EXHIBIT 2

CHEVRON

EMPLOYEE SAVINGS INVESTMENT PLAN

FINANCIAL STATEMENTS

AND SUPPLEMENTAL SCHEDULES

TOGETHER WITH REPORT OF INDEPENDENT

REGISTERED PUBLIC ACCOUNTING FIRM

DECEMBER 31, 2010 AND 2009

MORRIS, DAVIS & CHAN LLP

Certified Public Accountants

CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

TABLE OF CONTENTS

	PAGE
Report of Independent Registered Public Accounting Firm		1
Financial Statements:
Statements of Net Assets Available for Benefits as of December 31, 2010 and 2009		2 - 3
Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2010 and 2009		4 - 5
Notes to Financial Statements		6 - 17
Supplemental Schedules:
Schedule H - Part IV, Line 4(i) - Schedule of Assets Held for Investment Purposes as of December 31, 2010		18
Schedule H - Part IV, Line 4(j) - Schedule of Reportable Transactions for the Year Ended December 31, 2010		19

i

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Plan Participants and Plan Administrator

Chevron Employee Savings Investment Plan:

We have audited the accompanying statements of net assets available for benefits of the Chevron Employee Savings Investment Plan (the Plan) as of December 31, 2010 and 2009, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2010 and 2009, and the changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of December 31, 2010 and reportable transactions for the year ended December 31, 2010, are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Morris, Davis & Chan LLP

Oakland, California

June 22, 2011

CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

DECEMBER 31, 2010

(thousands of dollars)

	Participant Directed		Non-Participant Directed
			Allocated		Unallocated		Total
Assets
Investments - at fair value:
Chevron Corporation common stock
Allocated to participants	$	—	$	8,082,562	$	—	$	8,082,562
Unallocated		—		—		216,637		216,637
Corporate common stock		3,536		—		—		3,536
Registered investment companies		6,574,920		—		—		6,574,920
Debt instruments		30		—		—		30
Cash equivalents		235		—		15,720		15,955
Total investments		6,578,721		8,082,562		232,357		14,893,640
Receivables:
Notes receivable from participants		129,645		—		—		129,645
Due from broker		59		—		—		59
Total receivables		129,704		—		—		129,704
Total assets		6,708,425		8,082,562		232,357		15,023,344
Liabilities
Due to broker		448		—		—		448
Interest payable		—		—		2,623		2,623
ESOP notes payable		—		—		71,590		71,590
Total liabilities		448		—		74,213		74,661
Net assets available for benefits	$	6,707,977	$	8,082,562	$	158,144	$	14,948,683

The accompanying notes are an integral part of these financial statements.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

DECEMBER 31, 2009

(thousands of dollars)

	Participant Directed		Non-Participant Directed				Total
			Allocated		Unallocated
Assets
Investments - at fair value:
Chevron Corporation common stock
Allocated to participants	$	—	$	6,941,975	$	—	$	6,941,975
Unallocated		—		—		279,924		279,924
Corporate common stock		3,331		—		—		3,331
Registered investment companies		5,819,686		—		—		5,819,686
Debt instruments		238		—		—		238
Cash equivalents		411		—		47,266		47,677
Total investments		5,823,666		6,941,975		327,190		13,092,831
Receivables:
Notes receivable from participants		118,039		—		—		118,039
Employee contributions		—		1		—		1
Due from broker		89		—		—		89
Total receivables		118,128		1		—		118,129
Total assets		5,941,794		6,941,976		327,190		13,210,960
Liabilities
Due to broker		134		—		—		134
Interest payable		—		—		3,965		3,965
ESOP notes payable		—		—		108,243		108,243
Total liabilities		134		—		112,208		112,342
Net assets available for benefits	$	5,941,660	$	6,941,976	$	214,982	$	13,098,618

The accompanying notes are an integral part of these financial statements.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

YEAR ENDED DECEMBER 31, 2010

(thousands of dollars)

