ExxonMobil and Abu Dhabi


ExxonMobil and Abu Dhabi

An ExxonMobil publication


and Abu Dhabi

promote cooperation

Breaking ground at Antwerp

What we do

when storms hit hard – part 2


King Ranch

Economic growth

Industrial evolution

Breakthrough research OFC

2009 – Number 2








Energy saved

through industrial

efficiency gains

Industrial evolution

New technologies can help businesses

become more energy-efficient.

0 25 50 75 100 125

Million barrels daily oil-equivalent

If you drive a fuel-efficient car, you are helping

the environment by conserving natural

resources and reducing emissions of carbon

dioxide (CO2) and other greenhouse gases.

But what about the energy it took to produce

the fuel and the other products we

use? Can efficiency help there, too?

The answer is yes. Businesses are major

consumers of energy. In creating and delivering

the goods and services we depend

upon, they use large quantities of electric

power and other energy sources. For example,

the industrial sector alone accounts for

about one-third of total energy consumption

worldwide and more than 25 percent of

energy-related CO2 emissions.

By improving energy efficiency, and taking

advantage of advanced efficiency technologies,

industries have a tremendous opportunity

to contribute to the global effort to

reduce greenhouse gas emissions.

At ExxonMobil, our high-efficiency cogeneration

facilities throughout 10 U.S. sites

generate up to 2,400 megawatts of electricity,

while also producing steam and useful

heat needed for industrial processes. At our

refinery in Beaumont, Texas, one cogeneration

plant – our largest worldwide – can

produce about 500 megawatts of electricity,

which not only powers refining operations

but also supplements the local power grid.

We have invested more than $600 million

Estimated 2030

world primary

energy demand

by sector

in U.S. cogeneration facilities commissioned

since 2004. When combined with our global

cogeneration capacity, these investments

have helped reduce global greenhouse gas

emissions equivalent to taking more than

1 million cars off U.S. roads.

Clearly, increased energy efficiency

is good for the environment. But it also

enhances the global business environment.

Companies can reduce costs, increase

productivity and benefit shareholders by

using advanced technology to make their

operations more energy-efficient – a valuable

asset during challenging economic times.

The International Energy Agency calls

efficiency a “triple win” solution – boosting

economic performance, strengthening

energy security and reducing greenhouse

gas emissions.

We agree. ExxonMobil has systematically

worked to improve efficiency at our global

operations, and we are making large investments

in research and development of technologies

that can advance the efficiency of

how we produce energy and how consumers

use our products.

Today, companies and nations are being

challenged to find creative ways to restore

economic growth while protecting the environment.

Investing in energy efficiency can

help accomplish both.

Rex W. Tillerson

Chairman and CEO

Mark W. Albers

Senior Vice President

Michael J. Dolan

Senior Vice President

Donald D. Humphreys

Senior Vice President

Andrew P. Swiger

Senior Vice President

Kenneth P. Cohen

Vice President-Public Affairs

David S. Rosenthal

Vice President-Investor Relations and Secretary

Bob Davis


Pat Gabriel


Art Director

Len Shelton

Photography Coordinator

Cynthia Solomon

Production Coordinator

Frances Bruscino

Distribution Coordinator

Please address all Lamp correspondence,

including requests to reproduce any portion

of the magazine, to the editor at Exxon Mobil

Corporation, 5959 Las Colinas Blvd., Irving,

TX 75039-2298.

In this issue



Industrial evolution


Innovation is key

Chairman Tillerson addresses

global energy challenges


Exploring breakthrough


Options for innovative

energy solutions

23 7 14


The goal of the Global Climate

and Energy Project (GCEP),

based at Stanford University

and founded in 2002 with major

support from ExxonMobil, is to

develop research-based, scientific

solutions to help countries

address energy and environmental


Earlier this year, Chairman

and CEO Rex W. Tillerson spoke

at Stanford, noting how GCEP

promotes the practical problemsolving

necessary to advance

broad-based commercial solutions.

Chairman Tillerson went on

to discuss ExxonMobil’s contributions

to this effort, with breakthrough

research in such areas

as advanced polymer film for

electric-vehicle batteries, hydrogen

fuel-cell technology and


When storms hit hard

Getting products to customers

when and where they’re needed


Much more than a plan

How lessons learned aid

storm response, recovery


New cogeneration

plant starts up

Antwerp facility improves

efficiency and cuts emissions


Promoting cooperation

in Abu Dhabi

Technology, creativity boost

field recovery at lower cost


Reigniting economic growth

Energy industry’s role in

restoring confidence

2 3

Old friend, new lease

ExxonMobil extends decadeslong

relationship with King Ranch

Technology key to

ExxonMobil and Abu

Dhabi relationship

A new technology center,

artificial islands and

an innovative drilling

organization highlight efforts

to increase oil recovery at the

Upper Zakum field.

Cover photo courtesy of ZADCO

advanced research in biofuels –

including liquid-fuel production

from algae and biomass.

A summary of his Stanford

speech begins on page 3.

This issue’s cover story (page

17) explores how close cooperation

and technical prowess by

ExxonMobil, the emirate of Abu

Dhabi, the Abu Dhabi National

Oil Company and Japan Oil are

meeting the challenges in developing

the world’s fourth-largest

oil field. This complex project is

expected to boost daily production

at the 50-billion-barrel Upper

Zakum field, helping to meet

future world energy demand.

The conclusion of our

two-part series on hurricane

preparation and response starts

on page 7, and profiles how

the company’s refining, supply,

lubes and fuels-marketing

organizations safely overcame

the effects of Hurricanes Gustav

and Ike to get needed products

to customers. A related

story (page 12) details how

the Beaumont Chemical Plant

restored operations after more

than eight feet of seawater and

mud impacted the facility.

Plus, stories on pages 23 and

14 explore ExxonMobil operations

at the King Ranch and in

Antwerp, Belgium.

We hope you enjoy this issue

of The Lamp.

Bob Davis



A helping hand Down Under

ExxonMobil aids communities

after devastating wildfires



Business highlights

from around the world


ExxonMobil quarterly

financial summary



Meeting global energy

and environmental challenges through innovation


Chairman Tillerson began his

speech by saluting six years of

promising energy research at the

Stanford-based Global Climate

and Energy Project (GCEP),

founded in 2002 with ExxonMobil

as lead sponsor. He noted that

GCEP’s network of scientists,

engineers, researchers and students

involves 20 research institutions

on four continents, with

Stanford at the hub. “GCEP’s

work is ultimately about laying

the scientific foundations for

practical problem-solving that will

help advance broad-based commercial

solutions,” he said.

Technology, said Tillerson, is

the single, most vital element that

should unite all efforts to attain

our energy and environmental

goals. He said ExxonMobil has

invested more than $6 billion in

technology in just the past six

years, and maintains several

company research centers in the

United States and elsewhere.

“Our 14,000 scientists and engineers

are part of the broader

technical and scientific community

dedicated to energy and

environmental problem-solving

through technology innovation.”

Oil, natural gas continue as

prime energy sources

While the current global economic

downturn has reduced

energy demand and prices,

Tillerson said the world econ-

Story by Thomas L. Torget

In a February speech at Stanford University,

ExxonMobil Chairman and CEO Rex W. Tillerson

described the critical role of technology in meeting

the challenge of delivering more energy while

reducing greenhouse gas emissions.

omy will recover, and so too will

energy demand.

Growing populations in

developing countries will drive

increased energy demand, which

is expected to be 35 percent

higher in 2030 than in 2005.

Meeting this demand requires

that we develop all economic

and environmentally sound

sources of energy, including oil

and natural gas, which Tillerson

described as “abundant, available,

versatile and affordable.”

Tillerson noted that huge

investments over many decades

have enabled oil and gas to meet

nearly 60 percent of world energy

needs today, and that these

same fuels will meet the majority

of world energy demand through

at least 2030. Alternatives such

as solar, wind, nuclear and biofuels

will make a significant and

growing contribution, but no

single energy source solves the

dual challenge of meeting growing

energy needs while reducing

emissions. “For now and the foreseeable

future, an integrated set

of solutions is required,” he said.

Turning to environmental

challenges, Tillerson explained

that thanks to greater energy

efficiency and growing use of

cleaner fuels such as natural

gas, greenhouse gas emissions

are expected to decline in some

developed economies. U.S.

energy-related carbon-dioxide

emissions are approaching a

plateau and will decrease over

the next two decades, he said.

“These trends are set to continue

and potentially accelerate,

not only in the United States but

in other developed economies

as well.”

Greenhouse gas emissions

to rise in developing nations

But the challenge of reducing

greenhouse gas emissions is

more daunting for developing

economies, said Tillerson. “By

2030 China’s carbon-dioxide

emissions will be comparable

to those of the United States

and Europe combined,” he said.

“Even with dramatic gains in efficiency,

rising demand for energy

will continue to push related

carbon-dioxide emissions higher

through 2030, an increase of 28

percent from 2005.”

Tillerson noted that any new

technology – however promising

– faces practical barriers in

bringing it to the energy marketplace.

These barriers include

performance, cost, safety,

environmental impacts and consumer


He said ExxonMobil’s integrated

approach to increasing

supplies and reducing emissions

is exemplified by the company’s

Global Energy Management

System. The system involves daily

tracking of more than 12,000

energy variables throughout the

company’s refining, marketing

and chemical operations. “Since

2000, we have identified $1.5 billion

in potential efficiency savings,

and approximately 60 percent of

those savings have been captured

to date,” he added.

