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Document and Company Information - USD ($)	9 Months Ended
Document and Company Information - USD ($)	Sep. 30, 2009	Jun. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	CHEVRON CORP
Entity Central Index Key	0000093410
Document Type	10-Q
Document Period End Date	Sep. 30, 2009
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$ 203,659,751,369
Entity Common Stock, Shares Outstanding	2,006,267,842

Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2009	Sep. 30, 2008	Sep. 30, 2009	Sep. 30, 2008
Revenues and Other Income
Sales and other operating revenues *	$ 45,180	$ 76,192	$ 119,814	$ 221,813
Income from equity affiliates	1,072	1,673	2,418	4,480
Other income	373	1,002	728	1,509
Total Revenues and Other Income	46,625	78,867	122,960	227,802
Costs and Other Deductions
Purchased crude oil and products	26,969	49,238	71,047	147,822
Operating expenses	4,403	5,676	12,958	15,379
Selling, general and administrative expenses	1,177	1,278	3,197	4,264
Exploration expenses	242	271	1,061	831
Depreciation, depletion and amortization	2,988	2,449	8,954	6,939
Taxes other than on income *	4,644	5,614	13,008	16,756
Interest and debt expense	14	0	28	0
Total Costs and Other Deductions	40,437	64,526	110,253	191,991
Income Before Income Tax Expense	6,188	14,341	12,707	35,811
Income Tax Expense	2,342	6,416	5,246	16,681
Net Income	3,846	7,925	7,461	19,130
Less: Net income attributable to noncontrolling interests	15	32	48	94
Net Income Attributable to Chevron Corporation	$ 3,831	$ 7,893	$ 7,413	$ 19,036
Per Share of Common Stock:
Net Income Attributable to Chevron Corporation - Basic	$ 1.92	$ 3.88	$ 3.72	$ 9.29
Net Income Attributable to Chevron Corporation - Diluted	1.92	3.85	3.71	9.23
Dividends	$ 0.68	$ 0.65	$ 1.98	$ 1.88
Weighted Average Number of Shares Outstanding (000s)
Basic	1,992,452	2,032,433	1,991,733	2,049,812
Diluted	2,000,586	2,044,616	1,999,925	2,063,149
* Includes excise, value-added and similar taxes:	$ 2,079	$ 2,577	$ 6,023	$ 7,766

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2009	Sep. 30, 2008	Sep. 30, 2009	Sep. 30, 2008
Statement [Line Items]
Net Income	$ 3,846	$ 7,925	$ 7,461	$ 19,130
Currency translation adjustment	31	(67)	44	(84)
Unrealized holding gain (loss) on securities:
Net gain (loss) arising during period	8	(13)	3	(5)
Derivatives:
Net derivatives gain (loss) on hedge transactions	7	126	(65)	74
Reclassification to net income of net realized (gain) loss	(9)	4	(25)	15
Income taxes on derivatives transactions	1	(44)	31	(32)
Total	(1)	86	(59)	57
Actuarial loss:
Amortization to net income of net actuarial loss	136	62	451	187
Prior service cost:
Amortization to net income of net prior service credits	(15)	(16)	(49)	(47)
Defined benefit plans sponsored by equity affiliates	5	7	10	22
Income taxes on defined benefit plans	(45)	(17)	(152)	(65)
Total	81	36	260	97
Other Comprehensive Gain, Net of Tax	119	42	248	65
Comprehensive Income	3,965	7,967	7,709	19,195
Comprehensive income attributable to noncontrolling interests	(15)	(32)	(48)	(94)
Comprehensive Income Attributable to Chevron Corporation	$ 3,950	$ 7,935	$ 7,661	$ 19,101

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Sep. 30, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$ 7,568	$ 9,347
Marketable securities	121	213
Accounts and notes receivable, net	17,070	15,856
Inventories:
Crude oil and petroleum products	4,652	5,175
Chemicals	333	459
Materials, supplies and other	1,338	1,220
Total inventories	6,323	6,854
Prepaid expenses and other current assets	4,459	4,200
Total Current Assets	35,541	36,470
Long-term receivables, net	2,394	2,413
Investments and advances	21,564	20,920
Properties, plant and equipment, at cost	183,547	173,299
Less: Accumulated depreciation, depletion and amortization	89,290	81,519
Properties, plant and equipment, net	94,257	91,780
Deferred charges and other assets	3,870	4,711
Goodwill	4,619	4,619
Assets held for sale	316	252
Total Assets	162,561	161,165
LIABILITIES AND EQUITY
Short-term debt	240	2,818
Accounts payable	15,715	16,580
Accrued liabilities	5,501	8,077
Federal and other taxes on income	2,562	3,079
Other taxes payable	1,375	1,469
Total Current Liabilities	25,393	32,023
Long-term debt	9,973	5,742
Capital lease obligations	329	341
Deferred credits and other noncurrent obligations	17,497	17,678
Noncurrent deferred income taxes	11,738	11,539
Reserves for employee benefit plans	6,409	6,725
Total Liabilities	71,339	74,048
Preferred stock (authorized 100,000,000 shares, $1.00 par value, none issued)	0	0
Common stock (authorized 6,000,000,000 shares, $.75 par value, 2,442,676,580 shares issued at September 30, 2009, and December 31, 2008)	1,832	1,832
Capital in excess of par value	14,584	14,448
Retained earnings	104,575	101,102
Accumulated other comprehensive loss	(3,676)	(3,924)
Deferred compensation and benefit plan trust	(414)	(434)
Treasury stock, at cost (436,408,738 and 438,444,795 shares at September 30, 2009, and December 31, 2008, respectively)	(26,255)	(26,376)
Total Chevron Corporation Stockholders' Equity	90,646	86,648
Noncontrolling interests	576	469
Total Equity	91,222	87,117
Total Liabilities and Equity	$ 162,561	$ 161,165

