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Active Partnerships

As well as the belief that the oil-producing nations of the Middle East are in transition, it is the author’s belief that the international oil industry is in transition as it responds to environmental needs, the pursuit of sustainable development and the expectations of good corporate citizenship in the 21st century.

From the perspective of ChevronTexaco, the company knows that their success in any country in which they operate is no longer determined solely by traditional financial or operational metrics. Today, companies are held to new standards for social responsibility, human rights, corporate governance and the environment – standards that are no less rigorous than the financial requirements of the shareholders and the investment community.

ChevronTexaco’s objective is to be ‘partner of choice’ with host governments and communities. Partnerships of the type described encourage local hiring and purchasing. They offer training and skills development and an opportunity for employees recruited and developed locally.

Active partnerships also provide the means whereby leading-edge technologies can be transferred so that host country industries can be modernised, expanded and made more competitive in the global marketplace. Of equal importance, active partnerships build trust and mutual respect. From that can come benefits that no single company or government could possibly achieve on its own. Indeed, globally – from Kazakhstan to UAE to the UK – the power of partnership can help bridge social and cultural differences, develop common understanding and focus energies towards shared goals.

In the Middle East, the pursuit of partnerships is built upon a legacy of relationships going back to the earliest days of oil development in this part of the world:

Today, ChevronTexaco is one of the top five lifters of Saudi crude oil, and is the only foreign producer operating on behalf of Saudi Arabia in the Neutral Zone, working in partnership with the Kuwait Oil Co. In Kuwait itself, the company has dedicated some of its finest technical personnel to assist that country’s petroleum operations and it is hoped, together with our international partners, to help Kuwait develop its Northern Fields.

ChevronTexaco has an equally strong Middle East presence downstream through Caltex, and plays a prominent role in the region’s chemical industry through the Chevron-Phillips joint venture.

ChevronTexaco’s experience in the Middle East gives us great confidence in the region’s future. ChevronTexaco has worked with national and local oil companies through many difficult times. Despite weathering the volatility of the oil market, major social and political changes of some countries and even wars, these relationships have endured.

Today, change is once again in the air. ChevronTexaco welcomes the new attitudes and innovative approaches that are being taken by producing nations to more fully engage the international oil industry in the development of their resources. The agenda for change has begun, and the expectations of a well-educated young population are high. The pace of progress must be picked up if we wish to attract not only the financial but also the intellectual capital required to continue the region’s growth.

We look forward to more partnerships that not only help nations to maximise the benefits of their natural resources, but also develop and strengthen their economies generally for the wellbeing of all of their citizens.

Responsible Stewardship

Some theorists claim that worldwide oil production will reach a high point within the current decade and then begin a precipitous decline that will cause drastic dislocations in the world economy and create enormous human suffering. Others take a more moderate position and claim that peak oil production could be at least several decades into the future. Many in the exploration and production industry remain sceptical of either scenario.

No matter what the position might be on the depletion debate, it is universally recognised that the exploration and production industry is built on a finite resource of indispensable importance. As the producers and providers of this resource, we have a tremendous obligation to the people of today and to future generations.

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