With all forecasts pointing to continued strong growth in energy demand in the coming years, Chevron Corp. is investing in a “world-class queue of projects,” with most of the money now gas-focused, company executives said Wednesday.

About $21.6 billion is to be invested in capital projects this year, with 85% of the money for upstream activities.

“The world needs energy, and it will need more energy as the global economic recovery takes hold,” CEO John Watson told shareholders at the company’s annual meeting in Houston. “As our employees work to supply energy to fuel the world’s growing economies, our commitment to safe and reliable operations will remain a core value.”

The annual meeting was marred slightly by a small group of peaceful protesters who marched outside the downtown Houston building in the 1500 block of Louisiana Avenue. Four people were arrested for trespassing on private property, according to the Houston Police Department.

Inside the building, however, the shareholders heard Watson discuss the company’s 2009 financial performance and future plans. He also reinforced Chevron’s commitment to safe operations, noting that the company is supporting efforts in the Gulf of Mexico spill response and participating in industry task forces to assess offshore procedures.

Chevron participated in nine major capital project start-ups in 2009, which together with additional start-ups are forecast to deliver more than 800,000 boe/d by 2012. Ten major capital projects are being readied for launch over the coming three years, according to Vice Chairman George Kirkland.

The “centerpieces” of Chevron’s future production are tied to natural gas, said Kirkland. Among the biggest investments are the Gorgon and Wheatstone gas projects in Australia.

Chevron’s $37 billion Gorgon project is to export its first liquefied natural gas in 2014, Kirkland said. Gorgon, he noted, is expected to be the largest carbon dioxide (CO2) injection project in the world, with plans to inject and store up to 4 million metric tons of CO2 annually, or more than four times as much as any other project in the world, which would reduce the project’s greenhouse gas emissions by nearly 40%.

Wheatstone is in front-end engineering and design, with the final investment decision anticipated in 2011.

Chevron stockholders also voted on nine proposals. Preliminary results indicated that the 16 Chevron-endorsed nominees for election to the board of directors were approved.

The shareholder proposals were defeated. Only a quarter (26%) of shareholders voted to approve a proposal to appoint an independent director with environmental expertise, and only 7% voted to approve disclosure of payments to host governments. In addition, only 9% approved a proposal to assess financial risks from climate change.

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