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2009	Sep. 30, 2008
Operating Activities
Net Income Attributable to Chevron Corporation	$ 7,413	$ 19,036
Adjustments
Depreciation, depletion and amortization	8,954	6,939
Dry hole expense	481	287
Distributions less than income from equity affiliates	(510)	(278)
Net before-tax gains on asset retirements and sales	(1,083)	(757)
Net foreign currency effects	481	(74)
Deferred income tax provision	335	37
Net increase in operating working capital	(2,993)	(713)
Net income attributable to noncontrolling interests	48	94
Increase in long-term receivables	(288)	(221)
Decrease (increase) in other deferred charges	131	(70)
Cash contributions to employee pension plans	(860)	(169)
Other	244	313
Net Cash Provided by Operating Activities	12,353	24,424
Investing Activities
Capital expenditures	(14,488)	(13,632)
Proceeds and deposits related to asset sales	2,132	1,384
Net sales of marketable securities	113	351
Repayment of loans by equity affiliates	167	169
Net sales of other short-term investments	153	359
Net Cash Used for Investing Activities	(11,923)	(11,369)
Financing Activities
Net (payments) borrowings of short-term obligations	(3,258)	661
Proceeds from issuance of long-term debt	5,339	0
Repayments of long-term debt and other financing obligations	(461)	(926)
Cash dividends	(3,945)	(3,861)
Distributions to noncontrolling interests	(37)	(88)
Net sales (purchases) of treasury shares	86	(5,530)
Net Cash Used for Financing Activities	(2,276)	(9,744)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	67	(37)
Net Change in Cash and Cash Equivalents	(1,779)	3,274
Cash and Cash Equivalents at January 1	9,347	7,362
Cash and Cash Equivalents at September 30	$ 7,568	$ 10,636

Interim Financial Statements

9 Months Ended

Sep. 30, 2009

Interim Financial Statements [Abstract]

Interim Financial Statements


Note 1.	Interim Financial Statements

The accompanying consolidated financial statements of Chevron Corporation and its subsidiaries (the company) have not been audited by an independent registered public accounting firm. In the opinion of the company’s management, the interim data include all adjustments necessary for a fair statement of the results for the interim periods. These adjustments were of a normal recurring nature. The results for the three- and nine-month periods ended September 30, 2009, are not necessarily indicative of future financial results. The term “earnings” is defined as net income attributable to Chevron Corporation.

Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the company’s 2008 Annual Report on Form 10-K.

Effective with the quarter ending September 30, 2009, the company implemented the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) system. The ASC supersedes literature of the FASB, Emerging Issues Task Force and other sources. The ASC did not change U.S. generally accepted accounting principles. Refer also to Note 15 beginning on page 21 for discussion of ASC.

Events subsequent to September 30, 2009, were evaluated until the time of the Form 10-Q filing with the Securities and Exchange Commission on November 5, 2009.

Earnings for the third quarter 2009 included $400 million of after-tax gains from asset sales and tax items related to an upstream project in Australia. Earnings for the first nine months of 2009 also included $540 million of after-tax gains reported in the first half of the year on sales of marketing businesses outside the United States.

Earnings for the third quarter and nine months of 2008 included approximately $400 million of expenses associated with damage to upstream facilities in the U.S. Gulf of Mexico caused by hurricanes. Largely offsetting the impact of these expenses were gains of about $350 million on U.S. upstream asset sales.

Information Relating to the Consolidated Statement of Cash Flows

9 Months Ended

Sep. 30, 2009

Information Relating to Consolidated Statement of Cash Flows [Abstract]

Information Relating to the Consolidated Statement of Cash Flows


Note 3.	Information Relating to the Consolidated Statement of Cash Flows

The “Net increase in operating working capital” was composed of the following operating changes:


	Nine Months Ended
	September 30
	2009			2008
	(Millions of dollars)

Increase in accounts and notes receivable	$	(877	)	$	(2,559	)
Decrease (increase) in inventories		356			(979	)
Increase in prepaid expenses and other current assets		(216	)		(461	)
(Decrease) increase in accounts payable and accrued liabilities		(1,597	)		1,507
(Decrease) increase in income and other taxes payable		(659	)		1,779

Net increase in operating working capital	$	(2,993	)	$	(713	)

The “Net increase in operating working capital” includes reductions of $11 million and $102 million for excess income tax benefits associated with stock options exercised during the nine months ended September 30, 2009, and 2008, respectively. These amounts are offset by an equal amount in “Net sales (purchases) of treasury shares.”

