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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
3
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.
4
Energy is fundamentalto standards of living.
5
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
20
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
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Supply
27
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
30
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%
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