Exxon 2011 Annual Report Download - page 37

BUSINESS OVERVIEW
ExxonMobil Chemical is one of the largest chemical companies in the world, with a unique portfolio of commodity and specialty
businesses and annual sales of more than 25 million tonnes. We have manufacturing facilities in all major regions of the world,
and our products serve as the building blocks for a wide variety of everyday consumer and industrial products.
Our strategy is to grow our high-return business by processing feedstocks from ExxonMobil’s refining operations and
advantaged sources of natural gas liquids to manufacture chemical products for higher-value end uses. We focus on product
lines where we have scale and a competitive advantage. As a result, we have a strong position in the markets we serve.
Our combination of advantaged feedstocks, lower-cost processes, and premium products is unmatched in the industry,
and is underpinned by a steadfast commitment to technology investment.
BUSINESS ENVIRONMENT
Over the next decade, commodity petrochemical
demand is expected to grow by 1.5 percentage points
more than global gross domestic product (GDP).
Specialty chemical markets are diverse, higher-value,
and in aggregate tend to grow in line with GDP.
Worldwide petrochemical demand growth slowed in 2011 as a result of the softening global economy. We expect demand
growth to improve in 2012, led by the world’s largest petrochemical market, China, which continues to show strength in key
domestic manufacturing sectors. By 2020, global commodity chemical demand is projected to grow by more than 50 percent,
driven by improving prosperity in developing countries. The global growth in households, particularly those in the middle class,
is expected to result in the purchase of more packaged goods, appliances, cars, and clothing, many of which contain chemicals
we produce.
ExxonMobil Chemical is well-positioned to meet the growing needs of China, India, and other major growth regions with our
global supply network of highly competitive world-scale facilities. Feedstock flexibility allows us to capitalize on changing market
factors, such as the availability of low-cost ethane feedstock arising from the expansion of North American unconventional
natural gas in recent years.
Two-thirds of chemical demand growth
through 2020 is expected to come from the
Asia Pacific region, driven by the rising
standard of living in developing countries.
GDP Commodity Chemicals(2)
9
6
3
0
–3
Global Demand Growth Rates(1)
(year-on-year percent change)
2000 2005 2010 20202015
Eric Whetstone • Whetstone Design
ofce: 214-583-6118 • cell:
Neil Hansen • Investor Relations
Exxon Mobil Corporation, Irving, TX
ofce: 972-444-1135 • cell:972-890-5469
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
Feb. 16, 2012
73A 11XOMFO-
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(1) ExxonMobil estimates for chemical growth and third-party consensus
opinion for GDP.
(2) Includes polyethylene, polypropylene, and paraxylene.
700
600
500
400
300
200
100
Households by Region
(millions of households)
Eric Whetstone • Whetstone Design
ofce: 214-583-6118 • cell:
EDITOR
Neil Hansen • Investor Relations
Exxon Mobil Corporation, Irving, TX
ofce: 972-444-1135 • cell:972-890-5469
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
ATTENTION: OWNER VERSION
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Feb. 16, 2012
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IN SAR ON PAGE
Note:
Includes link le
North
America
Europe(1) China India Latin
America
Other Asia
Pacific
2010 2040
(1) Includes Russia/Caspian.
Source: ExxonMobil, 2012 The Outlook for Energy: A View to 2040
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SAR and F&O
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