Chevron Issues Interim Update for Third Quarter 2011

Chevron Corporation (NYSE:CVX) today reported in its interim update that
earnings for the third quarter 2011 are expected to be comparable with
second quarter 2011 results. Lower crude oil realizations and lower
liftings are expected to reduce upstream earnings. Downstream earnings
in the third quarter are expected to be higher, largely reflecting an
asset sale gain. Earnings in both operating segments are expected to
benefit from favorable non-cash foreign currency effects due to the
strengthening of the U.S. dollar in the third quarter against other
major currencies.

Basis for Comparison in Interim Update

The interim update contains certain industry and company operating data
for the third quarter 2011. The production volumes, realizations,
margins and certain other items in the report are based on a portion of
the quarter and are not necessarily indicative of Chevron's full
quarterly results to be reported on October 28, 2011. The reader should
not place undue reliance on this data.

Readers should be advised that portions of the commentary below compare
results for the first two months of the
third quarter 2011 to full second quarter
2011 results, as indicated.

UPSTREAM

The table that follows includes information on production and price
indicators for crude oil and natural gas for specific markets. Actual
realizations may vary from indicative pricing due to quality and
location differentials and the effect of pricing lags. International
earnings are driven by actual liftings, which may differ from production
due to the timing of cargoes and other factors.

¹ The Avg. Brent Spot Price is based on Platts daily
assessments, using Chevron′s internal formula to produce a quarterly
average.

U.S. net oil-equivalent production decreased 18,000 barrels per day
during the first two months of the third quarter, due to increased
maintenance activity across multiple assets in the Gulf of Mexico.
International net oil-equivalent production declined 74,000 barrels per
day during the first two months of the third quarter, largely reflecting
impacts related to a third party pipeline incident in Thailand, now
remediated, and planned turnaround activity in Kazakhstan and the U.K.
The company expects increased production in the fourth quarter 2011
compared to the third quarter 2011, reflecting the completion of these
repairs and planned turnarounds, as well as new production.

U.S. crude oil realizations decreased nearly $8 per barrel to $100.87
during the first two months of the third quarter. International liquids
realizations declined $3.40 to $103.44 per barrel during the same
period. U.S. natural gas realizations decreased $0.19 to $4.16 per
thousand cubic feet, while international natural gas realizations
increased $0.11 to $5.60 per thousand cubic feet during the first two
months of the third quarter.

As a consequence of the recently enacted tax increase on U.K. oil and
gas producers, international upstream third quarter results are expected
to include a catch-up charge of about $150 million and an increase in
current period tax effects of about $40 million.

DOWNSTREAM

The table that follows includes industry benchmark indicators for
refining and marketing margins. Actual margins realized by the company
will differ due to crude and product mix effects, planned and unplanned
shutdown activity and other company-specific and operational factors.

For the third quarter, worldwide refining and marketing margins were
mixed. During the first two months of the third quarter, U.S. refinery
crude-input volumes increased by 29,000 barrels per day following
maintenance activity early in the second quarter. Outside the United
States, daily refinery crude-input volumes were down 74,000 barrels per
day during the same period, largely reflecting the previously announced
sale of the Pembroke U.K. refinery on August 1, partly offset by reduced
maintenance activity during the third quarter.

International downstream earnings in the third quarter are expected to
include a gain of approximately $500 million from the sale of the
Pembroke refinery and related marketing assets in the U.K. and Ireland.

ALL OTHER

The company′s general guidance for the quarterly net after-tax charges
related to corporate and other activities is between $250 million and
$350 million. Due to foreign currency effects and the potential for
irregularly occurring accruals related to income taxes and other
matters, actual results may significantly differ from the guidance range.

NOTICE

Chevron′s discussion of third quarter 2011 earnings with security
analysts will take place on Friday, October 28, 2011, at 8:00 a.m. PDT.A webcast of the meeting will be available in a listen-only mode to
individual investors, media, and other interested parties on Chevron′s
website at www.chevron.com
under the 'Investors? section.Additional financial and operating
information will be contained in the Earnings Supplement that will be
available under 'Events & Presentations? in the 'Investors? section on
the website.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

FOR THE PURPOSE OF 'SAFE HARBOR' PROVISIONS OF THE

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This interim update of Chevron Corporation contains forward-looking
statements relating to Chevron′s operations that are based on
management′s current expectations, estimates and projections about the
petroleum, chemicals and other energy-related industries. Words such as
'anticipates,? 'expects,? 'intends,? 'plans,? 'targets,? 'projects,?
'believes,? 'seeks,? 'schedules,? 'estimates,? 'budgets? and similar
expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and other factors, 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 interim update.
Unless legally required, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
chemical 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 other
pending or future litigation; the company′s future acquisition or
disposition of assets and 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
through 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. Other unpredictable or
unknown factors not discussed in this interim update could also have
material adverse effects on forward-looking statements.

Chevron Corporation

Lloyd Avram, 925-790-6930