ExxonMobil 2000 Financial & Operating Review

Committed to Protecting Our Employees, Communities, and the Environment

ExxonMobil is committed to protecting the safety and health of our employees, the communities where we operate, and the environment. The company continually re-evaluates its operations and products based on scientific, economic, and technical analyses that include consideration of costs, benefits, and risk management. In addition, we remain committed to the development and application of new technologies to further improve the safety, health, and environmental performance of our facilities and products worldwide.

ExxonMobil is using world-class extended-reach, horizontal wells to develop the Sacate field offshore California. Recent drilling from the Heritage platform, shown above, developed oil and gas reserves located over three miles away from the platform. Future wells will extend even further, enabling ExxonMobil to develop the field with minimal environmental impact. Shown below is a next-generation hybrid vehicle designed in collaboration with Toyota. These vehicles take advantage of two power sources - an electric motor and an internal combustion engine - to achieve twice the fuel efficiency and about 10 percent of the emissions of similar-sized standard vehicles.

High Standards of Performance

ExxonMobil is committed to continually improving safety and environmental performance throughout its operations. In 2000, we modified and strengthened the Safety, Health, and Environment (SH&E) performance indicators that are used by all operations worldwide to report SH&E results to the corporation. These expanded reporting requirements together with our Operations Integrity Management System (OIMS) framework establish common worldwide expectations for managing the risks inherent in our business. A few examples of our results:

Over the past six years, the rate of ExxonMobil's worldwide employee incidents resulting in time away from work has declined by nearly 70 percent. Results in 2000 are essentially equivalent to the record performance achieved in 1999. These results are among the best in industry as benchmarked against other large international petroleum and chemical companies.

ExxonMobil contractors also matched the record performance of 1999 with a reduction in lost-time injuries of over 35 percent from 1998 to 2000.

The number of spills from marine vessels has been reduced by over 65 percent since 1993. The total volume of oil spilled from ExxonMobil marine vessels in 2000 was less than two teaspoons for every million gallons of oil transported.

Emissions of SOx, NOx, and volatile organic compounds from United States refineries and chemical plants have been reduced by more than 30 percent since 1993.

Leveraging New Technology

For more than a century, ExxonMobil research and development activities have led to improved business performance. The technology advances that support our strong SH&E performance result from an extensive internal program, complemented by selective partnering with universities, industry groups, suppliers, and customers. Research primarily aimed at improving operating efficiency can also improve SH&E performance. For example:

The company's upstream operations combine three-dimensional seismic imaging and extended-reach drilling to economically discover and produce hydrocarbons. These technologies reduce the number of wells required, the size of drill site area, and the amount of drilling waste; and enable the company to avoid sensitive environmental areas.
ExxonMobil refineries and chemical plants are large energy users and seek to reduce costs by improving energy efficiency. Among the most prominent of these efforts is cogeneration. We currently operate or have interest in cogeneration facilities in 27 locations with more planned. These facilities use very efficient gas turbines to simultaneously produce electricity and steam, and require 30-percent less energy than conventional approaches.
The company has developed and is deploying a global energy management system that utilizes a common methodology, applicable at any refinery or chemical plant, to identify energy performance gaps relative to industry and ExxonMobil "best practices." The energy management system uses a step-by-step plan to identify energy conservation improvements and achieve pacesetter energy performance.

Plans are in place to apply the global energy management system at all ExxonMobil refineries and chemical plants worldwide. Early results from the deployment of the system at several complex, integrated facilities demonstrate that average savings of 15 percent of total energy are achievable and economically justified. These reductions in energy usage achieve the dual benefit of reduced emissions and improved operational efficiency.
ExxonMobil has developed numerous technologies to improve product quality and produce cleaner fuels. These include technologies to reduce fuel sulfur levels, to reduce engine emissions through better ignition and combustion, and to increase engine efficiency with improved lubricants.
ExxonMobil also participates in a number of fuel and vehicle research programs in cooperation with several auto companies. Work with General Motors and Ford has been focused on fuel cell vehicles, while collaborative efforts with Toyota explore a range of options, including hybrid vehicles that combine conventional and battery-powered systems for greater fuel efficiency.