exxonmobil gas flare and venting reduction - world...

This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1 of ExxonMobil’s latest report on Form 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

ExxonMobil Gas Flareand Venting Reduction

February 12, 2010P.G. CavazosUpstream Environmental Manager

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Objective

• Introduction• ExxonMobil involvement in GGFR• ExxonMobil Gas Flaring & Reduction Strategy

• Our Path • What Has Been Done• Long-Term Technology/Development

• Summary

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Introduction• ExxonMobil member of Global

Gas Flaring Reduction Partnership (GGFR) since 2003

• EM GHG emissions reduction strategy is focused on:

- Increasing operating standards and reliability in the short-term;

- Developing breakthrough, game-changing technologies for the long-term

• Achieving meaningful reductions will require a wide range of solutions

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ExxonMobil Experience

• Operational reductions achieved by:• Improved Practices• Investment• Reliability• Standards

• Energy Management System (EMS)- Example: reduced greenhouse gas emissions by 10 million tonnes in

2008, a 7 percent reduction versus 2007

- Long-term Technology Development- Carbon Capture and Storage (CCS)- Controlled Freeze Zone (CFZTM) commercial demonstration project

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Operational Flaring

• A minimal amount of flaring is required to ensure the safety of our people and our operations

- Emergency blow-downs- Recovery from process upsets- Planned and unplanned

shutdowns and start-ups (e.g. maintenance, facilities modifications etc.)

- Flare purge gas required to maintain light flare and prevent liquid build-up

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Example: Flare Reduction Reduction of operational flaring

Angola- Significant reduction in start-up

flaring

Reduction of routine gas flaringNigeria - Invested over $5 billion to increase

gas utilization projects- In 2008, three projects reduced

flaring by approximately 120 million cubic feet per day

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Operational Reliability

• Global Reliability Best Practices- Identified “Best In Class” practices- Establish strategies for common issues- Manage common vulnerabilities

• Eliminate Site Vulnerabilities- Identifying Critical Equipment and “Bad Actors”- Identifying Reservoir Management Techniques

• Incident Investigation and Analysis- Learn to Prevent Recurrence Locally (site) and Globally

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Operational Standards• ExxonMobil has an established

Flare and Venting Reduction Standard

- Promotes an overall long term reduction in greenhouse gas (GHG) from Upstream oil and gas production and processing facilities

- Project planning and design approach to reducing flaring and venting emissions

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Energy Management SystemObjectives

• Establish a single, comprehensive energy management system (EMS)• Utilize a common methodology to identify performance gaps, implement

closure plans, sustain progress, and continuously improve results

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Example: CogenerationGross Cogeneration Capacity (MW)

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1980 1990 2000 2007 2011

• Over 100 installations at more than 30 locations worldwide

• Over 4500 MW capacity with additional projects under development– Invested more than $1 billion to add 1000MW – New facilities under construction to add an additional 500 MW by 2011

• ExxonMobil self-generates over 50% of its total electricity demand

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Long-term TechnologyCarbon Capture and Storage – a promising option

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Long-term Technology

Controlled Freeze Zone (CFZTM) single step process for separation of CO2

– ExxonMobil developed technology, patented in 1986

– commercial scale, $100M demonstration under construction at LaBarge, WY, 2010 start-up

– lower cost process that may make CCS a more practical option for CO2 from natural gas

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Summary

• A minimum amount of routine flaring will be needed for operational safety

• Numerous approaches to address Gas Flare and Venting Reductions• Near Term – Operational Standards • Long term – Technological innovation

• Key success factors • Management leadership – essential to get and keep the ball rolling• Resource-balanced – pursue economically viable solutions

• Protect Tomorrow. Today