	Participant Directed		Non-Participant Directed						Total
			Allocated			Unallocated
Additions
Contributions:
Employer contributions	$	2	$	253,274		$	—		$	253,276
Participant contributions		219,398		90,343			—			309,741
Participant rollovers		56,702		13,071			—			69,773
Total contributions		276,102		356,688			—			632,790
Investment income:
Interest		10		—			4			14
Dividends		76		256,243			9,487			265,806
Net appreciation in fair value of investments		639,796		1,295,090			39,206			1,974,092
Total investment income		639,882		1,551,333			48,697			2,239,912
Interest on notes receivable from participants		6,113		—			—			6,113
Total additions		922,097		1,908,021			48,697			2,878,815
Deductions
Interest expense		—		—			8,342			8,342
Distribution to participants		478,213		442,611			—			920,824
Administrative fees		2,250		141			—			2,391
Total deductions		480,463		442,752			8,342			931,557
Interfund transfers		324,683		(324,683	)		—			—
Intra-plan transfers		—		—			(97,193	)		(97,193	)
Net increase (decrease)		766,317		1,140,586			(56,838	)		1,850,065
Net assets available for benefits:
Beginning of year		5,941,660		6,941,976			214,982			13,098,618
End of year	$	6,707,977	$	8,082,562		$	158,144		$	14,948,683

The accompanying notes are an integral part of these financial statements.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

YEAR ENDED DECEMBER 31, 2009

(thousands of dollars)

	Participant		Non-Participant Directed
	Directed		Allocated			Unallocated			Total
Additions
Contributions:
Employer contributions	$	1	$	256,260		$	—		$	256,261
Participant contributions		219,299		93,652			—			312,951
Participant rollovers		31,349		6,909			—			38,258
Total contributions		250,649		356,821			—			607,470
Investment income:
Interest		2		—			605			607
Dividends		87		237,289			13,066			250,442
Net appreciation (depreciation) in fair value of investments		934,383		302,945			(7,484	)		1,229,844
Total investment income		934,472		540,234			6,187			1,480,893
Interest on notes receivable from participants		6,497		—			—			6,497
Total additions		1,191,618		897,055			6,187			2,094,860
Deductions
Interest expense		—		—			21,051			21,051
Distribution to participants		307,346		244,686			—			552,032
Administrative fees		1,996		119			—			2,115
Total deductions		309,342		244,805			21,051			575,198
Interfund transfers		135,921		(135,921	)		—			—
Intra-plan transfers		—		—			(184,099	)		(184,099	)
Net increase (decrease)		1,018,197		516,329			(198,963	)		1,335,563
Net assets available for benefits:
Beginning of year		4,923,463		6,425,647			413,945			11,763,055
End of year	$	5,941,660	$	6,941,976		$	214,982		$	13,098,618

The accompanying notes are an integral part of these financial statements.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 1 - Description of the Plan

The following description of the Chevron Employee Savings Investment Plan (ESIP or the Plan), provides only general information. Participants should refer to the Plan document or Summary Plan Description for a more complete description of the Plan’s provisions.

The Plan is a defined contribution plan that is intended to be a qualified profit-sharing plan under section 401(a) of the Internal Revenue Code (the Code), a qualified cash or deferred arrangement under section 401(k) of the Code, and, effective December 1, 1989, to include a leveraged Employee Stock Ownership Plan (ESOP) qualified under section 4975(e)(7) of the Code.

Plan Sponsor/Administrator. Chevron Corporation (the Corporation) is the Plan Sponsor and the Plan Administrator of the ESIP. It has the authority to appoint one or more trustees to hold the assets of the Plan and to appoint a recordkeeper. In its capacity as fiduciary, the Corporation makes such rules, regulations and computations and takes whatever action is necessary to administer the Plan in accordance with provisions of the Code and the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

Eligibility. Employees of the Corporation and each other participating company (Company) or employees who are represented by a labor organization that has bargained for and agreed to participation in the Plan are eligible to participate in the Plan if they are on the U.S. payroll.

Contributions. Participants may contribute up to 75 percent of regular pay as combined basic (1 or 2 percent) and supplemental (up to 73 percent) contributions. For both 2010 and 2009, the maximum contribution amount on a before-tax and Roth 401(k) basis was the annual IRC limit of $16,500 for participants under age 50 and $22,000 for participants age 50 and up. The Plan has a fixed match feature. The Company will match 4 percent of regular pay on the first 1 percent of the participant’s basic contribution to the Plan or 8 percent of regular pay on the first 2 percent of the participant’s basic contribution to the Plan.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 1 - Description of the Plan (Continued)

Participant Accounts. Contributions are invested in funds within a number of Plan accounts. Employee contributions are comprised of basic and supplemental contributions and rollover contributions from other qualified retirement plans or from a rollover IRA, on a pre-tax, after-tax, or Roth 401(k) basis.