New technologies

in transportation

Tillerson mentioned several

ExxonMobil technologies that

are improving energy efficiency in

the transportation sector. These

include tire liners that keep tires

inflated longer, advanced fuel

economy engine oil and lightweight

automobile plastics.

ExxonMobil’s internal research,

said Tillerson, has produced

breakthrough technology involving

separator film made from

advanced polymers. This film can

significantly enhance the power,

safety and reliability of lithium-ion

batteries used to power hybrid

and electric vehicles.

Hydrogen fuel-cell technology

is another area pioneered

by ExxonMobil and its research

partners, said Tillerson. This

technology converts traditional

hydrocarbon fuels into hydrogen

directly onboard the vehicle,

eliminating the need for separate

infrastructure to produce and

distribute hydrogen. “Measured

on a well-to-wheel basis, this

on-vehicle fuel system could provide

up to 80 percent better fuel

economy and emit 45 percent

less carbon dioxide than today’s

vehicles,” he noted.

One of the most promising

areas of ExxonMobil’s research,

said Tillerson, involves advanced

biofuels, including production of

liquid fuels from algae and biomass

conversion. He said these

technologies could reduce green-

house gas and land use impacts

as compared to first-generation

biofuels such as ethanol.

Sound government

policies needed

Tillerson stressed that the complexities

of new technologies and

the enormous scale of the global

energy market mean that technological

transformation takes

time. That’s why government

policies must allow for long-term

planning and disciplined investments

that lead to technological

advances. Tillerson called for

governments to provide invest-

ment stability by implementing

simple, transparent and predictable

policies to mitigate greenhouse

gas emissions.

“Consistent with that view,

we believe a carbon tax would

be a more effective policy option

to reduce greenhouse gas emissions

than alternatives such as

cap-and-trade,” said Tillerson.

“A carbon tax should be offset

by tax reductions in other areas

to become revenue-neutral for

government.” the Lamp



Energy conference

explores breakthrough technologies

Leading experts in breakthrough

energy technologies

from the United States and

Europe gathered in London

earlier this year to share

ideas and perspectives on

key issues, including hydrocarbon-productiontechniques,

improved efficiency

in transportation, carbonemission

mitigation and

alternative-energy options.

Story by Thomas L. Torget

The Financial Times Energy

Conference, sponsored by

ExxonMobil, explored technology

options that could help

meet increased energy demand

in efficient and environmentally

responsible ways.

The ideas discussed included

innovative approaches to oilsands

production, extended-

reach drilling, wave energy,

advances in batteries (both for

vehicles and for storing energy

produced by hydro or wind

power), hydrogen-powered

cars, thin-film solar cells and

advanced biofuels.

Attended by more than 100

specialists in the field of energy

technologies, the conference

provided participants with the

opportunity to question the

experts, exchange ideas and

network with peers.

Debates concentrated on four

topics: new techniques that offer

innovative approaches to find,

produce and deliver hydrocarbon

reserves; technological innovations

that allow industries to use

energy more efficiently; advancements

in the large-scale reduction,

removal and storage of carbon

dioxide; and developments

During his panel presentation,

ExxonMobil’s Nazeer

Bhore (second from left)

discussed a number of

promising technologies to

increase vehicle efficiency

and lower emissions.

in alternative-energy resources.

Chaired by Neil Hirst of the

International Energy Agency, the

conference included speakers

such as the chief scientific advisor

to the British government, representatives

from eight leading universities

and research institutions,

and specialists from Schlumberger,

BP, General Motors, GE, Air

Liquide, ALSTOM Power and

IBM. Professor Lynn Orr, former

Global Climate and Energy Project

director, Stanford University, was a

speaker, along with ExxonMobil’s

Nazeer Bhore, Corporate Strategic

Planning senior technology advisor.

In addition, Professor M. Stanley

Whittingham of the State University

of New York, who helped invent

lithium-ion battery technology as

an Exxon employee in the 1970s,

was a key speaker.

Technology improvements

During the conference, Bhore

discussed how new technologies

can improve vehicle efficiency

and reduce greenhouse gas


“In the short term, we need to

improve the efficiency of engines

and transmissions, use improved

tires, and also make vehicles

lighter and more aerodynamically

efficient,” he said.

“In the mid-term, we will also

need to further develop advanced

power trains, such as hybrids and

advanced diesels, such that their

cost is lowered to promote widespread


“For the longer term, we need

step-out technologies involving

hydrogen fuel cells, electric cars

and next-generation biofuels. I’m

enthusiastic about all of these


Bhore said ExxonMobil is

developing a highly promising

technology that can produce

hydrogen from liquid fuels

onboard a vehicle. The technology

uses a process called

reforming to chemically convert

gasoline, diesel or biofuel into

fuel cell-ready hydrogen.

“This is very exciting because it

offers the potential to avoid many

of the problems that make hydrogen

use for transportation fuel

such a huge challenge,” he said.

“These challenges include finding

ways to make hydrogen in large

volumes, and then distributing it

and storing it economically and

safely. None of that is easy.”

Bhore reported that

ExxonMobil engineers estimate

this new on-board hydrogengeneration

technology on a fuelcell

vehicle can reduce fuel consumption

and greenhouse gas

emissions by 45 percent or boost

fuel economy by 80 percent.

He noted that this hydrogen

technology is just one of many

innovations ExxonMobil is pursuing,

through its own research or

in collaboration with others, to

improve vehicle efficiency. Other

efforts include the company’s

recently introduced battery


film technology,

as well

as numerous

projects involving biofuels and

step-out engine technologies.

“As a society, we must

To learn more



aggressively pursue a portfolio

of options that potentially can

improve vehicle efficiency and

reduce greenhouse gases,

while also meeting society’s

continuing needs for reliable

and affordable transportation

fuels,” he said. the Lamp

Some findings

There is no silver bullet to the energy challenges

the world is facing, and a variety of innovative and

collaborative solutions is required.

The energy future will be more diverse, with

energy efficiency playing a major role in meeting

the challenges.

Carbon capture and storage is a key option that

must be further developed and explored as part

of efforts to manage greenhouse gas emissions.

Meeting the challenges will require substantial

progress in technology, and will depend on scientists

and engineers to come up with solutions that

are both scalable and cost effective.



What we do

when storms hit hard

Second of two parts

Soon after Hurricane Gustav

made a surprise, inland assault

on Baton Rouge, Louisiana,

last September, Tom Moeller,

ExxonMobil director of refining,

Americas, arrived in the city to

survey the storm damage that

had shut down operations at the

company’s second-largest U.S.

refinery. En route from the airport,

he observed long lines of anxious

motorists at the few service stations

that had the fuel, electrical

power and staffing to remain

open for business.

“Scenes like that illustrate the

role our industry plays in supporting

the everyday infrastructure

of society,” says Moeller. “It’s

why we needed to get back up

and running quickly.”

When hurricanes hit, restoring

normal operations is a guiding

principle throughout ExxonMobil’s

downstream business – from

refining and supply, to pipeline

and marine transportation, to

John Palaszczuk leads a hurricane

preparation drill at the

Fairfax, Virginia, headquarters of

ExxonMobil’s Refining, Supply,

Fuels Marketing and Lubricants/

Specialties organizations.

Story by Shelley Moore Christiansen and Richard Cunningham

From Texas to Louisiana, the Gulf Coast region

is home to the nation’s highest concentration of

refining and supply operations, a host of terminals,

the origination points of the nation’s largest

pipeline systems and extensive fuels-marketing

networks. It has also been landfall for some of

history’s most destructive hurricanes.

fuels and lubes marketing.

As storms approach,

ExxonMobil’s goal is to keep

operations in the region going

wherever they safely can.

Where business is interrupted,

company teams work quickly

to restore product supply – or

develop alternate, interim solutions.

And they do it on a foundation

of rigorous planning and

preparation that has repeatedly

kept ExxonMobil a step ahead

of the industry in times of crisis.

Lessons learned

Taking lessons learned from

such storms as Gustav and Ike

in 2008 and Katrina and Rita in

2005, the company’s hurricaneresponse

teams routinely conduct

training and other emergency-response


They fine-tune day-to-day

storm watch action plans and

update employee tracking data

to make sure workers are safe

if they have to evacuate. Team

members conduct simulation

Photo by Robert Seale

drills with internal and external

partners, and plan where extra

fuel might come from. And

they provide information, guidance

and support to industry

associations, states, counties

and municipalities regarding

fuel-specification and other waivers

that are considered when a

storm is on its way.

“Our ability to supply fuel to a

particular marketplace where and

when it’s needed improves dramatically

if we can temporarily shift

from delivering, for example, 12

formulations to delivering five or

six,” says Erskine Frison, products

optimization manager, Americas.

“One of the core strengths that

sets ExxonMobil apart from other

companies during critical periods

is the way we’re organized,”

says Greg Cunningham, U.S.

supply operations manager. “We

work with many groups within

our company – production,

transportation, refining, supply,

marketing – on a daily basis

within our integrated business

team process. During a hurricane,

we just take that process

and accelerate it.”

