[Related to the Chapter Opener on page 318] From 2008 to 2009, the total revenue Chevron earned from all of its operations declined by more than 50 percent, while its expenditures on oil exploration...

[Related to the Chapter Opener on page 318] From 2008

to 2009, the total revenue Chevron earned from all of its

operations declined by more than 50 percent, while its

expenditures on oil exploration remained unchanged.

If the firm was suffering from declining sales of gasoline

and other products during the recession, why would it

maintain its spending on exploring for additional oil?

Source: Chevron Corporation, 2009 4Q Earnings Release, January 29,

2010.