Oil Shale and Global Energy Needs

Transcription

1 Oil Shale and Global Energy Needs 28 th Oil Shale Symposium Colorado School of Mines October 13, 28 Ray Charles Area Manager, USA & Mexico ExxonMobil Exploration Company This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1 of ExxonMobil s latest report on Form 1-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

2 Today s Discussion Economic progress, especially in developing countries, will drive global energy demand higher despite substantial efficiency gains Oil, natural gas, and coal are indispensable to meeting this demand even with rapid anticipated growth in renewables With advances in technology and a responsible regulatory framework, oil shale may significantly contribute to the volume and diversification of U.S. oil supplies ExxonMobil is progressing research on innovative new technologies for the prudent and environmentally sound development of oil shale 2

3 Global Economics and Energy GDP Energy Intensity Energy Demand $Trillion 1 Average Growth / Yr. BOE/25$K GDP 3-1.% -1.6% MBDOE % 1.3% % %

4 Global Energy Demand - By Fuel MBDOE Primary Energy Coal Gas Oil Average Growth / Yr Renewables Nuclear 1.3% 1.5% 2.%.9% 1.7% 1.2% MBDOE Renewables Wind, Solar & Biofuels Hydro/Geo Biomass/Other 1.5% 8.7% 2.%.7% MBDOE Wind, Solar, Biofuels Biofuels Wind Solar 9.9% 8.7% 1.5% 7.6%

5 Global Liquids Demand MBDOE 12 Average Growth / Yr % 9 ~38 ~47 Liquids Demand ~32 Biofuels 6 OPEC Crude ~27 NGLs, OPEC Condensate, Other Non-OPEC Oil Sands 3 Non-OPEC Crude & Condensate

6 Global Oil Resource Base Trillion Barrels 5 4 Unconventional 3 Conventional 2 1 USGS 1984 USGS 1987 USGS 1991 USGS 1994 USGS 2 ExxonMobil 26 Produced YE 25 6

7 Oil Shale The Challenge Ahead A new and commercially unproven oil shale industry will require... The development of innovative, new technologies Government policies that encourage development Resource access for technology development Shared risk and reward Fiscal stability 7

8 ExxonMobil s In Situ Oil Shale Technology ExxonMobil Patented Electrofrac Technology Oil Shale Tight Gas Co-development Oil Shale Nahcolite Co-development Fracture Heating Reduces Surface Footprint Surface Conductive Fractures Surface Wellbore Heaters 8

9 Environmental Protection Evaluate new and existing technologies to mitigate environmental impacts ExxonMobil Tight Gas Operations, Piceance Basin Assess synergies with existing infrastructure to reduce surface disturbance Evaluate use of produced water to minimize fresh water consumption 9

10 Fair and Stable Government Policy Private sector investments to establish a new oil shale industry will be substantial A fair and stable regulatory environment will be required to encourage investment and ensure the long-term viability of the new industry ExxonMobil supports government policy decisions regarding oil shale that: Encourage further research and technology development through additional RD&D offerings before commercial leasing rounds Realistically consider the significant technical, cost, infrastructure, and environmental uncertainties of a new oil shale industry Consider the comprehensive benefits of the new industry (U.S. energy security, employment, tax revenues, royalties, etc.) Provide for long-term fiscal stability 1

11 Closing Comments World energy demand will be 4% higher in 23 than today; more than 8% of the demand will be met with fossil fuels ExxonMobil believes that oil shale can play an important role in meeting this demand while diversifying sources of U.S. oil supply A thoughtful and measured pace that includes additional RD&D leasing is the responsible path forward Fairness and stability in fiscal terms are essential for the successful development of this very promising but challenged domestic energy resource ExxonMobil taking on the world s toughest energy challenges 11

12 Thank You This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1 of ExxonMobil s latest report on Form 1-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.