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Steve D. Pryor President - Refining and Supply, Exxon Mobil Corporation Refining Conference 06 Houston - November 3, 2006 Steve D. Pryor President - Refining.

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Presentation on theme: "Steve D. Pryor President - Refining and Supply, Exxon Mobil Corporation Refining Conference 06 Houston - November 3, 2006 Steve D. Pryor President - Refining."— Presentation transcript:

1 Steve D. Pryor President - Refining and Supply, Exxon Mobil Corporation Refining Conference 06 Houston - November 3, 2006 Steve D. Pryor President - Refining and Supply, Exxon Mobil Corporation Refining Conference 06 Houston - November 3, 2006 Competitive Challenges facing Gulf Coast Refining within a Resilient Global Industry

2 Cautionary Statement Forward-Looking Statements. Outlooks, projections, estimates, targets, and business plans in this presentation are forward-looking statements. Actual future results, including demand growth and mix; vehicle fleet composition; refinery additions and capacity increases; project plans, timing, and costs; efficiency and cost improvements; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil and gas industries, including changes in refining or marketing margins; severe weather events; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investor Information section of our website at www.exxonmobil.com. Frequently Used Terms. For definitions and additional information regarding return on capital employed, normalized earnings (also referred to as operating earnings), cash flow from operations and asset sales (also referred to as operating cash flow), and other terms used in this presentation, including information required by SEC Regulation G, see the “Frequently Used Terms”, quarterly reports on form 8-K regarding results of operations and financial condition, and other material posted on our website. The Financial and Operating Review on our website also shows ExxonMobil's net interest in specific projects.

3 ExxonMobil’s Global Refining Circuit Americas 16 Refineries Europe/AME 15 Refineries Asia-Pacific 11 Refineries Largest Global Refiner Largest Lubes Basestock Supplier Largest Global Producer of Polyolefins, Benzene & Paraxylene

4 ExxonMobil’s Outlook for Energy to 2030 Liquids Gas Coal Other MBDOE Energy demand will increase about 60% versus 2000 –Driven by population growth and economic progress Liquids, gas and coal remain predominant −Fuel shares essentially unchanged Energy resources are adequate to sustain growth –Large scale investments required in a timely manner –Energy interdependence growing Technology remains vital to meeting energy challenges –Increase energy efficiency and mitigate CO 2 emissions –Expand available energy resources

5 Global Energy Demand Grows Primary Energy 1.6% 1.4% 1.7% 1.5% Liquids Gas Coal Other MBDOE Wind & Solar 10.5% 12.5% 8.4% Wind Solar MBDOE Average Growth / Yr. 2000 - 2030 Other Energy 1.5% 1.0% 2.2% Nuclear Hydro Biomass / Other MBDOE Wind & Solar10.5% 1.4%

6 Light Duty Vehicle Trends Historical Vehicle Penetration Vehicles per 1000 people Typical Saturation Profile Income per capita Global Fleet Millions Non-OECD OECD 2.1% Average Growth / Yr. 2000 - 2030 1.0% 5.1%

7 Trade Flows Balance Supply & Demand MBD Source: IEA / EM Estimates North America South America Western Europe Africa/Middle East Eastern Europe/FSU Asia Pacific Light Products CapacityLight Products Demand MBD Trade Flows Worldwide MBD

8 Refining Capacity Growing Global Distillation Refining capacity up 1.5% – 2.3% per year Growth via new builds and debottlenecks ROW NA  MBD High Case (cumulative)

9 U.S. Gasoline Supply & Demand Number of refineriesGasoline Output, MBDGasoline Demand, MBD

10 Cooperation to Achieve Common Goals Regional NOx Emission Reductions Air quality improvement is the benchmark –Emissions lowered 48% –GDP up 176% –Vehicle miles up 155% –Energy up 45% Petroleum industry is a key stakeholder –Cleaner/alternative fuels –Emission reductions –Energy efficiency 176%155% 45%-25%-54% GDP VMT ENERGY NOx VOC GROWTH AND EMISSIONS Highway gasoline Highway diesel Non-road diesel Other mobile sources MOBILE SOURCE REDUCTIONS Source: EPA

11 Houston is Leading the Way Significant emission reductions Leader in science-based air quality solutions –Cost-effective policies critical for continued economic growth University of Houston plays a key role 2000 2007 Industry On-road Off-road Natural Houston NOx Emissions (tonnes/day) 500 400 300 200 100 0 Source: TCEQ

12 Industry Margins – Long-term Perspective 2006 $/bbl Global Composite Refining Gross Margins Higher Value Products Raw Material Flexibility Lower Costs Raw Materials Costs Operating Costs Net Margin ‘Self-Help’ Margin Levers Downstream Revenue, $ Current

13 Steve D. Pryor President - Refining and Supply, Exxon Mobil Corporation Refining Conference 06 Houston - November 3, 2006 Steve D. Pryor President - Refining and Supply, Exxon Mobil Corporation Refining Conference 06 Houston - November 3, 2006 Competitive Challenges facing Gulf Coast Refining within a Resilient Global Industry


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