“Net Cash Provided by Operating Activities” included the following cash payments for interest on debt and for income taxes:


	Nine Months Ended
	September 30
	2009		2008
	(Millions of dollars)

Interest on debt (net of capitalized interest)	$	11	$	—
Income taxes		4,825		14,298

The “Net sales of marketable securities” consisted of the following gross amounts:


	Nine Months Ended
	September 30
	2009			2008
	(Millions of dollars)

Marketable securities purchased	$	(24	)	$	(3,232	)
Marketable securities sold		137			3,583

Net sales of marketable securities	$	113		$	351

The “Net sales (purchases) of treasury shares” represents the cost of common shares acquired less the cost of shares issued for share-based compensation plans. Net sales totaled $86 million in the first nine months of 2009 and net purchases totaled $5.5 billion in the 2008 period. Purchases in the 2008 period were under the company’s stock repurchase program initiated in September 2007. No purchases were made under the program in the 2009 period.

The major components of “Capital expenditures” and the reconciliation of this amount to the capital and exploratory expenditures, including equity affiliates, are as follows:


	Nine Months Ended
	September 30
	2009			2008
	(Millions of dollars)

Additions to properties, plant and equipment	$	13,542		$	12,812
Additions to investments		793			715
Current-year dry-hole expenditures		399			239
Payments for other liabilities and assets, net		(246	)		(134	)

Capital expenditures		14,488			13,632
Expensed exploration expenditures		580			544
Assets acquired through capital-lease obligations		20			14

Capital and exploratory expenditures, excluding equity affiliates		15,088			14,190
Company’s share of expenditures by equity affiliates		923			1,587

Capital and exploratory expenditures, including equity affiliates	$	16,011		$	15,777

“Additions to properties, plant and equipment” in the 2009 period include $2 billion for a cash payment related to the extension of an upstream concession agreement.

Operating Segments and Geographic Data

9 Months Ended

Sep. 30, 2009

Operating Segments and Geographic Data [Abstract]

Operating Segments and Geographic Data


Note 4.	Operating Segments and Geographic Data

Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. For this purpose, the investments are grouped as follows: upstream — exploration and production; downstream — refining, marketing and transportation; chemicals; and all other. The first three of these groupings represent the company’s “reportable segments” and “operating segments” as defined in the accounting standards.

The segments are separately managed for investment purposes under a structure that includes “segment managers” who report to the company’s “chief operating decision maker” (CODM) (terms as defined in the accounting standards). The CODM is the company’s Executive Committee, a committee of senior officers that includes the Chief Executive Officer, and that in turn reports to the Board of Directors of Chevron Corporation.

The operating segments represent components of the company as described in the accounting standards that engage in activities (a) from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the CODM, which makes decisions about resources to be allocated to the segments and to assess their performance; and (c) for which discrete financial information is available.

Segment managers for the reportable segments are directly accountable to and maintain regular contact with the company’s CODM to discuss the segment’s operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the Executive Committee also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM.

“All Other” activities include mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels and technology companies.

The company’s primary country of operation is the United States of America, its country of domicile. Other components of the company’s operations are reported as “International” (outside the United States).

Segment Earnings The company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs and assets are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. Nonbillable costs remain at the corporate level in “All Other.” Earnings by major operating area for the three- and nine-month periods ended September 30, 2009 and 2008 are presented in the following table:

Segment Earnings


	Three Months Ended						Nine Months Ended
	September 30						September 30
	2009			2008			2009			2008
	(Millions of dollars)

Upstream
United States	$	878		$	2,187		$	1,172		$	5,977
International		2,762			3,995			5,256			12,581

Total Upstream		3,640			6,182			6,428			18,558

Downstream
United States		34			1,014			72			336
International		160			817			1,106			1,013

Total Downstream		194			1,831			1,178			1,349

Chemicals
United States		105			30			165			32
International		59			40			146			122

Total Chemicals		164			70			311			154

Total Segment Earnings		3,998			8,083			7,917			20,061

All Other
Interest Expense		(11	)		—			(22	)		—
Interest Income		10			52			36			157
Other		(166	)		(242	)		(518	)		(1,182	)

Net Income Attributable to Chevron Corporation	$	3,831		$	7,893		$	7,413		$	19,036

Segment Assets Segment assets do not include intercompany investments or intercompany receivables. “All Other” assets in 2009 consist primarily of worldwide cash, cash equivalents and marketable securities, real estate, information systems, mining operations, power generation businesses, technology companies and assets of the corporate administrative functions. Segment assets at September 30, 2009, and December 31, 2008, are as follows:

Segment Assets


	At September 30		At December 31
	2009		2008
	(Millions of dollars)

Upstream
United States		$ 24,711		$ 26,071
International		74,125		72,530
Goodwill		4,619		4,619

