Managing Risk for Superior Returns Andrew P. Swiger Senior Vice President
The Energy Challenge How to meet the worlds growing energy needs safely while minimizing the impact on the environment The scale of the challenge is enormous Requires an integrated set of solutions Demands a commitment to…
Growing Demand for Energy Global energy demand in 2030 is expected to be 35% higher than 2005 MBDOE Wind, Solar & Biofuels 300 Biomass, Hydro & Geothermal Nuclear Coal 200 Gas 100 Oil 0 1980 2005 2030 Source: The…
Global Liquids Supply and Demand Global liquids demand in 2030 is expected to be 24% higher than 2005 120 MBDOE 90 37 MBDOE OPEC Crude Biofuels 27 MBDOE 60 Other Petroleum Canadian Oil Sands 30 Non-OPEC Crude &…
Regional Gas Supply and Demand Natural gas is expected to be the fastest-growing major fuel source 120 North America 120 Europe 120 Asia Pacific BCFD BCFD BCFD 90 90 90 60 Unconventional 60 LNG 60 Imports Pipeline 30 30…
ExxonMobil ExxonMobil is well positioned to meet the energy challenge Proven business model Disciplined and embedded approach to risk management Asset quality and diversity Superior financial strength and flexibility…
Proven Business Model Our business model is designed to capture strong margins in the up- cycle and outperform the competition and market in the down cycle
Uncertainty and Risk We evaluate a broad range of uncertainties to identify and minimize associated risk factors Uncertainty: a state of having limited knowledge where it is impossible to exactly describe the existing state or the…
Industry Risks The oil and gas industry faces multiple uncertainties and risks Safety, security, health and environment Financial Geopolitical Technical
Risks Can Be Managed - But Not Eliminated Focus on prevention with effective response in the event it is needed Prevention relies upon disciplined Prevention processes, procedures and training Response capability requires…
Risk Management Approach ExxonMobil has established common worldwide expectations for addressing risks inherent in our business Capable, committed workforce with clear accountability Well developed and clearly defined policies and…
Operations Integrity Management System (OIMS) A required framework of 11 elements with particular emphasis on design, construction and operations Driver Evaluation
Performance Improvement OIMS is the foundation of our strong and improving safety, security, health, and environmental performance Corporate Lost Time Incident Rate Hydrocarbon Flaring from Worldwide Upstream Oil and Gas Production…
Multiple Risks - Multiple Frameworks ExxonMobil employs multiple frameworks to lower risk profiles across the business Facilities Integrity Management System (FIMS) Controls Integrity Management System (CIMS) ExxonMobil Capital…
Risk Management ExxonMobil brings experience from around the globe to manage risk Safety / Environmental risks are minimized through the application of technology and processes, supported by the appropriate staff training…
ExxonMobils Resource Base ExxonMobils diverse resource base of over 80 billion oil equivalent barrels serves to mitigate geopolitical risk Diverse by resource type GOEB Resource Base* 90 Diverse by geography Deepwater Arctic…
New Opportunities ExxonMobil has a diverse global portfolio of high-quality opportunities Beaufort West Norway Horn River Greenland Athabasca Orphan Germany Cardium Poland Bakken Ireland Romania Turkey Haynesville / Marcellus…
Significant Global Project Portfolio ExxonMobil has a diverse portfolio of more than 130 projects, thereby reducing financial risks Number of Projects (YE '09) 140 120 Russia / Caspian 100 Planning / Selecting Africa 80 Europe…
Kearl Oil Sands Superior quality oil sands deposit near Fort McMurray, Alberta Initial phase on schedule to commence operations by year end 2012 Construction 25% complete Tailings management plan revised in line with new…
Kearl Development Update Full field development studies progressing kbd 400 Original Development Plan Original plan was to develop Kearl in 3 phases Regulatory Approval 345 kbd to produce 300 kbd Facility Performance Allowance 300…
Unconventional Gas and Oil XTO merger establishes the premier global unconventional resource company and further diversifies ExxonMobils portfolio 70 TCFE unconventional resource base Bakken Uinta Piceance Marcellus Raton Proven…
US Gulf of Mexico - Hadrian Technical risks are reduced through Planning for Development (PfD) KC874 KC875 KC876 N PfD process enabled fast-track project Lucius definition and selective appraisal drilling Discovery Hadrian-5…
Canada Horn River Technical risks reduced through effective sweet spot identification Over 320,000 net Horn River Basin acres Horn River Basin Multiple productive reservoir intervals Industry Production Pads Well,…
Upstream Operating Costs Approach to risk management not compromised by lower unit costs ExxonMobil has lower unit Total Costs per OEB* per OEB operating costs than most competitors 25 RDS 20 CVX ExxonMobil is focused on 15…
Long-term Commitment to Research Advantaged technologies and breakthrough research enable risk management Exploration Development Production Subsurface Imaging Shale Gas Drilling Heavy Oil Sour Gas Research initiatives address…
Next Generation Resources Tomorrows resources will require a range of new technologies to lower the associated risk profile Arctic Environment Challenging arctic environments require continued technical innovation to access and…
Conclusions ExxonMobil is an industry leader in employing effective, systematic processes to manage risk The world will need energy to fuel progress and development ExxonMobils diverse portfolio and effective risk management…
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