presentation by exxonmobil
TRANSCRIPT
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.
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.
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.
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.
The Outlook for EnergyThe Outlook for EnergyA Global Perspective on Meeting Energy DemandA Global Perspective on Meeting Energy Demand
James G. TaylorExecutive Vice President, Exxon Neftegas Limited32nd Meeting of the APEC Energy Working GroupYuzhno-Sakhalinsk, Russia2 - 6 October 2006
Energy Use - 2030Energy Use - 2030
North AmericaNorth America6868
0.6%0.6%
WorldWorld334 MBDOE334 MBDOE
1.6% per year1.6% per year
2000
2000
2030
2030
Non-OECDNon-OECD
Latin AmericaLatin America
2.2%2.2%
1818 AfricaAfrica
2.0%2.0%
1919
Middle EastMiddle East
1.9%1.9%
1919
Russia/CaspianRussia/Caspian
1.3%1.3%
2727
Asia PacificAsia Pacific
3.2%3.2%
113113
EuropeEurope4747
0.8%0.8%
Asia PacificAsia Pacific2323
0.9%0.9%
OECDOECD
205205
1 Tonne Oil Equivalent =~ 7.3 Barrels Oil Equivalent1 Tonne Oil Equivalent =~ 1.1 Thousand Cubic Meters Natural Gas
1 Cubic Meter Natural Gas =~ 35.3 Cubic Feet Natural Gas
Oil and Gas Remain PredominantOil and Gas Remain Predominant
0
1
2
3
4
1980 2005 20300
20
40
60
80
1980 2005 20300
50
100
150
200
250
300
350
1980 2005 2030
Total Energy Other Energy Wind & Solar
NuclearNuclear
HydroHydro
Biomass,MSW
Biomass,MSW
Wind & SolarWind & Solar
OilOil
GasGas
CoalCoal
OtherOther
MBDOE MBDOE MBDOE
1.8%1.8%
1.6%1.6%
1.8%1.8%
1.4%1.4%
1.6%1.6%
1.3%1.3%
1.9%1.9%
1.4%1.4% 9.6%9.6%
11.1%11.1%
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
SolarSolar
WindWind
12.4%12.4%
0.0
0.2
0.4
0.6
0.8
1.0
1980 2005 20300
5
10
15
20
25
30
1980 2005 20300
20
40
60
80
100
120
140
1980 2005 2030
Asia Pacific Energy Demand by FuelAsia Pacific Energy Demand by Fuel
Total Energy Other Energy Wind & Solar
NuclearNuclearHydroHydro
Biomass,MSW
Biomass,MSW
Wind & SolarWind & Solar
OilOilGasGasCoalCoal
OtherOther
MBDOE MBDOE MBDOE
3.1%3.1%
1.8%1.8%
3.6%3.6%
2.5%2.5%
2.7%2.7%
1.1%1.1%
3.6%3.6%
2.7%2.7%
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
SolarSolar
WindWind
13.1%13.1%
10.5%10.5%
16.5%16.5%
Conventional Oil Resources - 2005Conventional Oil Resources - 2005
North AmericaNorth America
Latin AmericaLatin America
EuropeEurope1.01.0
Middle EastMiddle East0.30.3
AfricaAfrica
0.10.1
Asia PacificAsia Pacific
0.40.4
Russia/CaspianRussia/Caspian
2.2Remaining2.2Remaining
Produced YE 2004Produced YE 2004
3.2 TBO3.2 TBO
WorldWorld
0.20.2
0.20.2
0.10.1
Conventional* Crude and Condensate (TBO)Conventional* Crude and Condensate (TBO)
* Excludes frontier resources – oil sands, extra heavy oil, shale oil* Excludes frontier resources – oil sands, extra heavy oil, shale oil
10 Largest Economies and Oil Imports in 200510 Largest Economies and Oil Imports in 2005
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UnitedStates
Japan Germany China UnitedKingdom
France Italy Canada Spain India
Imported Oil Domestic ProductionOil Demand
Source: EIA, IEA
Gas Demand - Regional SplitGas Demand - Regional Split
0
20
40
60
80
100
1980 2005 2030
North America
0
20
40
60
80
100
1980 2005 20300
20
40
60
80
100
1980 2005 20300
2
4
6
8
10
12
14
16
