presentation by exxonmobil

16
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. 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. 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. The Outlook for Energy The Outlook for Energy A Global Perspective on Meeting Energy Demand A Global Perspective on Meeting Energy Demand James G. Taylor Executive Vice President, Exxon Neftegas Limited 32 nd Meeting of the APEC Energy Working Group Yuzhno-Sakhalinsk, Russia 2 - 6 October 2006

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Page 1: Presentation by ExxonMobil

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.

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.

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.

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.

The Outlook for EnergyThe Outlook for EnergyA Global Perspective on Meeting Energy DemandA Global Perspective on Meeting Energy Demand

James G. TaylorExecutive Vice President, Exxon Neftegas Limited32nd Meeting of the APEC Energy Working GroupYuzhno-Sakhalinsk, Russia2 - 6 October 2006

Page 2: Presentation by ExxonMobil

Energy Use - 2030Energy Use - 2030

North AmericaNorth America6868

0.6%0.6%

WorldWorld334 MBDOE334 MBDOE

1.6% per year1.6% per year

2000

2000

2030

2030

Non-OECDNon-OECD

Latin AmericaLatin America

2.2%2.2%

1818 AfricaAfrica

2.0%2.0%

1919

Middle EastMiddle East

1.9%1.9%

1919

Russia/CaspianRussia/Caspian

1.3%1.3%

2727

Asia PacificAsia Pacific

3.2%3.2%

113113

EuropeEurope4747

0.8%0.8%

Asia PacificAsia Pacific2323

0.9%0.9%

OECDOECD

205205

1 Tonne Oil Equivalent =~ 7.3 Barrels Oil Equivalent1 Tonne Oil Equivalent =~ 1.1 Thousand Cubic Meters Natural Gas

1 Cubic Meter Natural Gas =~ 35.3 Cubic Feet Natural Gas

Page 3: Presentation by ExxonMobil

Oil and Gas Remain PredominantOil and Gas Remain Predominant

0

1

2

3

4

1980 2005 20300

20

40

60

80

1980 2005 20300

50

100

150

200

250

300

350

1980 2005 2030

Total Energy Other Energy Wind & Solar

NuclearNuclear

HydroHydro

Biomass,MSW

Biomass,MSW

Wind & SolarWind & Solar

OilOil

GasGas

CoalCoal

OtherOther

MBDOE MBDOE MBDOE

1.8%1.8%

1.6%1.6%

1.8%1.8%

1.4%1.4%

1.6%1.6%

1.3%1.3%

1.9%1.9%

1.4%1.4% 9.6%9.6%

11.1%11.1%

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

SolarSolar

WindWind

12.4%12.4%

Page 4: Presentation by ExxonMobil

0.0

0.2

0.4

0.6

0.8

1.0

1980 2005 20300

5

10

15

20

25

30

1980 2005 20300

20

40

60

80

100

120

140

1980 2005 2030

Asia Pacific Energy Demand by FuelAsia Pacific Energy Demand by Fuel

Total Energy Other Energy Wind & Solar

NuclearNuclearHydroHydro

Biomass,MSW

Biomass,MSW

Wind & SolarWind & Solar

OilOilGasGasCoalCoal

OtherOther

MBDOE MBDOE MBDOE

3.1%3.1%

1.8%1.8%

3.6%3.6%

2.5%2.5%

2.7%2.7%

1.1%1.1%

3.6%3.6%

2.7%2.7%

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

SolarSolar

WindWind

13.1%13.1%

10.5%10.5%

16.5%16.5%

Page 5: Presentation by ExxonMobil

Conventional Oil Resources - 2005Conventional Oil Resources - 2005

North AmericaNorth America

Latin AmericaLatin America

EuropeEurope1.01.0

Middle EastMiddle East0.30.3

AfricaAfrica

0.10.1

Asia PacificAsia Pacific

0.40.4

Russia/CaspianRussia/Caspian

2.2Remaining2.2Remaining

Produced YE 2004Produced YE 2004

3.2 TBO3.2 TBO

WorldWorld

0.20.2

0.20.2

0.10.1

Conventional* Crude and Condensate (TBO)Conventional* Crude and Condensate (TBO)

* Excludes frontier resources – oil sands, extra heavy oil, shale oil* Excludes frontier resources – oil sands, extra heavy oil, shale oil

Page 6: Presentation by ExxonMobil

10 Largest Economies and Oil Imports in 200510 Largest Economies and Oil Imports in 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

