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.
Abundant U.S. shale gas supplies revitalizing chemical manufacturingNational Lieutenant Governors AssociationJuly 19, 2013Dwight TozerVice President, ExxonMobil Chemical Company
2
Chemical Industry Vital to U.S. Economy
$770 billion
12
800,000
25
Source: American Chemistry Council, June 2013
Annual sales – one of America’s largest industries
Percent of U.S. exports
Annual capital investment
Industry employees
$39 billion
Percent of U.S. GDP supported
3
Chemicals Demand Sees Significant Growth
250
200
150
100
50
0
Quadrillion BTUs
Chemicals
Heavy Industry
Other
2000 2020 20402013
Energy Demand by Industrial Sector
Energy Industry
ExxonMobil 2013 Outlook for Energy
4
Natural Gas Abundant, Widespread
North America
LatinAmerica
MiddleEast
Russia /Caspian Asia Pacific
Africa
Europe
Conventional
Source: IEA
ExxonMobil 2013 Outlook for Energy
North America
LatinAmerica
MiddleEast
Russia /Caspian Asia Pacific
Africa
Europe
Source: IEA
ExxonMobil 2013 Outlook for Energy
Unconventional
4.0
2.8
6.6
4.8
North America
LatinAmerica
MiddleEast
Russia /Caspian Asia Pacific
World Total - 27.9
Global NaturalGas Resource
3.1
Africa
1.6
Europe
4.8
Thousand trillion cubic feet
ConventionalUnconventional
Source: IEA
5
Major Change in U.S. Feedstocks
• Major shift in energy market in mid-2000s
• Crude driven by emerging market growth / global events
• Shale gas supply drives the shift in relative economics
Increased gas production provides advantaged ethylene feedstocks
Source: ExxonMobil Estimates
$/T
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
25
50
75
100
125
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Brent Crude Oil
$/bblGas/CrudeBTU Ratio
US Gas:Crude
Crude Oil / Gas Pricing
6
Shale Gas Fuels Manufacturing Expansion
7
Economic, Jobs Growth from Shale
ExxonMobil TX Project• 10,000 construction jobs• 3,800 other jobs• $870 million annually to
regional economy• $90 million annual added
tax revenues
100 U.S. Industry Projects• $72 billion investment• 1.2 million construction jobs • 540,000 other jobs• $14 billion added annual tax
revenue
Texas Project Estimates: ExxonMobilIndustry Project Estimates: American Chemistry Council
8
Opportunities to Realize Potential
• Objective: Balanced approach to support economic & job growth
• Policies to facilitate development:
• Access: gas reserves on state and private land
• State Regulations: Fit for purpose environmental framework
• Permitting: Streamlined and consistent for investments
• Trade: Support free markets for U.S. goods
An energy revolution at the doorstep
