Leveraging integration to grow value across
ExxonMobil’s integrated approach proves the adage,
“The whole is more than the sum of its parts.”
Our Upstream, Downstream, and Chemical businesses
work together to create additional value by sharing
knowledge, technology, expertise, and best practices
across business lines. This collaboration leads to:
- Better-informed decisions
- More efficient operations
Greater flexibility in responding to changing
Portfolio spans the value chain
Our U.S. operations demonstrate how integration
Upstream businesses produce oil and natural gas in
the Permian and other basins.
Volumes are transported via our midstream assets to
our refineries and chemical complexes along the U.S.
Gulf Coast and in the Midwest.
There they are upgraded to higher-value fuels,
products, and feedstocks through the fuels,
lubricants, and chemical value chains.
Photo: Our world-class workforce
effectively manages the complexity of our
advantaged manufacturing facilities.
By maximizing integration across the full value
chain, we are able to capture incremental value at
transfer points or when short-term market
opportunities develop. We can take advantage of
logistics flexibility to ensure no value is lost to
third parties. Simply put, we are uniquely
positioned in industry, capturing an additional $700
million of earnings per year through integration.
We also leverage our global knowledge and expertise
to inform investment decisions in each business
line. For example, insights from our Upstream teams
helped guide expansion plans and project designs for
our U.S. Gulf Coast chemical facilities - growth
supported by the integration with our rapidly
growing production in the Permian.
Integration at ExxonMobil is a competitive advantage
that enables us to improve returns by responding
quickly to changing market conditions. This level of
flexibility is difficult to replicate.
Growing value and capturing savings
Nearly 80 percent of our refining capacity is
integrated with chemical or lubricant manufacturing
facilities. At these sites, we capture savings by:
- Sharing resources
- Using interconnected facilities
- Coordinating operating practices
Integration also increases margins by allowing us to
direct feedstocks to the highest-value products. In
our Baytown manufacturing complex, lubricants and
chemicals integration contributes more than 70
percent of earnings.
In Singapore, we have an integrated facility with a
state-of-the-art steam cracker that produces
chemicals directly from crude oil - an industry
first. We can also process a range of liquid and
natural gas feedstocks at the site, optimizing them
for maximum value. In response to growing Asian
demand for premium products, we recently added
world-scale Mobil 1 lubricant blending
At the LaBarge natural gas field, extensive
Downstream experience has been applied to implement
a multivariable control system at the Shute Creek
treating facility, increasing production and
improving the purity of products. Multivariable
control allows the plant to run closer to capacity
and specification limits by optimizing across
several operational parameters simultaneously.
Shared knowledge and capabilities
At our proposed joint venture project with SABIC
near Corpus Christi, Texas, we are planning to use
an approach our Upstream has implemented with great
success in several projects around the world. We are
constructing portions of the new facility at other
locations and bringing them on site fully built.
This process significantly speeds up construction,
while also reducing costs by more than $1 billion.
Cross-functional sharing enables our project
management professionals to influence and learn from
large, complex projects, while strengthening our
capabilities and providing flexibility for support
of future activities. It also supports
standardization and efficiency, ensuring best
practices are broadly shared.
Our Houston campus brings together nearly 10,000 of
our employees, fostering improved collaboration,
creativity, and innovation, and accelerating the
discovery of new resources, technologies, and