Exxon 2014 Annual Report Download - page 35

Business Overview
ExxonMobil’s Downstream business has a diverse global portfolio of advantaged refining and distribution facilities, lubricant
plants, marketing operations, and brands, underpinned by a world-class research and engineering organization. We are one
of the world’s largest refiners and lube basestocks manufacturers.
We hold an ownership interest in 30 refineries with distillation capacity of over 5.2 million barrels per day and lube
basestock capacity of 131 thousand barrels per day. Our integrated model leads the industry with approximately 75 percent
of our refineries integrated with chemical or lubricant manufacturing facilities, providing unique molecule optimization
capability across the entire value chain.
Our fuels and lubricants marketing businesses have a global reach, supported by world-renowned brands, including Exxon,
Mobil, and Esso. Our long-standing record of technology leadership underpins the innovative products and services that
deliver superior performance for consumers and long-term value for shareholders.
Business Environment
By 2040, demand for transportation fuel is expected to increase by 40 percent versus 2010. This increase will be driven by
commercial transportation, primarily in developing countries. The resulting fuel mix will continue to shift from gasoline to
diesel. In fact, global transportation demand for diesel is expected to increase by about 70 percent over the period, with
almost half of the growth in Asia Pacific. At the same time, worldwide gasoline demand is expected to be essentially flat, as
declining demand from fuel economy improvements in Organisation for Economic Co-operation and Development (OECD)
countries is offset by growth in developing nations. Stricter emissions standards will lower demand for high-sulfur fuel oil as
the marine sector shifts to cleaner fuels over the coming decade. Natural gas is likely to grow in use as a transportation fuel,
particularly for heavy-duty vehicles and marine vessels, due to its low emissions and cost competitiveness relative to liquid
fuels in many parts of the world.
Lubricant demand is also expected to grow on increased industrial activity, particularly in Asia. Within the high-value synthetic
lubricants sector where ExxonMobil has a leading market position, demand is expected to grow by 5 percent per year.
The addition of new refining capacity is currently outpacing global demand growth, resulting in challenging business
environments in Europe 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, allowing them to meet domestic
product needs and economically export to markets throughout the Atlantic Basin. With our integrated business model,
world-class assets, and feedstock flexibility, we are able to outperform competition across the cycle.
Transportation Fuel Demand
Eric Whetstone • Whetstone Design
EDITOR
Nick Berthiaux • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
ATTENTION: OWNER VERSION
APPROVED BY
Feb. 19 4pm, 2015
FILE INFO
LAST FILE CHANGE MADE BY
C F61AB S33AB 14XOM-
TransFuel.ai
IN F&O ON PAGE
IN SAR ON PAGE
Includes link file
(millions of oil-equivalent barrels per day)
Gasoline
Jet Fuel
Ethanol
Fuel Oil
Diesel
Natural Gas
Biodiesel
Other
20402020 20302010
70
60
50
40
30
20
10
0
By Fuel Type
Source: ExxonMobil, 2015 The Outlook for Energy: A View to 2040
Eric Whetstone • Whetstone Design
EDITOR
Nick Berthiaux • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
ATTENTION: OWNER VERSION
APPROVED BY
Feb. 19 4pm, 2015
FILE INFO
LAST FILE CHANGE MADE BY
C F61AB S33AB 14XOM-
TransFuel.ai
IN F&O ON PAGE
IN SAR ON PAGE
Includes link file
(millions of oil-equivalent barrels per day)
Middle EastNorth America
Africa
Europe
Latin America
Russia/Caspian
Asia Pacific
20402020 20302010
70
60
50
40
30
20
10
0
By Region
3333