Upstream Spotlight Unlocking Permian value Clinton, October 2, 2018 This presentation contains forward-looking statements made in our public March 7, 2018 Analyst Meeting presentation, which is separately available on our website. All…
Agenda Opening remarks - Neil Chapman, Senior Vice President, Exxon Mobil Corporation Permian overview Sara Ortwein, President, XTO Energy Development capabilities Staale Gjervik, Sr. Vice President, Permian Integrated…
Meeting demand with advantaged investments Oil demand, scenario range Gas demand, scenario range Indexed, 2016 = 100 Indexed, 2016 = 100 175 175 150 150 2.4% CAGR EM Outlook 125 EM 125 0.9% CAGR Outlook 0.8% CAGR 100 100…
Industry oil supply replacement opportunity Oil supply & demand New supply requirement MOEBD Indexed to 2016 Demand Oil capacity 120 200% required Supply Oil supply required required Chemicals Decline without investment…
Winning in the Upstream Strength of portfolio Project execution Operations excellence Technology ExxonMobil Upstream Permian Spotlight 6
Reconnect to March Analyst Meeting Strongest portfolio of opportunities since the merger Deep water Attractive across range of prices Guyana, Brazil All producing by 2025 50% of 2025 Upstream earnings Unconventional Plans deliver…
Permian overview Sara Ortwein President, XTO Energy
Permian position Extensive XTO among the most experienced and active unconventional developers Unconv. Play Dedicated team focused on executing world-class development Expertise Leverage deep ExxonMobil technology capability…
Permian The scale and extent of EMs integrated value chain presents a unique opportunity to maximize value of Permian crude Permian growth is robust Integration comparison Permian liquid production Logistics control MBOED 14 12…
Permian focus Upstream Optimize and grow position enhance EUR; manufacturing mindset Midstream Crude Participate in capacity; segregation and aggregation Midstream Gas Avoid shut-in; timely commitments; field consumption…
Permian overview Grown a unique competitive position in the Permian 4-fold resource growth with significant upside through Delaware delineation BBOE Permian resource growth 10 8 NM Midland Central Basin TX Basin 6 Platform…
Capabilities Producing horizontal wells K ft Average lateral length - industry 6,000 10 5,000 8 4,000 6 Midland 3,000 Delaware 4 2,000 XOM Avg Mid BHP XOM Avg Del 2 1,000 XOM EOG SEECO DEVON BP CHEVRON SHELL 2011 2012 2013…
Unique position Continuous acreage; manufacturing approach Operatorship control; control own destiny Highgrading with bolt-on opportunities ExxonMobil Upstream Permian Spotlight 14
Industry perspective Intense activity in remote location Evacuation of hydrocarbons (logistics required, potential value leakage) Social Produced water Sustainability responsible operator Growth projections, market…
ExxonMobil competitive advantages Permian1 and Bakken production KOEBD net 800 High-side flexibility Actual Production Development capability 600 Integration through value chain 400 30% increase vs. 2Q17 Technology 200…
Development capabilities Staale Gjervik Sr. Vice President, Permian Integrated Development
Delaware Delaware Basin (Horizontal wells: 2010 May18) 2,500 Connecting reservoirs that verticals couldnt drain Multiple distinct economic targets; 1,250 Delaware 2014: 5 Delaware 2018: 15 1,900 2,100 ft of net pay 2010…
Building the Delaware position Operated net Year Deal acreage 2016 Nash Unit 3K 2017 Bass Acquisition 230 K 2017 Other Acq. & Trades 22 K 2018 Acq. & Trades 14 K Accumulated (16-18) 269 K Delaware transactions 70…
Delineating Delaware Leveraging analytics, modelling and field experimentation to optimize development N Planning world-scale development Midland Building volumes while delineating Basin Delaware Central Conceptual deposition…
Delineation Well stack tests Range of configurations across zones e.g. 3BS, WCXY, WCA Well length tests Range of lateral lengths (7.5-15k) Completion intensity tests Proppant (sand) varied from 2-3klbs/ft Reservoir quality…
Resource definition focus James Ranch; Remuda Nash Northern Delaware Basin Testing Lower Wolfcamp shale via Established significant economic benefit re-entry after favorable offset log from upscaled stimulations in 1st and 2nd Bone…
Delivering results James Ranch Unit Espejo / Severus Wolfcamp (WC) XY, 4,350 LL, IP30 = 2,270 boepd 3rd BS 4,700 LL, IP30 = 1,770 boepd 2nd Bone Spring (BS), 8,400 LL, IP30 = 2,125 boepd Wolfcamp XY, Drilled longest well in Delaware…
