Published in Oil & Gas Executive, Volume 2, Number 1, 1999, pages 23-29.

We live in interesting times. One need only pick up the newspaper to see the astounding change that is all around us. As the millennium approaches, the experts tell us we can look forward to an acceleration in the pace and magnitude of change. Indeed, the rate of social, economic, technological, and political change today is almost overwhelming. Take a moment to consider the fact that a musical birthday card that you can buy at the store today for a couple of dollars contains more computing power than existed on the entire planet before 1950.

The petroleum industry has not been isolated from these changes. The current economic situation not withstanding, our industry currently is experiencing a renaissance in technology, new products and markets, and innovative business practices. Areas that once were closed to foreign investment have been opened, providing a seemingly endless source of opportunities for expansion and growth.

" Growth" is what it is all about today. If one were to pick up the annual report of any one of Chevron's numerous international competitors, I am confident that every one of them would speak about annual growth objectives of10, 15, 20%, or more as they look forward to the next century. But is this realistic in a world where the projected growth rate in energy consumption is2% (or perhaps even less at the moment)? It is clear to me that everyone who is talking about growth will not be able to achieve it.

So, how will growth be achieved in the new millennium? In today's economic environment the real question becomes, "How can an upstream oil and gas company differentiate itself in a way that will enable it to succeed in growing its business in a low-growth world?"

I would like to share some thoughts on what Chevron is doing to grow its business in the new millennium and on five critical success factors that I believe will differentiate those companies that are going to be successful. These five critical success factors are global focus, responsible growth and reputation, effective technology management, leveraging value-adding partnerships, and smart people-resource management.

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