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2014
Summary
Annual Report

Table of contents

  • Page 1
    Summary Annual Report 2014

  • Page 2
    ... Shareholders 4 Financial & Operating Summary 6 The Outlook for Energy 8 Creating Value Through the Cycle 28 Global Operations 30 Upstream 32 Downstream 34 Chemical 36 Corporate Citizenship 39 Financial Information 44 Frequently Used Terms 46 Directors, Officers, and Affiliated Companies 48 Investor...

  • Page 3
    ... the technologies that increase efficiency and productivity, opening up new jobs for individuals and new markets for businesses, communities, and nations. Global energy demand will grow significantly in the years ahead. ExxonMobil has the ability to invest in projects with the highest returns. And...

  • Page 4
    ... employed of 16.2 percent. Production of 4 million oil-equivalent barrels per day was in line with our plans as we added new volumes from project start-ups and work programs. We invested in attractive opportunities with capital and exploration expenditures of $38.5 billion. Cash flow from operations...

  • Page 5
    ... Corporation, to expand the chemical products manufactured in the region. A new world-scale, 400-thousand-tonnes-per-year facility, starting up in 2015, will provide a strategic platform to help meet the growing demand for specialty elastomers. In Antwerp, Belgium, at our largest and most cost...

  • Page 6
    ... our integrated complex in Baytown, Texas, to capitalize on abundant supplies of American natural gas liquids • I nvesting in a new delayed coker unit at our refinery in Antwerp, Belgium, to convert lower-value bunker fuel oil into higher-value diesel products • S uccessfully drilled the...

  • Page 7
    ... 1994 2004 2014 0 3 Years 5 Years 10 Years 20 Years (1) See Frequently Used Terms on pages 44 and 45. (2) Natural gas converted to oil-equivalent at 6 million cubic feet per 1 thousand barrels. (3) S&P and CPI indexed to 1982 Exxon dividend. (4) CPI based on historical yearly average from...

  • Page 8
    ... prominent in many countries. Globally, oil is expected to remain the largest of any energy supply source, driven by rising production from resources like deep water, oil sands, and tight oil. By 2025, natural gas will have overtaken coal as the second-largest fuel source. Developing-Country Needs...

  • Page 9
    ... through the application of advanced technologies. More recently, unconventional production technologies, such as hydraulic fracturing and horizontal drilling, have unlocked significant resources of oil and natural gas that will help supply global markets for many decades. These human innovations...

  • Page 10
    8 E X XO N M O B I L 2 014 S U M M A R Y A N N U A L R E P O R T C R E A T I N G V A L U E T H R O U G H T H E C Y C L E Operational Excellence 50% past 10 years. ExxonMobil has reduced its Lost-Time Injuries and Illnesses Rate by over 50 percent for employees and contractors over the

  • Page 11
    9 PHOTO: Operational excellence begins with a competent workforce. Backed by comprehensive management systems, our employees and contractors form the foundation for strong operational performance as demonstrated in places like the Fife Ethylene Plant in the United Kingdom.

  • Page 12
    ... operational standards. Comprehensive management systems help us achieve operational excellence and are consistently applied in our businesses around the world, including at our Antwerp Refinery in Belgium (above) and our LaBarge Production Unit in Wyoming (right). Our goal is to retain employees...

  • Page 13
    ... to our business and addresses all aspects that can impact personnel and process safety, security, health, and environmental performance. The focus on process safety protects our workforce, our equipment and assets, the local environment, and the communities in which we operate. OIMS provides the...

  • Page 14
    12 E X XO N M O B I L 2 014 S U M M A R Y A N N U A L R E P O R T 16 Major projects planned to be completed over the next three years.

  • Page 15
    13 C R E A T I N G V A L U E T H R O U G H T H E C Y C L E Upstream: Demonstrating Project Execution Capabilities PHOTO: Production from Banyu Urip, Indonesia, is transported 60 miles via pipeline to a mooring tower, floating storage and offloading vessel.

  • Page 16
    ... safety performance and has been recognized with multiple industry awards. ExxonMobil Lease Oil Field Gas Field Oil and Gas Field er So lo Riv FSO Vessel Tuban Java Sea Lengo Jati Lengo Urip Pipeline EAST JAVA BRUNEI PHILIPPINES PAPUA NEW GUINEA CENTRAL JAVA Cepu PSC Banyu Cendana Urip...

  • Page 17
    ... production capacity of 20 thousand barrels of oil per day. As new wells were brought online, production increased to more than 40 thousand barrels per day. Total oil production will continue to ramp up until it reaches full field capacity in 2015. Once fully commissioned, the Banyu Urip facilities...