Europe Asia PacificBCFD BCFD BCFD
ElectricityElectricityChemicalsChemicals
Heat/OtherHeat/Other
0.2%0.2%
1.3%1.3%
1.1%1.1%
1.1%1.1%
2.4%2.4%
2.4%2.4%
3.7%3.7%
0.5%0.5%
1.5%1.5%
3.6%3.6%
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
Average Growth / Yr. 2000 - 2030
3.6%3.6%
MBDOE
Growing Reliance on Gas ImportsGrowing Reliance on Gas Imports
0
20
40
60
80
100BCFDBCFD
North AmericaNorth America EuropeEurope Asia PacificAsia Pacific
Local ProductionLocal Production
Long PipelinesLong Pipelines
2000
2000
2030
2030
LNGLNG
Technology Essential to Meet Supply ChallengesTechnology Essential to Meet Supply Challenges
3D Seismic Visualization
Enhanced Oil RecoveryMeans Field, Texas
CO2flood
1982 1990 1995 2003
Cumulative Production (MBO)
Pro
duct
ion
Rat
e (K
BD
)
120 260
28% 32% 35% 40%
Actual Production
Recovery5
10
15
Deepwater - Angola
LNG - Qatar
Sakhalin-1: Technological and Execution ExcellenceSakhalin-1: Technological and Execution Excellence
Chayvo ERD Wells
Bridge over Chayvo Bay
Orlan
Ice Strengthened Tankers
Environmental Innovation
•Extended Reach Drilling−World’s most powerful land rig−Record setting ERD wells
•Harsh, Remote Environment−Developed Infrastructure− Ice loads, Seismic conditions
•Modular Construction– Modules based on 1500-ton pre-
assembled, pre-commissioned units– Over 40,000 tons of facilities
commissioned in short construction seasons
•Unique Design−Utilized Russian and international
codes and standards
•Environmental Efforts−Wildlife monitoring and protection−Adaptive construction methods
Module Transport to Chayvo
• Successful startup with domestic sales of 2.5 MTY, 930 MCMY
• Export pipeline, terminal startup in August 2006
• Export crude sales commenced ramping up to 12.5 MTY by year end
• Onshore Processing Facility is nearing completion
Sakhalin-1: Export System Commissioning Sakhalin-1: Export System Commissioning
Export System SPM
DeKastri Terminal
Chayvo OPF
• Invested over $85M in environmental activities
• Active support for Gray Whale research
• Protection of Steller’s Sea Eagle (Orlan)
• Preservation of fisheries
Meeting the world’s growing energy needs in an economically, environmentally and socially responsible manner.
• Extensive public consultations
• Active community support program
• Significant utilization of local companies
Environment
Community
Sakhalin-1: A Commitment to CitizenshipSakhalin-1: A Commitment to Citizenship
Meeting Future Demand: IndustryMeeting Future Demand: Industry
• Safe operations
• Environmental responsibility
• Corporate citizenship
• Technology and innovation
Meeting Future Demand: GovernmentMeeting Future Demand: Government
• Access to resources
• Attractive fiscal terms
• Stable regulatory frameworks
• Open market principles
• Recognize global energy interdependence
In Conclusion…In Conclusion…
• Global energy demand to increase significantly over next 25 years
• Natural gas will be fastest growing conventional energy source
• Asia Pacific will increasingly participate in the international natural gas market:– through increased pipeline and LNG imports
• Industry and governments have unique but complementary roles to play: – by working together, we can deliver the energy that
Asia Pacific and the world will need.