Dr. Donald L. Paul Corporate Vice President Technology and Environmental Affairs Chevron American Geological Institute Academic-Corporate Associates Conference February, 1999 challenges and opportunities turbulence State of the Geosciences

constant $ / bbl W T I B E N C H M A R K $15 Commodity crude oil prices and continued volatility 1982 to 1992: U.S. upstream employment declines >50% 1972 to 1982: U.S. upstream employment triples

3 Large Integrated Oils Super Large Integrated Oils Smaller Integrated Oils & Independents 0%10%15%20%25%30%5%TSR  S&P 20.0% Annualized Total Shareholder Return (TSR)  S&P 24.7% The competition for investors increases

4 Chevron Employee Population Age Group < > with hiring 2007 no hiring with hiring 2007 no hiring % SEG Managing the demographic wave is a major industry challenge

5 Factors driving geoscience employment Globalization of resources, markets, & technology (mega-trend)Globalization of resources, markets, & technology (mega-trend) Energy industry demographics remain very favorable (demand will not return to historical highs as bbl / employee continues to rise)Energy industry demographics remain very favorable (demand will not return to historical highs as bbl / employee continues to rise) Environmental geoscience demands should hold employment steady in the service sectorEnvironmental geoscience demands should hold employment steady in the service sector Basic earth science research (universities & government organizations) should remain about level (climate systems increasing)Basic earth science research (universities & government organizations) should remain about level (climate systems increasing) Inclusion of more earth science in academic programs could increase teaching demandInclusion of more earth science in academic programs could increase teaching demand

6 Typical traditional career options for geoscientists in the energy industry Exploration GeologistExploration Geologist Research GeophysicistResearch Geophysicist Seismic ProcessorSeismic Processor Log AnalystLog Analyst Chief GeologistChief Geologist Exploration ManagerExploration Manager VP ExplorationVP Exploration Functionally Directed & Discipline-Oriented Functionally Directed & Discipline-Oriented

7 New career options for geoscientists in the energy industry Asset Team MemberAsset Team Member Consulting SpecialistConsulting Specialist Technology MarketerTechnology Marketer Project ManagerProject Manager Business Unit ManagerBusiness Unit Manager Technology Product DeveloperTechnology Product Developer Technology System IntegratorTechnology System Integrator Operating Company PresidentOperating Company President Business Directed & Multi-disciplinary Business Directed & Multi-disciplinary

8 Why should geoscientists pursue a career in the energy industry? Exciting work & exotic locationsExciting work & exotic locations Truly global businessTruly global business Technologically advanced workTechnologically advanced work Highly educated workforceHighly educated workforce Empowered team environmentsEmpowered team environments Top-level industrial compensationTop-level industrial compensation Transportable skillsTransportable skills Very favorable demographicsVery favorable demographics

9 The best opportunities in a generation are available for individuals who: Possess superior content expertise combined with high-level information technology skillsPossess superior content expertise combined with high-level information technology skills Understand the connection of business success to science & technologyUnderstand the connection of business success to science & technology Have the ability to translate their knowledge & experience into new opportunities & lines of workHave the ability to translate their knowledge & experience into new opportunities & lines of work Are highly adaptable & flexibleAre highly adaptable & flexible Develop relationship & teamwork skillsDevelop relationship & teamwork skills Have a global mindset & language skillsHave a global mindset & language skills