The Company matching contribution is made in Chevron stock to participants’ Leveraged ESOP or Chevron Stock accounts. Thereafter, in accordance with such procedures as the Corporation shall prescribe, a participant may elect to transfer the Chevron stock from the Company matching contribution to other investment funds, according to the Plan’s exchange rules. Participants may elect to receive dividends on shares in their Leveraged ESOP and Chevron Stock accounts as a taxable distribution, or reinvest the dividends into their account. Dividends on Leveraged ESOP shares that remained in the Plan were reinvested into the participants’ ESOP accounts or into their Chevron Stock accounts. Employees are always fully vested in all contributions to their accounts, as well as the investment income earned from all contributions to the Plan.

Trustees. Vanguard Fiduciary Trust Company (Vanguard) is the trustee of the Plan. Vanguard is also the Plan’s recordkeeper. The trustee has the authority to manage the assets of the Plan in accordance with its terms and those of the trust agreement.

Leveraged ESOP. In December 1989, the ESOP borrowed a total of $1 billion from several banks and used the proceeds of the loans to purchase 14.1 million shares of the Corporation’s Common Stock from the Corporation. In October 1991, these loans were completely refinanced by the ESOP’s issuance to the public of registered debt securities. In July 1999, the outstanding ESOP debt was completely refinanced extending the ESOP term through the year 2016. Subsequently, accelerated principal payments were made, reducing the loan payment period to end by the year 2014. The ESOP indebtedness is guaranteed by the Corporation and will be repaid using dividends paid on the shares acquired by the ESOP and Company contributions. To enforce the ESOP’s obligation to pay holders of the registered debt securities, the holders have no recourse against the assets of the ESOP except that, to the extent permitted by the Code and ERISA, the holders will have rights to any cash contributions made by the participating companies to satisfy the ESOP’s obligations under the registered debt securities and to any earnings attributable to the investment of such contributions.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 1 - Description of the Plan (Continued)

Leveraged ESOP (Continued)

In light of the limited recourse that holders of the registered debt securities have against the ESOP, purchasers of the registered debt securities are cautioned to rely solely upon the creditworthiness of the Corporation and its obligations under its guarantee of the ESOP’s indebtedness. The estimated fair market value of the notes outstanding as of December 31, 2010 and December 31, 2009 was $81,835,083 and $122,020,043, respectively. The rate on the loans as of December 31, 2010 and 2009 was fixed at 7.327%.

The final installment of principal on the notes is due January 1, 2014. The scheduled amortization of the loan and the remainder of the amortization period as of December 31, 2010 and 2009 are as follows:

	2010
2011	$	13,016,443
2012		16,270,554
2013		19,524,665
2014		22,778,775
	$	71,590,437

	2009
2010	$	16,652,807
2011		16,652,807
2012		20,816,008
2013		24,979,210
2014		29,142,412
	$	108,243,244

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 1 - Description of the Plan (Continued)

Leveraged ESOP (Continued)

Unallocated ESOP shares are held in a suspense account and secure the Corporation’s guarantee of the ESOP indebtedness. As payments of principal and interest are made on the ESOP debt, shares are released from the suspense account. These released shares will be valued at the then current market price for allocation to participants who elect to contribute 1 or 2 percent of their regular pay to the Plan.

Notes Receivable from Participants. The Plan loan provision allows participants to borrow funds from their Plan account, subject to certain restrictions and limitations. Participants may borrow up to the lesser of $50,000 or 50% of their total vested account balance or the value of the account(s) used to fund the loan. The minimum loan is $1,000. The minimum term for repayment of any loan is 6 months and the maximum term is 5 years. However, the maximum term for repayment of a loan to purchase the participant’s principal residence is 25 years. Loans bear a fixed rate of interest equal to 2 percent plus the average one-year jumbo certificate of deposit rate, as published in The Wall Street Journal on the last Wednesday of the preceding month. Interest rates charged during 2010 and 2009 ranged from 3.21% to 12.00%. Most loan repayments are made through payroll deductions and the principal and interest paid by the participants are reinvested in the participants’ accounts. Notes receivable from participants totaled $129,644,877 and $118,038,586 as of December 31, 2010 and 2009, respectively.