Total Upstream		103,455		103,220

Downstream
United States		17,697		15,869
International		25,080		23,572

Total Downstream		42,777		39,441

Chemicals
United States		2,736		2,535
International		1,051		1,086

Total Chemicals		3,787		3,621

Total Segment Assets		150,019		146,282

All Other
United States		6,804		8,984
International		5,738		5,899

Total All Other		12,542		14,883

Total Assets — United States		51,948		53,459
Total Assets — International		105,994		103,087
Goodwill		4,619		4,619

Total Assets		$162,561		$161,165

Segment Sales and Other Operating Revenues Operating-segment sales and other operating revenues, including internal transfers, for the three- and nine-month periods ended September 30, 2009 and 2008, are presented in the table on the following page. Products are transferred between operating segments at internal product values that approximate market prices. Revenues for the upstream segment are derived primarily from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil. This segment also generates revenues from the transportation and trading of crude oil and refined products. Revenues for the chemicals segment are derived primarily from the manufacture and sale of additives for lubricants and fuels. “All Other” activities include revenues from mining operations, power generation businesses, insurance operations, real estate activities and technology companies.

Sales and Other Operating Revenues


	Three Months Ended						Nine Months Ended
	September 30						September 30
	2009			2008			2009			2008
	(Millions of dollars)

Upstream
United States	$	4,964		$	11,036		$	13,596		$	32,980
International		8,321			12,295			22,256			36,514

Sub-total		13,285			23,331			35,852			69,494
Intersegment Elimination — United States		(3,008	)		(4,461	)		(6,910	)		(13,094	)
Intersegment Elimination — International		(4,864	)		(6,840	)		(12,695	)		(21,009	)

Total Upstream		5,413			12,030			16,247			35,391

Downstream
United States		17,992			27,692			44,595			77,803
International		21,224			35,924			57,491			107,086

Sub-total		39,216			63,616			102,086			184,889
Intersegment Elimination — United States		(46	)		(126	)		(136	)		(377	)
Intersegment Elimination — International		(34	)		(44	)		(73	)		(107	)

Total Downstream		39,136			63,446			101,877			184,405

Chemicals
United States		131			146			361			424
International		389			443			1,051			1,265

Sub-total		520			589			1,412			1,689
Intersegment Elimination — United States		(56	)		(60	)		(151	)		(189	)
Intersegment Elimination — International		(35	)		(43	)		(99	)		(122	)

Total Chemicals		429			486			1,162			1,378

All Other
United States		474			448			1,181			1,212
International		18			19			47			56

Sub-total		492			467			1,228			1,268
Intersegment Elimination — United States		(281	)		(230	)		(679	)		(611	)
Intersegment Elimination — International		(9	)		(7	)		(21	)		(18	)

Total All Other		202			230			528			639

Sales and Other Operating Revenues
United States		23,561			39,322			59,733			112,419
International		29,952			48,681			80,845			144,921

Sub-total		53,513			88,003			140,578			257,340
Intersegment Elimination — United States		(3,391	)		(4,877	)		(7,876	)		(14,271	)
Intersegment Elimination — International		(4,942	)		(6,934	)		(12,888	)		(21,256	)

Total Sales and Other Operating Revenues	$	45,180		$	76,192		$	119,814		$	221,813

Summarized Financial Data Chevron U.S.A. Inc.

9 Months Ended

Sep. 30, 2009

Summarized Financial Data Of Subsidiary One [Abstract]

Summarized Financial Data - Chevron U.S.A. Inc.


Note 5.	Summarized Financial Data — Chevron U.S.A. Inc.

Chevron U.S.A. Inc. (CUSA) is a major subsidiary of Chevron Corporation. CUSA and its subsidiaries manage and operate most of Chevron’s U.S. businesses. Assets include those related to the exploration and production of crude oil, natural gas and natural gas liquids and those associated with refining, marketing, and supply and distribution of products derived from petroleum, excluding most of the regulated pipeline operations of Chevron. CUSA also holds the company’s investment in the Chevron Phillips Chemical Company LLC joint venture, which is accounted for using the equity method.

During 2008, Chevron implemented legal reorganizations in which certain Chevron subsidiaries transferred assets to or under CUSA. The summarized financial information for CUSA and its consolidated subsidiaries presented in the table below gives retroactive effect to the reorganizations as if they had occurred on January 1, 2008. However, the financial information below may not reflect the financial position and operating results in the future or the historical results in the period presented if the reorganization actually had occurred on that date. The summarized financial information for CUSA and its consolidated subsidiaries is as follows:


	Nine Months Ended
	September 30
	2009		2008
	(Millions of dollars)

Sales and other operating revenues	$	86,522	$	166,627
Costs and other deductions		85,461		159,855
Net income attributable to Chevron U.S.A. Inc.		852		4,636


	At September 30		At December 31
	2009		2008
	(Millions of dollars)

Current assets		$32,975		$32,760
Other assets		32,358		31,806
Current liabilities		13,806		14,322
Other liabilities		14,482		14,049

Total Chevron U.S.A. Inc. net equity		$37,045		$36,195

Memo: Total debt		$ 6,985		$ 6,813

The amount for the nine months ended September 30, 2008, for “Net income attributable to Chevron U.S.A. Inc” and the balances at December 31, 2008, for “Other liabilities” and “Total Chevron U.S.A. Inc. net equity” have been adjusted by immaterial amounts associated with the allocation of income-tax liabilities among Chevron Corporation subsidiaries.

