Company Quick10K Filing
Quick10K
Exxon Mobil
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$81.20 4,235 $343,870
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-04-10 Regulation FD
8-K 2019-03-25
8-K 2019-02-01
8-K 2018-11-02
8-K 2018-07-27
8-K 2018-06-07
8-K 2018-05-30 Shareholder Vote
8-K 2018-04-27
8-K 2018-03-15
8-K 2018-02-08
8-K 2018-01-31
8-K 2018-01-19 Regulation FD
CAJ Canon 31,770
PXD Pioneer Natural Resources 28,850
MWA Mueller Water Products 1,750
CSTM Constellium 1,250
PKOH Park Ohio Holdings 483
GTYH GTY Technology 443
INUV Inuvo 46
TAYD Taylor Devices 41
FBNK First Connecticut Bancorp 0
WIZD Wizard World 0
XOM 2018-12-31
Part I
Item 1. Business
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2. Properties
Item 3. Legal Proceedings
Item 4. Mine Safety Disclosures
Part II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6. Selected Financial Data
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 8. Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information
Part III
Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accounting Fees and Services
Part IV
Item 15. Exhibits, Financial Statement Schedules
Item 16. Form 10-K Summary
EX-10.(III) (A3) xomexhibit10iiia3.htm
EX-10.(III) (B1) xomexhibit10iiib1.htm
EX-10.(III) (B2) xomexhibit10iiib2.htm
EX-10.(III) (C3) xomexhibit10iiic3.htm
EX-10.(III) (F1) xomexhibit10iiif1.htm
EX-21 xomexhibit21.htm
EX-23 xomexhibit23.htm
EX-31.1 xomexhibit311.htm
EX-31.2 xomexhibit312.htm
EX-31.3 xomexhibit313.htm
EX-32.1 xomexhibit321.htm
EX-32.2 xomexhibit322.htm
EX-32.3 xomexhibit323.htm

Exxon Mobil Earnings 2018-12-31

XOM 10K Annual Report

Balance SheetIncome StatementCash Flow

10-K 1 xom10k2018.htm FORM 10-K  

 

 

2018  

  

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 10-K

    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

or

    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to               

Commission File Number 1-2256

EXXON MOBIL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

NEW JERSEY

13-5409005

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

5959 LAS COLINAS BOULEVARD, IRVING, TEXAS 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of Each Class

Name of Each Exchange

on Which Registered

Common Stock, without par value (4,234,802,431 shares outstanding at January 31, 2019)

New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes       No  

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes     No    

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No    

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes       No  

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act).    Yes      No    

The aggregate market value of the voting stock held by non-affiliates of the registrant on June 29, 2018, the last business day of the registrant’s most recently completed second fiscal quarter, based on the closing price on that date of $82.73 on the New York Stock Exchange composite tape, was in excess of $350 billion.

Documents Incorporated by Reference:  Proxy Statement for the 2019 Annual Meeting of Shareholders (Part III)

 

 

 


 

EXXON MOBIL CORPORATION

FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018

TABLE OF CONTENTS

 

 

 

PART I

 

 

 

Item 1.

Business

           1  

 

 

 

Item 1A.

Risk Factors

           2  

 

 

 

Item 1B.

Unresolved Staff Comments

           5  

 

 

 

Item 2.

Properties

           6  

 

 

 

Item 3.

Legal Proceedings

         27  

 

 

 

Item 4.

Mine Safety Disclosures

         27  

 

 

Executive Officers of the Registrant [pursuant to Instruction 3 to Regulation S-K, Item 401(b)]

         28  

 

PART II

 

 

 

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

         31  

 

 

 

Item 6.

Selected Financial Data

         31  

 

 

 

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

         31  

 

 

 

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

         31  

 

 

 

Item 8.

Financial Statements and Supplementary Data

         32  

 

 

 

Item 9.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

         32  

 

 

 

Item 9A.

Controls and Procedures

         32  

 

 

 

Item 9B.

Other Information

         32  

 

PART III

 

 

 

Item 10.

Directors, Executive Officers and Corporate Governance

         33  

 

 

 

Item 11.

Executive Compensation

         33  

 

 

 

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

         33  

 

 

 

Item 13.

Certain Relationships and Related Transactions, and Director Independence

         34  

 

 

 

Item 14.

Principal Accounting Fees and Services

         34  

 

PART IV

 

 

 

Item 15.

Exhibits, Financial Statement Schedules

         34  

 

 

 

Item 16.

Form 10-K Summary

         34  

 

 

Financial Section

         35  

 

 

Index to Exhibits

       123  

 

 

Signatures

       124  

 

 

Exhibits 31 and 32 — Certifications

 

 


 

PART I

ITEM 1.        BUSINESS

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 involves exploration for, and production of, crude oil and natural gas and manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals 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.

Operating data and industry segment information for the Corporation are contained in the Financial Section of this report under the following: “Quarterly Information”, “Note 18: Disclosures about Segments and Related Information” and “Operating Information”. Information on oil and gas reserves is contained in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report.

ExxonMobil has a long‑standing commitment to the development of proprietary technology. We have a wide array of research programs designed to meet the needs identified in each of our business segments. ExxonMobil held nearly 13 thousand active patents worldwide at the end of 2018. For technology licensed to third parties, revenues totaled approximately $119 million in 2018. Although technology is an important contributor to the overall operations and results of our Company, the profitability of each business segment is not dependent on any individual patent, trade secret, trademark, license, franchise or concession.

The number of regular employees was 71.0 thousand, 69.6 thousand, and 71.1 thousand at years ended 2018, 2017 and 2016, 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.

