“Defining eBusiness Success” Dave Clementz ChevronTexaco Information Technology Company Presented by Ray Casserly ChevronTexaco Latin America Business Unit 18th World Energy Congress Buenos Aires, October 2001

West Texas Intermediate Crude Price ‘83‘85‘87‘89‘91‘93‘95‘97‘ Average Monthly $/BBL Survival and Rebirth A major 1996 study by Cambridge Energy Research credited Information Technology for the "survival and rebirth" of the petroleum sector during a decade of flat oil prices. 60

The Fortune 100 U.S. Oil & Gas Companies (listed in order of revenue) 1973  Exxon  Mobil  Texaco  Gulf  Chevron  Amoco  Arco  Tenneco  Phillips  Occidental  Unocal  Sun  Sohio  Getty 2000  Exxon/Mobil  Texaco  Chevron  Phillips

The Fortune 100 U.S. Oil & Gas Companies (listed in order of revenue) 1973  Exxon  Mobil  Texaco  Gulf  Chevron  Amoco  Arco  Tenneco  Phillips  Occidental  Unocal  Sun  Sohio  Getty 2000  Exxon/Mobil  Enron  Texaco  Duke Energy  Chevron  Conoco  Dynegy  Reliant Energy  El Paso  Phillips

Customers and Markets Ship Distribute Develop Explore The new economy for energy: molecules and bytes Produce Market Information Refine / Blend Store / Pipe Suppliers and Partners

Lower costs Lower costs Shorter cycle times Shorter cycle times Better decisions Better decisions New relationships New relationships New sources of business growth New sources of business growth Digital business models: The e-business value proposition  New ways of transacting business  New ways and forms of information sharing  New ways of collaborating

Tightly link suppliers, customers, and partners to the business Net-enabled Infrastructure and Process Improvement Net-enabled Partner Relationships Net Intermediaries Intermediaries Increase speed and lower costs Internet marketplaces marketplaces The e-business transformation process is multi-tiered and complex

Defining Success: Participate to learn; adapt quickly; net-enable infrastructure and processes; keep going Lessons from the e-business road...  B2B is complex  B2B requires large investments  e-business models continuously evolve and may not be stable  Infrastructure and business integration are critical  Cultural factors make a difference

Economic Model Reserves Model Dynamic Simulation Model Earth Model Field Operations Model Strategic Decisions Operating Decisions Knowledge Sharing Decision Tools Integrated Data Management Environment Modeling & Predictive Tools Seismic - Subsurface - Well Construction - Facilities - Production The oil field of the future builds off the technology convergence

Chips in Objects Chips in Computers 6 billion “measure everything / observe everything / broadcast everything / connect everyone” Digital tidal wave  Pervasive intelligent objects and sensors  Radical increases in sensing capabilities  Global connectivity

B2B Is Here to Stay