Hurricane watch

ExxonMobil operates four

Gulf Coast-area refineries –

in Baytown and Beaumont,

Texas, and in Baton Rouge and

Chalmette, Louisiana – accounting

for nearly a quarter of the

Ominous clouds portending Hurricane Ike’s wrath loom over a Houston-area refinery.

The storm actually tracked up the ship channel where many refineries are located.

region’s industrywide refining

capacity of about 8 million barrels

of crude oil a day.

When a major hurricane is still

seven days away from landfall, it

is far too soon to predict which,

if any, ExxonMobil refineries may

be affected. Nevertheless, preemptive

inspections and preparations

occur to assure that facilities

are well-prepared for severe

weather conditions.

As the landfall clock winds

down, the hurricane’s path may

still be uncertain. “But once

it hits, you can’t hide,” says

Moeller. So, with about four

days to go, the coastal refineries

(Baytown, Beaumont and

Chalmette) proceed either to

shut down or to shift into what’s

called “safe park,” a reducedoutput

state that helps conserve

crude oil and other key supplies

that may soon be interrupted by

the storm.

While refineries close to the

coast are more exposed to the

effects of severe weather, Baton

Rouge, a hundred miles inland, is

more protected and more likely

to maintain operations. After a

storm, Baton Rouge’s continued

output can become vital to the

industry as a whole, providing

emergency supplies to downstream

pipelines and terminals to

keep fuel moving to regions far

away from impacted areas.



Helping communities

and businesses

“For hurricanes, we expand our

philosophy of keeping our own

system adequately supplied to

one of helping the overall industry

get back to normal,” says


ExxonMobil refineries also help

their surrounding communities

during power outages, providing

electricity from their cogeneration

plants for use by area households

and businesses.

The company’s Supply organization

identifies and buys additional

volumes of fuel before it’s

clear that the company needs

them to make up for the shortfalls

that sometimes occur. Those

sources might be from locations

several days away, like New York.

They may even be cargoes at

sea – during Hurricanes Gustav

and Ike the company diverted 14

waterborne cargoes from other

geographic markets, including

Europe and Asia, to fill gaps

in supply while the Texas and

Louisiana refineries were coming

back up.

“From the downstream perspective,

our biggest challenge

is to keep fuel moving, not only

to customers in the hurricane

zones but to all the others who

depend on refined products

from the Gulf Coast,” says Mark

DiZio, manager of global products

supply and trading.

“People in places like North

Carolina sometimes wonder, ‘If

Members of the company’s

Supply response team conduct

drills before hurricane season to

continuously improve the organization’s

effectiveness when a storm

hits. Seated in foreground (left

to right) are Andre Pennington,

Donna Scanlon and Ryan House.

Adel Abunasser (left) and Greg

Cunningham are pictured at rear

discussing the exercise scenario.

Photo by Robert Seale

Photo by Mark Wilson/Getty Images

the hurricane struck Texas, why

are we without gasoline?’” adds

John Palaszczuk, manager of

U.S. product trading. “The answer

is often related to the length and

complexity of the supply chain,

variations in product specifications

and industry infrastructure.”

Minimizing those disruptions

on a local, regional or

national level is a top priority

for ExxonMobil and its affiliates.

For example, the company’s

marine affiliates play a vital role

in maintaining the critical flow of

energy by safely and efficiently

moving or redirecting important

cargoes to affected markets to

help restore the flow of crude oil,

feedstocks, refined products and


ExxonMobil Pipeline Company

(EMPCo) also plays a critical

infrastructure role to minimize the

impact of hurricanes on crude

and refined products deliveries.

Securing and coordinating the

placement of portable generators

at key pipeline and terminal

facilities is but one example of

EMPCo’s efforts to restore power

and resume operations quickly,

safely and flawlessly.

Lubricants’ customer focus

Similarly, the lube-oil blend

plants on the Gulf Coast readied

themselves for the hurricanes,

idling operations, moving product

inventories into the network

and staging response teams

in the area. Within days of

each hurricane strike, delivery

operations were restored, and

the plants were operational,

but raw material supplies were

critically impacted. ExxonMobil’s

Lubricants & Petroleum

Specialties Company relies on

ExxonMobil refineries for basestocks

and company chemical

plants for much of its supply

of polyalpha olefins used in the

blending of high-quality lubes

and other products.

“We built up significant

product inventory in preparation

for the hurricane,” says

Lynne Lachenmyer, operations

vice president of Lubricants

An emergency worker inspects damage in front of Houston’s JP Morgan Chase Tower

the morning after Hurricane Ike passed through the city on September 13, 2008. The

storm made landfall in the middle of the night, causing extensive damage to buildings.

and Specialties. “Despite these

efforts, the storm’s impact

was significant. We took quick

mitigation steps to manage the

disruption of our base-oil supply,

ensuring supply to singlesourced

customers and those

providing emergency response.

Unfortunately, customer allocations

were required to manage

supplies. Communication was

key throughout this process. We

were in regular contact with our

customers, providing them with

updates on our recovery plans.”

Marketing’s timely


ExxonMobil has 81 companyowned

stores in the Houston

area and 275 distributor locations,

which are Exxon- or

Mobil-branded stations that are

owned and operated by others.

All were closed as a result of Ike.

Few were damaged in the storm

but most needed emergency

power to reopen.

“We keep 100 large emergency

generators staged in

three cities within 200 miles of

the Gulf Coast,” says Mike Gore,

company-owned retail store

manager. “The generators are

big enough to run all aspects

of a retail site. Since all of our

stores are designed to ‘plugand-play,’

we deliver the generator,

plug it in and run the site as

if it were on grid power.”

The generators are loaded on

flatbed trucks and ready to roll

well before a hurricane makes

landfall. A generator can be

powering any company-owned

store within 24 hours.

And after Ike, ExxonMobil was

able to offer 20 of its extra generators

to distributor locations

until power from the grid was


“Before the storm, we made

sure that our key stores on

evacuation routes had plenty of

fuel and stayed open as long as

possible,” Gore says.

“After the hurricane passed,

we reopened those same stores

quickly so that people could get

back into affected areas. We had


Coordination team ensures

critical business continues

Well before Hurricane Ike made landfall, ExxonMobil activated

its Regional Response Coordination Team (RRCT) to monitor

the storm and take the necessary steps to ensure business

continuity, ultimately deploying more than 400 essential personnel

to the company’s Pegasus Place facility in Dallas.

The purpose of the RRCT, which consists of representatives

from all business and service lines including Information

Technology, Facilities Management, Procurement, Safety,

Health and Environment, Security, Human Resources and

other support groups, is to provide cross-functional coordination

during the recovery efforts and to assist in operating

ExxonMobil’s businesses as smoothly as possible while the

affected infrastructure is returning to normal.

For example, the company’s Global Real Estate and

Facilities unit coordinated the inspection of more than 9,000

Houston-area offices and workstations within five days of

landfall, assessing damage and initiating repairs, and making

sure facilities were safe for staff to return to work.

Information Technology (IT) assigned personnel to the

Houston data center who worked in shifts around the clock

during and after the storm to ensure ExxonMobil’s critical

processes were not interrupted. Facilities and IT also collaborated

to provide close to 500 alternative work locations

for employees in the early recovery phase.

The company’s Procurement group placed close to 1,000

purchase orders to support the immediate recovery process,

from portable generators to more than 10,000 bottles

of water for employees, while utility and city services were


“Communication is key,” says Andreas Goldschmid, of the

RRCT leadership team. “To ensure business continuity, we

coordinate not only with every ExxonMobil company, but with

the weather service, government and emergency-response

officials, employees and contractors to make sure we understand

and manage the cross-functional needs of the corporation

while getting activities safely back to normal.”


limited products, but we focused

on the things people needed

most: fuel, water, batteries and

ice. And our retail employees

were crucial to this effort, going

above and beyond what was

expected during the evacuation

and recovery periods.”

Each ExxonMobil store

reopened only if members of

Gore’s team were certain they had

what they call the three “P’s” in

place: People able to safely come

back to work; Product to keep

the location stocked with fuel; and

Power supplied either by a generator

or by the utility company.

More trucks and drivers

After Hurricane Ike, ExxonMobil

opened stores in Houston days

ahead of most other suppliers,

so additional fuel trucks were

brought in to meet the demand.

“Our base operation in Houston

is eight trucks with 25 drivers,”

says June Harper, North America

customer service manager. “To

respond to Ike, we increased that

to 14 trucks and 43 drivers. We

brought in trucks from nearby cities

and flew the drivers to Texas

from across the country.”

Normally, one truckload of

gasoline – about 9,000 gallons –

lasts two or three days. Larger

stores might take two truckloads

a day, but when there are cars

waiting in line, a load lasts barely

four hours.

For safety, extra drivers were

used to make sure the trucks

could keep running around the

clock and that the drivers would

get enough rest between shifts.

In the aftermath of Gustav

and Ike, the safety record across

the entire retail organization was

outstanding. Even with all of the

extra drivers and more than 700

workers helping to reopen stores,

there was not a single accident.

Focused response

to hurricane fury

Although hurricane landfall,

severity and impact are unpredictable,

the ExxonMobil

response is second to none. The

focus is on taking care of our

people, facilities, customers and

communities where we operate.

