Shale/Tight Resources Fueling Growth Bruce Niemeyer Vice President Appalachian/Michigan Strategic Business Unit June 27, 2013 2013 Chevron U.S.A. Inc. All rights reserved.
Strong Safety Culture Total Days Away From Work Rate 0.20 Do it safely or not at all. 0.15 0.10 There is always 0.05 2 2 time to do it right. 1 1 1 0.00 2008 2009 2010 2011 2012 CVX Ranking Relative to Competitors…
What Is Shale 2013 Chevron U.S.A. Inc. All rights reserved. 4
Unconventional Resources Nearly Double the Size of the Worlds Recoverable Gas Resources Remaining Natural Gas Resources 3,624 Trillion Cubic Feet of Natural Gas Resources: Conventional: 14,248 Trillion Cubic Feet…
Estimated Natural Gas From Shale Resource (TCF) 2013 Chevron U.S.A. Inc. All rights reserved. Source : Wood Mackenzie (2012). Excluded plays with estimates
Natural Gas from Shale Enables Sustained Growth in U.S. Natural Gas Supply for Decades U.S. Dry Natural Gas Production Billion Cubic Feet per Day 100 Coalbed Methane 80 Tight Gas 60 40 Natural Gas from Shale 20 Conventional…
The Payoff Natural Gas From Shale 1.6 57 2,000 million jobs billion government savings per created revenue annually household by 2035 by 2035 by 2035 Source: IHS, The Economic and Employment Contributions of Shale Gas in the…
Shale Fracturing New Application of Old Technology 350 ft 750 ft 2700 ft 2000 7000 ft 7500 8500 ft 2013 Chevron U.S.A. Inc. All rights reserved. 9
Shale Fracturing New Application of Old Technology 350 ft 750 ft 2700 ft Multiple layers of steel casing and cement are used to protect the water table both during 2000 drilling and for the life-of-well. 7000 ft 7500…
Environmental and Social Responsibility Good Strong Regulation and Community Practices Sustainable Standards Engagement Multiple wells from Prevention is primary focus STEM education one pad Standards in well design, Workforce…
Shale/Tight Resource Plays Northeast U.S. Marcellus Shale Marcellus Utica Shale Measured pace at current prices Building execution capability to intersect more robust gas market Utica Continuing to evaluate Utica position…
Strong Position in Marcellus and Utica Marcellus Marcellus Cumulative Production BCF Early well results near high end of expectations 2.5 100 wells drilled in 2012 2.0 8 rigs running 1.5 Remaining carry 850 million at YE 2012…
Marcellus Execution Targeting 15% reduction in Well Costs well costs Improvements in each well delivery function Site construction Drilling Well completions Current Pad Drilling Completions Tank Target Surface facilities…
Marketing the Marcellus Production Multiple pipelines supply Pennsylvania customers and key Northeastern markets Firm transportation on Columbia, Tennessee Gas, National Fuel and Texas Eastern Transmission* pipeline systems…
Increasing Activity in Permian Liquid Rich Plays Midland Basin Permian Basin Growth Net Production MBOED Rig Count Drilled 300 gross wells in 2012 200 60 Increasing rig activity On track to drill 340 gross wells in 2013 150 45…
Kitimat LNG Project currently in FEED 50% interest in 2 x 5 MTPA LNG trains and Pacific Trails Pipeline 322,000 net acres in Liard and Horn River Basins 50 TCF of resources* Source: Apache 2013 Chevron U.S.A. Inc. All…
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