Exxon Mobil Corporation
Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.
Exxon Mobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso, Mobil or XTO. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso, Mobil and XTO, as well as terms like Corporation, Company, our, we and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates. The precise meaning depends on the context in question.
The energy and petrochemical industries are highly competitive. There is competition within the industries and also with other industries in supplying the energy, fuel and chemical needs of both industrial and individual consumers. The Corporation competes with other firms in the sale or purchase of needed goods and services in many national and international markets and employs all methods of competition which are lawful and appropriate for such purposes.
The number of regular employees was 69.6 thousand, 71.1 thousand, and 73.5 thousand at years ended 2017, 2016 and 2015, respectively. Regular employees are defined as active executive, management, professional, technical and wage employees who work full time or part time for the Corporation and are covered by the Corporation’s benefit plans and programs. Regular employees do not include employees of the company‑operated retail sites (CORS). The number of CORS employees was 1.6 thousand, 1.6 thousand, and 2.1 thousand at years ended 2017, 2016 and 2015, respectively.
Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on air, water and ground. These include a significant investment in refining infrastructure and technology to manufacture clean fuels, as well as projects to monitor and reduce nitrogen oxide, sulfur oxide and greenhouse gas emissions, and expenditures for asset retirement obligations. Using definitions and guidelines established by the American Petroleum Institute, ExxonMobil’s 2017 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $4.7 billion, of which $3.3 billion were included in expenses with the remainder in capital expenditures. The total cost for such activities is expected to increase to approximately $5 billion in 2018 and 2019. Capital expenditures are expected to account for approximately 30 percent of the total.
Summary of Oil and Gas Reserves at Year-End 2017
The table below summarizes the oil-equivalent proved reserves in each geographic area and by product type for consolidated subsidiaries and equity companies. Gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. The Corporation has reported proved reserves on the basis of the average of the first-day-of-the-month price for each month during the last 12-month period. No major discovery or other favorable or adverse event has occurred since December 31, 2017, that would cause a significant change in the estimated proved reserves as of that date.
|(million bbls)||(million bbls)||(million bbls)||(million bbls)||(billion cubic ft)||(million bbls)|
|Total Equity Company||930||311||-||-||17,951||4,232|
|Total Equity Company||433||53||-||-||3,598||1,086|
|Total Proved Reserves||8,922||1,622||1,012||473||55,151||21,221|
Oil and Gas Production
The table below summarizes production by final product sold and by geographic area for the last three years.
|(thousands of barrels daily)|
|Crude oil and natural gas liquids production||Crude Oil||NGL||Crude Oil||NGL||Crude Oil||NGL|
|Total Consolidated Subsidiaries||1,372||189||1,450||185||1,436||186|
|Total Equity Companies||294||66||292||67||305||71|
|Total crude oil and natural gas liquids production||1,666||255||1,742||252||1,741||257|
|Synthetic oil production|
|Total liquids production||2,283||2,365||2,345|
|(millions of cubic feet daily)|
|Natural gas production available for sale|
|Canada/Other Americas (1)||218||239||261|
|Total Consolidated Subsidiaries||6,395||6,205||6,249|
|Total Equity Companies||3,816||3,922||4,266|
|Total natural gas production available for sale||10,211||10,127||10,515|
|(thousands of oil-equivalent barrels daily)|
Review of Principal Ongoing Activities
ExxonMobil’s year-end 2017 acreage holdings totaled 12.8 million net acres, of which 0.9 million net acres were offshore. ExxonMobil was active in areas onshore and offshore in the lower 48 states and in Alaska.
During the year, 444.9 net development wells were completed in the inland lower 48 states. Development activities focused on liquids-rich opportunities in the onshore U.S., primarily in the Permian Basin of West Texas and New Mexico and the Bakken oil play in North Dakota. In addition, gas development activities continued in the Marcellus Shale of Pennsylvania and West Virginia, the Utica Shale of Ohio and the Haynesville Shale of East Texas and Louisiana. In 2017, ExxonMobil acquired a number of oil and gas properties in the Permian Basin.
ExxonMobil’s net acreage in the Gulf of Mexico at year-end 2017 was 0.8 million acres. A total of 2.3 net development wells were completed during the year.
Participation in Alaska production and development continued with a total of 10.9 net development wells completed.
CANADA / OTHER AMERICAS
Oil and Gas Operations: ExxonMobil’s year-end 2017 acreage holdings totaled 6.5 million net acres, of which 3.2 million net acres were offshore. A total of 10.8 net development wells were completed during the year. The Hebron project started up in 2017.
In Situ Bitumen Operations: ExxonMobil’s year-end 2017 in situ bitumen acreage holdings totaled 0.7 million net onshore acres.
ExxonMobil’s net acreage totaled 0.3 million onshore acres at year-end 2017, and there were 4.0 net exploration and development wells completed during the year.
ExxonMobil’s net acreage totaled 5.2 million offshore acres at year-end 2017, and there were 2.3 net exploration wells completed during the year. The Liza Phase 1 project was funded in 2017.
A total of 2.8 million net onshore acres were held by ExxonMobil at year-end 2017, with 1.3 net development wells completed during the year.
ExxonMobil’s net interest in licenses totaled approximately 1.5 million acres at year-end 2017, of which 1.1 million acres were onshore. A total of 1.3 net exploration and development wells were completed during the year.
