2008 and 2009 Budget I’m sure that many of you have noticed that a number of our scheduled events have been postponed. Some of these have included the GADS (Global Application Deployment System) meeting, the Storage and Server Summit, the Global IT Infrastructure Forum, the GSSA (GIL Server Support and Administration) Days Away, and the GIL Technical Forum. These events were postponed because it was necessary to reprioritize our activities in order to better handle our most essential pursuits, such as the GIL 3 deployment. During the Town Hall held on August 28, Louie Ehrlich reminded us that as an operating company, we must be able commit to a budget, plan for it, and then stick to it. In order to meet this objective, and stay the course with our projected budget targets set earlier in the year, ITC needs to scale back some activities. We are working on our 2009 budget now, and we expect to see a slight increase over this year’s. As an organization, we are committed to managing this budget in the most effective way possible. Across all of ITC, there will be an effort to set priorities early and increase efficiencies so that we all avoid mid-year budget issues. GID Town Hall Our third and last Town Hall for 2008 was by far the best attended and most energetic session that we’ve had this year. Having ITC’s President and Chevron CIO Louie Ehrlich speaking with us live in San Ramon was certainly the highlight of the afternoon. Louie covered his views of ITC and the IT function, talked about some of the early changes he has made and was most interested in collecting feedback from all of us. I was really impressed with the overall engagement across GID with the quality of the feedback that was provided and the thoughtfulness of the questions asked. With a very tough act to follow, Sheila Thibodeaux provided an excellent overview of all the strategy and deployment work in the data centers. Thank you for your participation in this important event. Your input and questions made it an even richer experience for everyone attending at each location. Days Away The GID leadership team held its yearly Days Away Planning Meeting in Houston during the last week of August. The team discussed a longer-term vision for Chevron’s IT infrastructure and our current and future budget, the project prioritization process, as well as a methodology for providing effective feedback across the organization.

One of the most important functions of this Days Away was a meeting of the Personnel Development Committee. This committee, which meets four times a year, is facilitated by Human Resource GID partner, Priya Rajaram. During this meeting, the GID manager members of the committee discussed staffing and personnel planning, and we talked about the open positions coming up and our thoughts about filling them. We looked at the resources we have in the organization, and discussed the opportunities that lie ahead. Finally, we invited several of our key partners in the embedded IT to discuss their current priorities, the issues they face, and discuss ways that GID can most effectively work with them. You may want to take time to review their presentations which can be found on the GID Webpage. The meetings were highly productive and helped in our 2009 planning process.