objectives.The OEMS outlines our expectations for
122、identifying and prioritizing risks,and designing,managing and assuring the presence and effectiveness of safeguards used to manage those risks.well control,reliability andintegrityManage well activity risks by developing,maintaining and using wells standards to plan and execute work.Verify that the
123、requirements for WellSafe*certification are effective.Maintain the integrity and reliability of wells by determining well failure mechanisms and actions to prevent or mitigate their occurrence and performing standardized operation,data acquisition,surveillance,condition monitoring,maintenance and we
124、ll intervention activities.asset integrity,equipment reliability and maintenancePrioritize,plan and complete maintenance to maintain the integrity of equipment,structures and protection devices for preventing and mitigating potential incidents.Analyze failure modes and effects,and complete inspectio
125、n and testing programs.Identify and resolve facility and equipment reliability gaps and repetitive or recurring failures to improve reliability and optimize life cycle costs.procedures and operationalreadinessDevelop,maintain and reinforce consistent use of written procedures to safely start up,oper
126、ate and shut down processes and/or equipment in an incidentfree manner.Conduct reviews prior to startup for all new and modified facilities.Chevron Corporation 2022 Annual Report XXIV*W ellSafe is a federally registered service mark of Chevron Intellectu a lProperty LLC.Our OE culture is fundamental
127、 to our business success.To build and maintain a strong OE culture across the workforce,our leaders foster open communication to learn and improve from our work while expecting consistent,disciplined execution of safeguards.Leaders are expected to encourage the workforce to report and learn from inc
128、idents and near misses by positively responding to feedback and fostering reliability across business functions.Creating consistent open engagements with the workforce and addressing their concerns is paramount.As this illustration depicts,for process safety,reliability and integrity,we manage the i
129、ntegrity of operating systems through design principles and engineering and operating practices to prevent and mitigate process safety incidents.We apply technical and operational discipline to identify and mitigate the hazards associated with physical and chemical properties of materials being proc
130、essed.We execute reliability programs so that equipment,components and systems perform their required functions across the full asset life cycle.materials and equipment managementManage OE risks to Chevron related to materials and equipment that we procure for use in ourfacilities.management of chan
131、geManage proposed changes to design,equipment,operations,products and organizations prior to implementation.Evaluate OE risks associated with changes,notify and train affected workforce of the change and updatedocumentation.codes,standards and process safety informationApply company and Chevronadopt
132、ed industry codes and standards for the design,construction,modification,operation,maintenance,decommissioning and restoration of facilities.Develop,maintain and use process safety information and asset data,including information on hazards of materials,process technology and equipment.life cycle in
133、vestment analysisAssess life cycle risks and tradeoffs considering safety,the environment,reliability,efficiency and security in capital investment and expensedecisions.Learn more about our commitment to workforce safety at Corporation 2022 Annual Report XXVfinancialsPhoto:Offshore Nigeria,remotely
134、operated vehicles are used to service the deepwater Agbami Field at a water depth of approximately 4,800feet.Agbamis subsea wells are tied back to a floating production,storage and offloading vessel.Chevron has a 67.3%operating interest in the field.Chevron has interests ranging from 20%to 100%in th
135、ree operated and six nonoperated deepwater blocks in Nigeria.Chevron Corporation 2022 Annual ReportXXVIManagements Discussion and Analysis of Financial Condition and Results of OperationsNotes to the Consolidated Financial StatementsKey Financial Results .32Note 1 Summary of Significant Accounting P
136、olicies .65Earnings by Major Operating Area .32Note 2 C hanges in Accumulated Other Comprehensive Losses.68Business Environment and Outlook .32Note 3 Information Relating to the Consolidated Noteworthy Developments .38Statement of Cash Flows .69Results of Operations .39Note 4 New Accounting Standard
137、s .70Consolidated Statement of Income .41Note 5 Lease Commitments .70Selected Operating Data .43Note 6 Summarized Financial Data-Chevron U.S.A.Inc.71Liquidity and Capital Resources .44Note 7 Summarized Financial Data-Tengizchevroil LLP .72Financial Ratios and Metrics .48Note 8 S ummarized Financial
138、Data-Chevron Phillips Financial and Derivative Instrument Market Risk .49Chemical Company LLC .72Transactions With Related Parties .50Note 9 Fair Value Measurements .72Litigation and Other Contingencies .50Note 10 Financial and Derivative Instruments .74Environmental Matters .51Note 11 Assets Held f
139、or Sale .75Critical Accounting Estimates and Assumptions .52Note 12 Equity .75New Accounting Standards .55Note 13 Earnings Per Share .75Note 14 Operating Segments and Geographic Data .76Quarterly Results .56Note 15 Investments and Advances .79Consolidated Financial StatementsNote 16 Litigation .80No
140、te 17 Taxes .81Reports of Management .57Note 18 Properties,Plant and Equipment .84Report of Independent Registered Public Accounting Firm Note 19 Short-Term Debt .85(PCAOB ID:238).58Note 20 Long-Term Debt .86Consolidated Statement of Income .60Note 21 Accounting for Suspended Exploratory Wells .86Co
141、nsolidated Statement of Comprehensive Income .61Note 22 Stock Options and Other Share-Based Compensation.87Consolidated Balance Sheet .62Note 23 Employee Benefit Plans .89Consolidated Statement of Cash Flows .63Note 24 Other Contingencies and Commitments .94Consolidated Statement of Equity .64Note 2
142、5 Asset Retirement Obligations .95Note 26 Revenue .96Note 27 Other Financial Information.96Note 28 Financial Instruments-Credit Losses .97Supplemental Information on Oil and Gas Producing Activities .99Note 29 Acquisition of Renewable Energy Group,Inc.97CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOK
143、ING INFORMATION FOR THE PURPOSE OF“SAFE HARBOR”PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This Annual Report of Chevron Corporation contains forward-looking statements relating to Chevrons operations and energy transition plans that are based on managements current expectatio
144、ns,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,”“
145、pursues,”“may,”“can,”“could,”“should,”“will,”“budgets,”“outlook,”“trends,”“guidance,”“focus,”“on track,”“goals,”“objectives,”“strategies,”“opportunities,”“poised,”“potential,”“ambitions,”“aspires”and similar expressions are intended to identify such forward-looking statements.These statements are no
146、t guarantees of future performance and are subject to certain risks,uncertainties and other factors,many of which are beyond the companys control and are difficult to predict.Therefore,actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking stat
