Exxon 2011 Annual Report Download - page 16

COMPETITIVE ADVANTAGES:
Disciplined Investing
A disciplined approach to investing combines effective project assessment and development with technical
and commercial expertise. It also involves identification of market trends and divestment of assets that no longer
meet our criteria to ensure the most advantageous use of capital.
ROBUST PROCESSES
In 2011, our Upstream business undertook capital and exploration expenditures of more
than $33 billion. These expenditures are justified through careful consideration of each
opportunity and the use of robust management processes. Project economics are carefully
assessed, budgets are closely monitored, and reappraisals are routinely done to further
improve future investment decisions.
Exploration investments are drawn from a diverse portfolio of prospects, allowing us to
effectively manage exploration risk. Our extensive portfolio of more than 120 upstream
projects spans a wide range of environments, resource types, and geographies.
This scale and diversity provide us with the ability to selectively invest in those projects
that are most likely to deliver robust financial performance and profitable volumes growth.
All opportunities are carefully reviewed, and our worldwide experience is brought to bear in their development.
We also consider the role of technology to plan the most innovative and capital-efficient approaches.
An example of the application of our processes is the Kearl oil sands project in Canada. Before we pursued this effort, we
assessed the size and quality of the resource that is expected to exceed 4 billion barrels of bitumen, the costs of mining the
sands and extracting the oil, future production levels, pipeline and refining capacity, and regulatory aspects. Initial production
at Kearl will begin in late 2012 at 110 thousand oil-equivalent barrels per day with plans to expand to more than triple that level.
KEY MARKETS
In addition to disciplined processes, we identify key growth markets and assess demand trends to help guide investment
decisions. For example, the forecasted growth in energy demand in developing countries, such as China and India, is expected
to drive increases in demand for petroleum and petrochemical products. Furthermore, an increase in global demand for
heavy-duty transportation will result in the need to supply more diesel fuel.
Our Singapore petrochemical plant expansion provides a salient example of how we identify and approach new capital
commitments. The expansion is the largest in the history of our Chemical business. It will double steam-cracking capacity at
the site, add unparalleled feedstock flexibility, and be energy and cost efficient. The manufacturing capacity of premium products
will also grow significantly as a result of the expansion,
including some products never previously produced
by us in this important region.
The Singapore petrochemical plant expansion,
along with other investments, including our integrated
facility at Fujian, China, were undertaken because
petroleum and chemical demand is expected to
rise rapidly in the Asia Pacific region. For example,
China’s petrochemical demand has grown by
15 percent per year over the last two decades
and is expected to double by the end of this decade.
The Singapore petrochemical plant expansion will
triple polyethylene production capacity at the site.
Projects by Geographic Region
Americas
Europe
Asia
Africa
Australia/Oceania
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]
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14 ExxonMobil • 2011 Summary Annual Report