Energy Outlook for the Transport Sector

Grant Karsner Manager, Products Research and Technology ExxonMobil Research and Engineering

DEER Conference September 27, 2010 Detroit, MI

This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1 of ExxonMobil’s latest report on Form 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

Economic Growth Drives Energy Demand GDP Demand

Trillion 2005$ GDP MBDOE 60 200

1980 2005 2030 1980 2005 2030 0

100

0

30

OECD

0

100

200

0

30

60 MBDOE Trillion 2005$ GDP

Non OECD

1980 2005 2030 1980 2005

2

2030

Growing Global Demand

By Sector MBDOE

2005 – 2030 150

1.7% per year

2030

100 0.8%

per year 2005

1.3% per year

0.4% 50 per year

0 Transportation Industrial Res/Comm PowerGen Energy Savings

3

OECD Non OECD OECD Non OECD

Global Transportation Demand

By Sector Personal vs. Commercial MBDOE MBDOE

2.9% 70 25 per year

1980 2005 2030 Personal Commercial 0

10

20

30

40

50

60

0

5

10

15

20 Rail

Light Duty Vehicles

OECD Non

OECD

Heavy Duty Vehicles

Aviation

Marine

Co

mm

ercial

2005

2030

Perso

nal

-1.1% per year

3.1% per year

0.9% per year

4

technologies for consumers’ use of fuelshorter-term • conventional vehicle technology improvements

− engines (e.g. adv. lubricants); efficient transmissions− others (e.g. tire liners, low weight plastics)

• advanced vehicles− hybrid (e.g. lithium ion battery materials)− advanced diesel

longer-term• breakthrough vehicles

− “HCCI” or “CAI”; fuel cell (e.g. on-board H2 generator)− plug-in hybrid and EV (e.g. lithium ion battery materials)

Technologies for GHG Reduction gasoline internal combustion engine from crude oil – well-to-wheels basis

crude crude crude refining product storage retail gasoline recovery transportation to products & transportation site vehicle

production of fuel 20% GHG/mile

Consumers’ use of fuel 80% GHG/mile

technologies for fuel production shorter-term • energy efficiency • flare reduction • cogeneration

longer-term • second generation bio-fuels • Carbon Capture and Storage (CCS)

5

Source: U.S. Basis - WTW Study, Argonne National Lab, 2005

Algae-based biofuels • benefits of using algae for biofuels production:

– can be grown using land and water unsuitable for food production – potentially yield greater volumes of biofuels per acre than other biofuel sources – could be used to manufacture biofuels similar to today’s transportation fuels – growing algae consume CO2; algae-based biofuels could provide GHG mitigation

benefits versus conventional fuels

Sunlight Carbon Water Algae More Algae Oxygen Dioxide Containing

Hydrocarbons

• ExxonMobil alliance with Synthetic Genomics Inc – focus on development of advanced biofuels from photosynthetic algae – complements ExxonMobil’s ongoing efforts to advance breakthrough technologies

to meet the world’s energy challenges

6

Technologies for GHG Reduction gasoline internal combustion engine from crude oil – well-to-wheels basis

crude crude crude refining recovery transportation to products

production of fuel 20% GHG/mile

technologies for fuel production shorter-term • energy efficiency • flare reduction • cogeneration

longer-term • second generation bio-fuels • Carbon Capture and Storage (CCS)

product storage & transportation

retail site

gasoline vehicle

Consumers’ use of fuel 80% GHG/mile

technologies for consumers’ use of fuel shorter-term • conventional vehicle technology improvements

− engines, transmissions, body and accessories • advanced vehicles

− hybrids, advanced diesel engines

longer-term • breakthrough vehicles

− “HCCI” or “CAI”; hydrogen fuel cells − plug-in hybrid, battery electric vehicles

7

Source: U.S. Basis - WTW Study, Argonne National Lab, 2005

Improving Consumers’ Use of Energy

lithium-ion battery materials*

new separator technology for lighter and safer hybrid and electric vehicle batteries

advanced engines and fuels research

potential for improved fuel economy vs. current gasoline engines, by using diesel-like combustion process

on-board hydrogen generator for fuel cell vehicles

converts hydrocarbon fuels into hydrogen to power a fuel cell – all on-board the vehicle

Since 4Q’09 Lithium Ion Battery Separator film s are produced and marketed by Toray Tonen Specialty Separator 8Godo Kaisha, a joint venture in which ExxonMobil has a 25% interest.

Engine &Powertrain

Body &Accessories

Operational /Behavior

Mild Hybrids CountrySpecific

1

Heavy Duty Vehicles

Road Freight – US New Truck Efficiency Ton-Miles Percent Improvement 2005 – 2030

70 1500

60 2005

980

50

40

1000

30

Truck Size

Other

20 Congestion, Lighter Cargo,

etc. 10

0

5 10 15 Engine & Body & Operational / Mild Hybrids Country Trillion 2005$ GDP Powertrain Accessories Behavior Specific

Change

500

9

Integrated Energy Solutions

increase efficiency

TTeecchhnnoollooggyy

mitigate expand emissions supply

10

11