Exxon 2015 Annual Report Download - page 37

Asia PacificRest of World
Global Chemical Industry Demand(1)
(millions of tonnes per year)
300
250
200
150
100
50
02005 2015 2025
Eric Whetstone • Whetstone Design
Clark Fertitta • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
Feb. 18, 2016
C F75B S35B 15XOM-
ChemDemand.ai
225
200
175
150
125
100
75
Global Industry Demand Growth
2010 2015 20202005 2025
(indexed)
GDP
Chemical Demand(1)Energy Demand
Sources: ExxonMobil, 2016 The Outlook for Energy: A View to 2040; IHS Chemical; and ExxonMobil estimates.
(1) Includes polyethylene, polypropylene, and paraxylene.
Eric Whetstone • Whetstone Design
Clark Fertitta • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
Feb. 18, 2016
C F75A S35A 15XOM-
ChemDemandGrowth.ai
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 nearly 25 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 advantaged returns through
the business cycle.
Business Environment
Worldwide chemical demand growth remained strong in 2015, supported by growth of the broader economy. Over the
next decade, we expect global demand to grow nearly 45 percent, or about 4 percent per year, which is a faster pace than
energy demand and economic growth.
Nearly two-thirds of the increased demand is expected to be in Asia Pacific with rising prosperity and a growing middle
class. As middle-class consumers seek higher standards of living and move to 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, regions with advantaged feedstocks are
participating in supply growth. For example, unconventional natural gas development in the United States has brought
significant benefits to domestic chemical producers by providing both lower-cost feedstocks and energy, driving
increased investment.
For decades, chemical markets have been supplied from within the regions, but global trade is increasing. Ten years ago,
the volume of chemicals traded between regions totaled about 10 percent of global production. Today, trade volumes have
grown to about 15 percent, and by 2020, they will approach 20 percent. ExxonMobil projects that by 2025, North America
could more than double its exports of major petrochemical products.
ExxonMobil Chemical is well positioned to meet the needs of Asia Pacific, Africa, Latin America, and other growth markets
through our world-scale facilities, strategic investments, 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 outperform competition.
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