Plan Termination. The Corporation expects to continue the ESIP indefinitely, but has the authority to amend or terminate the ESIP at any time. In the event of a plan termination, the trust fund shall continue until any previously unallocated assets of the Plan are allocated to accounts and distributed to participants or beneficiaries in accordance with applicable law and pursuant to written rules and procedures adopted by the Corporation prior to such termination. In addition, upon plan termination, neither the Corporation nor any other person shall have a liability or obligation to provide additional benefits. Participants or beneficiaries shall obtain benefits solely from the trust fund. The trustee will sell the shares of the Corporation’s Common Stock then held in the ESOP suspense account and apply the proceeds (together with any other assets in the suspense account) either to repay the ESOP indebtedness or to satisfy its obligation to indemnify the Corporation as guarantor of the indebtedness for any payments that must be made under the guarantee of the indebtedness. Any shares or proceeds remaining after the satisfaction of the obligations described in the

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 1 - Description of the Plan (Continued)

Plan Termination (Continued)

preceding sentence will be allocated to the participants’ accounts and the value of such allocation will be offset against any future obligations of the Corporation to make Company contributions to the ESIP.

Plan Expenses. Trustee and recordkeeping fees are netted from the net asset values. Administrative expenses relating to the Plan, including audit fees, are paid by the Plan. Certain Chevron employee and administrative costs are being reimbursed to the Corporation by the Plan.

NOTE 2 - Summary of Significant Accounting Policies

Recent Accounting Pronouncement

In January 2010, Accounting Standard Update (ASU) 2010-06, Improving Disclosures about Fair Value Measurements, expanded the required disclosures about fair value measurements. ASU 2010-06 requires 1) separate disclosure of significant transfers into and out of Level 1 and Level 2, along with reasons for such transfers; 2) separate presentation of gross purchases, sales, issuances, and settlements in the Level 3 reconciliation; and 3) presentation of fair value disclosures by “nature and risk” class for all fair value assets and liabilities. The requirements of ASU 2010-06 are effective for the current reporting period except for the level 3 reconciliation disaggregation which is required in 2011 reporting. The requirements of ASU 2010-06 did not have an impact on the Plan’s financial statements.

The following are the significant accounting policies followed by the Plan:

The financial statements of the ESIP are presented on the accrual basis of accounting.

Investments in the core and supplemental options are valued on each business day on which the New York Stock Exchange is open for trading to reflect contributions, distributions, income, expenses, gains and losses. The difference between cost and market value represents unrealized appreciation or depreciation as of the reporting date. The valuation of the underlying securities in the Vanguard Brokerage Option are determined by Vanguard Brokerage Service daily. ESOP shares released from the suspense account are allocated based on the then-current market value.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 2 - Summary of Significant Accounting Policies (Continued)

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Net appreciation (depreciation) in fair value of investments includes realized gains and losses and unrealized appreciation or depreciation.

Realized gains and losses on investments are based on sales proceeds less average cost. Sales and purchases between participants are included in realized gains and losses. Security purchases and sales are recorded as of the trade date for such transactions.

Dividend income earned on investments held and interest income earned on funds pending investment are recorded on an accrual basis.

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent notes receivable from participants are reclassified as distributions based upon the terms of the Plan document.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

The Plan’s financial statements have been evaluated for subsequent events or transactions. The Corporation has determined that there are no subsequent events or transactions that require adjustments to or disclosures in the financial statements.

NOTE 3 - Fair Value Measurements

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described below:

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 3 - Fair Value Measurements (Continued)

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

Level 2: Inputs to the valuation methodology include:

• Quoted prices for similar assets or liabilities in active markets;

• Quoted prices for identical or similar assets or liabilities in inactive markets;

• Inputs other than quoted prices that are observable for the asset or liability; and

• Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at December 31, 2010 and 2009.

• Common stocks and debt instruments are valued at the closing price reported on the active market on which the individual securities are traded.

• Shares of registered investment companies are valued at the net asset value of shares held by the Plan at year end.

• Cash equivalents are valued at cost, which approximates fair value.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 3 - Fair Value Measurements (Continued)

The following tables set forth by level, within the fair value hierarchy, the Plan’s investments at fair value as of December 31, 2010 and 2009:

		$14,893,640		$14,893,640		$14,893,640		$14,893,640
	Investments at Fair Value (in thousands) as of December  31, 2010
	Level 1		Level 2		Level 3		Total
Common stocks	$	8,302,735	$	—	$	—	$	8,302,735
Registered investment companies		6,574,920		—		—		6,574,920
Debt instruments		30		—		—		30
Cash equivalents		15,955		—		—		15,955
Total investments, at fair value	$	14,893,640	$	—	$	—	$	14,893,640
	Investments at Fair Value (in thousands) as of December  31, 2009
	Level 1		Level 2		Level 3		Total
Common stocks	$	7,225,230	$	—	$	—	$	7,225,230
Registered investment companies		5,819,686		—		—		5,819,686
Debt instruments		238		—		—		238
Cash equivalents		47,677		—		—		47,677
Total investments, at fair value	$	13,092,831	$	—	$	—	$	13,092,831

