Global Energy Management ExxonMobil

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					Global Energy Management System

          VOLUNTARY ACTIONS BY THE OIL AND GAS INDUSTRY
                         TO ADDRESS CLIMATE CHANGE




Brian D. Eidt                                                   June 26, 2003
Global Energy Management                            The Business Roundtable
ExxonMobil Refining & Supply Company            Corporate Energy Management
                          Global Energy Management System
                  WORLD ENERGY OUTLOOK
         300      ENERGY DEMAND                               200      OIL & GAS SUPPLY
         250
                                                              150                       New
                                       Other
         200
MOEB/D




                                                     MOEB/D
                                       Coal
         150                                                  100
                                       Gas
         100
                                                               50
          50                               Oil                          Actual      Existing
           0                                                    0
           1980    1990      2000   2010                        1980     1990    2000         2010


 • Oil and natural gas supply 60% of world energy demand

 • About 50% of 2010 supply will come from new production

 • Balanced approach required to meet the supply challenge


                                                 1
                Global Energy Management System
            MEETING THE CHALLENGE

• ExxonMobil engaged on a
  number of fronts to meet
  tomorrow’s energy needs ...

   –   New exploration and
       production

   –   New technologies and
       improved products

   –   Energy conservation
       and efficiency



                                2
                Global Energy Management System
               A CORPORATE FOCUS
 100%

 75%                                          Other Operations

 50%                                          Exploration & Production

 25%                                          Refining & Chemicals

  0%
           Energy      Greenhouse Gas
         Consumption      Emissions

• Refining and Chemicals account for over 75% of energy
  consumption and 60% of greenhouse gas emissions
• Initial efforts aimed at improving Downstream energy efficiency
• Initiatives also underway in Upstream and Lubes Manufacturing

                                 3
                    Global Energy Management System
      IMPROVING ENERGY EFFICIENCY
    +50%                 PLANT ENERGY EFFICIENCY
    +40%
    +30%
    +20%
    +10%
     +0%
             1974        1979        1984        1989       1994         1999

• Plant energy efficiency has improved over 35% since 1973
   – Saved cumulative equivalent of 1.8 billion barrels of crude oil
   – Translates to over 200 million tonne decrease in GHG emissions

• Ongoing initiatives expected to provide additional improvement
   – Additional investment in highly efficient cogeneration facilities
   – Implementation of Global Energy Management System (G-EMS)


                                         4
                    Global Energy Management System
                         COGENERATION
         COGEN EFFICIENCY                                        XOM COGEN CAPACITY
 100%                                                  3000
                                Waste Heat
                                                       2500
  75%                           Steam
                                                       2000




                                                  MW
  50%                                                  1500

                                Electricity            1000
  25%
                                                        500
   0%                                                     0
        Simple Combined Cogen
                                                          1970      1980   1990       2000
        Cycle    Cycle

• Cogeneration 30-35% more efficient than conventional technology
• Facilities at 32 locations produce 2700 megawatts of electricity
   – Efficiency gain sufficient to service nearly 1 million U.S. residential households
   – GHG emissions reduced nearly 7 million tonnes per year versus alternatives

• Additional 970 megawatts planned at 5 sites in U.S. and Canada
   – Potential to further reduce GHG emissions more than 2 million tonnes per year
     when new capacity fully on line
                                              5
                                                          Global Energy Management System
                                            PLANT ENERGY EFFICIENCY
100                                           EII% TRENDS                                             EII% QUARTILES
 Energy Intensity Index - %




                               US                                               US
 90
                              AP                                                                   1Q 2Q 3Q         4Q
                              WE                                   AVG
 80                                                                             WE
                                                                       1Q

 70                                                                             AP

                              Solomon Associates, Inc.                                Solomon Associates, Inc.
 60
                                  1996                   1998   2000                 50                 Intensity Index - 130
                                                                                                 Energy 90
                                                                                                70              110       %     150


         • Industry trend groups improving 1% per year on average
         • Top performers appear to have lined-out ... for now
         • Data highlights potential opportunity for many plants


                                                                            6
                 Global Energy Management System
                A GLOBAL APPROACH
OBJECTIVES
• Establish a single, comprehensive global energy management
  system (G-EMS)
• Utilize a common methodology to identify performance gaps,
  implement closure plans, sustain progress, and continuously
  improve results

BUSINESS MODEL
• Operate existing facilities optimally and efficiently through
  application of best practices
• Identify economic investment opportunities above an optimized
  base for step-change improvement
• Implement strong management systems to sustain progress
  and drive continuous improvement
                                   7
           Global Energy Management System
                 G-EMS DESIGN
                    Management Leadership


           Organizational Commitment to Best Practices

      Process       Equipment          Utility     Project
       Units         Classes          Systems      Design



                     Personal Accountability
Planning                                                 Analysis
                     Operating         System
                      Results        Performance