“We plan, prepare and have

strong processes in place

across the downstream to deal

with hurricanes,” notes Denny

Houston, who leads the downstream

hurricane response

organization. “We quickly and

fully utilize our

flexibility, experience

and global


to manage the response. The

To learn more



ExxonMobil response to Gustav

and Ike is a great story for our

shareholders, employees, customers

and communities. We

are all proud of what we accomplished

as a team.” the Lamp

After Hurricane Ike, ExxonMobil was able

to open its Houston retail stores days

ahead of most other suppliers, and extra

drivers and trucks were brought to the city

to keep deliveries moving to customers.

Photo by Gary Blockley

Much more than a plan

Last year’s hurricanes in the Gulf of

Mexico left scars on the coast and

affected chemical markets worldwide,

but lessons learned from earlier storms

helped ExxonMobil employees respond

much faster this time around.

Photo by Guiseppe Barranco/The Beaumont Enterprise

Call it a worst-case scenario. A

major hurricane fills the Gulf of

Mexico and lands on the most

heavily industrialized stretch

of the upper Texas coast.

ExxonMobil’s Houston offices

lose power, and several of the

company’s manufacturing sites

are damaged. Specialty products

– some supporting global

supply networks – are suddenly

unavailable to customers in the

Americas, Europe and Asia.

Although it’s the kind of emergency

that ExxonMobil employees

plan and practice for each

year, only similar experiences

following the violent Gulf storms

of 2005 could fully prepare them

for the hurricanes of 2008.

“We prepare for this, but it was

difficult to anticipate the extent

of damage caused by Hurricane

Ike,” says Will Cirioli, ExxonMobil

Chemical Company regional

director, Americas, who also

heads the company’s Emergency

Support Group (ESG).

“One enhancement we made

to our emergency-response plan

after Hurricanes Katrina and Rita

in 2005 was to add a regional

response team that can quickly

relocate our headquarters operations

from Houston to Dallas,”

he says. “Hurricane Ike was the

first time we had to put that plan

in motion.”

A measured response

The goal of ExxonMobil’s hurricane-response

plan is to secure

facilities, protect the public,

make sure employees are safe,

and continue serving customers.

The response is measured, following

plans that are made well

in advance.

“This is not a situation that

you make up as you go,” Cirioli

Boats moored for safety at the Port of Beaumont thrash wildly as Hurricane Ike roars ashore.

A ship captain estimated waters rose 11 feet at the port, almost lifting vessels onto their docks.

explains. “We make our decisions

long before there’s a

threat. When hurricanes do

threaten, our response is preprogrammed,

based on a series

of triggers that are dictated by

the storm.”

ExxonMobil operates many

oil and gas facilities, four large

refineries, two lube-oil blending

plants and nine major chemicalmanufacturing

sites along the

coast from Texas to Florida.

Some facilities can be shut

down in as little as 12 hours, but

others take two or three days,

so the moment a tropical storm

or hurricane threatens the Gulf

of Mexico, the ESG begins communicating

with all the sites and

monitoring the weather several

times a day.

By Tuesday, September 9,

there was enough certainty in

the forecast that Cirioli moved

Chemical’s ESG to Dallas. Other

Houston-based ExxonMobil

companies did the same, joining

forces with ExxonMobil’s

Regional Response Team, sharing

office space that is kept

ready year-round with all the

computers, supplies and phone

lines needed to run the global


As Ike grew in size and

continued toward the Texas-

Louisiana coast, it triggered the

next stages of the emergencyresponse

plan. Generators,

food, water, radios and all the

other equipment needed during

recovery were pre-positioned

so they could be trucked in

quickly once the storm passed.

On Wednesday, plants started

shutting down. By noon Friday,

the ones nearest Houston were

bracing for the worst.

Story by Richard Cunningham


Clockwise from upper left: 1) The impact of floodwaters that inundated the Beaumont Chemical Plant can be

seen in this view taken from the adjacent refinery looking east. The plant’s administration building is at the

upper left of the photo. 2) The same shot after water was pumped off the grounds and operations restored. 3)

The area around the administration building after cleanup is a far different sight today than 4) the way it looked

just after Hurricane Ike, which caused water levels to rise more than 10 feet in some locations.


Early Saturday morning, the center

of Ike surged through Galveston

Bay and up the Houston Ship

Channel. By dawn, more than 90

percent of the region was without

power. Historic Galveston and

communities all along the coast

sustained widespread damage.

The Beaumont Chemical Plant, on

what’s called the “wet side” of the

storm, was impacted with more

than 11 feet of storm surge.

“When people saw the damage

here, they thought we would

be down for years,” says Dick

Townsend, Beaumont Chemical

Plant manager. “By Saturday

afternoon, we had a small group

of workers inside, making sure

there were no leaks or spills.

Damage assessment crews

moved in the following day.”

Almost every part of the plant

was damaged, and anything


electrical that was lower than

10 feet from the ground was


“We had to replace approximately

5,000 instruments, 2,000

valves, 800 pumps, 700 motors,

650 junction boxes, 500 online

analyzers, 45 air conditioners

and 25 switch-gear buildings,”

Townsend says. “We removed

13 million pounds of debris and

used more than 300 generators

for temporary power while we

were doing all the work.”

Business continuity

“The Beaumont Chemical Plant

is a critical supplier of polyalpha

olefins,” says John Lyon,

Synthetics vice president. “PAOs

are the basestock that our customers

use to blend high-quality

lubricants for heavy machinery,

such as the gearboxes of the

giant wind turbines used to gen-

erate electricity. The plant also

produces synthetic basestock

used in Mobil 1.”

A nonstop effort by the various

emergency groups and regional

response members in Dallas

managed the recovery, held

supply networks together and

advised global customers on

what to expect. The companies

that blend and market synthetic

lubricants routinely keep some

amount of basestock in reserve,

but would they have enough to

last until the Beaumont plant was

back on stream?

“Given the inventory levels

of some of our lubes manufacturing

customers,” Lyon says,

“we began allocating our own

inventory and working with them

to develop options to maintain

supplies to their customers.”

As many as 2,000 people

worked in shifts around the clock

to repair the Specialties units at

the Beaumont Chemical Plant.

“The storm hit in mid-September,”

Lyon recalls, “and by early

December both the Synthetics

and the Catalyst units at the

chemical plant were back on

line. We began increasing allocations,

and by mid-January, we

were back to 100 percent.”

Efficient manufacturing

Once the Synthetics and Catalyst

units were running again, they

performed extremely reliably, and

that helped increase inventories

faster than anyone expected.

“In most cases, we replaced

damaged equipment with newer

and more efficient technology,”

Townsend says. “Our goal was

to come back strong, and we

did. At least in terms of the electrical

system, we have a brand

new plant.” the Lamp


cogeneration plant

breaks new ground

A new facility in Belgium uses technology

to make productive use of excess heat in

the generation of electricity. The result:

improved efficiency and reduced emissions.

Startup of a new cogeneration

plant at the ExxonMobil Refinery

in Antwerp, Belgium, is another

major step by ExxonMobil in using

energy more efficiently and reducing

greenhouse gas emissions.

Inauguration of the facility

at Antwerp, ExxonMobil’s

second-largest refinery in Europe,

expands the company’s interests

to about 100 cogeneration installations

at 30 worldwide sites,

generating some 4,600 megawatts

(MW) of additional power.

That’s enough electricity to supply

the needs of approximately

2 million U.S. homes.

With cogeneration technology,

ExxonMobil can produce electricity

to power its operations and

also capture heat, in the form

of high-pressure steam that, in

turn, can be used to transform

raw materials into a variety of

products. Cogeneration provides

a more efficient source of power

than purchasing electricity from a

local utility – in some cases up to

50 percent more efficient.

How it works

Cogeneration starts with the

burning of fuel, often natural

gas, in a large gas turbine that

provides the power to rotate an

electric generator.

The hot exhaust gases from

the turbine are then routed to a

heat-recovery unit that captures

additional energy otherwise lost

to the atmosphere. Steam from

the process is typically used in a

refinery’s manufacturing units.

At Antwerp, however, there

is only a limited requirement for

additional steam, so the excess

energy is also used to heat the

refinery’s crude oil directly, significantly

reducing the energy

needed to convert the crude into

clean fuels. Using heat this way,

on such a grand scale, is what

sets the Antwerp Refinery – and

its cogeneration unit – apart.

“The Antwerp cogeneration

process generates about 125 MW

of electricity – enough to power

the refinery, as well as the needs

of most of ExxonMobil’s other

Belgian manufacturing operations,”

says Richard Henderson,

the refinery’s technical manager.

Moreover, the process is highly

energy-efficient, so carbon-dioxide

emissions are reduced. In fact,

the total impact of this project

is a reduction of Belgium’s CO 2

emissions by approximately

200,000 tons a year. Worldwide,

ExxonMobil’s investment in

cogeneration has lowered greenhouse

gas emissions equal to

removing more than 1 million cars

off U.S. roadways.

ExxonMobil’s newest cogeneration facility is in

Antwerp, Belgium, with 125-megawatt capacity.

Construction in a tight space

Construction of this cogeneration

plant presented a special set of


“The Antwerp refinery is

densely built,” says David

McLatchie, project executive.

“There’s very little extra land available

for new construction. Given

the small plot space the team

had to work with, it was essential

to come up with something completely

out of the ordinary in order

to accommodate this new plant.”