NOTE 4 - Investments

At December 31, 2010 and 2009, the following broad range of investment options were available to participants:

Tier 1: Core Funds

Fund Name	Fund Type
Chevron Leveraged ESOP	Company Stock
Chevron Stock	Company Stock
Vanguard Prime Money Market Fund	Money Market
Vanguard Total Bond Market Index Fund	Fixed Income
Vanguard Balanced Index Fund	Balanced
Vanguard Institutional Index Fund	Large-Cap Stock
Vanguard Total Stock Market Index Fund	Growth and Income Stock
Vanguard Extended Market Index Fund	Small & Mid-Cap Growth Stock
Vanguard Developed Markets Index Fund	International Stock

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 4 - Investments (Continued)

Tier 2: Supplemental Funds

Fund Name	Fund Type
Dodge & Cox Income Fund	Fixed Income
Vanguard GNMA Fund	Fixed Income
Vanguard Windsor II Fund	Large-Cap Value Stock
Vanguard PRIMECAP Fund	Large-Cap Growth Stock
Artisan Small Cap Value Fund	Small-Cap Value Stock
Artisan Mid Cap Fund	Mid-Cap Growth Stock
Neuberger Berman Genesis Fund	Small-Cap Blend Stock
BlackRock Small Cap Growth Equity Fund	Small-Cap Growth Stock
American Funds EuroPacific Growth Fund	International Stock

Tier 3: Vanguard Brokerage Option (VBO)

Through the Vanguard Brokerage Services, a participant may choose from approximately 6,000 mutual funds from Vanguard and other companies that are not included in the core or supplemental investment funds. There is a $50 annual fee charged to participants who use this option that is paid directly to Vanguard. Within each fund offered in the VBO additional fees may be charged, either accrued within a fund’s pooled price or charged directly on deposits or withdrawals depending upon the mutual fund.

Effective April 1, 2010, share classes were changed for Vanguard Total Bond Market Index Fund, Vanguard Balanced Index Fund, Vanguard Total Stock Market Index Fund, and Vanguard Extended Market Index Fund from Signal^® Shares to Institutional Shares. In addition, American Funds EuroPacific Growth Fund changed share classes from R-5 to R-6 on April 1.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 4 - Investments (Continued)

Investments representing 5% or more of the Plan’s net assets available for benefits consist of investments with fair values determined by quoted market prices in active markets (Level 1):

	December 31, 2010				December 31, 2009
	Participant		Non-Participant		Participant		Non-Participant
	Directed		Directed		Directed		Directed
	(thousands of dollars)				(thousands of dollars)
Chevron Corporation Common Stock	$	—	$	8,299,199	$	—	$	7,221,899
Vanguard Institutional Index Fund		1,038,405		—		932,407		—
Vanguard Total Bond Market Index Fund		898,092		—		784,582		—
Vanguard Prime Money Market Fund		862,600		15,720		840,413		47,266

NOTE 5 - Intra-Plan Transfers

During a Plan year, as payments of principal and interest are made on the ESOP loans, shares are released from the ESOP suspense account and are transferred to the Leveraged ESOP account and are available for benefits. These transfers represent a portion of the employer contribution and reimbursement for the cash dividends paid by the Corporation to those members holding ESOP shares that were used to service the ESOP debt.

NOTE 6 - Income Taxes

On March 23, 2011, the Internal Revenue Service (IRS) issued its determination that the Plan continues to be exempt from Federal income tax. In the opinion of the Corporation, the Plan continues to be qualified as to form. Accordingly, no provision for federal or state income taxes has been made.

The Corporation has reviewed the Plan’s administrative procedures and is of the opinion that they are in accordance with technical compliance requirements of ERISA.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 6 - Income Taxes (Continued)

GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain tax position that would not meet the more likely than not standard and be sustained upon examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2010, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions. In March 2010, the IRS notified the Plan administrator that it would examine the Plan’s annual report and records for the year ended December 31, 2008. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2007.

