Chevron Announces $32.7 Billion Capital and Exploratory Budget for 2012

Chevron Corporation (NYSE: CVX) today announced a $32.7 billion capital
and exploratory spending program for 2012. Included in the 2012 program
are $3 billion of planned expenditures by affiliates, which do not
require cash outlays by Chevron.

Total investments for 2011 are estimated at $33 billion, reflecting
approximately $28 billion in capital and exploratory expenditures and
$4.5 billion for the acquisition of Atlas Energy, Inc., which closed
earlier in the year.

'We continue to develop an unparalleled project queue,? ?said Chairman
and CEO John Watson. 'Our 2012 capital program covers a number of
multi-year projects currently in the construction phase, including two
world-class Australian LNG projects and multiple deepwater
developments. ?We believe these investments will yield significant
production growth and reward our shareholders for years to come. ?By
2017, we expect our net crude oil and natural gas production to grow
about 20 percent to 3.3 million barrels per day. This growth profile,
along with our current financial strength, supports our priority of
continuously growing our dividends.?

Watson continued, 'Our 2012 capital program includes spending of nearly
$9 billion in the United States, with major new investments in the
deepwater Gulf of Mexico, the Marcellus Shale in Pennsylvania and our
refinery at Pascagoula, Mississippi. These projects are expected to
result in new jobs and new sources of revenues for the communities where
we operate. Our investments, both in the United States and elsewhere
around the globe, help provide affordable new energy supplies to support
a growing economy.?

Approximately 87 percent of the 2012 spending program is budgeted for
upstream crude oil and natural gas exploration and production projects.
Another 11 percent is associated with the company′s downstream
businesses that manufacture, transport and sell gasoline, diesel fuel
and other refined products, fuel and lubricant additives, and
petrochemicals.

Upstream

Spending of $28.5 billion is planned for exploration and production
activities, including major natural gas-related projects. Major capital
investments include developments in Australia, the deepwater Gulf of
Mexico, Nigeria, Angola and China. Planned capital spending is also
directed toward improving crude oil and natural gas recovery and
reducing natural field declines of existing producing assets throughout
the world.

'We are building new legacy positions with major investments in LNG
projects and the deepwater Gulf of Mexico. Our global LNG investments
are estimated to reach peak spending in 2012 and 2013,? said Vice
Chairman George Kirkland. 'In 2014 we expect to begin reaping the
benefits of these investments as Gorgon and our deepwater projects ramp
up production and begin contributing substantially to cash flow.?

In Australia, the Gorgon LNG project is entering its third year of
construction, with first production scheduled for 2014. The project is
approximately one-third complete and has awarded contracts worth over
$25 billion. The Wheatstone LNG project was sanctioned in September 2011
and is entering its first year of construction. First production is
expected in 2016. The project has already awarded $6 billion in
contracts. Once online, these two LNG projects are expected to add
approximately 350,000 barrels net oil-equivalent production per day.
Production from these LNG plants is expected to be sustained at these
same levels for many years.

In the Gulf of Mexico, projects under development include Jack/St. Malo,
Big Foot, Tahiti-2 and Tubular Bells. Both the Jack/St. Malo and Big
Foot projects are approximately 20 percent complete. First production
for both projects is expected in 2014.

Upstream spending for major capital projects in other regions includes:

• 
  Nigeria ? development of the Usan and Agbami deepwater fields, and
  construction of the Escravos gas-to-liquids facility
  
• 
  Angola ? Angola LNG and development of Mafumeira Sul
  
• 
  China ? development of the Chuandongbei natural gas project
  
• 
  Brazil ? development of the Papa-Terra deepwater field
  
• 
  Canada ? Hebron offshore development
  
• 
  United Kingdom ? development of the offshore Clair Ridge project
  
• 
  Kazakhstan/Russia ? Caspian Pipeline expansion
  

Global exploration funding is expected to be $3 billion in 2012. This
planned spending includes initial appraisal of new acreage captured over
the past two years, including Liberia, China and various international
shale gas plays. The program also supports continued exploration and
appraisal activity in Chevron′s focus areas of Western Australia, the
Gulf of Mexico and western Africa.

About 30 percent of the Upstream capital program is targeted to support
currently-producing assets and mitigate natural field decline. This
includes further development of recently-acquired acreage in the
Marcellus trend in the northeast U.S., the Wolfcamp play in West Texas
and the Pattaini Basin offshore Thailand.

Downstream

Capital spending of $3.6 billion in 2012 is budgeted for downstream
operations. Investments include refinery projects geared toward
improving returns by increasing energy efficiency and feedstock
flexibility, and producing cleaner fuels. Investments also are targeted
toward producing base oils at Pascagoula, Mississippi, and expanding
Oronite additives production in Singapore.

Additional investments are expected to be funded by Chevron affiliates.
These include the continued upgrading of the Yeosu refining complex in
South Korea associated with the company′s 50 percent-owned GS Caltex
affiliate, and additional chemicals projects in the United States and
Saudi Arabia associated with the company′s 50 percent-owned Chevron
Phillips Chemical Company LLC.

All Other

Expenditures of approximately $600 million in 2012 are budgeted for
technology, power generation and other corporate activities.

Chevron is one of the world's leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for,
produces and transports crude oil and natural gas; refines, markets and
distributes transportation fuels and lubricants; manufactures and sells
petrochemical products; generates power and produces geothermal energy;
provides energy efficiency solutions; and develops the energy resources
of the future, including biofuels. Chevron is based in San Ramon, Calif.
More information about Chevron is available at www.chevron.com.

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF 'SAFE HARBOR? PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995

This press release of Chevron Corporation contains forward-looking
statements relating to Chevron′s operations that are based on
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petroleum, chemicals, and other energy-related industries. Words such as
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These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and other factors, some of which
are beyond the company′s control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such forward-looking statements. The
reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Unless legally required, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are crude oil
and natural gas prices; changing refining, marketing and chemicals
margins; actions of competitors or regulators; timing of exploration
expenses; timing of crude oil liftings, the competitiveness of alternate
energy sources or product substitutes; technological developments; the
results of operations and financial condition of equity affiliates; the
inability or failure of the company′s joint-venture partners to fund
their share of operations and development activities; the potential
failure to achieve expected net production from existing and future
crude oil and natural gas development projects; potential delays in the
development, construction or start-up of planned projects; the potential
disruption or interruption of the company′s net production or
manufacturing facilities or delivery/transportation networks due to war,
accidents, political events, civil unrest, severe weather or crude oil
production quotas that might be imposed by the Organization of Petroleum
Exporting Countries; the potential liability for remedial actions or
assessments under existing or future environmental regulations and
litigation; significant investment or product changes under existing or
future environmental statutes, regulations and litigation; the potential
liability resulting from pending or future litigation; the company′s
future acquisition or disposition of assets; gains and losses from asset
dispositions or impairments; government-mandated sales, divestitures,
recapitalizations, industry-specific taxes, changes in fiscal terms or
restrictions on scope of company operations; foreign currency movements
compared with the U.S. dollar; the effects of changed accounting rules
under generally accepted accounting principles promulgated by
rule-setting bodies; and the factors set forth under the heading 'Risk
Factors? on pages 32 and 34 of the company′s 2010 Annual Report on Form
10-K. In addition, such statements could be affected by general domestic
and international economic and political conditions. Unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.

Chevron Corporation

Kurt Glaubitz, +1-925-790-6928