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Exxon Mobil's (XOM) CEO Rex Tillerson Hosts Annual Shareholder Meeting (Transcrip... Page 8 of 25
Our global natural gas holdings are also extremely well positioned to capitalize on growing demands for LNG, which is
expected to more than double by the year 2025. We are evaluating several potential new opportunities to supply this growing
demand. Exxon Mobil has been a leading player in the development of the LNG industry through our existing equity interest
and operating capacity in Qatar and in Indonesia which are shown in green. We also have interest in new LNG capacity
indicated in yellow through our participation which I just described, Papua New Guinea and the Gorgon project in Australia.
We are capitalizing on our world class experience technological capabilities and our marketing expertise as we progress a
number of new exciting opportunities to grow the LNG portfolio as shown in the red box. These include Tanzania, Australia,
Russia and North America.
So let's now turn to the downstream where we continue to strengthen the portfolio by selectively investing in our strategic
assets and capitalizing on Exxon Mobil's technology, scale and integration. The picture you see is of our world scale Baytown
refining and chemical complex down the Texas Gulf Coast. Lowering raw material costs continues to be a focus area
particularly in North America where new light and heavy crude supplies are creating unique opportunities. During the last few
years we have expanded our advantaged North American crude runs by 40%, given our installed capacity and feedstock
flexibility, our investments in this area continue to be incremental and completed during maintenance turnarounds and which
allows to a very rapid startup of these new facilities.
Many of our investments are focused on growing sales of high value products such as diesel, jet fuel and lubricants. For
example, we recently commissioned a new Ultra Low Sulphur Diesel unit in Singapore and a new desulphurization plant in
Saudi Arabia is nearing completion. We are also progressing plants to install a coker at our Antwerp refinery in Belgium to
upgrade low value bunker fuel into higher value diesel which is in high demand.
In our lubricants business, we have projects underway to expand high performance base stocks and finished product
manufacturing capacity. We are investing in logistics capabilities as highlighted by our joint venture rail terminal project in
Edmonton, Alberta, Canada. This terminal would allow us to supply up to 100,000 barrels per day of crude from Alberta,
Canada to our North American refining network.
Steps to reduce operating cost include investments in steam and electric cogeneration capacity that was recently completed in
Augusta, Italy as well as a new cogeneration plant which is being progressed in Singapore. Our disciplined portfolio
management process results in the best asset mix in the business. We continually upgrade the portfolio in possible ways to
build shareholder value.
Since 2005 we have reduced our global refining capacity by more than 1 million barrels per day by divesting smaller, less
competitive facilities. And we have completed the transition of our domestic retail fuels marketing to a more capital efficient
and growing branded wholesale business model. Exxon Mobil's commitment to disciplined investment extends to our
chemicals business where we are developing major projects in the United States, Saudi Arabia and Singapore.
To build on our competitive advantage, we continued to invest in the world scale projects to capture advantage feedstocks. In
the U.S. we are progressing a multi-billion dollar project to capitalize on the abundance of low cost North American ethane. We
plan to expand Baytown's capacity with 1.5 million ton per year ethylene plant and install associated polyethylene lines at the
Mont Belvieu plastics plant which is shown in the picture. Projects are targeted to capture opportunities to reduce production
cost by installing advanced process technologies that enhanced energy efficiency, achieved greater reliability and produce
higher yields.
Continuing to invest on increasing production of high value products in an even ever changing market is important of the longterm
success of the chemicals company. For example, a new 400,000 ton per year facility in Saudi Arabia will produce
specialty elastomers to serve growing demand in the Kingdom, the broader Middle East and Asia. We also recently approved
a world scale grassroots specialty polymers project in Singapore to produce synthetic rubber to support the growing tire
market in Asia as well as premium resins for adhesive applications.
Integration of new projects with existing, refining and chemical units enables lower capital and production costs by leveraging
the existing site feedstocks, the utilities, the infrastructure and the organization. Last year, we successfully completed the
startup of a new world scale steam cracker at our Singapore complex. The site is now producing some of our most advanced
plastics and synthetic rubbers and is well-positioned to serve the rapidly growing markets in Asia and beyond.
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http://seeldngalpha.com/article/2243043-exxon-niobils-xom-ceo-rex-tillerson-hosts-annual-... 8/2/2016