Organizational capability XTO business line expertise Devt Value Execution Drilling Operations Enablers Planning Chain Marketing / Offtake, Transportation, Sales Drilling, Project Management, and Large Facility Operation…
Manufacturing ability High resource density ExxonMobil Upstream Permian Spotlight 25
Manufacturing ability Typical acreage position Restricts exploitation of high resource density Operator A Operator B Inefficient execution Operator C Operator D Overlapping surface footprint Operator E Limited development…
Manufacturing ability Differentiated Acreage Position Enables exploitation of high resource density ExxonMobil Highly efficient execution Capital efficient surface footprint Room to learn adjust - optimize ExxonMobil Upstream…
Manufacturing Devt in rows Development in conveyor belt corridors Leveraging modular approach D1B100s for max. flex. & efficiency High degree of automation and remote monitoring Apply select largescale project tools and…
Manufacturing Devt in rows Development in conveyor belt corridors Leveraging modular approach D1B100s for max. flex. & efficiency High degree of automation and remote monitoring Apply select largescale project tools and skills…
Vertical integration Need a lot of everything scale and running room matters Value leakage management and value generation Prioritize based on highest value Drilling Completion ExxonMobil Upstream Permian Spotlight 31
Vertical integration Produced Water Disposal Gas Compression Gas Plant Rig Power Basin Gathering Completions* Water Well Power Processing* *Potential considerations Fresh; Well Supply; Recycle; Produced Well Supply;…
Control own destiny Position enables centralization and control of equity molecules Value chain opportunities in crude Working interest gathering opportunity Unit Current 3P EM 2025 Unit Wink (Crude) Waha (Gas)…
Control own destiny Potential central delivery point schematic* Inlet Liquid Condy Stabilization Design one, build many Handling Modular, phased approach to expansion Oil Stabilization Flares 200MMSCFD/100KBD increments Gas…
Out of basin logistics XTO 2 7 Midland 5 4 1 Connecting Permian crude to the USGC Wink 3 Assure equity clearing Capture full value chain Waha 6 Develop opportunities for third party throughput Area 7 1 3 Baton Ensuring…
Logistics value Aggressively securing incremental /bbl Midland Houston crude differential low-cost transport Exceeding crude production outlook Committed industry pipeline cost range Covering gas production outlook -5 Leveraging…
Processing USGC light crude refining capacity KBD Differentiated with world-class 800 2021 2025 manufacturing on the U.S. Gulf Coast 2017 2017 Expanding refining and chemicals to process advantaged feedstocks 0 XOM RDS CVX BP…
Technology Vijay Swarup Vice President, Research and Development
ExxonMobil technology commitment 1+ billion annually on R&D 2,300+ PhDs Clinton Research Campus 800 acres / 430 labs / 90 pilot plants worldwide ExxonMobil Upstream Permian Spotlight 40
A history of innovation at ExxonMobil Low-sulfur gasoline Specialty plastics Today Advanced 3D metallurgy 2010 Digital simulator seismic 2000 Mobil 1 High octane Plastic 1990 Annual protection gasoline 1980 Extended-…
Underpinned by core technical capabilities Physics & Process Hydrocarbon & Mathematics Engineering Materials Emerging Energy Organic & Electro Engineering Physics Separations Active Materials Chemistry Process Engineering…
Scientific collaboration to develop new solutions MIT Princeton U Texas Stanford Singapore Emissions reducing focus areas (14) (15) (16) (18) (19) Renewable power (solar, nuclear) Electricity Carbon Capture, Utilization & Storage…
Focus on fundamentals to improve unconventionals recovery Todays approach: Empirical, non-physics based Our research: Primary mechanisms for tight oil/gas production + + Improved Contact Drive Transport Recovery Underpinned by…
ExxonMobil advancing technology solutions Biofuels ExxonMobil has a long history of providing scalable energy solutions Carbon Capture R&D applying deep science and engineering capabilities to develop Process Intensification…
Summary Permian1 and Bakken production KOEBD net Development capability 800 High-side flexibility Integration through value chain Actual Production Technology 600 400 30% increase vs. 2Q17 200 0 Jan '15 '17 '19 '21…
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