                                  CHEVRON

                                  11/08/93

             11/05/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Chevron Corp.   93.88   98-66   12/4   6.40   6.90 13.6  **.** **.** CHV

1.  A meeting was held by Chevron for analysts in San Francisco last
Thursday.  The meeting was a periodic review of operations held for
investors by Chevron.  The meeting was very professional; it did not
contain any major surprises or major new initiatives.  It affirmed
Chevron's status as a top-tier oil company.

2.  The review took the form of a restatement of overall strategy,
highlighted by a mission statement (to achieve superior return for
shareholders), description of the company's management process and
priorities, and description of key strategic objectives.  This was followed
by a thorough review of the business outlook for its domestic upstream and
downstream divisions, chemicals, Caltex' refining and marketing plans, and
international upstream operations.

3.  Key investment thrusts include major redeployment of assets into
international upstream, investment by Caltex to meet rapidly expanding Far
East petroleum demand, and an important overhaul of its two large
California refineries to meet California product quality specifications
(which are significantly stricter than federal).  Chevron has as an
objective to generate $1 billion per year from its domestic oil and gas
producing operations to redeploy into other areas, essentially
international exploration/production.

4.  Chevron sees its domestic production declining by some 2%-3% per year,
with this somewhat more than offset by growth in its foreign production.
It indicated that it will likely only replace about two-thirds of its
domestic reserves over the next few years, with this the economically
sensible near-term target given likely levels of oil and gas prices.
Higher levels of reserve replacement would be at uneconomic finding and
development costs.  Key foreign prospects include the Tengiz field in
Kazakhstan, expansion of Australian NorthWest Shelf gas shipments,
Alba/Brittania in the U.K. North Sea, Nigeria, Duri steamflood in
Indonesia, and Hibernia (offshore Eastern Canada).

5.  Chevron plans to invest about $2 billion in its two large California
refineries over the next several years.  About $1 billion of this is to
meet standards for reformulated gasoline as required by federal and state
requirements and the other $1 billion is to upgrade refinery yields.  The
West Coast is a core area for Chevron, and the large requirements there are
reasons why it was anxious to divest the Philadelphia and Port Arthur
refineries and avoid an overconcentration of assets in this business.  Bids
for the Philadelphia refinery are due shortly; bids for Port Arthur are due
next month.  Chevron has had good success in reducing operating costs in
its domestic refining/marketing business, with these down by some $1.00 per
barrel since 1991.  Competitive positions has improved significantly.

6.  Chevron has always been an asset rich company.  It was never a
mismanaged company, but it was in the past undermanaged.  A key thrust of
management the past few years has been to change this and the record has
been excellent.  Return on assets, earnings growth, and dividend increases
have advanced sharply.  It has installed a credible and very effective cost
cutting program.  And the share price, which management counts as a key
objective, has responded resoundingly.  Chevron has established itself as a
top-tier oil company.  While there is not a new cost-cutting objective to
focus on at present, there is tremendous momentum and an extremely positive
management and employee attitude.