Normally, the two major components

of a cogeneration facility

– the gas turbine that creates

electricity and the heat-recovery

unit that generates steam – are

built adjacent to each other. At

Antwerp, this wasn’t possible, so

it was necessary to construct the

heat-recovery unit on top of the

gas turbine, more than three stories

above it.

Photo by Kees Stuip

Story by Bill Corporon


The toy cars held by children attending the inauguration

ceremonies for the startup of Antwerp’s new cogeneration

plant are symbolic of the emissions reduction the plant will

bring: the equivalent of removing 90,000 cars off the roads.

Construction required highprecision

lifting operations from

crane operators to get all the

equipment in position for assembly.

With much of the work

being performed in

tight conditions high

above the ground,

developing plans for

working safely was paramount.

“We made sure that safety

considerations were part of every

step of the planning and construction

process,” says Gilbert

Asselman, refinery manager.

At its peak, construction of

the facility employed some 400

people. Commissioning activities

began in December 2008, with

startup and testing successfully

completed in January 2009.

To learn more



Inauguration day

The Antwerp refinery hosted an

inauguration ceremony for the

new cogeneration unit in March.

It drew more than 200 representatives

from government,

business, the community and

ExxonMobil as well as numerous

members of the news media.


Photo by Stefan Dewickere

Flemish Prime Minister Kris

Peeters recognized the company

for its additional investment

in cogeneration. He also

emphasized the importance of

energy efficiency in reducing

emissions and elaborated on the

government’s policy to promote


Hilde Crevits, the Flemish minister

of energy and the environment,

and Cathy Berx, governor

of the province of Antwerp, also

attended the event.

Senior ExxonMobil executives

included Olivia Owen, corporate

vice president for safety, security,

health and environment;

Darren Woods, refining director

for Europe/Africa/Middle East;

and Joost van Roost, the company’s

lead country manager for

Belgium, the Netherlands and


The inauguration was a

memorable launch to an extraordinary

project that promises to

meet the needs of the Antwerp

Refinery and the Belgian people

while also helping the environment.

the Lamp


More than

100 installations


ExxonMobil self-generates

more than half of it’s

total electricity demand.

More than 50 percent of

the corporation’s global

cogeneration capacity is

in the United States, and

all seven of the company’s

U.S. refineries have

cogeneration facilities.

ExxonMobil is a


United States

United States


19 megawatts Argentina

Includes fully owned/operated and equity-interest facilities

global leader in cogeneration technology

United Kingdom


The Netherlands






ExxonMobil and cogeneration:

More than 100 installations in 30 locations worldwide


More than 4,600 megawatts of cogeneration capacity – enough to

power more than 2 million U.S. homes

ExxonMobil’s investment in cogeneration has lowered greenhouse gas

emissions equal to taking more than 1 million cars off U.S. roads

Largest ExxonMobil cogeneration plant, with 500 megawatts of power

capacity, is in Beaumont, Texas





Cogeneration capacity

by region





Asia Pacific








Technology key to ExxonMobil

and Abu Dhabi relationship

ExxonMobil, Abu Dhabi

National Oil Company (ADNOC)

and Japan Oil Development

Company (JODCO), co-venturers

in the Zakum Development

Company (ZADCO), have

launched a major project to

expand development of the

world’s fourth-largest oil field,

and the development is on track

to meet its targets.

Containing an estimated 50

billion barrels of oil, the Upper

Zakum field produces more than

one-half million barrels a day.

Through the efforts of professionals

from ExxonMobil, ZADCO,

ADNOC and JODCO, and by

applying ExxonMobil’s leading-

Story by Bill Corporon Photography courtesy of ZADCO

ExxonMobil is working closely with its co-venturers to develop one of the world’s

largest oil fields. A new technology center, artificial islands and an innovative

drilling organization highlight efforts to boost recovery at a lower cost.

edge technology, the project could

boost daily field production by

200,000 barrels over the next six

to seven years – a sizable contribution

toward meeting future

growth in global oil demand.

Upper Zakum lies about 50

miles northwest of the city of Abu

Dhabi, the capital of the seven

emirates that make up the United

Arab Emirates (UAE). The offshore

field covers more than 450

square miles and contains some

450 wells drilled from more than

90 existing platforms. Wells typically

extend 7,000 to 8,000 feet

below the earth’s surface.

Oil flows through a pipeline

network to one of four main pro-

cessing facilities. After the oil is

treated, it’s fed into another pipeline

for a 35-mile journey to Zirku

Island. There it’s held in large

storage tanks to await export.

ExxonMobil holds a 28 percent

joint-venture interest in the

field and in ZADCO, the field’s

operator. ADNOC owns 60 percent,

with JODCO holding the

remaining 12 percent stake.

Opening doors

Less than 10 percent of the field’s

oil has been produced, testimony

to the imposing technical challenges

it presents. Much of the

reservoir is made of low-permeability

rock, making the oil difficult

and expensive – to extract.

Nevertheless, says Frank

Kemnetz, president of

ExxonMobil Abu Dhabi Offshore

Petroleum Company, Ltd.,

development is well under way

and on schedule.

He attributes this to the spirit

of cooperation among the Abu

Dhabi government, ADNOC,

ZADCO and the private oilcompany

co-venturers, and

stresses the importance of a

disciplined approach that relies

on cutting-edge technology to

solve problems.

“First you have to understand

the resource,” he says. “If you

don’t know much about the res-

Right: ExxonMobil retains

offices in the Sheikh

Khalifa Energy Complex

in Abu Dhabi, which is

also headquarters for the

Abu Dhabi National Oil

Company and the Zakum

Development Company.

Below: The huge central

complex at the Upper

Zakum field, some 85 miles

offshore of Abu Dhabi,

houses some 650 workers

and processes more than

550,000 barrels of oil and

130 million cubic feet of

natural gas a day.


The Abu Dhabi Technology Center promotes research and collaboration

between United Arab Emirates and ExxonMobil professionals.

ervoir rock, you don’t know what

will happen when you drill. We use

ExxonMobil’s 3-D seismic technology

to get the picture we need.”

The next step is to create models,

using ExxonMobil’s proprietary

EM power reservoir-simulation

technology, which helps predict

how the reservoirs will perform.

“Then,” says Kemnetz, “we

apply our decision-making tools

to determine how to maximize

recovery at the lowest cost and

risk. Technology adds value by

reducing costs and enhancing

resource recovery. It opens the

door to more options.”

A first for ExxonMobil

To open that door further,

ExxonMobil has established a

unique technology center in

Abu Dhabi.

“The center’s mission is twofold,”

says ExxonMobil’s Ram

Rajagopalan, the center’s operations

manager. “We want to apply

high-impact technology that

benefits Upper Zakum while still

protecting our proprietary technology.

And we want to promote

a good working relationship

between ZADCO and ExxonMobil



The technology center is the

first to be established at an

ExxonMobil joint-interest facility.

It’s managed and operated by

ExxonMobil staff.

“The technology center

provides a window into the

ExxonMobil world,” says

Rajagopalan. “It enables ZADCO

to pair the best technology with

a state-of-the-art computing

environment to achieve its development


Employees of ExxonMobil

work closely with members of

the ZADCO team that manages

the Upper Zakum field. Together,

they seek to meet the field’s

development challenges.

The center places a strong

emphasis on training. From

2007 through 2008, it conducted

11 courses for more

than 122 people. In addition,

about 25 ExxonMobil employees

were “seconded,” or temporarily

assigned, to ZADCO to further

enable the transfer of technical

expertise. The center also hired

and trained UAE nationals in line

with a strategy set out by the


In addition to making technology

and expertise available in

Photo by Keith Wood

Abu Dhabi, ExxonMobil brings

ZADCO’s Emirati nationals to the

United States for training, and has

accepted a number of individuals

for developmental assignments

within the company.

“The technology center allows

us to bring technological expertise

to our co-venturer’s facility so we

can work together applying it to

Upper Zakum’s challenges,” says


Innovation with sand and rock

Technological advances come in a

variety of ways. Some are results

of years of intensive research.

Some arise from ideas inspired by

work in other areas.

Abi Modavi, an engineer with

ExxonMobil Production Company

who was temporarily assigned to

ZADCO as the field development

planning leader, suggested that artificial

islands, rather than the more

expensive steel platforms, be used

as drilling and production sites.

“When I first joined ZADCO, I

noticed how shallow the water

was – about 15 to 80 feet,” says

Modavi, “and I started thinking

about ways to use artificial islands

for drilling and production.”

ExxonMobil and ZADCO agreed

that the technical and economic

value of the concept held merit,

and Movadi’s staff of three

quickly grew to more than 100

during the assessment stage,

completed one year ago. The

project team now is conducting

detailed engineering design and

tendering construction bids.

Frank Kemnetz says that artificial

islands can reduce costs and

achieve long-term environmental

benefits. He points out that the

islands would not be feasible

without the “enabling technology”

of ExxonMobil’s expertise

in extended-reach drilling, which

allows wells to be drilled vertically

at first, then turned horizontally

to target reservoirs up to several

miles away.

“With artificial islands and

extended-reach technology, we

anticipate building fewer islands

instead of having to install a

larger number of steel platforms

to accommodate a comparable

number of wells, along with the

miles of pipelines to connect

them all together,” says Kemnetz.

