Delivering A Complete System

Architecture To Ensure Hardware and

Software Compatibility, Increase
Reliability And Reduce Costs

George G. Robertson, P.E.

Houston, Texas January 28th 2016

© 2016 Chevron U.S.A. Inc. All rights reserved.

 Cautionary Statement

Cautionary Statements Relevant to Forward-Looking Information For the Purpose of

“Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

This presentation of Chevron Corporation contains forward-looking statements relating to Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,”
“intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets,” “outlook,” and similar expressions are
intended to identify such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, whether as a result
of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in forward-looking statements are: changing crude oil and natural
gas prices; changing refining, marketing and chemical margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil
liftings; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial
conditions of equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the
potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the
development, construction or start-up of planned projects; the potential disruption or interruption of the company’s production or manufacturing facilities or
delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude oil quotas that might be imposed by OPEC; the
potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product
changes required by existing and future environmental statutes, regulations and litigation; the potential liability resulting from other pending or future
litigation; the company’s future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated
sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency
movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rile-
setting bodies; and the factors set forth under the heading “Risk Factors” on page 28 through 30 of the company’s 2012 Annual Report on form 10-K. In
addition, such results could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors
not discussed in this presentation could also have material adverse effects on forward-looking statements.

For definitions of, and further information regarding, the terms used in this presentation, see the ‘Glossary of Energy and Financial Terms” on pages 58 and
59 of the company’s 2012 Supplement to the Annual Report and available on Chevron.com.

As used in this report, the term “project” may describe new upstream development activity, including phases in a multiphase development, maintenance
activities, certain existing assets, investments and certain other activities. These terms are used for convenience only and are not intended as a precise
description of the term “project” as it relates to any specific government law or regulations.

© 2016 Chevron U.S.A. Inc. All rights reserved. 2

 SCADA System Architecture
Topics to cover today:

  Outlining a cost vs. benefit analysis of tag based

system and object oriented systems to determine
which option ensures capital efficiency
  Considering SCADA system information
segregation and scaling to adequately protect
company data
  Reviewing how to segment higher risk data from
lower risk data to increase system reliability and
capital efficiency

© 2016 Chevron U.S.A. Inc. All rights reserved. 3

 SCADA System Architecture
Typical Data Flow – Tag Based

  PLC: 10001 or TIC1.AM

40001 or TIC1.SP
40003 or TIC1.CV
40004 or TIC1.PV
  SCADA: PID101AUTO
PID101SP
PID101CV
PID101PV
  App: Cooler 1 Mode
Cooler 1 Setpoint
Cooler 1 Louver Pos
Data : BU.SC.EC.LC.P1 BU.SC.EC.LC.P2
BU.SC.EC.LC.P3 BU.SC.EC.LC.P4 Cooler 1 Temp In

© 2016 Chevron U.S.A. Inc. All rights reserved. 4

 SCADA System Architecture
Typical Data Flow – Object Based

  PLC: TIC1
  SCADA: COOLER1TIC
  DATA: COOLER1TIC
  App: COOLER1TIC

  Much more like a

DCS

© 2016 Chevron U.S.A. Inc. All rights reserved. 5

 SCADA System Architecture:
A bit about Objects

Objects (Classes) define data structure, and in

some modern systems, behaviors or processes.
For example:

TIC
Auto/Manual - discrete toggle, read/write
Setpoint - floating point, read/write, range check
Control Out - floating point, read/(write if in Manual)
Measure In - floating point, read, blink if stale

© 2016 Chevron U.S.A. Inc. All rights reserved. 6

 SCADA System Architecture:
A bit about Objects

True object oriented systems include base classes,

instances, and subclasses, with inheritance.

PID  BASE CLASS TIC-1  INSTANCE

CASCADE  Sub class. Includes all of PID and:

FeedForward Local/Remote
Remote Setpoint

© 2016 Chevron U.S.A. Inc. All rights reserved. 7

 SCADA System Architecture:
A bit about Objects

And you can put objects into bigger objects like building
blocks

© 2016 Chevron U.S.A. Inc. All rights reserved. 8

 SCADA System Architecture:
Objects Costs/Benefit

What do they do for you: What do they cost you:

