Exxon 2014 Annual Report Download - page 37

Business Overview
ExxonMobil Chemical is one of the largest chemical companies in the world. Our unique portfolio of commodity and
specialty businesses generates annual sales of more than 24 million tonnes of prime products. We have world-scale
manufacturing facilities in all major regions, and our products serve as the building blocks for a wide variety of everyday
consumer and industrial products.
We process feedstocks from ExxonMobil’s Upstream and Downstream operations, supplemented with market sources,
to manufacture chemical products for higher-value end uses. We focus on product lines that capitalize on scale and
technology advantages, building on our strengths in advantaged feedstocks, lower-cost processes, and premium products.
As a result, we have strong positions in the markets we serve and generate industry-leading returns throughout the
business cycle.
Business Environment
Worldwide chemical demand growth remained strong in 2014, supported by growth of the broader economy. Over the
next decade, we expect global demand to grow by 50 percent, or about 4 percent per year, at a faster pace than energy
demand and GDP.
Nearly two-thirds of the increased demand is expected to be in Asia Pacific with rising prosperity and a growing middle
class. A related factor is urbanization. As middle-class consumers seek higher standards of living and move to larger cities,
they are projected to purchase more packaged goods, appliances, cars, and clothing, many of which are manufactured
from the chemicals produced by ExxonMobil.
While chemical demand growth is mainly driven by developing economies, supply growth is mostly coming from regions
with advantaged feedstock. Today, that region is North America. Unconventional natural gas development has brought
significant benefits to domestic chemical producers by providing both lower-cost feedstock and energy.
For decades, chemical markets have been supplied from within the region, but global trade is increasing. Ten years ago, the
volume of chemicals traded between regions totaled about 5 percent of global production capacity. Today, it has grown to
about 10 percent, and by 2020, it will approach 20 percent. ExxonMobil projects that by 2025, North America could double
its exports of polyethylene, polypropylene, and paraxylene, the three highest-volume petrochemical products.
ExxonMobil Chemical is well positioned to meet the needs of Asia, Africa, Latin America, and other growth markets
through our world-scale facilities, and commercial and technical resources around the globe. While the relative
attractiveness of feedstocks changes over time, our feed flexibility, global supply capability, and integration across
ExxonMobil’s operations allow us to adapt to changing market conditions and consistently outperform competition.
Asia Pacific Rest of World
Global Chemical Industry Demand(1)
(millions of tonnes per year)
250
200
150
100
50
02000 2010 2020
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. 02, 2015
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LAST FILE CHANGE MADE BY
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ChemDemand.ai
IN F&O ON PAGE
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250
225
200
175
150
125
100
Global Industry Demand Growth
2005 2010 20152000 2020
(indexed)
GDP
Chemical Demand(1)Energy 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
Jan. 31, 2015
FILE INFO
LAST FILE CHANGE MADE BY
C F75A S35A 14XOM-
ChemDemandGrowth.ai
IN F&O ON PAGE
IN SAR ON PAGE
Includes link file
Sources: ExxonMobil, 2015 The Outlook for Energy: A View to 2040; IHS Chemical; and ExxonMobil estimates.
(1) Includes polyethylene, polypropylene, and paraxylene.
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