Capturing integrated fuels value-chain benefits

The integrated fuels value chain encompasses all activities from crude acquisition, manufacturing, and distribution, to sales of all fuels products via various channels, including retail, commercial, and supply. The fuels business is organized around geographic markets, which provides us with line of sight on market dynamics at the local level, while retaining regional and global accountability for the complete end-to-end business.

Report April 2, 2019

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Capturing integrated fuels value-chain benefits

Manufacturing operations and logistics

As one of the world’s largest refiners, with nearly 5 million barrels per day of distillation capacity at our 21 refineries, ExxonMobil’s integrated, global manufacturing footprint enables reliable worldwide delivery of high-quality products. With approximately 80 percent of our refining capacity integrated with chemical or lube basestock manufacturing, we have unique optimization capabilities. We are also enhancing our global manufacturing network with advantaged investments. In 2018, we started up three key refinery projects: the Beaumont hydrofiner, the Antwerp coker, and the Rotterdam hydrocracker, all increasing the yield of higher-value fuels. In addition, we are progressing other major investments in Fawley, Singapore, and Beaumont.

To connect rapidly growing industry crude and feedstock production and products to manufacturing facilities and the market, we increased our logistics position in key manufacturing and demand centers, improving our ability to capture value across the entire value chain. These assets include waterborne and inland networks, terminals and pipelines, and storage capacity.

technology

Differentiated fuels

ExxonMobil is committed to developing high-quality, premium fuel products. We are one of the few oil and gas companies that maintains an active in-house research organization dedicated to providing fuels in step with the latest technology.

Our Synergy fuels are one example of this ongoing focus on technology and product development. These fuels are carefully formulated with meticulously balanced ingredients designed to deliver better gas mileage, reduced emissions, and improved engine responsiveness.

Expanding retail fuels

ExxonMobil leverages our advantaged manufacturing assets to produce high-quality fuels, which are sold through our global network of 20,000 retail stations under the Exxon, Mobil, or Esso brand. The retail network represents our highest-value sales channel.

The retail fuels network is primarily operated through branded wholesalers with long-term supply agreements. These wholesalers are independent retailers that hold site ownership, often specialize in operating convenience stores, and assume the capital expenditures associated with the operations. Leveraging our global scale and technology product leadership, ExxonMobil focuses on investing in the Exxon, Esso, and Mobil fuel brands, including the development of leading marketing offers and high-quality fuels, such as Synergy-brand gasoline and Synergy Diesel Efficient fuels.

Fuels value chain includes 21 refineries, logistics and 20,000 branded retail sites

Synergy-brand gasoline delivers better gas mileage, reduced emissions, and improved engine responsiveness and is currently available at more than 17,000 sites in 16 countries. We are also upgrading 20,000 sites around the world with a Synergy offer and image that ensures a premium consumer experience.

Synergy Diesel Efficient fuel is designed to improve engine performance and provides an average of 2-percent improvement in fuel economy in both heavy-duty and light-duty vehicles. It is now offered at more than 4,400 retail stations and 100 newly converted commercial canopies, branded as Exxon Diesel or Mobil Diesel.

We also expanded our presence in new and existing markets. After entering the Mexican fuels market in 2017, we have grown our retail presence with more than 300 stations under long-term contract. We are leveraging our U.S. Gulf Coast refining capacity to supply Mexican fuel demand as part of plans to invest approximately $300 million in fuels logistics, inventories, and marketing over the next decade.

We are also investing in Indonesia as an attractive outlet for our nearby Singapore refinery. With more than 110 million motorcycles on the roads, long queues at service stations are a challenge for consumers. ExxonMobil and our branded reseller partner, IndoMobil, developed a new market concept to alleviate this problem for consumers. Microsites sell Mobil-branded fuel to motorcyclists, feature Indo-branded motorcycle components, and Mobil and Federal Oil lubricants. This new microsite format is a low-cost offer that is scalable, with the potential to grow brand penetration quickly.

We continue to expand our Exxon, Esso, and Mobil brands around the world, including 200 new Mobil-branded locations in Canada.

In Canada, Imperial Oil introduced the Mobil fuel brand to complement the well-established Esso brand and enable further growth in the retail network. More than 200 stations across Canada are now branded Mobil. This expanded Imperial Oil’s retail network to more than 2,000 sites and now represents the largest network in the country.

We also achieved significant growth throughout northwest Europe – most notably with the addition of more than 600 sites in the Benelux. These sites provide a ratable outlet for our Rotterdam and Antwerp refineries, create scale for marketing programs, and increase brand equity.

Commercial fuels

A diverse commercial fuels offering serves marine, aviation, road transportation, mining, and wholesale customers around the world. Customers value the supply reliability and product quality ExxonMobil provides.

We grew onshore sales in the Indonesian fuels market during the year, leveraging supply from our integrated refining complex in Singapore. Also, ExxonMobil committed, with its partner PT Indika Energy, to build an import terminal in Kalimantan to support future growth plans in that market.

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2018 Summary Annual Report

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Message from the Chairman

As we mark the 20th anniversary of the merger that brought together Exxon and Mobil, we do so with our strongest portfolio of investments in two decades. It positions us to deliver attractive returns for you, our shareholders, far into the future.

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Legal information

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Functional excellence

An extensive history of running a complex global business with a focus on the long term has led to a strong culture of consistently doing the right things, the right way, at a high standard. Living this philosophy and learning from our collective experiences has resulted in a deep knowledge in critical disciplines and industry-leading execution capabilities. These strengths manifest themselves in all facets and functions of our business through a disciplined and consistently executed approach.

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People

The benefits of our competitive advantages are only realized through the commitment and hard work of our people. Our long-term development approach is built on challenging, cross-functional assignments and global experiences. The result is a workforce with world-class capabilities and knowledge, anchored in a culture of excellence.

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Progressing 13 key chemical projects

ExxonMobil is responding to chemical demand growth by playing a major role in the industry’s global expansion. Organized by global business units, we optimize the full value chain from development, production, and marketing, to distribution and sale, offering a broad range of polymers, chemicals, and fluids. Our polymers businesses include high-performance products such as polyethylene, polypropylene, butyl, and a variety of other specialties used in applications such as packaging, automotive, consumer goods, and construction. Our chemical and fluids offerings include synthetic basestocks, solvents, and aromatics, and are utilized in a variety of end-use applications. To expand sales of high-performance products, we are investing in 13 global projects, of which seven are now operational.

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