Exxon 2011 Annual Report Download - page 28

Eric Whetstone • Whetstone Design
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EDITOR
Neil Hansen • Investor Relations
Exxon Mobil Corporation, Irving, TX
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Carol Zuber-Mallison • ZM Graphics, Inc.
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white chart, which is then used as a
accurate. However, the color chart is
artwork buiilt by a human. Therefore, the
artwork, not JUST the data list.
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64A 11XOMFO-
IntegrationDiagram.ai
IN F&O ON PAGE
IN SAR ON PAGE
Note:
S 26A
Includes link le
IS IN
SAR and F&O
Upstream
Exploration, Development,
and Production
Natural Gas Gas Processing
LNG Liquefaction Power Generation
LNG Regasification
Oil Refining
Chemical Plant
Chemical
Manufacturing and Marketing
Consumer
Refined Products
• Transportation Fuels
• Lubricants
• Other Products
Chemical Products
• Commodities
• Specialties
Gas to Market
Electricity
Downstream
Refining and Marketing
COMPETITIVE ADVANTAGES:
Global Integration
We derive significant value from our globally integrated business model. The level of integration is unmatched in
industry and results in tangible benefits to each of our businesses. These benefits are realized as we leverage the
advantages of our organizational structure, maximize resource value, and optimize co-located manufacturing.
LEVERAGING ORGANIZATIONAL STRUCTURE
The effective and efficient implementation of an integrated organizational structure allows us to capture significant value in
many aspects of our business. For example, as a result of our integrated business model, we have lower costs due to shared
support services. Additionally, lessons learned and expertise gained in one business or region are quickly shared with related
organizations and across geographies, including technological and engineering advances that are rapidly disseminated across
business lines. Our integrated supply chain also enables us to upgrade molecules to their highest value. We enjoy economies
of scale not possible without integration, and related
manufacturing processes share product streams to optimize
production, capture higher margin, and achieve cost savings.
In addition, employees gain broad interdisciplinary knowledge
that enhances their overall business expertise.
MAXIMIZING RESOURCE VALUE
With our integrated business model, we maximize value from the wellhead to the consumer. For example, during the early
stages of Upstream project development, our Downstream business leverages technical and commercial expertise as well as
world-class refining and logistics assets to enhance resource value. Direct commercial, technical, and supply chain support
is provided to the Upstream to help develop potential market outlets, identify and resolve challenging crude properties,
and optimize logistics. Our liquefied natural gas (LNG) project in Papua New Guinea provides a compelling example of this
integration. Downstream employees provided logistical and commercial guidance to the Upstream project team on how to
utilize existing designs to export the condensate produced with the LNG. In addition, design of a unique logistics system to load
the condensate liquid volumes in the same tankers as the LNG saved significant capital spending by avoiding investments in a
separate terminal and associated tankage. In addition to Upstream project support, our Downstream global supply organization
manages the economic placement of the more than 2 million barrels per day of crude oil that we produce in the Upstream.
Our global functional organizations allow us to
maximize the benefits of integration by deploying
technology and best practices more effectively
and efficiently.
OUR INTEGRATED BUSINESS MODEL MAXIMIZES VALUE FROM WELLHEAD TO CONSUMER
26 ExxonMobil • 2011 Summary Annual Report