Leveraging integration to grow value across businesses
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:
More efficient operations
Greater flexibility in responding to changing market conditions
Portfolio spans the value chain
Our U.S. operations demonstrate how integration drives value.
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:
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 facilities.
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 products.