  • Page 18
    16 E X XO N M O B I L 2 014 S U M M A R Y A N N U A L R E P O R T C R E A T I N G V A L U E T H R O U G H T H E C Y C L E Upstream: Unlocking Resource Value PHOTO: We continue to develop both conventional and unconventional reservoirs across a leading position exceeding 1.5 million net ...

  • Page 19
    17 92billion Oil-equivalent barrels of total resource base.

  • Page 20
    ... properties, mainly as a result of increased infill 0 2010 2011 2012 2013 2014 2015 2016 2017 drilling, waterflood optimization, workover activities, infrastructure additions, and water-handling improvements. For example, gross operated oil production in our Fullerton and Robertson fields has more...

  • Page 21
    ... of field trials in Fayetteville, ExxonMobil's Drilling Advisory System tool was deployed to support operations in the Ardmore Basin in 2014. It seamlessly integrates with existing drilling rig systems to promote consistent application of ExxonMobil's Fast Drill process, with cost savings derived...

  • Page 22
    20 E X XO N M O B I L 2 014 S U M M A R Y A N N U A L R E P O R T PHOTO: A new coker unit at our refinery in Antwerp, Belgium, scheduled for start-up in 2017, will help address the industry shortfall in capability to convert fuel oil into higher-value products such as diesel.

  • Page 23
    21 C R E A T I N G V A L U E T H R O U G H T H E C Y C L E Downstream: Strengthening the Portfolio Downstream's average return on capital employed over the past 10 years. 26%

  • Page 24
    ... Scheduled to start up in 2017, the new facility will help meet growing demand for cleaner transportation fuel by converting lower-value fuel oil into higher-value ultra-low sulfur diesel. At the Slagen Refinery in Norway, we will install a new processing unit to replace production of heavy fuel oil...

  • Page 25
    ... Canada crude oil. The new terminal will begin operating in 2015 with a capacity of 210 thousand barrels per day. Additional investments are also under way to expand product logistics capabilities at our large U.S. Gulf Coast refineries. 40 20 0 2010 2011 2012 2013 2014 A recent success...

  • Page 26
    24 E X XO N M O B I L 2 014 S U M M A R Y A N N U A L R E P O R T C R E A T I N G V A L U E T H R O U G H T H E C Y C L E Chemical: Progressing Strategic Investments 50% over the next 10 years. Expected chemical demand growth

  • Page 27
    25 PHOTO: The Baytown Olefins Plant in Texas is ExxonMobil's largest ethylene production facility in the world. Our new ethane steam cracker, scheduled to start up in 2017, will increase the site's ethylene capacity by 70 percent.

  • Page 28
    ... chain access to meet growing demand in Asia. We are a leading global supplier of these specialty polymers and our 2017 start-up will further increase our competitive position. Demand for both product lines is growing faster than GDP, with demand for hydrogenated resins used in adhesive applications...

  • Page 29
    ... venture partner, Saudi Basic Industries Corporation, to build a first-of-its-kind specialty elastomers facility in Saudi Arabia. With start-up anticipated in 2015, the project will help meet the growing demand for synthetic rubber-based automotive products. We are integrating proprietary ExxonMobil...

  • Page 30
    ...Lake, Canada Joliet, United States Rotterdam, Netherlands Global Operations As the world's largest publicly held oil and gas company, ExxonMobil has a diverse and balanced portfolio of high-quality resources, projects, and assets across our Upstream, Downstream, and Chemical businesses. Upstream...

  • Page 31
    29 Al-Jubail, Saudi Arabia Tapis, Malaysia Altona, Australia As of December 31, 2014

  • Page 32
    ... a large and diverse portfolio of LNG opportunities by initiating early concept selection and engineering work on opportunities in North America, Australia, and Africa Upstream Statistical Recap 2014 2013 2012 2011 2010 Earnings (millions of dollars) Liquids production (net, thousands...

  • Page 33
    ... rigorously managing a global project portfolio, from initial discovery phase to production start-up. Technology is vital to meeting the growing global demand for oil and gas. We have a long-standing commitment to apply research and technology to efficiently find, develop, and produce resources from...

  • Page 34
    ... and ultra-low sulfur diesel • C ompleted a lube basestock expansion in Singapore and a lubricant plant expansion in Tianjin, China • S tarted construction on a new delayed coker unit at our refinery in Antwerp, Belgium, to convert lower-value bunker fuel into higher-value diesel products...

  • Page 35
    ... and Asia Pacific. At the same time, the increase in crude oil and natural gas production in the United States and Canada is resulting in a shift in crude oil and product trade flows. Refineries in North America are benefiting from improved access to cost-competitive feedstock and energy supplies...