147、ements.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 othe
148、rwise.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 and demand for the companys products,and production curtailments due to market conditions;crude oil production quotas or o
149、ther 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 epi
150、demics,and any related government policies and actions;disruptions in the companys 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;ge
151、neral domestic and international economic and political conditions,including the military conflict between Russia and Ukraine and the global response to such conflict;changing refining,marketing and chemicals margins;actions of competitors or regulators;timing of exploration expenses;timing of crude
152、 oil liftings;the competitiveness of alternate-energy sources or product substitutes;development of large carbon capture and offset markets;the results of operations and financial condition of the companys suppliers,vendors,partners and equity affiliates,particularly during the COVID-19 pandemic;the
153、 inability or failure of the companys 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
154、or start-up of planned projects;the potential disruption or interruption of the companys operations due to war,accidents,political events,civil unrest,severe weather,cyber threats,terrorist acts,or other natural or human causes beyond the companys control;the potential liability for remedial actions
155、 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 regu
156、latory measures to limit or reduce greenhouse gas emissions;the potential liability resulting from pending or future litigation;the companys future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions;the potentia
157、l for gains and losses from asset dispositions or impairments;government mandated sales,divestitures,recapitalizations,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;higher inflatio
158、n and related impacts;material reductions in corporate liquidity and access to debt markets;the receipt of required Board authorizations to implement capital allocation strategies,including future stock repurchase programs and dividend payments;the effects of changed accounting rules under generally
159、 accepted accounting principles promulgated by rule-setting bodies;the companys 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 20 through 26 in the Annual Report on Form 10-K
160、.Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.Chevron Corporation 2022 Annual Report31Key Financial Results Millions of dollars,except per-share amounts202220212020Net Income(Loss)Attributable to Chevron Co
161、rporation$35,465$15,625$(5,543)Per Share Amounts:Net Income(Loss)Attributable to Chevron Corporation Basic$18.36$8.15$(2.96)Diluted$18.28$8.14$(2.96)Dividends$5.68$5.31$5.16 Sales and Other Operating Revenues$235,717$155,606$94,471 Return on:Capital Employed 20.3%9.4%(2.8)%Stockholders Equity 23.8%1
162、1.5%(4.0)%Earnings by Major Operating Area Millions of dollars202220212020UpstreamUnited States$12,621$7,319$(1,608)International17,663 8,499(825)Total Upstream30,284 15,818(2,433)DownstreamUnited States5,394 2,389(571)International2,761 525 618 Total Downstream8,155 2,914 47 All Other(2,974)(3,107)
163、(3,157)Net Income(Loss)Attributable to Chevron Corporation1,2$35,465$15,625$(5,543)1 Includes foreign currency effects:$669$306$(645)2 Income net of tax,also referred to as“earnings”in the discussions that follow.Refer to the Results of Operations section for a discussion of financial results by maj
164、or operating area for the three years ended December 31,2022.Throughout the document,certain totals and percentages may not sum to their component parts due to rounding.Business Environment and Outlook Chevron Corporation is a global energy company with substantial business activities in the followi
165、ng countries:Angola,Argentina,Australia,Bangladesh,Brazil,Canada,China,Egypt,Equatorial Guinea,Israel,Kazakhstan,Mexico,Nigeria,the Partitioned Zone between Saudi Arabia and Kuwait,the Philippines,Republic of Congo,Singapore,South Korea,Thailand,the United Kingdom,the United States,and Venezuela.The
166、 companys objective is to safely 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 most significant factor affecting the results of operations for the upstream
167、 segment is the price of crude oil,which is determined in global markets outside of the companys control.In the companys downstream business,crude oil is the largest cost component of refined products.Periods of sustained lower commodity prices could result in the impairment or write-off of specific
168、 assets in future periods and cause the company to adjust operating expenses,including employee reductions,and capital expenditures,along with other measures intended to improve financial performance.Governments,companies,communities,and other stakeholders are increasingly supporting efforts to addr
169、ess climate change.International initiatives and national,regional and state legislation and regulations that aim to directly or indirectly reduce GHG emissions are in various stages of design,adoption,and implementation.These policies and programs,some of which support the global net zero emissions
170、 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 jurisdiction-specific policies and programs can be dependent on,and can affect the pace of,technological
171、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 or other requirements affecting ESG standards or other disclosures,a
172、nd evolving standards for tracking and reporting on emissions and emission reductions and removals.Some of these policies and programs include renewable and low carbon fuel standards,such as the Renewable Fuel Standard program in the U.S.and Californias Low Carbon Fuel Standard;programs that price G
173、HG emissions,including Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report32Californias Cap-and-Trade Program;performance standards,including methane-specific regulation such as the U.S.EPAs forthcoming New Source Performance Sta
174、ndard and Emissions Guidelines for Existing Sources;and measures that provide various incentives for lower carbon activities,including carbon capture and storage and the production of hydrogen and sustainable aviation fuel,such as the U.S.Inflation Reduction Act.Requirements for these and other simi
175、lar policies and programs are complex,ever changing,program specific and encompass:(1)the blending of renewable fuels into transportation fuels;(2)the purchasing,selling,utilizing and retiring of allowances and carbon credits;and(3)other emissions reduction measures including efficiency improvements
176、 and capturing GHG emissions.While these compliance policies and programs may have negative impacts on the company now and in the future including,but not limited to,the displacement of hydrocarbon and other products,these policies have also enabled opportunities for Chevron as it grows and aims to
