leadership - a word from our chairman
Dr. Ray R. Irani

Fueling human progress and economic growth while focusing on operational integrity requires a solid, well-designed approach to social responsibility. Over the years, we have implemented sound, well thought out social responsibility programs to ensure the safety of our employees, maintain high environmental standards
and to support social programs in the communities in which we operate. Social responsibility is not just a fashionable term — it is one of Oxy’s core values. We believe it. We live it.

Our values shape everything we do in business. Our strong performance in 2006 was due in large part to our successful implementation of strategic investments and being a good corporate citizen. Not only is Oxy delivering good returns to our shareholders, we are also one of the safest companies in both the oil and gas and chemicals industries.

Oxy’s continued commitment to safety and social responsibility benefits our bottom line by reducing risk, improving employee productivity, reducing operating costs and lost production time, while enhancing our reputation. We are proud to report our progress in this year’s report.

In 2006 we significantly increased our employee human rights training programs worldwide. Oxy formalized our corporatewide human rights program more than three years ago and we will continue expanding our efforts. Insight to our progress appears throughout this report and includes examples of our activities in Chile, Colombia, Libya and Oman.

The graphs, statistics and numbers in this report are one measurement of our social responsibility accomplishments. But, the satisfaction of helping a community take advantage of the opportunities created
by natural resource development is measured more by the human factor. Our “Homes for Houston” project illustrates our commitment to being a good neighbor and is one of Oxy’s success stories. This report also provides highlights and insights into our efforts in several additional areas.

For example, our coral reef protection study in
the Arabian Gulf will help preserve and protect a
sensitive ecosystem for future generations. We also implemented an emissions reduction system in our Hugoton gas fi eld operations in Kansas by retrofitting production wells with electric motors and eliminating the need for gas-fired engines. Our accomplishments have earned us numerous awards.

We are also highlighting some of our significant community activities, including our participation and support of Best Buddies; an “Opportunities Bank” in Colombia supporting small businesses; the Safe T. Turtle program — a child safety education program in our Permian operations; and a Petroleum Technology Academy near our Elk Hills, California operation.

We remain fully committed to HES and Social Responsibility policies that are responsible, ethical and accountable. We recognize the need to maintain a balance between financial and operational performance. Our responsibility to our stockholders, our communities and the future depends upon our success in building a stable platform for sustainable growth economically, socially and environmentally.

Being a good neighbor is simply good for business.

Dr. Ray R. Irani
Chairman, President and CEO

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