Employee Benefits

9 Months Ended

Sep. 30, 2009

Employee Benefits [Abstract]

Employee Benefits


Note 8.	Employee Benefits

Chevron has defined-benefit pension plans for many employees. The company typically prefunds defined-benefit plans as required by local regulations or in certain situations where pre-funding provides economic advantages. In the United States, this includes all qualified plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) minimum funding standard. The company does not typically fund U.S. nonqualified pension plans that are not subject to funding requirements under applicable laws and regulations because contributions to these pension plans may be less economic and investment returns may be less attractive than the company’s other investment alternatives.

The company also sponsors other postretirement plans that provide medical and dental benefits, as well as life insurance for some active and qualifying retired employees. The plans are unfunded, and the company and the retirees share the costs. Medical coverage for Medicare-eligible retirees in the company’s main U.S. medical plan is secondary to Medicare (including Part D) and the increase to the company contribution for retiree medical coverage is limited to no more than 4 percent each year. Certain life insurance benefits are paid by the company.

The components of net periodic benefit costs for 2009 and 2008 are as follows:


	Three Months Ended						Nine Months Ended
	September 30						September 30
	2009			2008			2009			2008
	(Millions of dollars)						(Millions of dollars)

Pension Benefits
United States
Service cost	$	66		$	63		$	199		$	188
Interest cost		121			125			361			374
Expected return on plan assets		(99	)		(149	)		(296	)		(445	)
Amortization of prior-service credits		(1	)		(1	)		(5	)		(5	)
Amortization of actuarial losses		74			14			223			44
Settlement losses		25			19			126			58

Total United States		186			71			608			214

International
Service cost		31			34			90			102
Interest cost		76			81			215			224
Expected return on plan assets		(52	)		(76	)		(148	)		(209	)
Amortization of prior-service costs		6			6			17			19
Amortization of actuarial losses		30			19			81			56
Termination costs		—			—			—			1

Total International		91			64			255			193

Net Periodic Pension Benefit Costs	$	277		$	135		$	863		$	407

Other Benefits*
Service cost	$	9		$	7		$	25		$	63
Interest cost		45			45			134			134
Amortization of prior-service credits		(20	)		(21	)		(61	)		(61	)
Amortization of actuarial losses		6			10			20			29
Curtailment gains		—			—			(5	)		—

Net Periodic Other Benefit Costs	$	40		$	41		$	113		$	165


*		Includes costs for U.S. and international other postretirement benefit plans. Obligations for plans outside the U.S. are not significant relative to the company’s total other postretirement benefit obligation.

At the end of 2008, the company estimated it would contribute $800 million to employee pension plans during 2009 (composed of $550 million for the U.S. plans and $250 million for the international plans). Through September 30, 2009, a total of $860 million was contributed (including $741 million to the U.S. plans). Total contributions for the full year are currently estimated at $1 billion ($750 million for the U.S. plans and $250 million for the international plans). Actual contribution amounts are dependent upon investment returns, changes in pension obligations, regulatory environments and other economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.

During the first nine months of 2009, the company contributed $140 million to its other postretirement benefit plans. The company anticipates contributing about $70 million during the remainder of 2009.

Litigation

9 Months Ended

Sep. 30, 2009

Litigation [Abstract]

Litigation


Note 10.	Litigation

MTBE Chevron and many other companies in the petroleum industry have used methyl tertiary butyl ether (MTBE) as a gasoline additive. Chevron is a party to 50 pending lawsuits and claims, the majority of which involve numerous other petroleum marketers and refiners. Resolution of these lawsuits and claims may ultimately require the company to correct or ameliorate the alleged effects on the environment of prior release of MTBE by the company or other parties. Additional lawsuits and claims related to the use of MTBE, including personal-injury claims, may be filed in the future. The company’s ultimate exposure related to pending lawsuits and claims is not currently determinable, but could be material to net income in any one period. The company no longer uses MTBE in the manufacture of gasoline in the United States.

Ecuador Chevron is a defendant in a civil lawsuit before the Superior Court of Nueva Loja in Lago Agrio, Ecuador, brought in May 2003 by plaintiffs who claim to be representatives of certain residents of an area where an oil production consortium formerly had operations. The lawsuit alleges damage to the environment from the oil exploration and production operations, and seeks unspecified damages to fund environmental remediation and restoration of the alleged environmental harm, plus a health monitoring program. Until 1992, Texaco Petroleum Company (Texpet), a subsidiary of Texaco Inc., was a minority member of this consortium with Petroecuador, the Ecuadorian state-owned oil company, as the majority partner; since 1990, the operations have been conducted solely by Petroecuador. At the conclusion of the consortium and following an independent third-party environmental audit of the concession area, Texpet entered into a formal agreement with the Republic of Ecuador and Petroecuador for Texpet to remediate specific sites assigned by the government in proportion to Texpet’s ownership share of the consortium. Pursuant to that agreement, Texpet conducted a three-year remediation program at a cost of $40 million. After certifying that the sites were properly remediated, the government granted Texpet and all related corporate entities a full release from any and all environmental liability arising from the consortium operations.