  • Page 36
    ... polymers plant in Singapore to meet growing demand for synthetic rubber and adhesives in Asia • C ommissioned a world-scale manufacturing facility in Baytown, Texas, to produce synthetic basestocks for automotive and industrial applications Chemical Statistical Recap 2014 2013 2012 2011...

  • Page 37
    ... (1) (indexed) 250 225 200 Global Chemical Industry Demand (1) Asia Pacific Rest of World (millions of tonnes per year) 250 GDP Energy Demand 200 150 175 100 150 125 100 50 2000 2005 2010 2015 2020 0 2000 2010 2020 Sources: ExxonMobil, 2015 The Outlook for Energy: A View to 2040; IHS...

  • Page 38
    ... T PHOTO: Students in AP Environmental Science class at Arlington Heights High School in Fort Worth, Texas. With support from ExxonMobil, the school is participating in the National Math and Science Initiative's College Readiness Program, which is dramatically improving student performance in math...

  • Page 39
    ... directly with our business objectives. We work each day to provide the energy needed to sustain and improve standards of living throughout the world in a safe, ethical, environmentally, and socially responsible manner. By focusing on creating long-term benefits in the communities where we operate...

  • Page 40
    ...to ensure both the communities and the company benefit mutually from our presence. Our operations in Papua New Guinea (PNG) currently include gas production wells and a processing plant in the Highlands, liquefied natural gas (LNG) production and shipping facilities on the South Coast, and about 450...

  • Page 41
    39 Financial Information Report of Independent Registered Public Accounting Firm To the Shareholders of Exxon Mobil Corporation: We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Consolidated Balance Sheets of Exxon Mobil ...

  • Page 42
    ...P O R T Financial Information, continued Financial Highlights (millions of dollars, unless noted) 2014 2013 2012 Net income attributable to ExxonMobil Cash flow from operations and asset sales(1) Capital and exploration expenditures(1) Research and development costs Total debt at year end Average...

  • Page 43
    ... (for 2012 to 2014), shown on pages 41 through 43, corresponds to the information in the Consolidated Statement of Income, the Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in ExxonMobil's 2014 Financial Statements and Supplemental Information booklet. See also Management...

  • Page 44
    ... (for 2012 to 2014), shown on pages 41 through 43, corresponds to the information in the Consolidated Statement of Income, the Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in ExxonMobil's 2014 Financial Statements and Supplemental Information booklet. See also Management...

  • Page 45
    ... Dividends received greater than/(less than) equity in current earnings of equity companies Changes in operational working capital, excluding cash and debt Reduction/(increase) - Notes and accounts receivable - Inventories - Other current assets Increase/(reduction) - Accounts and other payables...

  • Page 46
    .... In statements covering reserve replacement for years prior to 2009, reserves were determined using the price and cost assumptions we used in managing the business, not the historical prices used in SEC definitions. The pre-2009 reserves also included oil sands and equity company reserves which at...

  • Page 47
    ... of amounts applicable to equity companies, which the Corporation believes should be included to provide a more comprehensive measure of capital employed. Free Cash Flow (millions of dollars) 2014 2013 2012 2011 2010 Net cash provided by operating activities Additions to property, plant and...

  • Page 48
    ... & Company (pharmaceuticals) Henrietta H. Fore Chairman of the Board and Chief Executive Officer, Holsman International (manufacturing, consulting, and investments) Standing Committees of the Board Audit Committee L.R. Faulkner (Chair), P. Brabeck-Letmathe, U.M. Burns, W.W. George Board Affairs...

  • Page 49
    ... of the Board and Chief Executive Officer Larry R. Faulkner President Emeritus, The University of Texas at Austin; Former President, Houston Endowment (charitable foundation) Ursula M. Burns Chairman of the Board and Chief Executive Officer, Xerox Corporation (business process and IT outsourcing...

  • Page 50
    ...Services. • Summary Annual Report • Annual Report on Form 10-K • Financial & Operating Review • Corporate Citizenship Report • The Outlook for Energy: A View to 2040 • The Lamp Dividend Direct Deposit Shareholders may have their dividends deposited directly into their U.S. bank accounts...

  • Page 51
    ...-444-1505 Shareholder Relations Exxon Mobil Corporation P.O. Box 140369 Irving, TX 75014-0369 Market Information The New York Stock Exchange is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded. Annual Meeting The 2015 Annual Meeting of Shareholders will be...

  • Page 52
    Exxon Mobil Corporation Corporate Headquarters 5959 Las Colinas Blvd. Irving, Texas 75039-2298 exxonmobil.com Summary Annual Report 002CSN48A4 Printed in U.S.A.