2015



to our stockholders 

Low commodity prices made 2015 a challenging year for Chevron and the entire oil and natural gas industry, reducing earnings across the sector. 

Our full-year 2015 net income was $4.6 billion, down from $19.2 billion in 2014. Our sales and other operating revenue were $129.9 billion, down from $200.5 billion in 2014. We achieved a 2.5 percent return on capital employed versus the 10.9 percent achieved in 2014. 

In light of difficult market conditions, we took significant actions to reduce costs and improve net cash flow. We reduced capital and operating expenses by $9 billion through renegotiating contracts with vendors and suppliers, streamlining organizations to reduce our employee and contractor work- force, deferring and canceling projects not economic at low prices, and selling $6 billion in nonstrategic and other assets. 

We had a number of notable accomplish- ments during 2015. Our Upstream business, which is responsible for exploration and production, increased worldwide net oil-equivalent production by 2 percent, to 2.6 million barrels per day. We started up the Lianzi Field, located in a unitized offshore zone between the Republic of Congo and Angola; Moho Nord, our deepwater devel- opment offshore the Republic of Congo; Agbami 3, off the coast of the central 

Niger Delta region; and Chuandongbei, our natural gas field in southwest China, which initiated production in early 2016. In addition we ramped up Jack/St. Malo and Tubular Bells in the U.S. Gulf of Mexico. Also significant progress was achieved on our major capital projects, including Gorgon, our largest Australian liquefied natural gas (LNG) project, and Wheatstone LNG as they move toward start-up in 2016 and mid-2017, respectively. 

We added approximately 1 billion barrels of net oil-equivalent proved reserves in 2015. These additions equate to approximately 107 percent of net oil-equivalent production for the year. Significant reserves were added from the Permian Basin in the United States and the Wheatstone Project in Australia. In our exploration program, we success- fully drilled an appraisal well of our Anchor discovery in the deepwater Gulf of Mexico. 

Our Downstream and Chemicals business, which is responsible for our refining, marketing and chemical manufacturing, had an outstanding year. This business maintained reliable operations, benefited from lower feedstock costs and realized efficiencies gained by the reshaping of our portfolio in recent years. 

2015 was one of our best years in overall health, environment and safety performance and our best year ever in preventing significant incidents. Our Days Away From Work Rate and Motor Vehicle Crash Rate set new record lows, and our Total Recordable Incident Rate and petroleum spill volume matched last year’s record lows. 

We also continued our support of the communities in which we work. This past year we advanced our strategic programs and partnerships, with more than $233 million in global social investments. We focused these invest- ments in three core areas — health, education and economic development — to improve access to health care, develop skilled workers, and boost