Based on the history described above, Chevron believes that this lawsuit lacks legal or factual merit. As to matters of law, the company believes first, that the court lacks jurisdiction over Chevron; second, that the law under which plaintiffs bring the action, enacted in 1999, cannot be applied retroactively to Chevron; third, that the claims are barred by the statute of limitations in Ecuador; and, fourth, that the lawsuit is also barred by the releases from liability previously given to Texpet by the Republic of Ecuador and Petroecuador. With regard to the facts, the company believes that the evidence confirms that Texpet’s remediation was properly conducted and that the remaining environmental damage reflects Petroecuador’s failure to timely fulfill its legal obligations and Petroecuador’s further conduct since assuming full control over the operations.

In April 2008, a mining engineer appointed by the court to identify and determine the cause of environmental damage, and to specify steps needed to remediate it, issued a report recommending that the court assess $8 billion, which would, according to the engineer, provide financial compensation for purported damages, including wrongful death claims, and pay for, among other items, environmental remediation, health care systems, and additional infrastructure for Petroecuador. The engineer’s report also asserted that an additional $8.3 billion could be assessed against Chevron for unjust enrichment. The engineer’s report is not binding on the court. Chevron also believes that the engineer’s work was performed and his report prepared in a manner contrary to law and in violation of the court’s orders. Chevron submitted a rebuttal to the report in which it asked the court to strike the report in its entirety. In November 2008, the engineer revised the report and, without additional evidence, recommended an increase in the financial compensation for purported damages to a total of $18.9 billion and an increase in the assessment for purported unjust enrichment to a total of $8.4 billion. Chevron submitted a rebuttal to the revised report, which the court dismissed. In September 2009, following the disclosure by Chevron of evidence that the judge participated in meetings in which businesspeople and individuals holding themselves out as government officials discussed the case and its likely outcome, the judge presiding over the case petitioned to be recused. In late September 2009, the judge was recused, and in October 2009, the full chamber of the provincial court affirmed the recusal, resulting in the appointment of a new judge. Chevron filed motions to annul all of the rulings made by the prior judge, but the new judge denied these motions. The court has completed most of the procedural aspects of the case and could render a judgment at any time. Chevron will continue a vigorous defense of any attempted imposition of liability.

In the event of an adverse judgment, Chevron would expect to pursue its appeals and vigorously defend against enforcement of any such judgment; therefore, the ultimate outcome — and any financial effect on Chevron — remains uncertain. Management does not believe an estimate of a reasonably possible loss (or a range of loss) can be made in this case. Due to the defects associated with the engineer’s report, management does not believe the report has any utility in calculating a reasonably possible loss (or a range of loss). Moreover, the highly uncertain legal environment surrounding the case provides no basis for management to estimate a reasonably possible loss (or a range of loss).

Other Contingencies and Commitments

9 Months Ended

Sep. 30, 2009

Other Contingencies and Commitments [Abstract]

Other Contingencies and Commitments


Note 11.	Other Contingencies and Commitments

Guarantees The company and its subsidiaries have certain other contingent liabilities with respect to guarantees, direct or indirect, of debt of affiliated companies or third parties. Under the terms of the guarantee arrangements, generally the company would be required to perform should the affiliated company or third party fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements may have recourse provisions that would enable the company to recover any payments made under the terms of the guarantees from assets provided as collateral.

Off-Balance-Sheet Obligations The company and its subsidiaries have certain other contractual obligations relating to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which relate to suppliers’ financing arrangements. The agreements typically provide goods and services, such as pipeline, storage and regasification capacity, drilling rigs, utilities and petroleum products, to be used or sold in the ordinary course of the company’s business.

Indemnifications The company provided certain indemnities of contingent liabilities of Equilon and Motiva to Shell and Saudi Refining, Inc., in connection with the February 2002 sale of the company’s interests in those investments. The company would be required to perform if the indemnified liabilities become actual losses. Were that to occur, the company could be required to make future payments up to $300 million. Through the end of September 2009, the company paid $48 million under these indemnities and continues to be obligated for possible additional indemnification payments in the future.

The company has also provided indemnities relating to contingent environmental liabilities related to assets originally contributed by Texaco to the Equilon and Motiva joint ventures and environmental conditions that existed prior to the formation of Equilon and Motiva or that occurred during the period of Texaco’s ownership interest in the joint ventures. In general, the environmental conditions or events that are subject to these indemnities must have arisen prior to December 2001. Claims had to be asserted by February 2009 for Equilon indemnities and must be asserted no later than February 2012 for Motiva indemnities. Under the terms of these indemnities, there is no maximum limit on the amount of potential future payments. In February 2009, Shell delivered a letter to the company purporting to preserve unmatured claims for certain Equilon indemnities. The letter itself provides no estimate of the ultimate claim amount, and management does not believe the letter or any other information provides a basis to estimate the amount, if any, of a range of loss or potential range of loss with respect to the Equilon or the Motiva indemnities. The company posts no assets as collateral and has made no payments under the indemnities.