177、further grow its lower carbon businesses.For example,the acquisition of Renewable Energy Group,Inc.(REG)in 2022 grew the companys renewable fuels production capacity and increased the companys carbon credit generation activities.Although we expect the companys costs to comply with these policies and
178、 programs to continue to increase,these costs currently do not have a material impact on the companys financial condition or results of operations.Significant uncertainty remains as to the pace in which the transition to a lower carbon future will progress,which is dependent,in part,on further advan
179、cements and changes in policy,technology,and customer and consumer preferences.The level of expenditure required to comply with new or potential climate change-related laws and regulations and the amount of additional investments needed in new or existing technology or facilities,such as carbon capt
180、ure and storage,is difficult to predict with certainty and is expected to vary depending on the actual laws and regulations enacted,available technology options,customer and consumer preferences,the companys activities,and market conditions.As discussed below,in 2021,the company announced planned ca
181、pital spend of approximately$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 for many years to come
182、.Chevron supports the Paris Agreements global approach to governments addressing climate change and continues to take actions to help lower the carbon intensity of its operations while continuing to meet the demand for energy.Chevron believes that broad,market-based mechanisms are the most efficient
183、 approach to addressing GHG emission reductions.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 als
184、o factored into the companys long-range supply,demand,and energy price forecasts.These forecasts reflect estimates of long-range effects from climate change-related policy actions,such as electric vehicle and renewable fuel penetration,energy efficiency standards,and demand response to oil and natur
185、al gas prices.The company will continue to develop oil and gas resources to meet customers and consumers demand for energy.At the same time,Chevron believes that the future of energy is lower carbon.The company will continue to maintain flexibility in its portfolio to be responsive to changes in pol
186、icy,technology,and customer and consumer preferences.Chevron aims to grow its traditional oil and gas business,lower the carbon intensity of its operations and grow lower carbon businesses in renewable fuels,hydrogen,carbon capture,offsets,and other emerging technologies.To grow its lower carbon bus
187、inesses,Chevron plans to target sectors of the economy where emissions are harder to abate or that cannot be easily electrified,while leveraging the companys capabilities,assets and customer relationships.The companys traditional oil and gas business may increase or decrease depending upon regulator
188、y 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.T
189、he company believes accomplishing this aspiration depends on,among other things,partnerships with multiple stakeholders including customers,continuing progress on commercially viable technology,government policy,successful negotiations for carbon capture and storage and nature-based projects,availab
190、ility and acceptability of cost-effective,verifiable offsets in the 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 stea
191、m,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 ofoil-equivalent(CO2e/boe),26 percent reduction in
192、 gas production GHG intensity to 24 kg CO2e/boe,Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report3353 percent reduction in methane intensity to 2 kg CO2e/boe,and66 percent reduction in flaring GHG intensity to 3 kg CO2e/boe.The
193、 company also targets no routine flaring by 2030.We have set 2016 as 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 tr
194、ansparency on the companys 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 Chevrons entire business.This metric encompasses the
195、 companys 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 companys PCI target is 71 grams(g)carbon dioxide equivalent(CO2e)per megaj
196、oule(MJ)by 2028,a greater than five percent reduction from 2016.Planned Lower-Carbon Capital Spend through 2028 In 2021,the company established planned capital spend of approximately$10 billion through 2028 to advance its lower carbon strategy,which includes approximately$2 billion to lower the carb
197、on 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 progresses toward its 2050 upstream production Scope 1 a
198、nd 2 net zero aspiration and further grows its lower carbon business lines.During 2021 and 2022,the company spent$4.8 billion in lower carbon investments,including$2.9 billion associated with the acquisition of REG.Refer to“Risk Factors”in Part I,Item 1A,on pages 20 through 26 of the companys Annual
199、 Report on Form 10-K for further discussion of GHG regulation and climate change and the associated risks to Chevrons business,including the risks impacting Chevrons lower carbon strategy and its aspirations,targets and plans.Income Taxes The effective tax rate for the company can change substantial
200、ly during periods of significant earnings volatility.This is due to the mix effects that are impacted by both 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
201、 not be indicative of expected results in future periods.Additional information related to the companys effective income tax rate is included in Note 17 Taxes to the Consolidated Financial Statements.The Inflation Reduction Act(IRA),enacted in the United States on August 16,2022,imposes several new
202、taxes that will be effective in 2023,including a 15 percent minimum tax on book income and a 1 percent excise tax on stock repurchases.The IRA also implements various incentives for lower carbon activities,including carbon capture and storage and the production of hydrogen and sustainable aviation f
203、uel,and extends the federal biodiesel mixture excise tax credit through December 31,2024.We do not currently expect the IRA to have a material impact on our results of operations.Supply Chain and Inflation Impacts The company is actively managing its contracting,procurement,and supply chain activiti
204、es to effectively manage costs and facilitate supply chain resiliency and continuity in support of the companys operational goals.Third party costs for capital,exploration,and operating expenses can be subject to external factors beyond the companys control including,but not limited to:severe weathe
205、r or civil unrest,delays in construction,global and local supply chain distribution issues,inflation,tariffs or other taxes imposed on goods or services,and market-based prices charged by the industrys material and service providers.Chevron utilizes contracts with various pricing mechanisms,which ma
206、y result in a lag before the companys costs reflect changes in market trends.Inflation continued to be a key factor impacting the economy over the last year.For key oil and gas industry inputs(e.g.rigs,well services,etc.),markets are likely to remain tight with any upward pressure tied directly to p