“The cost savings could be in the

billions of dollars, and the islands

are a better long-term option for

the marine environment.”

The oval-shaped islands will

be made of sand and rock and

measure 2,000 to 2,600 feet

in diameter. The rocks, some

weighing several tons, are

barged from quarries in the UAE.

The islands are expected to

outlast the very long producing

life of the Upper Zakum field.

A multinational drilling group

ZADCO has embarked on a

major development program

to boost daily production in

the Upper Zakum by nearly 40

percent. Reaching that goal

requires a significant increase in

Sense of community

ExxonMobil affiliates have a long history of

supporting important community programs

in Abu Dhabi. These include the regional and

local efforts of the United Arab Emirates Red

Crescent Society, the American Community

School and the Future Center for Children

with Special Needs.

“Since our entry into the Upper Zakum project,

our community activities have grown significantly,”

says Michael Perry, vice president

of Public and Government Affairs, Exxon (Al

Khalij) Inc., an ExxonMobil subsidiary operating

in Abu Dhabi.

In 2008, ExxonMobil pledged $5 million

over three years to the Emirates Foundation,

a nationwide philanthropic organization

established in 2005, to facilitate public-private

initiatives for social betterment. The grant will

support efforts to promote energy efficiency

and environmental conservation.

The company also is a founding member

of the board of INJAZ UAE, a local chapter of

Junior Achievement Worldwide, or JA.

ExxonMobil is a longstanding supporter of

JA organizations,” says Perry. “Our involvement

in INJAZ is aimed at the extension of these

programs to benefit the youth that will be future

business and community leaders in the UAE.”

The strong partnership between

ExxonMobil and Abu Dhabi is helping to

develop needed energy to fuel growth in the

Middle East and beyond.

Arabian Gulf







United Arab


drilling activity. When ExxonMobil

acquired its interest in Upper

Zakum, another offshore operating

company conducted well

operations. ZADCO had no drilling

unit of its own.

A planning team studied more

efficient and effective ways to

manage drilling. The team, led

by Hamid Mozayani, ExxonMobil

executive advisor for drilling,

was charged with designing an

organizational structure for newwell

operations involving drilling,

completions and well workovers.

“We conducted a study that

looked at a number of options,”

says Mozayani. “We focused on

the people, systems, processes

and organizational aspects of

well operations.”

The team’s conclusion was

for ZADCO to create its own

drilling organization. The recom-

Saudi Arabia

Area of detail

mendation was approved, and

Mozayani was asked to head

up the multinational working

group charged with creating the

new entity. It began operation in

November 2008 when ZADCO

took over five offshore rigs and

one barge.

“One of the key benefits of

establishing a ZADCO drilling

organization is its ability to

access ExxonMobil’s technology

and best practices,” says


“Our goal is to achieve

improvements in efficiency and

effectiveness of up to 30 percent,”

he says. “We’re already

drilling wells 10 to 15 percent

faster than before, and we

anticipate achieving additional

efficiencies in drilling and completion

times.”the Lamp

Processed oil from the Upper

Zakum field is transported by pipeline

to Zirku Island, where it is stored

for shipment to world markets.



Healthy energy industry key to economic

ExxonMobil Senior Vice

President Mike Dolan

spoke at Cambridge

Energy Research

Associates’ CERAWeek

conference in Houston in

February. He emphasized

that the energy industry

can play a critical role

in rebuilding confidence

amid today’s challenging

economic times.

Story by Mike Long Illustration by Pat Gabriel

The energy industry’s role in

managing risk and helping to

restore economic confidence

will be paramount as the world

continues to face economic

uncertainty, ExxonMobil Senior

Vice President Mike Dolan told

attendees in a keynote speech

at the 2009 CERAWeek.

Equally clear, said Dolan, will

be the importance of energy

policies that encourage investment,

reduce risks and focus on

the long term.

Industry excels

in risk management

Dolan explained that the energy

industry has a long history of

managing risk effectively.

“Each day, energy companies

manage a variety of risks – operational

risks, technological risks

as well as risks related to project

investments and the ups and

downs of commodity prices,” he

said. “The fact that these risks

go largely unnoticed by consumers

is a testament to our industry’s

success and reliability.”

Since July 2008, crude oil has

dropped in value from a record

of nearly $150 a barrel to around

$40 in the first quarter of this

year. Dolan said few industries

could weather such a steep and

sudden decline in the value of

their core commodity.

The fact that the energy

industry is managing this

volatility testifies to its long-term

planning and effective risk management.

At the same time, it

continues to provide affordable

energy to consumers around the

globe, while generating billions

in government revenues and

shareholder returns.

ExxonMobil, for example,

had total tax expenses of nearly

$65 billion in the United States

between 2002 and 2007,

exceeding our U.S. earnings by

almost $20 billion during that

time,” said Dolan. “For the same

period, our dividends and sharebuyback

programs put nearly

$118 billion into the hands of

pension holders and investors,

the great majority of whom are in

the United States.”

The industry supports nearly

6 million jobs in the United States

alone. It is also a major employer

and investor in human capital

around the world.

“These facts – combined with

our ongoing investments in new

energy sources and new technologies

– make it clear that a healthy

energy sector will be critical to

reigniting economic growth.”

A two-part energy challenge

Dolan added that the industry

must also focus on the dual

energy challenge facing the world

over the long term – meeting


increased global energy demand

while reducing the growth in

greenhouse gas emissions.

Despite the current economic

downturn, global energy

demand is expected to continue

to increase, even with substantial

energy-efficiency gains. At the

same time, energy-related carbondioxide

emissions are expected to

rise by almost 30 percent – rising

primarily in developing nations

where populations and economies

are growing the fastest.

“To help put this potential new

demand in perspective, consider

the scale of China’s development,”

Dolan said. “Today, China

has one car or light-duty vehicle

for every 100 citizens. In contrast,

here in the United States,

we have 78 cars or light-duty

vehicles for every 100 citizens.

Similarly, per-capita electricity use

in China is only one-seventh that

of the United States.”

The industry faces economic

and environmental challenges

as it works to find and produce

reliable, affordable energy. To

do this and reduce emissions

growth it must continue to pursue

integrated solutions.

Dolan explained that integrated

solutions are those that

combined will help the industry

develop new supplies of energy

from all economic sources,

accelerate gains in the efficient

use of energy, and develop and

deploy new technologies to curb

greenhouse gas emissions.

Policy options

To continue making these

needed long-term investments

during both good times and

bad, Dolan told attendees that

the industry depends on stable

and predictable legal, tax and

regulatory frameworks.

In providing these frame-

For the record

Despite the current global economic downturn,

ExxonMobil continues to invest in new energy

supplies, increased energy efficiency and new

technologies that will be required to help address

global energy needs in the decades to come.

“That is our record,” Senior Vice President Mike

Dolan told CERAWeek attendees regarding the

company’s long-held philosophy of making sustainable

and disciplined investments in both good

times and bad.

For example, over the past 25 years, Dolan

said, ExxonMobil has invested some $380 billion

in future energy development around the

world – more than its total earnings during that

same period. Since 2004 alone, the company has

invested some $1.5 billion in activities to reduce

greenhouse gas emissions and improve energy

efficiency. It plans to spend at least one-half billion

dollars more on additional energy-efficiency initiatives

over the next few years.

works – and resisting the urge to

micromanage markets – governments

can play a constructive

and necessary role in helping

industry meet the world’s energy

and environmental challenges.

“It is ultimately a question of

risk,” Dolan said. “Policies that

increase risks for industry are

likely to decrease needed investments.

Policies that reduce risks

are likely to increase long-term

investment and expand the

availability of reliable, affordable

energy that is essential to economic


As an example, he cited the

area of policy options to reduce

greenhouse gas emissions.

One option supported by

ExxonMobil is a revenue-neutral

carbon tax. Dolan said that a

carbon tax would reduce policy

risks for businesses and investors

in a way that cap-and-trade

schemes would not. In addition,

by reducing other taxes – such

as income or excise taxes – a

carbon tax can be revenueneutral

and offset the impact of

higher taxes on the economy.

“By reaching out to inform the

public on these policy options

and by working together with

policymakers, we can ensure that

our energy policies provide the

long-term stability our industry

needs to do what we do best:

manage risk and

provide energy

to the world,”

Dolan said. “With

To learn more



a positive policy and investment

climate in place, we can continue

to pioneer solutions that power

our economy, increase energy

efficiency and curb greenhouse

gas emissions.” the Lamp


23 Story by Richard Cunningham Photography by Jerry Jones

Old friend,

new lease

ExxonMobil’s Johnny Saenz (left) and Clay

Powell unwind after a day’s work at the King

Ranch Gas Plant in South Texas. The plant,

shown at rear, processes about 600 million

cubic feet of natural gas a day.

ExxonMobil and the historic King Ranch have agreed to continue

an oil and gas agreement that’s been in effect since 1933.

The extension clears the way for new wells, creative technology

and the continued stewardship of this legendary land.


Founded in 1853, the

King Ranch is nearly

the size of Rhode

Island and consists

of four separate parcels

called divisions,

encompassing some

825,000 acres.




Gulf of


King Ranch


Even before the sun came up,

we could tell that the King Ranch

was not the sort of place city

folks often see. Six white-tailed

deer barely noted our arrival at

the gas plant office, and from

the scrub brush 300 yards away,

coyotes were yelping an end to

their nighttime hunt.

