Chevron

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1877, became a gusher yielding 70 barrels of oilper day, establishing California as an oil-producingstate. Soon after its success, Star Oil Works wasrenamed California Star Oil Works Company(CSOW), and had become an attractive candidatefor acquisition by a company with the financialacumen and capability to bring the products tomarket. That organization was Pacific Coast OilCompany (PCO), Chevron’s earliest predecessor,which acquired CSOW in 1879.

In the late 1880s, Standard Oil Co. (Iowa) —part of John D. Rockefeller’s Standard Oil

conglomerate — had become a leading mar-keter on the U.S. West Coast. By 1900,Rockefeller’s Standard Oil Company (NewJersey), the holding company of the con-glomerate, acquired PCO, adding production

to its preeminent position in marketing. Six years later, it fully integrated the oper-ations of PCO and Iowa Standard to create Standard Oil Co. (California).Over the next two decades, Standard Oil (California) became the marketingleader in its five-state West Coast area,driven by strong brand awareness, aggres-

sive marketing, and an impressive rosterof products, including Royal Crown gasoline

and Zerolene motor oil. Flush with the acquisition of Pacific Oil Co.

in 1926, the company reincorporated as StandardOil Co. of California, or Socal. In the 1930s,Socal formed three joint ventures that sparked itsinternational expansion. Two involved explorationrights extending from the deserts of Saudi Arabiato the jungles of Indonesia. The third involved thebirth of a historic partnership with the Texas Co.(later, Texaco) to form California Texas Oil Co.,Ltd., or Caltex, with marketing operations fromAfrica to Asia and a small refinery in Bahrainthat would become the first of a widespreadglobal network.

In the decades that fol-lowed, the company

THE MARKETOriginally derided as a “horseless carriage” whenit was invented more than 100 years ago, theautomobile soon captured the public imaginationand transformed daily life. This worldwide loveaffair with the automobile has created an ever-expanding market for not only the fuels and prod-ucts to keep cars running, but also for thenetwork of retailer service stations and conven-ience stores for supplying customers.

From the first oil wells found in Pennsylvania,California, and Texas in the second half of the19th century to today’s exploration operations thatspan the globe, energy companies likeChevron supply refined petroleum prod-ucts to marine, aviation, and lubricantsindustries to keep our world moving. Inaddition, Chevron-branded products andservices like the unsurpassed Techron®

engine-deposit cleaning additive, Chevroncredit cards, and Chevron conveniencestores have become an established part ofthe automotive products market.

ACHIEVEMENTSAs one of three brands owned by ChevronCorporation, which is the second-largest U.S.-basedenergy company and the fifth-largest in the world,the Chevron brand can be found at over 7,500 retailoutlets in 29 U.S. states, primarily in the West,South, and Southwest, and in western Canada.Capitalizing on the success of Chevron’s newExtraMile convenience store program in 2006, it isnow available to retailers in Washington andCalifornia as a full-fledged franchise offering. Theoutstanding quality and convenience of ExtraMilecomplements the quality customers have come toexpect from Chevron gasolines with Techron®.

Chevron’s proprietary gasoline additive,Techron®, is widely recognized throughout theindustry as providing unsurpassed intake systemcleanliness on vital engine parts, helping deliverimproved vehicle driving performance, optimal

fuel economy, and reduced

emissions. In May 2004, Chevron became the firstmarketer to have its fuel approved as meeting per-formance criteria set by BMW, GM, Honda, andToyota for “TOP TIER Detergent Gasoline” — astandard for gasoline detergency significantlyhigher than that established by the U.S.Environmental Protection Agency. All grades ofChevron gasoline with the Techron® additive meetthe “TOP TIER Detergent Gasoline” criteria.

In December 2004, Chevron also became the firstmarketer in Canada to have its fuel approved asmeeting the TOP TIER standard.

HISTORYIn the 1860s, spurred by memories of the goldrush, hordes of prospectors descended onCalifornia seeking another kind of bounty: blackgold. It took more than 10 years before anyonesucceeded, but in September 1875 Alex Mentry ofStar Oil Works overcame rattlesnakes, wasps,mud, and underbrush to strike oil in California’sPico Canyon. Two years later, this remote portionof the rugged Santa Susana Mountains of SanJoaquin County yielded a greater find whenMentry drilled Pico No. 4, which,

when deepened in

are more than just a representation of the organi-zation; they are a promise to customers.