NOTE 7 - Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes, both positive and negative, in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

NOTE 8 - Related Party Transactions

Certain Plan investments consist of shares of registered investment funds managed by Vanguard Fiduciary Trust Company and shares of common stock of the Corporation. Transactions with Vanguard Fiduciary Trust Company, as the trustee and recordkeeper, and the Corporation as the Plan sponsor and Plan administrator, qualify as party-in-interest transactions.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

NOTE 9 - Reclassifications

For plan year 2010 reporting, the Company reclassified participant loans on the Statements of Net Assets Available for Benefits for all years present as participant notes receivable as required by ASU 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans. The reclassification did not have a material effect on the net assets of the Plan, as the fair value of the participant loans are carried at unpaid principal balance plus accrued but unpaid interest, which is considered a good faith estimate of fair value. As ASU 2010-25 applies only to financial statements prepared in accordance with GAAP, it will not affect the classification of participant loans on the Form 5500. Participant loans continue to be reported as investments on Form 5500, Schedule H, line 1c(8). Because ASU 2010-25 will not result in a difference between total net assets reported in the Form 5500 and the Plan’s financial statements, there is no reconciling note in the Plan’s financial statements.

The adoption of ASU 2010-25 for plan year 2010 reporting also eliminated the need to calculate fair values and present disclosures for participant loans in accordance with Accounting Standard Codification 820, Fair Value Measurements and Disclosures (ASC 820). In addition, ASU 2010-25 excludes participant loans from the definition of financing receivables and would not be subject to the requirements of ASU No. 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

EIN 94-0890210 PLAN NO. 001

SCHEDULE H - PART IV, LINE 4(i) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES

DECEMBER 31, 2010

(thousands of dollars)

(a)	(b)				(d)		(e)
							Current
	Identity of issue	Description of investment	Shares/units		Cost		value
*	Chevron Corporation	Common Stock		90,950,124	$	3,600,172	$	8,299,199
*	Vanguard Institutional Index Fund	Registered Investment Company		9,028,819		983,278		1,038,405
*	Vanguard Total Bond Market Index Fund	Registered Investment Company		84,725,655		888,694		898,092
*	Vanguard Prime Money Market Fund	Registered Investment Company		878,320,528		878,320		878,320
*	Vanguard PRIMECAP Fund	Registered Investment Company		8,296,813		465,666		545,930
*	Vanguard Developed Markets Index Fund	Registered Investment Company		48,047,370		492,455		483,357
*	Vanguard Windsor II Fund	Registered Investment Company		16,043,040		445,065		421,913
*	Vanguard Extended Market Index Fund	Registered Investment Company		9,040,475		324,821		373,100
*	Vanguard Balanced Index Fund	Registered Investment Company		15,928,706		320,376		340,556
*	Vanguard Total Stock Market Index Fund	Registered Investment Company		9,860,265		285,970		311,289
*	Vanguard GNMA Fund	Registered Investment Company		21,529,311		227,292		231,225
	American Funds EuroPacific Growth Fund	Registered Investment Company		5,524,756		213,805		228,559
	Neuberger Berman Genesis Fund	Registered Investment Company		3,679,880		155,840		169,127
	Dodge and Cox Income Fund	Registered Investment Company		12,363,111		158,512		163,564
	Artisan Small Cap Value Fund	Registered Investment Company		9,593,057		148,331		161,643
	Artisan Mid Cap Fund	Registered Investment Company		3,151,362		88,857		105,980
	BlackRock Small Cap Growth Fund	Registered Investment Company		2,174,799		45,053		52,217
*	Vanguard Brokerage Option	Vanguard Brokerage Option		—		191,164		191,164
	Total investments - per financial statements							14,893,640
	Notes receivable from participants	Interest rates ranging from 3.21% to 12.00%		—		—		129,645
	Total investments - Per Form 5500						$	15,023,285

* Party-in-interest as defined by ERISA.

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CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

EIN 94-0890210 PLAN NO. 001

SCHEDULE H - PART IV, LINE 4(j) - SCHEDULE OF REPORTABLE TRANSACTIONS

YEAR ENDED DECEMBER 31, 2010

(thousands of dollars)

(a)	(b)		(c)		(d)		(e)		(f)		(g)		(h)		(i)
									Expense incurred with transaction				Current value
Identity of party involved	Description of asset		Purchase price		Selling price		Lease rental				Cost of asset		of asset on		Net gain or (loss)
													transaction date
Category (iii) - Series of Transactions (Aggregate) in Excess of 5% of Plan Assets
Chevron Corporation*		Common Stock	$	686,806	$	—		N/A	$	—	$	686,806	$	686,806	$	—
Chevron Corporation*		Common Stock		—		943,801		N/A		—		578,994		943,801		364,807

There were no category (i), (ii) or (iv) reportable transactions during the year ended December 31, 2010.

* Party-in-interest as defined by ERISA.

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