Taking on the World s Toughest Energy Challenges. TM Upstream Technology Webcast August 30, 2006

Transcription

1 Taking on the World s Toughest Energy Challenges. TM 2006 Upstream Technology Webcast August 30, 2006

2 Cautionary Statement Forward-Looking Statements. Outlooks, projections, estimates, targets, and business plans in this presentation are forward-looking statements. Actual future results, including the outcome of our research programs and the development, deployment, cost, timing, and benefits of new technology and technology improvements could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil and gas industries; reservoir performance; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; the development of competitive technologies; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" on the Investor Information section of our website at Frequently Used Terms. References to resources and similar terms indicating quantities of oil and gas include amounts that are not yet classified as proved reserves but that we believe will likely be moved into the proved reserves category and produced in the future. References to reserves generally exclude year-end pricing effects and include ExxonMobil s share of equity companies as well as tar sand reserves. For definitions and additional information regarding certain terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms, quarterly 8-K filings regarding results of operations and financial condition, and other material posted on the Investor Information section of our website. The 2005 Financial and Operating Review on our website also contains important information including ExxonMobil's net interest in specific projects.

3 Taking on the World s Toughest Energy Challenges. TM Upstream Research Overview Steve Cassiani President

4 Upstream Research Mission

5 Technical Excellence throughout the Upstream URC - Taking a Leadership Role in: Developing and globally deploying high impact technologies Providing expertise and solutions Training the industry s most capable technical workforce

6 Continuing Commitment to Distinguishing Technology Proprietary Research Consistent funding Sustainable and differentiating Research Staff Highly capable, culturally diverse Breadth of skills and experience Facilities Unique, world-class laboratories State-of-the-Art Training Center

7 History of Demonstrated Technology Achievements

8 Taking on the World s Toughest Energy Challenges. TM Upstream Technologies Jeff Johnson Manager, Hydrocarbon Systems Analysis Division Lee Tillman Manager, Offshore Division

9 Integrating Best-in-Class Capabilities

10 Understanding the Subsurface New Hydrocarbon Play Concepts 150 Million Years Ago Background Substantial new hydrocarbon accumulations can best be identified through integration of multiple advanced capabilities Business Opportunity Identify new resources ahead of competition

11 Understanding the Subsurface New Hydrocarbon Play Concepts Plate and Earth History Reconstructions Reservoirs Migration pathways ExxonMobil Capability Unparalleled worldwide data and experience base Unique fully integrated Plates to Pores approach Proprietary basin modeling software Plates to Basin Fill and Migration History Pores Source Impact New exploration acreage and deeper plays in Nigeria, Madagascar, and Canada New opportunities in mature regions of US and Europe Pore-Scale Reservoir Quality 100 um

12 Understanding the Subsurface Improved Seismic Processing and Interpretation Background Seismic data underpins hydrocarbon exploration Business Opportunity Improved opportunity identification and development effectiveness using higher definition seismic data

13 Understanding the Subsurface Improved Seismic Interpretation Conventional map for predicting porosity ExxonMobil Capability Proprietary data acquisition, processing, and rock property prediction Patented technologies Impact Substantially improved interpretability and development planning in Chad, Venezuela, and West Africa

14 Optimizing the Development Accurate Reservoir Connectivity Assessment Background Pre-drill determination of oil/water contacts in faulted reservoirs is complex and uncertain Business Opportunity Accurate prediction of hydrocarbon location for improved resource assessment and reduced development cost

15 Optimizing the Development Accurate Reservoir Connectivity Assessment ExxonMobil Capability Fundamental understanding of controls on reservoir fluids Systematic 3D integration of all data Unique expertise Impact Resource add at Hibernia Reserves add in Mobile Bay, United States Enhanced development planning in Malaysia, Nigeria, and Angola

16 Optimizing the Development Carbonate Reservoir Characterization Background Carbonate reservoirs hold ~55% of the world s discovered oil reserves Heterogeneity makes prediction of reservoir properties in carbonate rocks complex Business Opportunity Optimize development and production of carbonate resources Sandstone Core Carbonate Core

