ExxonMobil and Abu Dhabi
ExxonMobil and Abu Dhabi ExxonMobil and Abu Dhabi
9 Helping communities and businesses “For hurricanes, we expand our philosophy of keeping our own system adequately supplied to one of helping the overall industry get back to normal,” says Cunningham. ExxonMobil refineries also help their surrounding communities during power outages, providing electricity from their cogeneration plants for use by area households and businesses. The company’s Supply organization identifies and buys additional volumes of fuel before it’s clear that the company needs them to make up for the shortfalls that sometimes occur. Those sources might be from locations several days away, like New York. They may even be cargoes at sea – during Hurricanes Gustav and Ike the company diverted 14 waterborne cargoes from other geographic markets, including Europe and Asia, to fill gaps in supply while the Texas and Louisiana refineries were coming back up. “From the downstream perspective, our biggest challenge is to keep fuel moving, not only to customers in the hurricane zones but to all the others who depend on refined products from the Gulf Coast,” says Mark DiZio, manager of global products supply and trading. “People in places like North Carolina sometimes wonder, ‘If Members of the company’s Supply response team conduct drills before hurricane season to continuously improve the organization’s effectiveness when a storm hits. Seated in foreground (left to right) are Andre Pennington, Donna Scanlon and Ryan House. Adel Abunasser (left) and Greg Cunningham are pictured at rear discussing the exercise scenario. Photo by Robert Seale
Photo by Mark Wilson/Getty Images the hurricane struck Texas, why are we without gasoline?’” adds John Palaszczuk, manager of U.S. product trading. “The answer is often related to the length and complexity of the supply chain, variations in product specifications and industry infrastructure.” Minimizing those disruptions on a local, regional or national level is a top priority for ExxonMobil and its affiliates. For example, the company’s marine affiliates play a vital role in maintaining the critical flow of energy by safely and efficiently moving or redirecting important cargoes to affected markets to help restore the flow of crude oil, feedstocks, refined products and chemicals. ExxonMobil Pipeline Company (EMPCo) also plays a critical infrastructure role to minimize the impact of hurricanes on crude and refined products deliveries. Securing and coordinating the placement of portable generators at key pipeline and terminal facilities is but one example of EMPCo’s efforts to restore power and resume operations quickly, safely and flawlessly. Lubricants’ customer focus Similarly, the lube-oil blend plants on the Gulf Coast readied themselves for the hurricanes, idling operations, moving product inventories into the network and staging response teams in the area. Within days of each hurricane strike, delivery operations were restored, and the plants were operational, but raw material supplies were critically impacted. ExxonMobil’s Lubricants & Petroleum Specialties Company relies on ExxonMobil refineries for basestocks and company chemical plants for much of its supply of polyalpha olefins used in the blending of high-quality lubes and other products. “We built up significant product inventory in preparation for the hurricane,” says Lynne Lachenmyer, operations vice president of Lubricants An emergency worker inspects damage in front of Houston’s JP Morgan Chase Tower the morning after Hurricane Ike passed through the city on September 13, 2008. The storm made landfall in the middle of the night, causing extensive damage to buildings. and Specialties. “Despite these efforts, the storm’s impact was significant. We took quick mitigation steps to manage the disruption of our base-oil supply, ensuring supply to singlesourced customers and those providing emergency response. Unfortunately, customer allocations were required to manage supplies. Communication was key throughout this process. We were in regular contact with our customers, providing them with updates on our recovery plans.” Marketing’s timely response ExxonMobil has 81 companyowned stores in the Houston area and 275 distributor locations, which are Exxon- or Mobil-branded stations that are owned and operated by others. All were closed as a result of Ike. Few were damaged in the storm but most needed emergency power to reopen. “We keep 100 large emergency generators staged in three cities within 200 miles of the Gulf Coast,” says Mike Gore, company-owned retail store manager. “The generators are big enough to run all aspects of a retail site. Since all of our stores are designed to ‘plugand-play,’ we deliver the generator, plug it in and run the site as if it were on grid power.” The generators are loaded on flatbed trucks and ready to roll well before a hurricane makes landfall. A generator can be powering any company-owned store within 24 hours. And after Ike, ExxonMobil was able to offer 20 of its extra generators to distributor locations until power from the grid was restored. “Before the storm, we made sure that our key stores on evacuation routes had plenty of fuel and stayed open as long as possible,” Gore says. “After the hurricane passed, we reopened those same stores quickly so that people could get back into affected areas. We had 10
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9<br />
Helping communities<br />
<strong>and</strong> businesses<br />
“For hurricanes, we exp<strong>and</strong> our<br />
philosophy of keeping our own<br />
system adequately supplied to<br />
one of helping the overall industry<br />
get back to normal,” says<br />
Cunningham.<br />
<strong>ExxonMobil</strong> refineries also help<br />
their surrounding communities<br />
during power outages, providing<br />
electricity from their cogeneration<br />
plants for use by area households<br />
<strong>and</strong> businesses.<br />
The company’s Supply organization<br />
identifies <strong>and</strong> buys additional<br />
volumes of fuel before it’s<br />
clear that the company needs<br />
them to make up for the shortfalls<br />
that sometimes occur. Those<br />
sources might be from locations<br />
several days away, like New York.<br />
They may even be cargoes at<br />
sea – during Hurricanes Gustav<br />
<strong>and</strong> Ike the company diverted 14<br />
waterborne cargoes from other<br />
geographic markets, including<br />
Europe <strong>and</strong> Asia, to fill gaps<br />
in supply while the Texas <strong>and</strong><br />
Louisiana refineries were coming<br />
back up.<br />
“From the downstream perspective,<br />
our biggest challenge<br />
is to keep fuel moving, not only<br />
to customers in the hurricane<br />
zones but to all the others who<br />
depend on refined products<br />
from the Gulf Coast,” says Mark<br />
DiZio, manager of global products<br />
supply <strong>and</strong> trading.<br />
“People in places like North<br />
Carolina sometimes wonder, ‘If<br />
Members of the company’s<br />
Supply response team conduct<br />
drills before hurricane season to<br />
continuously improve the organization’s<br />
effectiveness when a storm<br />
hits. Seated in foreground (left<br />
to right) are Andre Pennington,<br />
Donna Scanlon <strong>and</strong> Ryan House.<br />
Adel <strong>Abu</strong>nasser (left) <strong>and</strong> Greg<br />
Cunningham are pictured at rear<br />
discussing the exercise scenario.<br />
Photo by Robert Seale
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