The size and breadth of our business provides a critical foundation for long-term success. It enables investments in the development of advanced technologies by leveraging benefits across a large base of operations. Facilities and businesses operated consistently around the globe accelerate experience and learning – replicating innovations, improving effectiveness, and driving down cost. Our size allows us to pursue a wide range of value-accretive investments across the commodity price cycle – specifically taking advantage of counter-cyclical opportunities.

Report April 2, 2019

In this article


Industry-leading investment portfolio

We have a high-quality portfolio of investment opportunities across our businesses, involving a broad range of resource types and high-value products.

The Upstream portfolio includes five key developments: the Permian in the United States; Guyana; Brazil; Mozambique; and Papua New Guinea (PNG). We are the most active operator in the Permian Basin, where an innovative development approach will provide decades of low-cost, highly profitable production, and serve as an attractive feedstock for U.S. Gulf Coast manufacturing plants.

In Guyana, we have discovered more than 5 billion oil-equivalent barrels from 10 exploration discoveries through 2018. Our extensive global experience developing deepwater resources will facilitate efficient deployment of at least five floating production, storage, and offloading (FPSO) vessels and related infrastructure to support the production of at least 750,000 barrels of oil per day by 2025. In Brazil, we captured more acreage than any other major international oil company over the past year, further expanding our attractive deepwater portfolio.

Successful exploration offshore Guyana continued with five additional discoveries in 2018. The first FPSO vessel is under construction and expected to be operational in early 2020.

We are also developing low-cost LNG supplies in the United States, PNG, and Mozambique. These developments will leverage our extensive technical, operational, and project experience in large-scale, frontier LNG developments.

In the Downstream, we are investing to increase the production of higher-value products. This includes upgrading nearly 200,000 barrels per day of fuel oil into higher-quality Group II lube basestocks, chemicals, and lower-sulfur distillates by 2025. We completed three of these projects in 2018. In Beaumont, we started up a hydrofiner to produce cleaner, lower-sulfur gasoline. We also commenced a delayed coker in Antwerp, Belgium, to upgrade heavy residual products and started up the Rotterdam, Netherlands, advanced hydrocracker to produce Group II basestocks.

Additionally, we progressed key projects in Singapore, Fawley, and Beaumont, where we will expand refining capacity to process light Permian crudes.

In the Chemical business, we have started up seven new facilities since 2017 and are planning the completion of another six projects by 2025, supported by growing demand for high-performance chemical products. The Singapore butyl plant, the Newport elastomer plant expansion, and the Baytown ethane cracker all started up in 2018. We are also progressing additional investments in the United States and Singapore. These new facilities will result in a 40-percent increase in manufacturing capacity in North America and Asia.


Financial strength

Our industry-leading financial strength provides us with the capacity to invest throughout commodity price cycles, taking particular advantage of counter-cyclical opportunities.

As a result, we are positioned to deliver projects with lower costs and higher returns versus industry. It also allows us to pursue a broad portfolio of investment opportunities, while also meeting our commitment to pay a reliable and growing dividend.

Learning and optimization

We leverage our global footprint to optimize strategies for operating and maintaining essential equipment like heat exchangers, compressors, and pumps. For example, we manage more than 30,000 pieces of heat transfer equipment and nearly 500 critical compressor units across our manufacturing facilities. This scale allows us to identify and deploy equipment strategies efficiently, resulting in a significant reduction in risk and increased reliability across our global equipment fleet.

In addition, centralizing analysis of real-time data across our manufacturing sites accelerates learning and allows us to optimize operations. For example, we are leveraging a globally scaled data lake platform that will further enable us to collect operating data from our refineries and chemical plants. We expect to capture more than 2 billion sensor readings per day into this high-performing computing environment. All of our global manufacturing sites will connect to the data lake by 2020. By applying advanced analytics to this abundance of data, we can identify new approaches to run sites more efficiently and potentially with fewer emissions.

Financial strength maximizes investment flexibility

We also have the largest inventory of operated horizontal wells in the United States at more than 6,600, providing our engineering and subsurface experts with one of the most extensive databases in the industry with which to learn and optimize development and operating plans.

To fully leverage the tremendous amount of data we have and the scale advantage it provides, we deploy a network of technology centers around the world, staffed with scientists and engineers who collaborate globally with manufacturing sites, production units, projects, and ventures across the Upstream, Downstream, and Chemical business lines. Enabled by access to global data, these engineers drive manufacturing excellence by monitoring, analyzing, and optimizing process units and equipment fleets around the world. Our technology centers are seamless extensions of our production and manufacturing sites, providing valuable technical solutions that we replicate across our global network. Best practices across similar assets are quickly and broadly applied, which leads to effective prioritization and efficient execution of high-value optimization opportunities. Equipment monitoring and process analysis enable global manufacturing circuit optimization efforts and are anticipated to generate more than $500 million in cumulative earnings contribution in our Downstream business between 2017 and 2020.

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Technology has led to the development of industry-advantaged assets, processes, products, and applications. We invest in fundamental science and research, leading to advances in existing processes and products, as well as new discoveries. This allows us to meet the evolving needs of society, lower operating and project costs, and develop higher-value processes and products.

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Strong business fundamentals underpin investments

Our view of global energy and product demand and supply through 2040 informs long-term strategies and investments.

Digital Annual Reports Report April 2, 2019