On the way to a nearby lake,

cattle warming themselves on

the asphalt road blocked our

way. As we waited for them to

move, at least a dozen peccaries

– dark, bristling pig-like

creatures often called javelinas –

wandered from the brush to

check us out.

“This is generally considered to

be much like open range,” says

Johnny Saenz, operations superintendent

for the South Texas

area. “Out here, that means

cattle, deer, javelinas, wild turkeys

and quite a few other kinds of

animals can wander across your

path at any time. As operators,

we are responsible not only for

our wells and facilities, but also

for protecting the land and the

wildlife that live on it.”

The King Ranch, established

in 1853, includes nearly 1,300

square miles of coastal prairie,

and it used to be more. The

spread is still one of the largest

ranches in the world.

“Because of its size and the

way the land is managed,”

Saenz adds, “the King Ranch

has become an important wild-

life habitat. Its staff works closely

with the Texas Parks and Wildlife

Department to manage these


Humble roots in South Texas

Humble Oil & Refining Company,

ExxonMobil’s predecessor, leased

land on the King Ranch and

drilled several dry holes there as

early as 1919. That lease expired

in 1926, but a new agreement

for more than 1 million acres was

signed in 1933. The first well was

completed in 1939, and the big

push began in 1945 with the discovery

of the Borregos field.

When the oil played out,

natural gas became the primary

resource. The King Ranch Gas

Plant, commissioned in 1959,

once handled as much as 1.75

billion cubic feet of natural gas a

day and produced 80,000 barrels

of natural-gas liquids, all from

company-owned wells in South

Texas. The plant still processes

some 600 million cubic feet a day

for ExxonMobil and other gas

producers in the area.

As a young engineer, Pat

Ketcham helped with the design

and construction of the gas plant

and later became district manager

of the Kingsville District during

its boom days of oil and gas


“At one time we were operating

around 10 drilling rigs a day

in South Texas, which required

a rig move about every three


The main house on the ranch reflects a blend of

Spanish, Mexican and South Texas architecture.

days,” he says. Now retired and

living with his wife in Kingsville,

Ketcham has fond memories of

the King Ranch and the many

people who worked there with

him, including Rex Tillerson,

current Chairman and CEO of

Exxon Mobil Corporation.

Morris Foster, retired president

of ExxonMobil Production

Company, and Jim Sandy, U.S.

Production operations manager,

took the lead in negotiating the

new lease. Like Tillerson, Foster

and Sandy both spent parts of

their early careers working with

the King Ranch.

“Because of the high activity

of exploration and production,

many past and current members

of the company’s management

earned their spurs here,”

Ketcham says.


A good fit

One key to long relationships is

understanding what the other

person needs. Many employees

of the South Texas operations

are lifelong residents of the area,

so they’re familiar with the challenges

of ranch life.

“That’s one reason we get

along so well with the local

King Ranch people,” says Clay

Powell, senior field superintendent.

“I was raised in a ranching

family that lived just 20 miles

from here, so I know what

ranchers need and understand

how to do things right.”

An example is that when it’s

time to abandon a well – shut

down a piece of equipment –

ExxonMobil restores the land to

its original state.

The other heart of Texas

If you had a time-lapse video of the South

Texas coast for the last 30 million years – and

ExxonMobil does – the shore might remind you

of a beating heart. It’s the geological engine

that formed more than 300 oil and gas reservoirs

below the King Ranch and elsewhere

along the coast.

“Thirty million years ago, South Texas was

similar in shape to what you see today,” says

Mike Gaskins, geoscience technical manager

with U.S. Production. “Rivers draining to the Gulf

of Mexico left layers of sediment on the continental

shelf, creating new land as they grew.”

When river deltas reached a certain size, however,

their weight caused the rock below them

to collapse. As deltas sank, shorelines retreated

as much as 50 miles. Ocean sediment covered

each sunken delta, creating the natural seal that

would eventually trap hydrocarbons after biological

material in the sediment cooked off.

“That’s very important here,”

Powell says. “When a well has

reached the end of its productive

life and needs to be abandoned,

we take out the equipment and

replant the area, based on what

the ranch botanist recommends.

Restoring the land is an ongoing

part of our work.”

Looking ahead

ExxonMobil’s earliest activities

at the King Ranch date back

90 years, and the recent extension

updates the current lease

and guarantees that the strong

ExxonMobil retiree Pat Ketcham,

shown in the workshop of his

Kingsville home, helped with the

design and construction of the King

Ranch Gas Plant in the late 1950s.

“That process has repeated many times, and

it continues today,” Gaskins says. “A vertical

cross-section of the coast looks like a stack

of wedges, with the thickest end toward land.

Each wedge represents one cycle of deposition

and subsidence, and each cycle may have

lasted 10,000 years.”

relationship will continue. It is an

important part of ExxonMobil’s

effort to fully develop domestic

energy supplies.

“We have a very diverse

portfolio in the United States,”

says Randy Cleveland, U.S.

Production manager. “There are

areas of tremendous growth,

but we also have some mature

fields, such as the ones in South

Texas. The older the asset, the

more challenging it can become.

We have to use technology in

all kinds of creative ways to help

those parts of our business to

be more profitable.”

One approach is to use

enhanced seismic imaging

and other technology to reach

smaller reservoirs that remain

untapped. That was not eco-

nomical in the past, when fewer

than one in four wells might be

productive. With today’s tools, the

success rate is much higher, particularly

in fields with a long history

of production.

“The King Ranch has been a

prolific producer of oil and gas

for many years,”

Cleveland says.

“It has already

produced a

Over millions of years, the

coast of Texas has expanded

and contracted, creating

natural seals that trap bands

of hydrocarbons that can be

tapped from surface wells.

To learn more



vast amount of hydrocarbons,

and we believe there’s more to

come. We’re very pleased to have

renewed this lease agreement

with the ranch owners.” the Lamp

Illustration by Pat Gabriel



Story by Kevin Gault

Most of the damage was done by

two massive fires, one that virtually

wiped out towns northeast of

Melbourne and a second inferno

that raced across Gippsland.

These were the worst fires

in the history of Australia, a

country accustomed to several

outbreaks of fire every year. In

this rare disaster that took place

during a severe drought, many

people died trying to protect

their homes or running from the

swiftly moving flames.

Red Cross assistance

The Australian Red Cross played

a critical role in assisting those

affected by the blaze – 15,000

people sought help from the

agency. The Red Cross established

20 evacuation-relief cen-

Recovering from

The aftermath of several dozen

wildfires that ravaged southeastern

Australia in February

was shocking: 173 lives

lost, more than 2,000 homes

destroyed, 7,500 people left

homeless. One month after the

first flames ignited and were

propelled by 60 mph winds,

some of the fires still smoldered

but were finally contained.

ters supported by more than

400 volunteers and staff, providing

meals and medical aid for

firefighters and police along with

other emergency services such

as personal support, trauma

counseling and referrals for

emergency relief and recovery.

“I’m sure that the thoughts

and sympathies of everyone

in our company are with the

people and communities that

have been directly impacted by

these fires,” says ExxonMobil

Australia Lead Country Manager

Mark Nolan. “We applaud the

Red Cross for the assistance

that its staff and volunteers provided

for affected people as well

as the recovery efforts of the

emergency-services personnel.”

Above: A huge wildfire blazes through

the Healesville, Australia, region in

Victoria State earlier this year. The

loss of life and destruction caused by

the fires was the worst in Australia’s

history. (Lucas Dawson/Getty Images)

Left inset: A fire-fighting helicopter

hovers above the flames and drops

water on a blaze spreading through

dense forest east of Melbourne.

(Paul Crock/AFP/Getty Images)

Above inset: A fire crew battles in

thick smoke to save houses north of

Melbourne. Firefighters likened the

series of infernos to “an inland tsunami.”

(William West/AFP/Getty Images)

devastation Down Under

Helping the recovery

The public response to the

catastrophe was immediate

and substantial: the generous

donations of thousands of

people raised more than $300

million for the official relief fund,

the Australian Red Cross 2009

Victorian Bushfire Appeal Fund.

ExxonMobil donated $500,000

to the fund, which is being used

to support emergency-response

services and provide direct assistance

to people, local organizations

and communities devas-

tated by the wildfires.

“We would like to thank

ExxonMobil for making such

a fantastic contribution to the

bushfire appeal,” says Robert

Tickner, CEO of the Australian

Red Cross.

Several fires raged in the

Gippsland area. While not directly

threatened by fire, ExxonMobil’s

Longford facility was impacted by

dense smoke and falling ash on

the night of February 7, and plant

personnel remained on high alert

for several days.

Donations for community

When the fires destroyed water

tanks and also contaminated

water in many townships, the

ExxonMobil Yarraville terminal

in Melbourne donated several

portable storage tanks that

provided clean drinking water

for affected communities, which

allowed many people to remain

in their local areas.

“I would like to pay tribute to

the efforts of emergency services

and other agencies that worked

courageously and tirelessly in

their efforts to mitigate losses to

our communities,” adds Nolan.