                    Continuous Improvement


                                 8
                                                                                            Global Energy Management System
                                                                                            G-EMS DEVELOPMENT

Energy Management System                                                                     Energy Management System                                                                        Energy Management System                                                                    Energy Management System
                                                                                                                             Management Leadership                                                                           Management Leadership
                                Management Leadership                                                                                                                                                                                                                                                                    Management Leadership




                                                                                                                            Organizational Commitment                                                                       Organizational Commitment
                               Organizational Commitment                                                                                                                                                                                                                                                                Organizational Commitment



                                                                                                             Process   Equipment                     Utility    Capital                                      Process   Equipment                     Utility    Capital
                Process   Equipment                     Utility    Capital                                    Units     Classes                     Systems     Projects                                      Units     Classes                     Systems     Projects                                 Process   Equipment                     Utility    Capital
                 Units     Classes                     Systems     Projects                                                                                                                                                                                                                               Units     Classes                     Systems     Projects




                                                                                                                              Personal Accountability                                                                         Personal Accountability
                                 Personal Accountability                                                                                                                                                                                                                                                                  Personal Accountability

                                                                                                  Planning                                                                 Stewardship            Planning                                                                 Stewardship
     Planning                                                                 Stewardship                                                                                                                                                                                                     Planning                                                                 Stewardship
                                                                                                                       Operating                    System                                                             Operating                    System
                          Operating                    System                                                           Results                   Performance                                                           Results                   Performance                                                      Operating                    System
                           Results                   Performance                                                                                                                                                                                                                                                    Results                   Performance




                                                                                                                             Continuous Improvement                                                                          Continuous Improvement
                                Continuous Improvement                                                                                                                                                                                                                                                                   Continuous Improvement




            Process                                                                              Equipment                                                                                              Utility                                                                                           Project
             Units                                                                                Classes                                                                                              Systems                                                                                            Design



• Best practices documented in 12 volume set of manuals

• Contain 1200 pages and identify over 200 key energy variables

• Cover key process, equipment, and utility operations

• Also address energy efficiency in project design


                                                                                                                                                                                         9
                    Global Energy Management System
                G-EMS MEASUREMENT


                                                         Plant / Site
Headquarters &                                          Energy Index
Plant Management              Global                   Energy Expense
                             Measures                    Profitability

Business Teams                                         Area / Complex
Process Engineers           Diagnostic                 Implementation
Equipment Specialists       Indicators                Lost Opportunity

Shift Supervision                                      Unit / Equipment
Console Operators       Key Energy Variables          Targets & Handles
Field Operators                                       Directly Actionable



                                    10
                                          Global Energy Management System
                                        G-EMS DEPLOYMENT PLAN
                                        BENCHMARKING HIGHLIGHTS OPPORTUNITY
                 70                                                                       100




                                                                                                Cumulative Opportunity - % l
    Plant Opportunity - M$/Year l




                 60
                                                                                          80
                 50

                 40                                                                       60

                 30                                                                       40
                 20
                                                                                          20
                 10

                                    0                                                     0
                                           External Assessments        Self-Assessments



• Rollouts at 15-20 sites address 80% of economic opportunity
• Balance of opportunity addressed via rigorous Self-Assessments
• 13 Rollouts executed through 2002 ... 5 Rollouts planned in 2003

                                                                  11
                                            Global Energy Management System
                                      G-EMS ROLLOUT RESULTS
                           100%
Distribution of Benefits




                                       Uneconomic                 Equipment
                           80%                                     Classes                    No/Low
                                    Self-Assessments                                        Investment
                                                                    Utility
                           60%                                     Systems
                           40%           G-EMS
                                         Rollouts                  Process                   Requires
                           20%                                      Units                   Investment

                            0%

•                          Rollouts and Self-Assessments address 80% of total opportunity
                            – Process Units total nearly 50% -- mainly investment related
                            – Utility Systems account for over 30% -- mix of no/low and investment items
                            – Equipment Classes total 20% -- many no/low investment options

•                          Potential savings equal to 15-20% of plant energy bill on average
                            – About half of the benefits identified require little or no investment to capture
                            – Potential to further reduce GHG emissions nearly 9 million tonnes per year
                              at full implementation

                                                                  12
                 Global Energy Management System
                     PATH FORWARD
• Potential for climate change poses a legitimate long-term risk
• Path forward must be marked by rational scientific, economic, and
  technical analysis
• Maintain focus on increasing supplies, developing next generation
  products and technology, energy conservation and efficiency
• Continue support for scientific and economic research and
  participate in cooperative programs with industry and government
• Conservation and efficiency -- the first path
   – Develop 970 MW of additional cogeneration capacity
   – Improve refinery/chemical plant efficiency an additional 15-20%
   – Reduce GHG emissions about 11 million tonnes per year
• Benefits consumers, companies, and the environment alike now
  and well into the future
                                  13

				
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