2004 Summary Annual Report - ExxonMobil

A Strong, Diverse Production Base
Large, highly profitable, and established oil and gas operations
in North America, Europe, Asia Pacific, West Africa,
and the Caspian form a strong foundation for our business.
Our portfolio includes about 59,000 gross productive wells
from more than 8,300 reservoirs and nearly 600 offshore
platforms. This breadth provides an efficient base to
generate new production from work programs and
near-field opportunities.
Profitable Growth Opportunities
ExxonMobil Upstream has over 70 major development
projects under way. From the industry’s largest portfolio of
opportunities, we are able to pursue all projects and select
the best according to our rigorous investment criteria.
We gain significant scale advantages by leveraging
best practices and technology across all opportunities.
Our processes ensure we not only optimize profitability,
but also mitigate risk through prudent diversification.
We brought eight major new projects on stream in 2004,
with targeted gross peak liquids production of 420 thousand
barrels per day (average ExxonMobil interest, 39 percent) and
gross peak gas production of 1.7 billion cubic feet per day
(average ExxonMobil interest, 35 percent). Over the last six
years, we started up over 70 major projects that we expect
will produce 3.7 billion oil-equivalent barrels (net) by 2010.
As future development projects bring new resources on line,
we expect a shift in the geographic mix of production
volumes. Growth areas include West Africa, the Middle East,
the Caspian, and Russia. We expect these areas will
contribute over 40 percent of producing volumes in 2010
versus about 20 percent today. Established areas in
North America, Europe, and Asia Pacific are still expected
to provide in excess of half our total production in 2010.
Geopolitics, economics, and technology are opening up new
areas for development that present the industry with new
challenges – challenges that play to ExxonMobil’s strengths.
P R ODUCTION VOLUME CONTRIBUTION BY RESOURCE TYPE
Deepwater
Extra Heavy Oil
Arctic
Tight Gas
Acid/Sour Gas
Conventional
Projects
LNG
Conventional
Base and
Work Programs
We expect major development projects currently in the pipeline
will develop up to 24 billion net oil-equivalent barrels of resources.
Shown here, development drilling on Angola Block 15.
We are investing now to capitalize on many new opportunities
that are often in remote areas or involve difficult physical
environments, technical challenges, or frontier resources.
Examples include arctic and deepwater resources as well as
LNG, tight gas, and heavy oil. We expect production from
these opportunities to nearly double by 2010 even while
conventional volumes remain significant at about 60 percent.
Commitment to Technology
2004 2010
Oil and gas resources remain plentiful, but it takes the
best technology and an organization with the know-how to
profitably find, develop, and produce them. New technology
gives us the tools and understanding to improve recovery
from existing fields and to develop opportunities that were
previously out of reach. For example, 40 years ago, 500 feet
of water was the deepest industry had drilled. With new technology,
we have drilled wells in excess of 7,000 feet of water.
Deepwater
Extra Heavy Oil
Arctic
Tight Gas
Acid/Sour Gas
LNG
Conventional
Projects
U PSTREAM 11
Conventional
Base and
Work Programs
EXXON MOBIL CORPORATION • 2004 SUMMARY ANNUAL REPORT