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1 The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through 2040 based upon internal data and analyses as well as publicly available information from external sources including the International Energy Agency. Work on the report was conducted throughout 2015. This presentation includes forward looking statements. Actual future conditions and results (including energy demand, energy supply, the relative mix of energy across sources, economic sectors and geographic regions, imports and exports of energy) could differ materially due to changes in economic conditions, technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein and under the heading “Factors Affecting Future Results” in the Investors section of our website at www.exxonmobil.com. This material is not to be used or reproduced without the permission of Exxon Mobil Corporation. All rights reserved. The Outlook for Energy: A View to 2040 Rob Gardner September 21, 2016
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Page 1: The Outlook for Energy - Deloitte · PDF file1 The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through

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The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through 2040 based uponinternal data and analyses as well as publicly available information from external sources including the International Energy Agency. Work on the report was conducted throughout 2015. This presentation includes forward looking statements. Actual future conditions and results (including energy demand, energy supply, the relative mix of energy across sources, economic sectors and geographic regions, imports and exports of energy) could differ materially due to changes in economic conditions, technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein and under the heading “Factors Affecting Future Results” in the Investors section of our website at www.exxonmobil.com. This material is not to be used or reproduced without the permission of Exxon Mobil Corporation. All rights reserved.

The Outlook for Energy:A View to 2040

Rob GardnerSeptember 21, 2016

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ExxonMobil 2016 Outlook for Energy

trade flows

Energy Outlook Development

100 countries

15 demandsectors

20 fueltypes

technology & policy

Page 3: The Outlook for Energy - Deloitte · PDF file1 The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through

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ExxonMobil 2016 Outlook for Energy

Key Energy Outlook Themes

Energy is fundamental to standards of living.

Developing nations lead gains in GDP and living standards.

O i l remains the world’s primary fuel through 2040.

Natural gas grows more than any other energy source.

Economics and policies impact the fuel mix.

Technology has the highest potential and greatest uncertainty.

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Energy is fundamentalto standards of living.

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ExxonMobil 2016 Outlook for Energy

The energy equation

living standardsPeople energy needs

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ExxonMobil 2016 Outlook for Energy

Energy Fuels Human Development

0.00

0.25

0.50

0.75

1.00

10 100 1000 10000

U.N. Human Development Index2013 Index

Source: United Nations, ExxonMobil estimatesEnergy Use per Capita (Thousand BTU/person/day)

NorwayUnited States

Brazil

Germany

Congo

IndiaChina

Nigeria

Bangladesh

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Developing nations leadin GDP growth and living standard improvements.

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ExxonMobil 2016 Outlook for Energy

Global GDP Shifts Toward Developing Nations

2014

$72 Trillion (2010$)

*Mexico and Turkey included in Key Growth countries

Brazil

Mexico

South Africa

Nigeria

Saudi Arabia

Indonesia

Thailand

Egypt

China

India

Turkey

Iran

OECD*

China

India

KeyGrowth

Rest ofWorld

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ExxonMobil 2016 Outlook for Energy

Global GDP Shifts Toward Developing Nations

2014

2040

$72 Trillion (2010$)

~$150 Trillion (2010$)

*Mexico and Turkey included in Key Growth countries

2.0%per year

5.0%

5.5%

3.5%

3.4%

OECD*China

India

KeyGrowth

Rest ofWorld

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ExxonMobil 2016 Outlook for Energy

Developing Economies Dominate Growth

0

250

500

750

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

OECD*

Rest of World

India

China

Key Growth

Quadrillion BTUsDemand by Region

*Mexico and Turkey included in Key Growth countries

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ExxonMobil 2016 Outlook for Energy

United States Energy Trends

0.0

0.5

1.0

1.5

2.0

2.5

2000 2020 2040

Indexed to 2000

GDP

Population

Demand

Carbon Emissions

0.0

0.5

1.0

1.5

2.0

2.5

2000 2020 20400.0

0.5

1.0

1.5

2.0

2.5

2000 2020 20400.0

0.5

1.0

1.5

2.0

2.5

2000 2020 2040

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Economics and policies impact the fuel mix.

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ExxonMobil 2016 Outlook for Energy

0%

25%

50%

75%

100%

2014 20400

10

20

30

40

2000 2020 2040

Energy-Related CO2 Emissions by RegionBillion Tonnes

CO2 Emissions PlateauEnergy Mix Shifts to Lower-Carbon Fuels

India

Key Growth

Rest of World

OECD*

China

Global Energy MixPercent

Oil

Coal

Gas

BiomassRenewablesNuclear

*Mexico and Turkey included in Key Growth countries

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Oil remains the world’s primary fuel through 2040.