A strong brand cannot exist without strongemployee culture. The behavior and actions of

Chevron’s people help

mold what the brand has been and what it willbecome. Take, for instance, Chevron’s group ofhighly trained tanker truck drivers. Every dayaround the world, thousands of fuel deliveries aremade to Chevron stations. And for Chevron“Master Drivers” — a Chevron tanker driver whohas operated for 20 years without incident, acci-dent, spills, or tickets of any kind — what theyconsider routine performance has helped person-ify what Chevron’s goal of safe operations means.Everywhere they go, Chevron drivers carry thecompany logo. They play a critical role in repre-senting the Chevron brand on the roads where itscustomers drive.

continued to focus on global operations, from thedevelopment of the Minas and Duri fields inSumatra to construction of the 1,068-mile Trans-Arabian pipeline in Saudi Arabia. The companyalso pursued growth through partnerships, includ-ing the acquisition of Standard Oil Co. (Kentucky)in 1961 and the merger with Gulf Oil Corporationin 1984. The Gulf merger gave rise to a new corpo-rate name, Chevron Corporation, which wasderived from the chevron-shaped logo Socal hadbeen using on products for decades and underwhich it operated in many U.S. locations. Thechange reflected the brand’s powerful association inthe public’s mind with quality, value, and service.

In the years ahead, as petroleum companiesengaged increasingly in megaprojects, theybecame more prone to seek partners to share capital and risk. In 2001, Chevron Corporationand Texaco Inc., two long-standing partners,agreed to a historic merger that created today’sChevron Corporation.

THE PRODUCTChevron’s quality products are designed to keepvehicles running efficiently and include Chevronwith Techron® gasoline and Chevron diesel fuels,plus coolants, transmission fluids, and a fullrange of lubricants for passenger cars and diesels.

Since 1973, all three major U.S. auto manu-facturers have used Chevron gasolines to helptheir new engines pass the U.S. EnvironmentalProtection Agency’s tough 50,000- and 100,000-mile emissions system durability tests. With the introduction of Techron® in 1995, Chevron gasolines continue to offer great engine perform-ance with the lowest possible deposit-relatedengine emissions.

RECENT DEVELOPMENTSAfter analyzing retail data of all fuel brands for2006, the Oil Price Information Service (OPIS)ranked Chevron as a Most Powerful Brand for thethird consecutive year. To help build the strongbrand connection with customers, 2007 continuesChevron’s nationwide introduction of completelyredesigned service stations for a cleaner and more contemporary look. Based on consumerfeedback, a new Chevron logo highlights the

refreshed motif along with a brighter fuel-ing area, more energy-efficient lightingsystem, and more ergonomic fuelingislands. This significant investment furtherdemonstrates the commitment Chevronmakes to maintaining its brand image withdedicated customers.

PROMOTIONFor much of its history, the company’sadvertising focus was on the superior qual-ity of Chevron’s product line, whether themedium was print, billboards, or televi-sion. In recent decades, this approach hascombined with corporate advertising thatfocuses on the company’s values. Onememorable U.S. corporate campaign,launched in 1985, was titled “People Do” andfeatured the company’s efforts to protect the environment near its facilities. From artificial

reefs in Floridato raptor perches in Wyoming to the preservationof butterfly habitats in California, the 16-year campaign became familiar to televisionviewers in the United States, accompanied bymagazine advertisements.

In May 1995, Chevron launched one of itslongest-lasting and most endearing marketingpromotions: the Chevron Cars. Quirky and play-ful, the appealing automobiles “talk” about the“concerns, hopes, and dreams” of cars every-where and subtly promote the company’s high-quality products.

From the original Sam Sedan, Tony Turbo,and Wendy Wagon to the latest model, TravisTanker, the fleet of more than three dozenChevron Cars have proven extremely popularamong children of all ages. There is even aChevron Cars Web site that fosters an enjoyableand educational learning environment for chil-dren, parents, and educators alike.

BRAND VALUESBuilt on the core brand values of quality, reliabil-ity, and cleanliness, Chevron is often viewed byconsumers as having an engaging and likeablepersona. The success of the Chevron Cars cam-paign has played a role in establishing this valu-able public image and helps keep Chevron in thehearts and minds of its customers.

More than 70 years ago, Socal adopted as itscompany symbol a three-bar chevron based on anancient design motif identified with rank andservice. The symbol came to be so stronglylinked to the company products and service sta-tions that in 1984 “Chevron” became the corpo-rate name. Even before the introduction of theChevron logo, the company’s products — such asRed Crown gasoline and Zerolene motor oil —were brands synonymous in the public mind withquality, value, and service. Those same attributes

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m Chevron’s Techron® additive is so advancedin its cleaning ability that when the technol-ogy was originally introduced in the early1980s, it already surpassed 1995 EPAdeposit control requirements, almost 15years before they came into effect.

m Since 2001, Chevron has presented a special-edition toy car specifically created to raiseawareness about breast cancer and hasdonated all net proceeds from its sale topromote the early detection of breast can-cer. Chevron has helped raise more than$1.5 million in the quest to promote breastcancer awareness.

m In 2006, Chevron spent nearly a half-billiondollars in funding alternative fuel programslike helping build the country’s largestbiodiesel refinery in Texas and donatingmillions for biomass research with GeorgiaTech and University of California–Davis.

THINGS YOU DIDN’T KNOW ABOUTCHEVRON