The amounts payable for the indemnities described on page 17 are to be net of amounts recovered from insurance carriers and others and net of liabilities recorded by Equilon or Motiva prior to September 30, 2001, for any applicable incident.

In the acquisition of Unocal, the company assumed certain indemnities relating to contingent environmental liabilities associated with assets that were sold in 1997. Under the indemnification agreement, the company’s liability is unlimited until April 2022, when the liability expires. The acquirer of the assets sold in 1997 shares in certain environmental remediation costs up to a maximum obligation of $200 million, which had not been reached as of September 30, 2009.

Environmental The company is subject to loss contingencies pursuant to laws, regulations, private claims and legal proceedings related to environmental matters that are subject to legal settlements or that in the future may require the company to take action to correct or ameliorate the effects on the environment of prior release of chemicals or petroleum substances, including MTBE, by the company or other parties. Such contingencies may exist for various sites, including, but not limited to, federal Superfund sites and analogous sites under state laws, refineries, crude-oil fields, service stations, terminals, land development areas, and mining operations, whether operating, closed or divested. These future costs are not fully determinable due to such factors as the unknown magnitude of possible contamination, the unknown timing and extent of the corrective actions that may be required, the determination of the company’s liability in proportion to other responsible parties, and the extent to which such costs are recoverable from third parties.

Although the company has provided for known environmental obligations that are probable and reasonably estimable, the amount of additional future costs may be material to results of operations in the period in which they are recognized. The company does not expect these costs will have a material effect on its consolidated financial position or liquidity. Also, the company does not believe its obligations to make such expenditures have had, or will have, any significant impact on the company’s competitive position relative to other U.S. or international petroleum or chemical companies.

Financial Instruments The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodities and other derivative activities.

Equity Redetermination For oil and gas producing operations, ownership agreements may provide for periodic reassessments of equity interests in estimated crude-oil and natural-gas reserves. These activities, individually or together, may result in gains or losses that could be material to earnings in any given period. One such equity-redetermination process has been under way since 1996 for Chevron’s interests in four producing zones at the Naval Petroleum Reserve at Elk Hills, California, for the time when the remaining interests in these zones were owned by the U.S. Department of Energy. A wide range remains for a possible net settlement amount for the four zones. For this range of settlement, Chevron estimates its maximum possible net before-tax liability at approximately $200 million, and the possible maximum net amount that could be owed to Chevron is estimated at about $150 million. The timing of the settlement and the exact amount within this range of estimates are uncertain.

Other Contingencies Chevron receives claims from and submits claims to customers; trading partners; U.S. federal, state and local regulatory bodies; governments; contractors; insurers; and suppliers. The amounts of these claims, individually and in the aggregate, may be significant and take lengthy periods to resolve.

The company and its affiliates also continue to review and analyze their operations and may close, abandon, sell, exchange, acquire or restructure assets to achieve operational or strategic benefits and to improve competitiveness and profitability. These activities, individually or together, may result in gains or losses in future periods.

Fair Value Measurements

9 Months Ended

Sep. 30, 2009

Fair Value Measurements [Abstract]

Fair Value Measurements


Note 12.	Fair Value Measurements

Accounting standards on fair-value measurement establish a framework for measuring fair value and stipulate disclosures about fair-value measurements. The standards apply to recurring and nonrecurring financial and nonfinancial assets and liabilities that require or permit fair-value measurements. A new accounting standard became effective for Chevron on January 1, 2008, for all financial assets and liabilities and recurring nonfinancial assets and liabilities. On January 1, 2009, the standard became effective for nonrecurring nonfinancial assets and liabilities. Among the required disclosures is the fair-value hierarchy of inputs the company uses to value an asset or a liability. The three levels of the fair-value hierarchy are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level 1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. For the company, Level 2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract.

Level 3: Unobservable inputs. The company does not use Level 3 inputs for any of its recurring fair-value measurements. Level 3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities. In the third quarter the company used Level 3 inputs to determine the fair value of nonrecurring nonfinancial assets.

The fair value hierarchy for recurring assets and liabilities measured at fair value at September 30, 2009, is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Prices in Active

Other

Markets for

Observable

Unobservable

At September 30

Identical Assets

Inputs

2009

(Level 1)

(Level 2)

(Level 3)

(Millions of dollars)

Marketable Securities

$121

$—

Derivatives

103

—

Total Recurring Assets at Fair Value

$224

$131

$93

$—

Derivatives

$131

$ 54

$77

$—

Total Recurring Liabilities at Fair Value

$131

$ 54

$77

$—

Marketable Securities The company calculates fair value for its marketable securities based on quoted market prices for identical assets and liabilities. The fair values reflect the cash that would have been received if the instruments were sold at September 30, 2009. Marketable securities had average maturities of less than one year.

Derivatives The company records its derivative instruments — other than any commodity derivative contracts that are designated as normal purchase and normal sale — on the Consolidated Balance Sheet at fair value, with virtually all the offsetting amounts to the Consolidated Statement of Income. For derivatives with identical or similar provisions as contracts that are publicly traded on a regular basis, the company uses the market values of the publicly traded instruments as an input for fair-value calculations.