17 Optimizing the Development Carbonate Reservoir Characterization ExxonMobil Capability Unique integration of knowledge and experience across disciplines and scales Advanced technologies for fracture and pore system prediction Impact Applying advanced understanding to Qatar and Kazakhstan reservoir management Upper Zakum Award Banyu Urip development (Cepu-Indonesia)

18 Maximizing Ultimate Value Integrated Reservoir Management ExxonMobil Reserves Revisions Oil-Equivalent (millions of barrels) Background Relentless pursuit to maximize asset value Average Business Opportunities Maximize resource recovery Minimize unit cost

19 Maximizing Ultimate Value Integrated Reservoir Management Unique Laboratories % Recovery Field Measurement XOM Approach Industry Approach Cumulative Gas Injected Reservoir Simulation Dual Permeability Simulation of Complex Fractured Reservoir ExxonMobil Capability Closely integrated Geoscience and Engineering approach Proprietary methods for measuring reservoir properties Continued advancement of industry-leading simulator Production Rate Field Data Single Perm Model Dual Perm Model TM Impact Underpin field development decisions world-wide Optimize depletion planning of existing assets ~500 MOEB in resource impact in 2005/ Time (years)

20 Maximizing Ultimate Value Physics-Limit Drilling Background Increasingly challenging wells Pressure Gradient 2005 ExxonMobil-stewarded drilling: $5.4 B Extended Reach Business Opportunities Drill wells successfully every time Multiple Targets Continue to reduce time to drill Complex Path

21 Maximizing Ultimate Value Physics-Limit Drilling ExxonMobil Capability Undrillable with conventional approach Drilling Simulation Laboratory Optimized Drilling Design Mud Weight (ppg) Flow Rate (gpm) Probability of Success 10 Mud Weight (ppg) High confidence with proprietary approach Flow Rate (gpm) Probability of Success Understanding the fundamental physics limits for drilling Unique, large-scale drilling simulation laboratories Industry leading, integrated, proprietary drilling design software Impact Unparalleled ability to drill complex wells Consistent improvements in drilling rates of penetration (Fast Drill Process) Overall cost savings of >8% in 2005

22 Maximizing Ultimate Value Physics-Limit Completions ExxonMobil s Patented Sand Control Technology Background Fewer wells per development Producing from multiple zones simultaneously Business Opportunities Optimize development costs with fewer wells Maximize production from all zones

23 Maximizing Ultimate Value Physics-Limit Completions Ensuring Production Integrity Production Rate No Failure Traditional Rate Limit Failure ExxonMobil Capability Integrated near-well modeling Well operability limits Patented completion equipment and techniques Time Superior Initial Completion Performance Cumulative Production Alternate Path Technology with NAFPac Conventional Open Hole Gravel Pack Impact No deepwater well failures in last 5 years (68 wells) Sustained high-rate production without intervention 18% deepwater completions cost savings in Angola Increased well flow efficiencies ~1.75 times industry average Time

24 Commercializing the Resource Frontier Resource Commercialization YE 2005 ExxonMobil Resource Base 73 BOEB Heavy Oil* Tight Gas LNG Conventional Background Significant tight gas and heavy oil resource base Major production growth area Business Opportunity Cost-effectively commercialize >30 TCF gas in Piceance Acid/ Sour Gas Arctic Deepwater >10 BOEB heavy oil in Canada Leverage technologies to create additional business opportunities * Heavy Oil, Extra Heavy Oil, and Bitumen

25 Commercializing the Resource Frontier Resource Commercialization Piceance Tight Gas Production ExxonMobil Capability Industry leading, patented tight gas stimulation technology Experience in all major heavy oil recovery processes Patented thermal recovery technology and distinguishing modeling capabilities Impact Commercializing Piceance Basin Continuously improving the world s largest thermal bitumen recovery project ~800 million barrels produced Recovery increased from 13% to >30% in last 20 years

26 Technology Integration on a Massive Scale - Kizomba