207、ossible increases in activity.In contrast,inflationary pressures have started to reduce for non-oil and gas specific goods and services as a result of reduced supply chain disruptions and a slowdown in economic activity.Chevrons 2023 capital expenditure budget assumes cost inflation that averages in
208、 the mid-single digits with certain areas higher,such as in the Permian Basin that assumes low double-digit cost inflation.Chevron believes it is well positioned to manage its costs for 2023,in large part due to indexed contracts and secured supplies for critical inputs.Managements Discussion and An
209、alysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report34Refer to the“Cautionary Statements Relevant to Forward-Looking Information”on page 2 and to“Risk Factors”in Part I,Item 1A,on pages 20 through 26 of the companys Annual Report on Form 10-K for a discussion
210、 of some of the inherent risks that could materially impact the companys results of operations or financial condition.Other Impacts The company continually evaluates opportunities to dispose of assets that are not expected to provide sufficient long-term value and to acquire assets or operations com
211、plementary to its asset base to help augment the companys financial performance and value growth.Asset dispositions and restructurings may result in significant gains or losses in future periods.The company closely monitors developments in the financial and credit markets,the level of worldwide econ
212、omic 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.The COVID-19 pandemic caused a significant decrease in demand for our products and cre
213、ated disruptions and volatility in the global marketplace beginning late in first quarter 2020.Demand has largely recovered as of year-end 2022;however,there continues to be uncertainty around the extent to which the COVID-19 pandemic may impact our future results,which could be material.Earnings tr
214、ends for the companys major business areas are described as follows:Upstream Earnings 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 produ
215、ct demand connected with global economic conditions,industry production and inventory levels,technology advancements,production quotas or other actions imposed by OPEC+countries,actions of regulators,weather-related damage and disruptions,competing fuel prices,natural and human causes beyond the com
216、panys 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 companys production capacity in an affected region.The company closely monitors de
217、velopments 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 companys ability to find or acquire and efficiently
218、 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.Chevron has interests in Venezuelan assets operated by independent affiliates.Chevron has been conducting limited activitie
219、s in Venezuela consistent with the authorization provided pursuant to general licenses issued by the United States government.In fourth quarter 2022,Chevron received License 41 from the United States government,enabling the company to resume activity in Venezuela subject to certain limitations.The f
220、inancial results for Chevrons business in Venezuela are being recorded as non-equity investments since 2020,where income is only recognized when cash is received and production and reserves are not included in the companys results.Crude oil liftings in Venezuela commenced in first quarter 2023,which
221、 are expected to positively impact the companys results going forward.Caspian Pipeline Consortium(CPC),an equity affiliate,operates a 935-mile crude oil export pipeline from the Tengiz Field in Kazakhstan to tanker-loading facilities at Novorossiysk on the Russian coast of the Black Sea,providing th
222、e main export route for crude oil production from TCO,Karachaganak and other producing fields in Kazakhstan.The tanker loading facilities at Novorossiysk consist of three single point mooring facilities,with availability of two or more required to operate at full capacity.CPC is capable of operating
223、 at approximately 70 percent of capacity with one single point mooring facility in service.Two of the three offshore loading moorings at the CPC marine terminal were taken out of service during August 2022 for equipment repairs identified during normal maintenance.Repairs were completed in fourth qu
224、arter 2022.Production at TCO was not impacted by this CPC outage given turnaround activity at TCO and at other regional producers that ship through CPC.However,there is a risk that production from TCO could be curtailed in the future should availability of export facilities be constrained.Government
225、s(including Russia)have imposed and may impose additional sanctions and other trade laws,restrictions and regulations that could lead to disruption in our ability to produce,transport and/or export crude in the region around Russia and could have an adverse effect on CPC operations and/or the compan
226、ys financial position.The financial impacts of such risks,including presently imposed sanctions,are not currently material for the company;however,it remains uncertain how long these conditions may last or how severe they may become.Managements Discussion and Analysis of Financial Condition and Resu
227、lts of OperationsChevron Corporation 2022 Annual Report35Commodity Prices The following chart 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$101 per barrel for the full-year 2022,compared to$71 in 2
228、021.As of mid-February 2023,the Brent price was$85 per barrel.The WTI price averaged$95 per barrel for the full-year 2022,compared to$68 in 2021.As of mid-February 2023,the WTI price was$79 per barrel.The majority of the companys equity crude production is priced based on the Brent benchmark.Managem
229、ents Discussion and Analysis of Financial Condition and Results of Operations0.005.0010.0015.0020.0003060901201Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QHH$/mcfOil$/bblWTI Crude Oil,Brent Crude Oil and Henry Hub Natural Gas Spot Prices-Quarterly AverageBrentWTIHenry Hub20212022Source:Platts2020Crude prices increased i
230、n 2022 driven by geopolitical risk,supply decisions by OPEC+and continued demand recovery due to the further easing of COVID-19 restrictions.The companys average realization for U.S.crude oil and natural gas liquids in 2022 was$77 per barrel,up 37 percent from 2021.The companys average realization f
231、or international crude oil and natural gas liquids in 2022 was$91 per barrel,up 41 percent from 2021.In contrast to price movements in the global market for crude oil,prices for natural gas are also impacted by regional supply and demand and infrastructure conditions in local markets.In the United S
232、tates,prices at Henry Hub averaged$6.36 per thousand cubic feet(MCF)during 2022,compared with$3.85 per MCF during 2021.As of mid-February 2023,the Henry Hub spot price was$2.40 per MCF.(See page 43 for the companys average natural gas realizations for the U.S.).Outside the United States,prices for n
233、atural gas also depend on a wide range of supply,demand and regulatory circumstances.The companys 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-
