We have significant efforts underway to manage to a lower cost structure and capital spend rate. We announced a 2015 capital and exploratory budget of $35 billion. The 2015 budget is 13 percent lower than total investments for 2014, reflecting our focus on being more selective with our investments in the current lower-price environment. 

We remain committed to delivering world-class safety, operational and environmental performance in our businesses. In 2014 we delivered our best overall year in personal safety, as measured by recordable injuries and injuries requiring time away from work, and in process safety as measured by loss of containment incidents. We also had record lows in our process fires, petroleum spill volume and motor vehicle crash rate. In the last decade our Days Away From Work Rate has declined by 83 percent, our Total Recordable Incident Rate has improved by 55 percent, and our Motor Vehicle Crash Rate has declined by 50 percent. 

We are just as determined to maintain our strong social performance, recognizing that healthy businesses require healthy communities. We will continue to invest in projects and local goods and services, create jobs, and generate revenues for the communities in which we work. Beyond our direct business investments and 

taxes, we will continue strategic social investments. Over the past nine years we have contributed approximately $1.7 billion in social investments, with a special focus on three core areas — health, education and economic development — to develop skilled workers, improve access to health care, and boost local and regional economies. More details about these investments are available in the 2014 Corporate Responsibility Report. 

As always, The Chevron Way provides a roadmap for how we conduct our business, setting our vision to be the global energy company most admired for its people, partnership and performance. It establishes the values by which we deliver our results, including acting with integrity, promoting diversity, and protecting people and the environment. By following The Chevron Way we will continue to create enduring value for the communities where we operate and for our stockholders. 

The progress we made this past year is due to the hard work and determination of our workforce. All of us at Chevron are committed to excellence in everything we do. The end result is the strong performance we delivered in 2014. 

Thank you for investing in Chevron. 



Management's Discussion and Analysis of Financial Condition and Results of Operations



Business Environment and Outlook

Chevron is a global energy company with substantial business activities in the following countries: Angola, Argentina, Australia, Azerbaijan, Bangladesh, Brazil, Canada, China, Colombia, Democratic Republic of the Congo, Denmark, Indonesia, Kazakhstan, Myanmar, Nigeria, the Partitioned Zone between Saudi Arabia and Kuwait, the Philippines, Republic of the Congo, Singapore, South Africa, South Korea, Thailand, Trinidad and Tobago, the United Kingdom, the United States, Venezuela, and Vietnam.

Earnings of the company depend mostly on the profitability of its upstream business segment. The biggest