Chevron Issues Interim Update for Fourth Quarter 2011

Chevron Corporation (NYSE: CVX) today reported in its interim update
that earnings for the fourth quarter 2011 are expected to be
significantly below third quarter 2011 results. Absent foreign exchange
impacts, upstream earnings are projected to be comparable with third
quarter results. Downstream earnings in the fourth quarter are expected
to be near breakeven. Lower margins and refinery input volumes, and the
absence of an asset sale gain are expected to reduce downstream earnings
significantly compared to third quarter results. Full third quarter
earnings included foreign exchange gains of nearly $450 million,
compared to a loss anticipated in the fourth quarter.

Basis for Comparison in Interim Update

The interim update contains certain industry and company operating data
for the fourth 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 January 27, 2012. 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
fourth quarter 2011 to full third 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 during the first two months of the
fourth quarter was comparable with third quarter results. International
net oil-equivalent production increased 42,000 barrels per day during
the first two months of the fourth quarter, reflecting the completion of
maintenance in Kazakhstan, and resolution of a third party pipeline
incident and the ramp up of the Platong II project in Thailand, partly
offset by an extended turnaround in Trinidad and reduced natural gas
demand in Thailand due to flooding.

U.S. crude oil realizations increased $5.14 per barrel during the first
two months of the fourth quarter, while international liquids
realizations declined $1.04 to $101.78 per barrel. U.S. natural gas
realizations decreased $0.43 to $3.71 per thousand cubic feet, while
international natural gas realizations remained relatively flat at $5.51
per thousand cubic feet during the first two months of the fourth
quarter.

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.

In the United States, Gulf Coast refining margins fell substantially in
the fourth quarter compared to the third quarter. During the first two
months of the fourth quarter, U.S. refinery crude-input volumes
decreased by 180,000 barrels per day, largely reflecting a major
turnaround at the Richmond, California refinery.

Outside the United States, refining and marketing margins fell in the
fourth quarter relative to the third quarter. In addition, daily
refinery crude-input volumes were down 90,000 barrels per day for the
first two months of the fourth quarter, primarily reflecting the sale of
the Pembroke U.K. refinery completed early in the third quarter.

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. Total net charges for the fourth quarter are expected to
be notably higher than the general guidance range.

NOTICE

Chevron′s discussion of fourth quarter 2011 earnings with security
analysts will take place on Friday, January 27, 2012, at 8:00 a.m. PST.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