234、term contracts,with some sold in the Asian spot LNG market.International natural gas realizations averaged$9.75 per MCF during 2022,compared with$5.93 per MCF during 2021,mainly due to higher LNG prices.Production The companys worldwide net oil-equivalent production in 2022 was 3 million barrels per
235、 day.About 27 percent of the companys net oil-equivalent production in 2022 occurred in OPEC+member countries of Angola,Equatorial Guinea,Kazakhstan,Nigeria,the Partitioned Zone between Saudi Arabia and Kuwait and Republic of Congo.The company estimates its net oil-equivalent production in 2023,assu
236、ming a Brent crude oil price of$80 per barrel,to be flat to up 3 percent compared to 2022.This estimate is subject to many factors and uncertainties,including quotas or other actions that may be imposed by OPEC+;price effects on entitlement volumes;changes in fiscal terms or restrictions on the scop
237、e of company operations;delays in 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 production;civil unrest;cha
238、nging geopolitics;delays in completion of maintenance turnarounds;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
239、and the time lag between initial exploration and the beginning of production.The company has increased its investment emphasis on short-cycle projects.Managements Discussion and Analysis of Financial Condition and Results of Operations36Chevron Corporation 2022 Annual Report36Proved Reserves Net pro
240、ved reserves for consolidated companies and affiliated companies totaled 11.2 billion barrels of oil-equivalent at year-end 2022,a slight decrease from year-end 2021.The reserve replacement ratio in 2022 was 97 percent.The 5 and 10 year reserve replacement ratios were 92 percent and 99 percent,respe
241、ctively.Refer to Table V for a tabulation of the companys proved net oil and gas reserves by geographic area,at the beginning of 2020 and each year-end from 2020 through 2022,and an accompanying discussion of major changes to proved reserves by geographic area for the three-year period ending Decemb
242、er 31,2022.Refer to the“Results of Operations”section on pages 39 and 40 for additional discussion of the companys 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 fue
243、l,lubricants,fuel oil,fuel and lubricant additives,petrochemicals and 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 p
244、etrochemical 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 outag
245、es due to severe weather,fires or other operational events.Other factors affecting profitability for downstream operations include the reliability and efficiency of the companys refining,marketing and petrochemical assets,the effectiveness of its crude oil and product supply functions,and the volati
246、lity of tanker-charter rates for the companys shipping operations,which are driven by the industrys demand for crude oil and product tankers.Other factors beyond the companys control include the general level of inflation and energy costs to operate the companys refining,marketing and petrochemical
247、assets,and changes in tax,environmental,and other applicable laws and regulations.Refining margins were higher in 2022 because of recovering demand for refined products,low product inventories,lower industry refining capacity and lower product exports from Russia and China.Refining utilization was s
248、trong in 2022 to keep pace with demand growth.Although refining margins were elevated and still remain above historical levels,they fell considerably in late 2022.There are signs that higher refined product prices and concerns over macroeconomic conditions are slowing demand.The companys most signif
249、icant marketing areas are the West Coast and Gulf Coast of the United States and Asia Pacific.Chevron operates or has significant ownership interests in refineries in each of these areas.Additionally,the company has a growing presence in renewable fuels after acquiring REG.Refer to the“Results of Op
250、erations”section on page 40 for additional discussion of the companys downstream operations.All Other consists of worldwide cash management and debt financing activities,corporate administrative functions,insurance operations,real estate activities and technology companies.Managements Discussion and
251、 Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report37Noteworthy Developments Key noteworthy developments and other events during 2022 and early 2023 included the following:Angola Announced final investment decision for gas development projects at the Quil
252、uma and Maboqueiro(Q&M)fields.Argentina Received a concession for the development of unconventional hydrocarbon resources in the east area of the El Trapial field for a 35-year period.Australia Received permits,as part of joint ventures,to assess carbon storage for three blocks totaling nearly 7.8 m
253、illion acres in offshore Australia.Canada Invested in Aurora Hydrogen,a company developing emission-free hydrogen production technology.Egypt Made a significant gas discovery at the Nargis block offshore Egypt in the eastern Mediterranean Sea.Finland Acquired Neste Oyjs Group III base oil business,i
254、ncluding its related sales and marketing business,and NEXBASETM brand.Israel Approved a project to expand the companys Tamar gas field in offshore Israel.Namibia Entered Namibia by acquiring an 80 percent working interest in a deepwater oil and gas exploration lease.Nigeria Extended Agbami and Usan
255、leases to 2042.Qatar Reached final investment decision with QatarEnergy on Ras Laffan Petrochemicals Complex through the companys 50 percent owned affiliate,Chevron Phillips Chemical Company LLC(CPChem).Republic of Congo Extended the Haute Mer production sharing contract to 2040.United States Comple
256、ted the sale of the companys interest in the Eagle Ford Shale in Texas.United States Approved the Ballymore project in the deepwater U.S.Gulf of Mexico.The field is planned to be produced through an existing facility with an allocated capacity of 75,000 barrels of crude oil per day.United States Com
257、pleted Project Canary pilot to independently certify operational and environment performance and earned highest certification rating for almost all participating Permian and DJ basins upstream assets,positioning the company to market responsibly sourced natural gas from the certified assets.United S
258、tates Acquired a 50 percent stake in an expanded joint venture to develop the Bayou Bend Carbon Capture and Sequestration(CCS)hub,with the goal of the hub becoming one of the first offshore CCS projects in the United States.United States Formed a joint venture with Bunge North America,Inc.to develop
259、 renewable fuel feedstocks,leveraging Bunges expertise in oilseed processing and farmer relationships and Chevrons expertise in fuels manufacturing and marketing.United States Acquired REG,becoming the second largest producer of bio-based diesel in the United States.United States Awarded 34 explorat
260、ion leases in the Gulf of Mexico.United States Announced investment in a new joint venture with California Bioenergy LLC to build infrastructure for the companys dairy biomethane projects in California.United States Commenced a project expected to increase light crude oil processing capacity to 125,