The company’s derivative instruments principally include crude oil, natural gas and refined-product futures, swaps, options and forward contracts. Derivatives classified as Level 1 include futures, swaps and options contracts traded in active markets such as the New York Mercantile Exchange.

Derivatives classified as Level 2 include swaps, options, and forward contracts principally with financial institutions and other oil and gas companies, the fair values for which are obtained from third-party broker quotes, industry pricing services and exchanges. The company obtains multiple sources of pricing information for the Level 2 instruments. Since this pricing information is generated from observable market data, it has historically been very consistent. The company does not materially adjust this information. The company incorporates internal review, evaluation and assessment procedures, including a comparison of Level 2 fair values derived from the company’s internally developed forward curves (on a sample basis) with the pricing information to document reasonable, logical and supportable fair-value determinations and proper level of classification.

The fair-value hierarchy for nonrecurring assets and liabilities measured at fair value at September 30, 2009, is as follows:

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Prices in Active

Other

Loss (Before Tax)

Markets for

Observable

Unobservable

Three Months Ended

Nine Months Ended

At September 30

Identical Assets

Inputs

September 30,

2009

(Level 1)

(Level 2)

(Level 3)

2009

(Millions of dollars)

Properties, plant and equipment, net (held and used)

$89

$—

$89

$93

$358

Properties, plant and equipment, net (held for sale)

—

Total Nonrecurring Assets at Fair Value

$89

$—

$89

$93

$450

Impairments of “Properties, plant and equipment” In accordance with the accounting standard for the impairment or disposal of long-lived assets, long-lived assets “held and used” with a carrying amount of $182 million were written down to a fair value of $89 million, resulting in a before-tax loss of $93 million. The fair values were determined from internal cash-flow models, using discount rates consistent with those used by the company to evaluate cash flows of other assets of a similar nature.

Assets and Liabilities not Required to be Measured at Fair Value Accounting standards for interim disclosures about fair value of financial instruments require certain fair-value disclosures to be presented in both interim and annual reports. The company holds cash equivalents in U.S. and non-U.S. portfolios. The instruments held are primarily time deposits and money market funds. Cash equivalents had carrying/fair values of $5.7 billion and $7.1 billion at September 30, 2009 and December 31, 2008, respectively, and average maturities under 90 days. The balance at September 30, 2009, includes $214 million of investments for restricted funds related to an international upstream development project and a U.S. downstream construction project. The amounts are included in “Deferred charges and other assets” on the Consolidated Balance Sheet. Long-term debt of $5.8 billion and $1.2 billion had estimated fair values of $6.4 billion and $1.4 billion at September 30, 2009 and December 31, 2008, respectively.

Fair values of other financial instruments at September 30, 2009, were not material.

Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2009

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities


Note 13.	Derivative Instruments and Hedging Activities

Accounting standards for the disclosure of derivative instruments and hedging activities require a discussion of how and why the company uses derivative instruments, how derivative instruments and related hedged items are accounted for, and how derivative instruments affect the company’s financial position, financial performance and cash flows.

The company’s derivative instruments principally include crude-oil, natural-gas and refined-product futures, swaps, options and forward contracts. None of the company’s derivative instruments is designated as a hedging instrument, although certain of the company’s affiliates make such designation. The company’s derivatives are not material to the company’s financial position, financial performance or cash flows. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodities and other derivatives activities.

Derivative instruments measured at fair value at September 30, 2009, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are presented in the following tables:

Consolidated Balance Sheet:

Fair Value of Derivatives not Designated as Hedging Instruments

Asset Derivatives —

Liability Derivatives —

Fair Value

(Millions of Dollars)

Type of

Balance Sheet

At September 30

At December 31

Balance Sheet

At September 30

At December 31

Derivative Contract

Classification

2009

2008

Classification

2009

2008

Foreign Exchange

Accounts and notes receivable, net

$ —

$ 5

Accrued liabilities

$ —

$ 89

Commodity

Accounts and notes receivable, net

764

Accounts payable

115

344

Commodity

Long-term
receivables, net

Deferred credits and other noncurrent obligations

$103

$799

$131

$516

Consolidated Statement of Income:

The Effect of Derivatives not Designated as Hedging Instruments


		Gain/(Loss)						Gain/(Loss)
		Three Months Ended						Nine Months Ended
		September 30						September 30
		2009			2008			2009			2008
Type of
Derivative Contract	Statement of Income Classification	(Millions of dollars)						(Millions of dollars)

Foreign Exchange	Other income	$	—		$	(89	)	$	85		$	(91	)
Commodity	Sales and other operating revenues		31			568			(63	)		131
Commodity	Purchased crude oil and products		(18	)		555			(295	)		(182	)
Commodity	Other income		5			1			1			(5	)

		$	18		$	1,035		$	(272	)	$	(147	)

Consolidated Balance Sheet (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2009	Dec. 31, 2008
LIABILITIES AND EQUITY
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares issued	0	0
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock, par value	$ 0.75	$ 0.75
Common stock, shares issued	2,442,676,580	2,442,676,580
Treasury stock, shares	436,408,738	438,444,795