ExxonMobil’s net interest in licenses at year-end 2017 totaled approximately 0.1 million acres, all offshore. A total of 3.9 net development wells were completed during the year. In 2017, ExxonMobil divested approximately 81 thousand net operated acres in Norway.
ExxonMobil’s net interest in licenses at year-end 2017 totaled approximately 0.6 million acres, all offshore. A total of 1.2 net exploration and development wells were completed during the year. The Penguins Redevelopment project was funded in 2017.
ExxonMobil’s net acreage totaled 0.2 million offshore acres at year-end 2017, with 5.9 net development wells completed during the year. On Block 32, development activities continued on the Kaombo Split Hub project.
ExxonMobil’s net year-end 2017 acreage holdings consisted of 46 thousand onshore acres.
ExxonMobil’s acreage totaled 0.3 million net offshore acres at year-end 2017, with 2.4 net exploration wells completed during the year.
ExxonMobil’s net acreage totaled approximately 0.1 million offshore acres at year-end 2017. ExxonMobil acquired an interest in Area 4 offshore Mozambique in December 2017. The Coral South Floating LNG project was funded in 2017.
ExxonMobil’s net acreage totaled 1.1 million offshore acres at year-end 2017, with 0.8 net development wells completed during the year.
At year-end 2017, ExxonMobil’s net acreage totaled 9 thousand offshore acres. A total of 1.3 net development wells were completed during the year.
At year-end 2017, ExxonMobil had 0.1 million net acres onshore. In 2017, ExxonMobil relinquished approximately 0.4 million net acres offshore.
At year-end 2017, ExxonMobil’s onshore acreage was 0.1 million net acres. A total of 4.5 net development wells were completed at the West Qurna Phase I oil field during the year. Oil field rehabilitation activities continued during 2017 and across the life of this project will include drilling of new wells, working over of existing wells, and optimization and debottlenecking of existing facilities. In the Kurdistan Region of Iraq, ExxonMobil continued exploration activities.
ExxonMobil’s net acreage totaled 0.1 million acres onshore and 0.2 million acres offshore at year-end 2017. A total of 4.3 net development wells were completed during 2017. Development activities continued on the Tengiz Expansion project.
ExxonMobil’s interests in production sharing contracts covered 2.5 million net acres offshore at year-end 2017. During the year, a total of 1.5 net development wells were completed. ExxonMobil acquired deepwater acreage offshore Sabah.
Through our joint ventures with Qatar Petroleum, ExxonMobil’s net acreage totaled 65 thousand acres offshore at year-end 2017. ExxonMobil participated in 62.2 million tonnes per year gross liquefied natural gas capacity and 2.0 billion cubic feet per day of flowing gas capacity at year end. Development activities continued on the Barzan project in 2017.
Republic of Yemen
ExxonMobil’s net acreage in the Republic of Yemen production sharing areas totaled 10 thousand acres onshore at year-end 2017.
ExxonMobil’s net acreage holdings in Sakhalin at year-end 2017 were 85 thousand acres, all offshore. A total of 2.1 net exploration and development wells were completed. The Odoptu Stage 2 project started up in 2017.
At year-end 2017, ExxonMobil’s net acreage in the Rosneft joint venture agreements for the Kara, Laptev, Chukchi and Black Seas was 63.6 million acres, all offshore. ExxonMobil and Rosneft formed a joint venture to evaluate the development of tight-oil reserves in western Siberia in 2013. Equity Company Information” of the Financial Section of this report for additional information on the Corporation’s participation in Rosneft joint venture activities.
ExxonMobil’s net onshore acreage in Thailand concessions totaled 21 thousand acres at year-end 2017.
United Arab Emirates
ExxonMobil’s net acreage in the Abu Dhabi offshore Upper Zakum oil concession was 81 thousand acres at year-end 2017. A total of 5.3 net development wells were completed. During 2017, development activities continued on the Upper Zakum 750 project, and agreements were signed for the Upper Zakum 1MBD (million barrels per day) project, including a 10-year extension to 2051 for the Upper Zakum concession.
AUSTRALIA / OCEANIA
ExxonMobil’s year-end 2017 acreage holdings totaled 2.0 million net offshore acres. The Gas Conditioning Plant at Longford started up in 2017.
The third train of the co-venturer-operated Gorgon Jansz liquefied natural gas (LNG) project started up in 2017. The project consists of a subsea infrastructure for offshore production and transportation of the gas, a 15.6 million tonnes per year LNG facility and a 280 million cubic feet per day domestic gas plant located on Barrow Island, Western Australia.
Papua New Guinea
A total of 10.1 million net acres were held by ExxonMobil at year-end 2017, of which 5.4 million net acres were offshore. A total of 0.7 net exploration and development wells were completed during the year. The Papua New Guinea (PNG) LNG integrated development includes gas production and processing facilities in the southern PNG Highlands, onshore and offshore pipelines, and a 6.9 million tonnes per year LNG facility near Port Moresby. In 2017, ExxonMobil acquired InterOil Corporation (IOC), an exploration and production business focused on Papua New Guinea.
At year-end 2017, exploration activities were under way in several areas in which ExxonMobil has no established production operations and thus are not included above. A total of 30.1 million net acres were held at year-end 2017 in these countries.