“They included many ExxonMobil

employees and contractors

who are volunteers with fire

departments in Australia, state

emergency-services agencies

and other community-support

organizations.” the Lamp

To make an online donation

to the Bushfire Appeal Fund





Thai program

promotes learning

To help students learn more about

science and technology outside

the classroom, Esso Thailand

sponsors full-day seminars for

about 1,500 teachers each year.

The program, organized by

the country’s National Science

Museum (NSM), encourages educators

to promote learning in other

venues, particularly by visiting science

and technology museums

and facilitites run by NSM.

A number of Esso Thailand managers

participate, and take turns

giving the Energy Outlook and

Advanced Fuels presentations to

educators attending the seminars.

“This is a unique program,”

says Mongkolnimit Auacherdkul,

public affairs manager, “and our

speakers are always pleased to

get involved and meet the science

teachers from across the country.

The teachers share what they

learn with students, who not only

increase their knowledge of technical

subjects, but also gain a better

understanding of ExxonMobil and

the energy business.”

Mongkolnimit Auacherdkul, public

affairs manager for Esso Thailand,

answers a question from a teacher

about the company’s energy outlook.


The jetty at South

Hook LNG receiving

terminal allows berthing

of the world’s

largest LNG vessels.

First South Hook cargo

The first liquefied natural gas (LNG) cargo has arrived at the

South Hook LNG receiving terminal in Milford Haven, Wales.

The terminal adds to the United Kingdom’s LNG import capacity

and energy diversity with the ability to deliver up to 2 billion

cubic feet of gas daily into the natural gas grid when it reaches

full operational capacity later this year.

South Hook LNG Terminal Company Ltd. is owned by Qatar

Petroleum (67.5 percent), ExxonMobil (24.15 percent) and Total

(8.35 percent).

An inauguration ceremony commemorating South Hook

was held last month, attended by HM The Queen of the United

Kingdom, His Highness Sheikh Hamad bin Khalifa Al Thani,

Amir of the State of Qatar, other members of both royal families

and other dignitaries. Rex W. Tillerson represented ExxonMobil

at the event.

Dr. Bernard

Harris entertains

and encourages

students in Detroit

as part of The

Dream Tour,

presented by


Second year of Dream Tour

ExxonMobil, in conjunction with Dr. Bernard Harris and

The Harris Foundation, has announced the schedule for

the second year of The Dream Tour, a program designed

to help middle school students across the country reach

their potential through the power of strong math and science


“Today’s students are different from my generation in

that they’ve had technology in their hands since birth,”

said Dr. Harris, a former NASA astronaut and the first

African American to walk in space.

This year’s tour is expected to draw more than

12,200 students at schools in Atlanta, Chicago, Detroit,

Houston, Indianapolis, Miami, Minneapolis/St. Paul,

Mobile, Oakland and Seattle.

The Lamp is published for ExxonMobil

shareholders. Others may receive it on

request. It is produced by the Public Affairs

Department, Exxon Mobil Corporation.

Exxon Mobil Corporation has numerous

affiliates, many with names that include

ExxonMobil, Exxon, Esso and Mobil. For

convenience and simplicity in this publication,

those terms and the terms corporation,

company, our, we and its are sometimes

used as abbreviated references to specific

affiliates or affiliate groups. Similarly,

ExxonMobil has business relationships

with thousands of customers, suppliers,

governments and others. For convenience

and simplicity, words like venture, joint

venture, partnership, co-venturer and partner

are used to indicate business relationships

involving common activities and interests,

and those words may or may not indicate

precise legal relationships.

Trademark ownership: The terms Exxon,

Mobil, Mobil 1, EM power and Taking on the

world’s toughest energy challenges are

trademarks, service marks or certification

marks of Exxon Mobil Corporation or its

affiliates. The following terms are trademarks

of the entities indicated: Financial Times and

FT (Financial Times); CERA (IHS CERA).

Forward-Looking Statements: Outlooks,

projections, estimates, targets and business

plans in this publication are forwardlooking

statements. Actual future results,

including demand growth and supply mix;

ExxonMobil’s own production growth and

mix; resource recoveries; project plans,

timing, costs and capacities; capital

expenditures; revenue enhancements and

cost efficiencies; margins; and the impact

of technology could differ materially due

to a number of factors. These include

changes in long-term oil or gas prices

or other market conditions affecting the

oil, gas and petrochemical industries;

reservoir performance; timely completion

of development projects; war and other

political or security disturbances; changes in

law or government regulation; the outcome

of commercial negotiations; the actions

of competitors; unexpected technological

developments; the occurrence and duration

of economic recessions; unforeseen

technical difficulties; and other factors

discussed here and under the heading

“Factors Affecting Future Results” in item 1

of our most recent Form 10-K and on our

Web site at exxonmobil.com.

Frequently Used Terms: References to

resources, the resource base, recoverable

resources, barrels and similar terms include

quantities of oil and gas that are not yet

classified as proved reserves, but that we

believe will likely be moved into the proved

reserves category and produced in the future.

Discussions of reserves in this publication

generally exclude the effects of year-end

price/cost revisions and include reserves

attributable to equity companies and our

Syncrude operations. For definitions of,

and information regarding, reserves, return

on average capital employed, normalized

earnings and other terms that may be used in

this publication, including information required

by SEC Regulation G, see the “Frequently

Used Terms” posted on our Web site. The

most recent Financial and Operating Review

on our Web site also shows ExxonMobil’s net

interest in specific projects.

First-quarter earnings

ExxonMobil’s first quarter earnings were

$4,550 million, down 58 percent from

the first quarter of 2008, resulting, in

part, from the global economic slowdown

and sharply reduced commodity

prices. Earnings per share were down

54 percent, reflecting lower earnings

and the benefit of the share purchase

program. Capital and exploration project

spending was $5.8 billion in the first

quarter, up 5 percent from last year.

Upstream earnings were $3,503

million, down $5,282 million from the

first quarter of 2008. Lower crude oil

realizations reduced earnings approximately

$4.4 billion, while lower natural

gas prices decreased earnings about

$500 million.

On an oil-equivalent basis, production

was up slightly from the first quarter

of 2008.

Downstream earnings of $1,133 million

were down $33 million from the

first quarter of 2008. Petroleum product

sales of 6,434 kbd (thousands of barrels

a day) were 387 kbd lower than

last year’s first quarter.

Chemical earnings of $350 million

were $678 million lower than the first

quarter of 2008, attributable to reduced

volumes and lower margins.

Corporate and financing expenses of

$436 million increased by $347 million

due overall to net lower interest income.

ExxonMobil declared a cash dividend

of 42 cents per share (compared to 40

cents in the first quarter of 2009) on

the Common Stock, payable on June

10, 2009 to shareholders of record of

Common Stock at the close of business

on May 13, 2009.

ExxonMobil quarterly financial summary

First Quarter

Millions of dollars, except per-share amounts 2009 2008

Functional earnings

Upstream $ 3,503 $ 8,785

Downstream 1,133 1,166

Chemical 350 1,028

Corporate and financing (436) (89)

Total earnings (U.S. GAAP) $ 4,550 $ 10,890

Earnings per common share

– assuming dilution $ 0.92 $ 2.02

Special items $ 0 $ 0

Earnings excluding special items $ 4,550 $ 10,890

Other financial data

Total revenues and other income $ 64,028 $ 116,854

Income taxes and other taxes $ 17,643 $ 29,341

Capital and exploration expenditures $ 5,774 $ 5,491

Dividends on common stock $ 1,981 $ 1,879

Dividends per common share $ 0.40 $ 0.35

Thousands of barrels daily, except natural gas and chemical

Operating data

Net production of crude oil and

natural gas liquids 2,475 2,468

Natural gas production available

for sale (millions of cubic feet daily) 10,195 10,229

Oil-equivalent production

(6 million cubic feet = 1 thousand barrels) 4,174 4,173

Refinery throughput 5,381 5,526

Petroleum product sales 6,434 6,821

Chemical prime product sales

(thousands of metric tons) 5,527 6,578


Shareholders may elect to discontinue receiving

The Lamp or change their shareholder account

address by contacting ExxonMobil Shareholder

Services at 1-800-252-1800.

Shareholders may access their account

online at computershare.com/exxonmobil.

ExxonMobil Shareholder Services

P.O. Box 43008

Providence, RI 02940-3008

© 2009 by Exxon Mobil Corporation



Many parts working

together – the only way

to solve the world’s

energy challenges.

Energy demand is expected to be 35 percent higher in the year

2030 than it was in the year 2005, driven largely by people in the

developing world seeking higher standards of living. Meeting this

growing long-term demand requires that we develop all economic

sources of energy – oil, natural gas, coal, nuclear and alternatives.

This global energy demand challenge is matched by a global

environmental challenge – curbing greenhouse gas emissions

and addressing the risks of climate change. No single energy

technology available today solves this dual challenge, and it is

very likely no single energy technology will solve it tomorrow.

We need an integrated set of solutions, powered by technology

and innovation – ranging from producing energy more effectively...

to using it more efficiently...to improving existing alternative

sources of energy...to developing new options.

ExxonMobil is working to help meet the world’s energy challenges –

investing more than $100 billion in new supplies over the next four

years, developing efficiency technology options like lithium-ion

battery film to speed the adoption of hybrid and electric vehicles,

and testing new carbon capture technologies that could reduce

emissions significantly. Because only by integrating all of our energy

options – new sources and new technologies – will we solve

our dual energy and environmental challenges.






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