261、000 barrels per day at the companys Pasadena,Texas refinery.United States Reached final investment decision on a major integrated polymer project(Golden Triangle Polymers)in the U.S.Gulf Coast at its 50 percent owned affiliate,CPChem.United States Completed construction of a joint venture solar ener
262、gy project to generate renewable energy for the companys oil and gas operations in the Permian Basin.United States Acquired full ownership of Beyond6,LLC and its nationwide network of 55 compressed natural gas stations to grow Chevrons renewable natural gas value chain.United States Announced joint
263、venture with Baseload Capital to develop geothermal projects.United States Announced collaboration with Raven SR Inc.and Hyzon Motors to produce hydrogen from green waste.Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report38Unite
264、d States Announced agreements or investments in companies to access and possibly develop lower carbon technologies,including Iwatani Corporation(hydrogen fueling sites),Carbon Clean Solutions Limited(carbon capture),TAE Technologies(nuclear fusion)and Svante Technology Inc.(carbon capture).Common St
265、ock Dividends The 2022 annual dividend was$5.68 per share,making 2022 the 35th consecutive year that the company increased its annual per share dividend payout.In January 2023,the companys Board of Directors increased its quarterly dividend by$0.09 per share,approximately six percent,to$1.51 per sha
266、re payable in March 2023.Common Stock Repurchase Program The company repurchased$11.25 billion of its common stock in 2022 under its stock repurchase program.For more information on the common stock repurchase program,see Liquidity and Capital Resources.Results of Operations The following section pr
267、esents the results of operations and variances on an after-tax basis for the companys 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 14 Opera
268、ting Segments and Geographic Data for a discussion of the companys“reportable segments.”This section should also be read in conjunction with the discussion in Business Environment and Outlook.Refer to the Selected Operating Data for a three-year comparison of production volumes,refined product sales
269、 volumes and refinery inputs.A discussion of variances between 2021 and 2020 can be found in the“Results of Operations”section on pages 39 through 40 of the companys 2021 Annual Report on Form 10-K filed with the SEC on February 24,2022.U.S.Upstream Millions of dollars202220212020Earnings(Loss)$12,6
270、21$7,319$(1,608)U.S.upstream reported earnings of$12.6 billion in 2022,compared with$7.3 billion in 2021.The increase was due to higher realizations of$6.6 billion and higher sales volumes of$380 million,partially offset by higher operating expenses of$1.1 billion largely due to an early contract te
271、rmination at Sabine Pass and lower asset sale gains of$670 million.The companys average realization for U.S.crude oil and natural gas liquids in 2022 was$76.71 per barrel compared with$56.06 in 2021.The average natural gas realization was$5.55 per thousand cubic feet in 2022,compared with$3.11 in 20
272、21.Net oil-equivalent production in 2022 averaged 1.18 million barrels per day,up 4 percent from 2021.The increase was primarily due to net production increases in the Permian Basin.The net liquids component of oil-equivalent production for 2022 averaged 888,000 barrels per day,up 3 percent from 202
273、1.Net natural gas production averaged 1.76 billion cubic feet per day in 2022,an increase of 4 percent from 2021.Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report39International UpstreamMillions of dollars202220212020Earnings(L
274、oss)*$17,663$8,499$(825)*Includes foreign currency effects:$816$302$(285)International upstream reported earnings of$17.7 billion in 2022,compared with$8.5 billion in 2021.The increase was primarily due to higher realizations of$10.0 billion,lower operating expenses,lower depreciation,depletion and
275、amortization related to end of concessions in Indonesia and Thailand of$1.3 billion and asset sale gains of$220 million.This was partially offset by lower sales volumes of$1.3 billion(also largely associated with the end of concessions in Indonesia and Thailand)and write-off and impairment charges o
276、f$1.1 billion.Foreign currency effects had a favorable impact on earnings of$514 million between periods.The companys average realization for international crude oil and natural gas liquids in 2022 was$90.71 per barrel compared with$64.53 in 2021.The average natural gas realization was$9.75 per thou
277、sand cubic feet in 2022 compared with$5.93 in 2021.International net oil-equivalent production was 1.82 million barrels per day in 2022,down 7 percent from 2021.The decrease was primarily due to lower production following expiration of the Erawan concession in Thailand and Rokan concession in Indone
278、sia.The net liquids component of international oil-equivalent production was 831,000 barrels per day in 2022,a decrease of 13 percent from 2021.International net natural gas production of 5.92 billion cubic feet per day in 2022,a decrease of 2 percent from 2021.U.S.Downstream Millions of dollars2022
279、20212020Earnings(Loss)$5,394$2,389$(571)U.S.downstream reported earnings of$5.4 billion in 2022,compared with$2.4 billion in 2021.The increase was primarily due to higher margins on refined product sales of$4.4 billion,partially offset by lower earnings from the 50 percent-owned CPChem of$790 millio
280、n and higher operating expenses of$790 million,largely due to planned turnarounds.Total refined product sales of 1.23 million barrels per day in 2022 increased 8 percent from 2021,mainly due to higher renewable fuel sales following the REG acquisition and higher jet fuel demand.International Downstr
281、eam Millions of dollars202220212020Earnings*$2,761$525$618*Includes foreign currency effects:$235$185$(152)International downstream earned$2.8 billion in 2022,compared with$525 million in 2021.The increase in earnings was mainly due to higher margins on refined product sales of$2.7 billion and a fav
282、orable swing in foreign currency effects of$50 million between periods,partially offset by higher operating expenses of$650 million,largely due to transportation costs.Total refined product sales of 1.39 million barrels per day in 2022 were up 5 percent from 2021,mainly due to higher jet fuel demand
283、 as travel restrictions associated with the COVID-19 pandemic continue to ease.All Other Millions of dollars202220212020Net charges*$(2,974)$(3,107)$(3,157)*Includes foreign currency effects:$(382)$(181)$(208)All Other consists of worldwide cash management and debt financing activities,corporate adm
284、inistrative functions,insurance operations,real estate activities,and technology companies.Net charges in 2022 decreased$133 million from 2021.The change between periods was mainly due to lower pension settlement expense,loss on early debt retirement and lower interest expense,partially offset by th
285、e absence of 2021 favorable tax items and higher interest income.Foreign currency effects increased net charges by$201 million between periods.Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report40Consolidated Statement of Income