UnitedStates

Japan Germany China UnitedKingdom

France Italy Canada Spain India

Imported Oil Domestic ProductionOil Demand

Source: EIA, IEA

Page 7: Presentation by ExxonMobil

Gas Demand - Regional SplitGas Demand - Regional Split

0

20

40

60

80

100

1980 2005 2030

North America

0

20

40

60

80

100

1980 2005 20300

20

40

60

80

100

1980 2005 20300

2

4

6

8

10

12

14

16

Europe Asia PacificBCFD BCFD BCFD

ElectricityElectricityChemicalsChemicals

Heat/OtherHeat/Other

0.2%0.2%

1.3%1.3%

1.1%1.1%

1.1%1.1%

2.4%2.4%

2.4%2.4%

3.7%3.7%

0.5%0.5%

1.5%1.5%

3.6%3.6%

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

Average Growth / Yr. 2000 - 2030

3.6%3.6%

MBDOE

Page 8: Presentation by ExxonMobil

Growing Reliance on Gas ImportsGrowing Reliance on Gas Imports

0

20

40

60

80

100BCFDBCFD

North AmericaNorth America EuropeEurope Asia PacificAsia Pacific

Local ProductionLocal Production

Long PipelinesLong Pipelines

2000

2000

2030

2030

LNGLNG

Page 9: Presentation by ExxonMobil

Technology Essential to Meet Supply ChallengesTechnology Essential to Meet Supply Challenges

3D Seismic Visualization

Enhanced Oil RecoveryMeans Field, Texas

CO2flood

1982 1990 1995 2003

Cumulative Production (MBO)

Pro

duct

ion

Rat

e (K

BD

)

120 260

28% 32% 35% 40%

Actual Production

Recovery5

10

15

Deepwater - Angola

LNG - Qatar

Page 10: Presentation by ExxonMobil

Sakhalin-1: Technological and Execution ExcellenceSakhalin-1: Technological and Execution Excellence

Chayvo ERD Wells

Bridge over Chayvo Bay

Orlan

Ice Strengthened Tankers

Environmental Innovation

•Extended Reach Drilling−World’s most powerful land rig−Record setting ERD wells

•Harsh, Remote Environment−Developed Infrastructure− Ice loads, Seismic conditions

•Modular Construction– Modules based on 1500-ton pre-

assembled, pre-commissioned units– Over 40,000 tons of facilities

commissioned in short construction seasons

•Unique Design−Utilized Russian and international

codes and standards

•Environmental Efforts−Wildlife monitoring and protection−Adaptive construction methods

Module Transport to Chayvo

Page 11: Presentation by ExxonMobil

• Successful startup with domestic sales of 2.5 MTY, 930 MCMY

• Export pipeline, terminal startup in August 2006

• Export crude sales commenced ramping up to 12.5 MTY by year end

• Onshore Processing Facility is nearing completion

Sakhalin-1: Export System Commissioning Sakhalin-1: Export System Commissioning

Export System SPM

DeKastri Terminal

Chayvo OPF

Page 12: Presentation by ExxonMobil

• Invested over $85M in environmental activities

• Active support for Gray Whale research

• Protection of Steller’s Sea Eagle (Orlan)

• Preservation of fisheries

Meeting the world’s growing energy needs in an economically, environmentally and socially responsible manner.

• Extensive public consultations

• Active community support program

• Significant utilization of local companies

Environment

Community

Sakhalin-1: A Commitment to CitizenshipSakhalin-1: A Commitment to Citizenship

Page 13: Presentation by ExxonMobil

Meeting Future Demand: IndustryMeeting Future Demand: Industry

• Safe operations

• Environmental responsibility

• Corporate citizenship

• Technology and innovation

Page 14: Presentation by ExxonMobil

Meeting Future Demand: GovernmentMeeting Future Demand: Government

• Access to resources

• Attractive fiscal terms

• Stable regulatory frameworks

• Open market principles

• Recognize global energy interdependence

Page 15: Presentation by ExxonMobil

In Conclusion…In Conclusion…

• Global energy demand to increase significantly over next 25 years

• Natural gas will be fastest growing conventional energy source

• Asia Pacific will increasingly participate in the international natural gas market:– through increased pipeline and LNG imports

• Industry and governments have unique but complementary roles to play: – by working together, we can deliver the energy that

Asia Pacific and the world will need.

Page 16: Presentation by ExxonMobil