1.  Reduced variability 1.  Reduced flexibility
2.  Faster Deployment 2.  Up Front Development
3.  Faster Testing Costs

4.  Fewer hard to detect 3.  Larger scope of error

errors impact

5.  Less Overall 4.  Constrained application

Documentation selection

6.  Less Site-Specific Training 5.  Up-front Developer

Training

© 2016 Chevron U.S.A. Inc. All rights reserved. 9

 SCADA System Architecture:
A Case Study: Tag Based Process to add to HMI

–  Access Name, Comments, Tag Name, Group Name, Alarm Comments in

HMI
–  Modify the Alarm Page
–  Update Comm. Overview

–  Update Reports
–  Update any scripting

–  Test all the points

–  Setup tags in polling engine
–  Restart polling engine and HMI
–  Modify backend applications
–  Add tags and polling interval to Historian/Data Stores.
Total Time: 3-5 Hours

© 2016 Chevron U.S.A. Inc. All rights reserved. 10

 SCADA System Architecture:
A Case Study: Object Based Process to add to HMI

–  Create instance of meter Object

–  Name and drag into appropriate area
–  Add info into new object instance (meter #, description)
–  Add new RTU in to polling engine
–  Deploy new well object
–  HMI and Historian metadata are automatically updated (behavior inherent
in the object)

Total Time: 15 Minutes

© 2016 Chevron U.S.A. Inc. All rights reserved. 11

 SCADA System Architecture:
A Case Study: Cost Savings for Objects

Tag Based Tag Based Object Object

Time Cost Time Cost Savings
add a new well (well screen) 2 Hours $200 10 Minutes $17 $183
new wells per yr per area = ~50 wells 100 Hours $10,000 8 Hours $800 $9,200
other changes (~ 5 screens per well) 3 Hours $300 5 Minutes $8 $292
changes per yr per area (1 per well) = ~50 wells 150 Hours $15,000 4 Hours $400 $14,600
change a script or algorithm 1 hour $100 0 automatic $0 $100
changes per yr per area (2 per well) = ~50 wells 100 Hours $10,000 0 automatic $0 $10,000
import data into historian 20 minutes $33 0 automatic $0 $33
Historian imports per yr per area = ~60 20 Hours $2,000 0 automatic $0 $2,000
initial setup historian per site 2 hours $200 0 automatic $0 $200
setups per year = ~ 3 6 hours $600 0 automatic $0 $600
Total per year per area $37,000 $1,200 $35,800

Assumptions: 50 Wells per Year, $100 per hour labor cost

So, a little over $700 per well.

© 2016 Chevron U.S.A. Inc. All rights reserved. 12

 SCADA System Architecture
Data Segregation

  Segregated from what?

–  The World (Internet)
–  Non SCADA Data (Rest of Business)
–  Other SCADA Data (Sites with different needs, risk
profiles)

© 2016 Chevron U.S.A. Inc. All rights reserved. 13

 SCADA System Architecture
Data Segregation

  Why?
–  Security
•  Reduced exposure to intrusion, malware, errors,
espionage
–  Reliability
•  SCADA Data is likely to be more time sensitive,
and less fault tolerant
–  Bandwidth
•  Less Data per communication channel

© 2016 Chevron U.S.A. Inc. All rights reserved. 14

 SCADA System Architecture
Data Segregation

One big system. Easy to maintain. Cheap.

Single point of failure.
R R
R T T
T U U
U
Central
R OOPS!
SCADA R
T System T
U U
R
R
T
T
U
U

© 2016 Chevron U.S.A. Inc. All rights reserved. 15

 SCADA System Architecture
Data Segregation

Hundred of discrete systems…

Support nightmare!
SCADA
SCADA SCADA
SCADA
SCADA
SCADA
SCADA SCADA
SCADA
SCADA
SCADA SCADA
SCADA
SCADA
SCADA
SCADA SCADA

© 2016 Chevron U.S.A. Inc. All rights reserved. 16

 SCADA System Architecture
Data Segregation

Somewhere there’s a sweet spot…

SCADA
R R R
R System
T T T
U T U U
U
R
T
R
U
T
SCADA U
System R
T
U

© 2016 Chevron U.S.A. Inc. All rights reserved. 17

 SCADA System Architecture
Considerations for Segmentation

  Exposure of connected systems to failures/

breaches of one of them
  Ability of the enterprise to withstand loss of
SCADA segment
  Organizational Capability to support segments
  Process or Business needs requiring
communication between proposed segments
  Physical/Logical/Organizational breaks for
segment boundaries

© 2016 Chevron U.S.A. Inc. All rights reserved. 18

 SCADA System Architecture
Food for thought:

  Configuration error results in well controller

shutoff.

Unfortunately, same error propagates to ALL well controllers

online.
© 2016 Chevron U.S.A. Inc. All rights reserved. 19
 SCADA System Architecture
Questions? Big topic. Short time.

© 2016 Chevron U.S.A. Inc. All rights reserved. 20