286、Comparative amounts for certain income statement categories are shown below.A discussion of variances between 2021 and 2020 can be found in the“Consolidated Statement of Income”section on pages 39 and 40 of the companys 2021 Annual Report on Form 10-K.Millions of dollars202220212020 Sales and other
287、operating revenues$235,717$155,606$94,471 Sales and other operating revenues increased in 2022 mainly due to higher refined product,crude oil,and natural gas prices and higher refined product sales volumes.Millions of dollars202220212020 Income(loss)from equity affiliates$8,585$5,657$(472)Income fro
288、m equity affiliates improved in 2022 mainly due to higher upstream-related earnings from Tengizchevroil in Kazakhstan and Angola LNG and higher downstream-related earnings from GS Caltex in Korea,partially offset by lower earnings from CPChem.Refer to Note 15 Investments and Advances for a discussio
289、n of Chevrons investments in affiliated companies.Millions of dollars202220212020 Other income$1,950$1,202$693 Other income increased in 2022 mainly due to a favorable swing in foreign currency effects,higher interest income and lower charges associated with the early retirement of debt,partially of
290、fset by lower gains on asset sales.Millions of dollars202220212020 Purchased crude oil and products$145,416$92,249$52,148 Crude oil and product purchases increased in 2022 primarily due to higher crude oil,natural gas,and refined product prices.Millions of dollars202220212020 Operating,selling,gener
291、al and administrative expenses$29,026$24,740$24,536 Operating,selling,general and administrative expenses increased in 2022 primarily due to higher transportation expenses,early contract termination charge at Sabine Pass and costs associated with planned refinery turnarounds.Millions of dollars20222
292、0212020 Exploration expense$974$549$1,537 Exploration expenses in 2022 increased primarily due to higher charges for well write-offs.Millions of dollars202220212020 Depreciation,depletion and amortization$16,319$17,925$19,508 Depreciation,depletion and amortization expenses decreased in 2022 primari
293、ly due to lower rates and lower production,partially offset by higher impairment and write-off charges.Millions of dollars202220212020 Taxes other than on income$4,032$3,963$2,839 Taxes other than on income increased in 2022 primarily due to higher taxes on production,partially offset by lower excis
294、e taxes.Millions of dollars202220212020 Interest and debt expense$516$712$697 Interest and debt expenses decreased in 2022 mainly due to lower debt balances.Millions of dollars202220212020 Other components of net periodic benefit costs$295$688$880 Other components of net periodic benefit costs decre
295、ased in 2022 primarily due to lower pension settlement costs,as fewer lump-sum pension distributions were made in the current year.Millions of dollars202220212020 Income tax expense(benefit)$14,066$5,950$(1,892)Managements Discussion and Analysis of Financial Condition and Results of OperationsChevr
296、on Corporation 2022 Annual Report41The increase in income tax expense in 2022 of$8.1 billion is due to the increase in total income before tax for the company of$28.0 billion.The increase in income before taxes for the company is primarily the result of higher upstream realizations and downstream ma
297、rgins.U.S.income before tax increased from$9.7 billion in 2021 to$21.0 billion in 2022.This$11.3 billion increase in income was primarily driven by higher upstream realizations and downstream margins,partially offset by higher operating expenses and lower asset sale gains.The increase in income had
298、a direct impact on the companys U.S.income tax resulting in an increase to tax expense of$2.9 billion between year-over-year periods,from$1.6 billion in 2021 to$4.5 billion in 2022.International income before tax increased from$12.0 billion in 2021 to$28.7 billion in 2022.This$16.7 billion increase
299、in income was primarily driven by higher upstream realizations and downstream margins.The increased income primarily drove the$5.2 billion increase in international income tax expense between year-over-year periods,from$4.3 billion in 2021 to$9.6 billion in 2022.Refer also to the discussion of the e
300、ffective income tax rate in Note 17 Taxes.Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report42Selected Operating Data1,2 202220212020U.S.UpstreamNet Crude Oil and Natural Gas Liquids Production(MBPD)888858789Net Natural Gas Prod
301、uction(MMCFPD)31,7581,6891,607Net Oil-Equivalent Production(MBOEPD)1,1811,1391,058Sales of Natural Gas(MMCFPD)44,3543,9863,873Sales of Natural Gas Liquids(MBPD)276201208Revenues from Net ProductionLiquids($/Bbl)$76.71$56.06$30.53 Natural Gas($/MCF)$5.55$3.11$0.98 International UpstreamNet Crude Oil
302、and Natural Gas Liquids Production(MBPD)58319561,078Net Natural Gas Production(MMCFPD)35,9196,0205,683Net Oil-Equivalent Production(MBOEPD)41,8181,9602,025Sales of Natural Gas(MMCFPD)5,7865,1785,634Sales of Natural Gas Liquids(MBPD)1078446Revenues from LiftingsLiquids($/Bbl)$90.71$64.53$36.07 Natura
303、l Gas($/MCF)$9.75$5.93$4.59 Worldwide UpstreamNet Oil-Equivalent Production(MBOEPD)5United States1,1811,1391,058International1,8181,9602,025Total2,9993,0993,083U.S.DownstreamGasoline Sales(MBPD)6639655581Other Refined Product Sales(MBPD)589484422Total Refined Product Sales(MBPD)1,2281,1391,003Sales
304、of Natural Gas(MMCFPD)4242121Sales of Natural Gas Liquids(MBPD)272925Refinery Crude Oil Input(MBPD)866903793International DownstreamGasoline Sales(MBPD)5336321264Other Refined Product Sales(MBPD)1,050994957Total Refined Product Sales(MBPD)71,3861,3151,221Sales of Natural Gas(MMCFPD)43Sales of Natura
305、l Gas Liquids(MBPD)1279674Refinery Crude Oil Input(MBPD)6395765841 Includes company share of equity affiliates.2 MBPD thousands of barrels per day;MMCFPD millions of cubic feet per day;MBOEPD thousands of barrels of oil-equivalents per day;Bbl barrel;MCF thousands of cubic feet.Oil-equivalent gas(OE
306、G)conversion ratio is 6,000 cubic feet of natural gas=1 barrel of crude oil.3 Includes natural gas consumed in operations(MMCFPD):United States53 44 37 International517 548 566 4 Downstream sales of Natural Gas separately identified from Upstream.5 Includes net production of synthetic oil:Canada45 5
307、5 54 6 Includes branded and unbranded gasoline.7 Includes sales of affiliates(MBPD):389 357 348 Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report43Liquidity and Capital Resources Sources and Uses of Cash The strength of the com
308、panys balance sheet enables it to fund any timing differences throughout the year between cash inflows and outflows.Cash,Cash Equivalents and Marketable Securities Total balances were$17.9 billion and$5.7 billion at December 31,2022 and 2021,respectively.Cash provided by operating activities in 2022
309、 was$49.6 billion,compared to$29.2 billion in 2021,primarily due to higher upstream realizations and refining margins.Cash provided by operating activities was net of contributions to employee pension plans of approximately$1.3 billion in 2022 and$1.8 billion in 2021.Proceeds and deposits related to
