Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Flowserve Energy Summit 2005
15 slides from Exxon Mobil's conference presentation, October 2005
Slide 1: The Energy Outlook and Energy Efficiency: Context and Actions
The Energy Outlook and Energy Efficiency: Context and Actions David Bailey ExxonMobil Corporation October 2005 Taking on the world’s toughest energy challenges. ™ This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy
Slide 2: Summary
Summary • Energy critical to economic growth, especially in developing countries. • Oil and gas to remain primary sources of energy through 2030 • Aggressive energy efficiency improvements are assumed in our outlook and are key to managing growth of demand without endangering economic development •
Slide 3: Energy and GDP Growth Closely Linked
Energy and GDP Growth Closely Linked • As countries develop, energy demand increases. • Energy is essential for future economic growth.
Slide 4: Oil & Gas Remain as Primary Energy Sources
Oil & Gas Remain as Primary Energy Sources T ot a lE ner gy O the rEn er gy W in d&S ola r MBD OE M BDO E M BDOE 4 00 60 3 .0 Gr o wthRate G rowthRate 1 980- 2 0 03,% 20 03- 2 0 30,% 3 50 W in d&S ola r 1 .6 1 .7 5 0 2 .5 3 00 1 .4 4 0 2 .0 2 50 O the r 1 .7 2 00 3 0 Bio mass , 1 .5 1 .5 1 .2 W in d
Slide 5: Oil & Gas Supply
OIL & GAS SUPPLY OIL & GAS SUPPLY WORLD ENERGY INVESTMENT 200 MBOE/D Coal 175 10 B$/yr New Production 150 125 Oil & Gas 200 B$/yr 100 Electricity 320 B$/yr 75 50 Existing Production 25 0 1980 1985 1990 1995 2000 2005 2010 2015 Source: International Energy Agency [2001-2030] • Existing oil and natura
Slide 6: Conservation Reduces Energy Requirements
Conservation Reduces Energy Requirements Energy/GDP World Energy Demand BOE/$K GDP MBDOE 4 500 400 3 300 2 200 1 100 0 0 1970 1980 1990 2000 2010 2020 2030
Slide 7: A Corporate Focus
A CORPORATE FOCUS 100% 75% Other Ops Upstream 50% Chemicals 25% Refining 0% Energy Greenhouse Gas Consumption Emissions • Refining and Chemicals account for nearly 80% of ExxonMobil’s energy consumption • Energy is our single largest cash operating expense -- about 50% of total • Improving energy ef
Slide 8: Energy Efficiency - A Global Approach
ENERGY EFFICIENCY - A GLOBAL APPROACH OBJECTIVES • Establish a single, comprehensive Global Energy Management System (GEMS) • Utilize a common methodology to identify performance gaps, implement gap closure plans, sustain progress, and continuously improve results BUSINESS MODEL • Operate existing f
Slide 9: GEMS Development
GEMS DEVELOPMENT Energy Management System Energy Management System Energy Management System Energy Management System Management Leadership Management Leadership Management Leadership Management Leadership Organizational Commitment Organizational Commitment Organizational Commitment Organizational Co
Slide 10: GEMS Measurement
GEMS MEASUREMENT Plant / Site Corporate and Energy Index Plant Management Energy Expense Global Profitability Measures Business Teams Area / Complex Process Engineers Diagnostic Implementation Equipment Specialists Indicators Lost Opportunity Shift Supervision Unit / Equipment Console Operators Key
Slide 11: GEMS Rollout Process
GEMS ROLLOUT PROCESS 3-6 Months 6-10 Weeks 0-8 Years Preparation Execution Implementation Operations Improvements Process Units Preparation Major Equipment Deliverables Utilities Systems Site Orientation Gap Assessment Select & Train Team Gap Closing Options Gather & Review Data Cost / Benefit Analy
Slide 12: Deployment Plan
GEMS DEPLOYMENT PLAN BENCHMARKING HIGHLIGHTS OPPORTUNITY 100 Cumulative Opportunity - % Plant Opportunity - M$/Year 80 60 40 20 0 Formal Rollouts Self-Assessments • Gap calculated for each plant versus pacesetter performance • Formal Rollouts at 15-20 sites targeted top 80% of opportunity • Balance
Slide 13: Rollout Results: Gap Closing Options
GEMS ROLLOUT RESULTS 100% Distribution of Benefits Gap Closing Options Uneconomic 80% 100% Major Self-Assessments Equipment No/Low 60% 80% Investment Utilities 60% Systems 40% Formal Rollouts 40% Requires Process 20% Investment 20% Units 0% 0% • Rollouts and Self-Assessments identified economic gap
Slide 14: GEMS Implementation Results
GEMS IMPLEMENTATION RESULTS M$/yr Energy Index % Industry Average Drops Adds XOM Refineries Price Benefit Capture $ Industry Top Performers Source: Solomon Associates, Inc. [2000-2002] 2000 2004 2000 2004 • Identified 1 B$/yr potential opportunity at current energy prices • Benefit capture approachi
Slide 15: Summary
Summary • Energy critical to economic growth, especially in developing countries. • Oil and gas to remain primary sources of energy through 2030 • Aggressive energy efficiency improvements are assumed in our outlook and are key to managing growth of demand without endangering economic development •