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Chevron in Europe

Chevron has been a key energy provider

in Europe since the 1960s and currently

produces about 159,000 barrels of

oil and gas equivalent, mostly from

North Sea fields in the United Kingdom,

Denmark, the Netherlands and Norway.

The company explores constantly

for new resources and has made

significant recent discoveries in the deepwaters west of the Shetland Islands.

More recently, Chevron has acquired

exploration acreage in Eastern Europe

offering prospects for production of

natural gas located in deep shale beds.

Chevron employs about 1,000 people in

its European oil and gas business.

A Growing Source of

Natural Gas

The gas naturally occurring in shalerock is no different to any other natural

gas, except that it is trapped in tight

rock layers and requires different

development methods compared to

traditional gas fields. Natural gas, an

abundant fossil fuel, has been produced

in Europe for decades and is used

widely in homes, industry and power

generation. Natural gas is an efficient,

versatile fuel with significantly lower

emissions of pollutants and greenhouse

gases compared to coal.

Developing Natural Gas From Shale

The Value of Natural Gas to Europe

UKRAINE

BELARUS

RUSSIA RU

SLOVAKIA

HUNGARY

CROATIA

BOSNIA-HERZEGOVINA

AUSTRIA

CZECH

REPUBLIC

GERMANY

LITHUANIA

SLOVENIA

ITALY

ROMANIA

POLAND

SERBIA

GREECE

BLACK SEA

BALTIC SEA

Sofia

Bucharest

Warsaw

BULGARIA

FYROM

ADRIATICSEA

Block 1

Block 17

Block 18

Block 19

Grabowiec

Krasnik

Zwierzyniec

Barlad

Block

ALBANIA

MONTENEGRO KOSOVO

Frampol

MOLDOVA

Shale gas development could improve

Europes energy independence, generate

new revenue for landowners and

governments, create jobs and stimulate

economic growth benefits being widely

realised from shale projects in the United

States. Europe today imports about

60 percent of its gas (source:

International Energy Agency). This

is estimated to grow to 83 percent

by 2030, due to increasing demand,

stronger environmental laws and

declining production from established

gas fields.

Chevron Interests

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2011 Chevron North Sea Limited. All rights reserved.

www.chevron.com

IDC 1111-090014

Chevron Polska Energy Resources Sp.zo.o

Catalina Building, Aleja Wyscigowa 6

02-681 Waszawa, Poland

Tel: (+48) 22460 1003

European Shale Exploration

With ChevronChevron is exploring more than 4

million acres under recent and pending

agreements with the governments

of Poland, Romania and Bulgaria.

If commercial quantities of gas are

confirmed in these shales, Chevron will

seek permission to develop long-term,

production opportunities.

The exploration process is similar to

conventional oil and gas prospecting.

After being awarded licences or

leases, Chevron gains permission for

land access from governments and

landowners. A period of data gathering,

usually over several years, follows.

This helps to build an understanding

of the subsurface characteristics. One

method, seismic surveying, uses sound

waves to map potentially gas-rich areas

deep underground. Portable rigs testtargets by drilling wells into the shale

beds, which are up to 100 metres thick

and typically more than 2,500 metres

below the ground.

Hydraulic Fracturing

Development requires hydraulic

fracturing, an established, safe and

well-proven technology used in more

than 1 million wells since the 1960s. The

process involves pumping a fracturing

mix of water, sand and small amounts of

additives down a well and out through

holes in the steel liner, creating sand-

filled cracks to encourage gas to flow

(additives are the same as those used

in conventional operations and highly

regulated in EU member states). First,

discoveries are evaluated by fracturing

small test zones in vertical wells and

monitoring gas flow. If full development

is warranted, companies drill horizontal

wells through the gas-bearing rock,

and fracture the shale along the entirehorizontal leg.

Protecting Water

Chevron protects groundwater aquifers

from fracturing fluids and gas by lining

or casing wells with multiple layers

of steel and cement. Pressure tested

for strength, the liners last the life of

the well. Hydraulic fracturing fluids are

typically utilized at depths of 2 to

3 kilometre or more below groundwater

aquifers, separated from them bymultiple layers of impermeable rock.

After fracturing shale wells, flow-

back wastewater is either properly

disposed of at a certified waste facility,

treated and reused or, in some cases,

re-injected in deeper rock layers.

Chevron is an industry leader for

employing the highest safety and

environmental standards. Our work is

governed by a rigorous Operational

Excellence Management System, and we

conduct comprehensive environmental,

social and health impact assessments,

which ensure that we build and maintain

good relations with communities.

Safety, Values and

Partnership

Chevron seeks to be the global energy

company most admired for its people,

partnership and performance. The

safety of employees, workers and

the public is our highest priority.The company conducts business in

a socially responsible and ethical

manner, respecting the law, supporting

universal human rights and protecting

the environment. Chevron supports

health, culture, the environment,

education, economic development and

other priorities in communities near our

operations throughout the world.

Chevrons North AmericaShale Business

Chevron produces gas from shale

in the eastern United States

and is growing its production in

this key region. The company is

also conducting a major shale

exploration program in Canada.

Chevrons Energy TechnologyCompany and North America

business units support the

companys European shale

exploration activities with

shale development expertise

and experience.

U.S. shale gas output has grown

rapidly in the past decade. Shale

sources have grown from three

percent to provide about

25 percent of the countrys

production and could reach50 percent by 2035 (source: U.S.

Energy Information Administration).

A Global Energy Leader

In business more than 130 years,

Chevron is a major global energy

company, producing more than

2.7 million net barrels of oil and

equivalent gas per day from

operations on six continents. The

company is investing more than

$25 billion worldwide developingnew projects in 2011. Chevron also

manufactures and sells about

1.8 million barrels of transportation

fuels per day worldwide under

the Caltex, Texaco and Chevron

brands. The company has about

58,000 employees.