310、 asset sales totaled$1.4 billion in each of the last two years.Returns of investment totaled$1.2 billion and$439 million in 2022 and 2021,respectively.The returns of investment in 2022 were primarily from Angola LNG.As of third quarter 2022,Angola LNG distributions were,and are expected to continue
311、to be,largely reflected in cash flow from operations.Cash flow from financing activities includes proceeds from shares issued for stock options of$5.8 billion in 2022,compared with$1.4 billion in 2021.Future cash proceeds from option exercises are expected to be lower than in 2022.Restricted cash of
312、$1.4 billion and$1.2 billion at December 31,2022 and 2021,respectively,was held in cash and short-term marketable securities and recorded as“Deferred charges and other assets”and“Prepaid expenses and other current assets”on the Consolidated Balance Sheet.These amounts are generally associated with u
313、pstream decommissioning activities,tax payments and funds held in escrow for tax-deferred exchanges.Dividends Dividends paid to common stockholders were$11.0 billion in 2022 and$10.2 billion in 2021.Debt and Finance Lease Liabilities Total debt and finance lease liabilities were$23.3 billion at Dece
314、mber 31,2022,down from$31.4 billion at year-end 2021.The$8.1 billion decrease in total debt and finance lease liabilities during 2022 was primarily due to the repayment of long-term notes that matured during the year and the early retirement of long-term notes.The companys debt and finance lease lia
315、bilities due within one year,consisting primarily of the current portion of long-term debt and redeemable long-term obligations,totaled$6.0 billion at December 31,2022,compared with$8.0 billion at year-end 2021.Of these amounts,$4.1 billion and$7.8 billion were reclassified to long-term debt at the
316、end of 2022 and 2021,respectively.At year-end 2022,settlement of these obligations was not expected to require the use of working capital in 2023,as the company had the intent and the ability,as evidenced by committed credit facilities,to refinance them on a long-term basis.The company has access to
317、 a commercial paper program as a financing source for working capital or other short-term needs.The company had no commercial paper outstanding as of December 31,2022.The company has an automatic shelf registration statement that expires in August 2023 for an unspecified amount of nonconvertible deb
318、t securities issued by Chevron Corporation or Chevron U.S.A.Inc.(CUSA).Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report44The major debt rating agencies routinely evaluate the companys debt,and the companys cost of borrowing ca
319、n increase or decrease depending on these debt ratings.The company has outstanding public bonds issued by Chevron Corporation,CUSA,Noble Energy,Inc.(Noble),and Texaco Capital Inc.Most of these securities are the obligations of,or guaranteed by,Chevron Corporation and are rated AA-by Standard and Poo
320、rs Corporation and Aa2 by Moodys Investors Service.The companys U.S.commercial paper is rated A-1+by Standard and Poors and P-1 by Moodys.All of these ratings denote high-quality,investment-grade securities.The companys future debt level is dependent primarily on results of operations,cash that may
321、be generated from asset dispositions,the capital program,lending commitments to affiliates and shareholder distributions.Based on its high-quality debt ratings,the company believes that it has substantial borrowing capacity to meet unanticipated cash requirements.During extended periods of low price
322、s for crude oil and natural gas and narrow margins for refined products and commodity chemicals,the company has the ability to modify its capital spending plans and discontinue or curtail the stock repurchase program.This provides the flexibility to continue paying the common stock dividend and rema
323、in committed to retaining the companys high-quality debt ratings.Committed Credit Facilities Information related to committed credit facilities is included in Note 19 Short-Term Debt.Summarized Financial Information for Guarantee of Securities of Subsidiaries CUSA issued bonds that are fully and unc
324、onditionally guaranteed on an unsecured basis by Chevron Corporation(together,the“Obligor Group”).The tables below contain summary financial information for Chevron Corporation,as Guarantor,excluding its consolidated subsidiaries,and CUSA,as the issuer,excluding its consolidated subsidiaries.The sum
325、mary financial information of the Obligor Group is presented on a combined basis,and transactions between the combined entities have been eliminated.Financial information for non-guarantor entities has been excluded.(Millions of dollars)(unaudited)Sales and other operating revenues$126,911$88,038 Sa
326、les and other operating revenues-related party50,082 28,499 Total costs and other deductions121,757 86,369 Total costs and other deductions-related party43,042 28,277 Net income(loss)$15,043$5,515 Year Ended December 31,2022Year Ended December 31,2021At December 31,2022At December 31,2021(Millions o
327、f dollars)(unaudited)Current assets$28,781$15,567 Current assets-related party12,326 12,227 Other assets 50,505 48,461 Current liabilities 22,663 22,554 Current liabilities-related party118,277 79,778 Other liabilities27,353 32,825 Total net equity(deficit)$(76,681)$(58,902)Common Stock Repurchase P
328、rogram The Board of Directors authorized a stock repurchase program in 2019,with a maximum dollar limit of$25 billion and no set term limits(the“2019 Program”).During 2022,the company purchased 69.9 million shares for$11.25 billion under the 2019 Program.As of December 31,2022,the company had purcha
329、sed a total of 131.4 million shares for$18.1 billion,resulting in$6.9 billion remaining under the 2019 Program.The company currently expects to repurchase$3.75 billion of its common stock during the first quarter of 2023 under the 2019 Program and will incur an additional one percent excise tax on s
330、uch purchases as required by the IRA.On January 25,2023,the Board of Directors authorized the repurchase of the companys shares of common stock in an aggregate amount of$75 billion.The$75 billion authorization takes effect on April 1,2023 and does not have a fixed expiration date(the“2023 Program”).
331、It replaces the Boards previous repurchase authorization of$25 billion from January 2019,which will terminate on March 31,2023,after the completion of the companys repurchases in the first quarter of 2023.Repurchases of shares of the companys common stock may be made from time to time in the open ma
332、rket,by block purchases,in privately negotiated transactions or in such other manner as determined by the company.The timing of the Managements Discussion and Analysis of Financial Condition and Results of OperationsChevron Corporation 2022 Annual Report45repurchases and the actual amount repurchase
333、d will depend on a variety of factors,including the market price of the companys shares,general market and economic conditions,and other factors.The stock repurchase program does not obligate the company to acquire any particular amount of common stock and may be suspended or discontinued at any time.Capital Expenditures Capital expenditures(Capex)primarily includes additions to fixed asset or inv