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ExxonMobil 2016 Outlook for Energy

Transportation and Chemicals Drive Growth

0

25

50

75

Transportation Industrial Res/Comm ElectricityGeneration

Liquids Demand by SectorMBDOE

Chemical

‘10

‘25‘40

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ExxonMobil 2016 Outlook for Energy

0

25

50

75

2000 2020 20400

10

20

30

OECD* China India Key Growth Rest ofWorld

Sector DemandMBDOE

Light Duty

Marine

Rail

Heavy Duty

Aviation

Transportation DemandDemand by RegionMBDOE

‘40‘25

‘10

U.S.

*Mexico and Turkey included in Key Growth countries

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ExxonMobil 2016 Outlook for Energy

Global Fuel Economy Standards (2014)

Policy in PlaceStandards

Policy Evolving

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ExxonMobil 2016 Outlook for Energy

0

4

8

12

16

1995 2000 2005 2010 2015

Light Duty Vehicles

PercentU.S. New Vehicles

Boosted

Hybrid

Elec/PHEVDiesel

Global Annual Sales by TypeMillion

0

50

100

150

2010 2025 2040

Elec/Plug-in/Fuel CellHybridNatural Gas & LPGDieselGasoline

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Supply

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ExxonMobil 2016 Outlook for Energy

0

40

80

120

2000 2020 2040

Liquids ProductionBy RegionMBDOE

Other NonOPEC

North America

Russia

0

10

20

30

40

OPEC Non-OPEC NGLs Tight Oil Deepwater Oil Sands Other

By TypeMBDOE

‘10

‘25‘40

OPEC

Conventional Crude and Condensate

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Natural gas grows more thanany other energy source.

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ExxonMobil 2016 Outlook for Energy

Gas Demand Grows in All Sectors

0

50

100

150

200

250

ElectricityGeneration

Industrial Res/Comm Transportation

Gas Demand by SectorBCFD

‘10

‘25

‘40

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ExxonMobil 2016 Outlook for Energy

0

2

4

6

8

10

1980 2010 20400

10

20

30

40

2000 2020 2040

Electricity Demand by RegionThousand TWh

United States

India

Europe OECD

China

Key Growth

2014

Electricity Demand Continues to Surge

Transportation

Industrial

Res/Comm

By SectorThousand TWh

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ExxonMobil 2016 Outlook for Energy

0

10

20

30

40

'00 '10 '20 '30 '40

Fuel for Electricity TransitionsElectricity Delivered by TypeThousand TWh

0

10

20

30

40

'00 '10 '20 '30 '40

Wind & Solar

Oil

Coal

Nuclear

Other Renewables

Gas

OECD

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ExxonMobil 2016 Outlook for Energy

0

10

20

30

2010 2025 20400

500

1000

1500

2000

2500

2010 2025 2040

Wind and Solar DemandElectricity Share Delivered by Wind and SolarPercent

Global Wind and Solar CapacityGigawatts

Onshore Wind

Solar

United States

ChinaIndia

EuropeanUnion

Offshore Wind

Page 26: The Outlook for Energy - Deloitte · PDF file1 The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through

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Supply

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ExxonMobil 2016 Outlook for Energy

0

200

400

600

2000 2020 2040

Natural Gas Supply

0

200

400

600

2000 2020 2040

By Delivery TypeBCFD

Unconventional

Conventional

By Production TypeBCFD

Pipeline

Net Local Production

LNG

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Technology has the highest potential and greatest uncertainty.

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ExxonMobil 2016 Outlook for Energy

0

5

10

15

1970 1980 1990 2000 2010 2020 2030 2040

Technology Helps Us Do More With LessGlobal Average Energy IntensityThousand BTUs per dollar GDP (2010$)

2014

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ExxonMobil 2016 Outlook for Energy

0

10

20

30

North America Supply and Demand

MBDOE

Other

Natural Gas Liquids

Tight Oil

Oil Sands

Deepwater

Conventional Crude & Condensate

Demand

‘10 ‘30‘20 ‘40‘10 ‘20 ‘30 ‘40

Liquids

0

30

60

90

120

150

180

BCFD

Gas

Unconventional

Conventional

Demand

‘10 ‘30‘20 ‘40‘10 ‘20 ‘30 ‘40

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ExxonMobil 2016 Outlook for Energy

0

50

100

150

200

250

Oil Gas Coal Biomass Nuclear Solar / Wind/ Biofuels

Hydro / Geo

Global Demand2040 By FuelQuadrillion BTUs

Average Growth / Yr. 2014 - 2040

Average Growth / Yr. 2014 - 2040

0.9%0.9%

2014

0.7%

1.6%

2.9%0.3%

4.8% 1.3%

-0.2%

Page 32: The Outlook for Energy - Deloitte · PDF file1 The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through

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For more information, visit exxonmobil.com/energyoutlook

or download the ExxonMobil app

Page 33: The Outlook for Energy - Deloitte · PDF file1 The Outlook for Energy includes Exxon Mobil Corporation’s internal estimates and forecasts of energy demand, supply, and trends through

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