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 2018 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $4.9 billion, of which $3.6 billion were included in expenses with the remainder in capital expenditures. The total cost for such activities is expected to increase to approximately $5.7 billion in 2019 and 2020. Capital expenditures are expected to account for approximately 30 percent of the total.

Information concerning the source and availability of raw materials used in the Corporation’s business, the extent of seasonality in the business, the possibility of renegotiation of profits or termination of contracts at the election of governments and risks attendant to foreign operations may be found in “Item 1A. Risk Factors” and “Item 2. Properties” in this report.

ExxonMobil maintains a website at exxonmobil.com. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934 are made available through our website as soon as reasonably practical after we electronically file or furnish the reports to the Securities and Exchange Commission (SEC). Also available on the Corporation’s website are the Company’s Corporate Governance Guidelines and Code of Ethics and Business Conduct, as well as the charters of the audit, compensation and nominating committees of the Board of Directors. Information on our website is not incorporated into this report.

The SEC maintains an internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

1 


 

ITEM 1A.        RISK FACTORS

ExxonMobil’s financial and operating results are subject to a variety of risks inherent in the global oil, gas, and petrochemical businesses. Many of these risk factors are not within the Company’s control and could adversely affect our business, our financial and operating results, or our financial condition. These risk factors include:

 

Supply and Demand

The oil, gas, and petrochemical businesses are fundamentally commodity businesses. This means ExxonMobil’s operations and earnings may be significantly affected by changes in oil, gas, and petrochemical prices and by changes in margins on refined products. Oil, gas, petrochemical, and product prices and margins in turn depend on local, regional, and global events or conditions that affect supply and demand for the relevant commodity. Any material decline in oil or natural gas prices could have a material adverse effect on certain of the Company’s operations, especially in the Upstream segment, financial condition, and proved reserves. On the other hand, a material increase in oil or natural gas prices could have a material adverse effect on certain of the Company’s operations, especially in the Downstream and Chemical segments.

Economic conditions. The demand for energy and petrochemicals is generally linked closely with broad-based economic activities and levels of prosperity. The occurrence of recessions or other periods of low or negative economic growth will typically have a direct adverse impact on our results. Other factors that affect general economic conditions in the world or in a major region, such as changes in population growth rates, periods of civil unrest, government austerity programs, or currency exchange rate fluctuations, can also impact the demand for energy and petrochemicals. Sovereign debt downgrades, defaults, inability to access debt markets due to credit or legal constraints, liquidity crises, the breakup or restructuring of fiscal, monetary, or political systems such as the European Union, and other events or conditions that impair the functioning of financial markets and institutions also pose risks to ExxonMobil, including risks to the safety of our financial assets and to the ability of our partners and customers to fulfill their commitments to ExxonMobil.

Other demand-related factors. Other factors that may affect the demand for oil, gas, and petrochemicals, and therefore impact our results, include technological improvements in energy efficiency; seasonal weather patterns; increased competitiveness of alternative energy sources; changes in technology or consumer preferences that alter fuel choices, such as technological advances in energy storage that make wind and solar more competitive for power generation or increased consumer demand for alternative fueled or electric vehicles; and broad-based changes in personal income levels.

Other supply-related factors. Commodity prices and margins also vary depending on a number of factors affecting supply. For example, increased supply from the development of new oil and gas supply sources and technologies to enhance recovery from existing sources tend to reduce commodity prices to the extent such supply increases are not offset by commensurate growth in demand. Similarly, increases in industry refining or petrochemical manufacturing capacity relative to demand tend to reduce margins on the affected products. World oil, gas, and petrochemical supply levels can also be affected by factors that reduce available supplies, such as adherence by countries to OPEC production quotas and other agreements among sovereigns, and the occurrence of wars, hostile actions, natural disasters, disruptions in competitors’ operations, logistics constraints or unexpected unavailability of distribution channels that may disrupt supplies. Technological change can also alter the relative costs for competitors to find, produce, and refine oil and gas and to manufacture petrochemicals.

Other market factors. ExxonMobil’s business results are also exposed to potential negative impacts due to changes in interest rates, inflation, currency exchange rates, and other local or regional market conditions.

 

Government and Political Factors

ExxonMobil’s results can be adversely affected by political or regulatory developments affecting our operations.

Access limitations. A number of countries limit access to their oil and gas resources, or may place resources off-limits from development altogether. Restrictions on foreign investment in the oil and gas sector tend to increase in times of high commodity prices, when national governments may have less need of outside sources of private capital. Many countries also restrict the import or export of certain products based on point of origin.

Restrictions on doing business. ExxonMobil is subject to laws and sanctions imposed by the United States or by other jurisdictions where we do business that may prohibit ExxonMobil or certain of its affiliates from doing business in certain countries, or restricting the kind of business that may be conducted. Such restrictions may provide a competitive advantage to competitors who may not be subject to comparable restrictions.

Lack of legal certainty. Some countries in which we do business lack well-developed legal systems, or have not yet adopted, or may be unable to maintain, clear regulatory frameworks for oil and gas development. Lack of legal certainty exposes our operations to increased risk of adverse or unpredictable actions by government officials, and also makes it more difficult for us to enforce our contracts. In some cases these risks can be partially offset by agreements to arbitrate disputes in an international forum, but the adequacy of this remedy may still depend on the local legal system to enforce an award.

2 


 

Regulatory and litigation risks. Even in countries with well-developed legal systems where ExxonMobil does business, we remain exposed to changes in law or interpretation of settled law (including changes that result from international treaties and accords) that could adversely affect our results, such as:

  

·           

increases in taxes, duties, or government royalty rates (including retroactive claims);

·           

price controls;

·           

changes in environmental regulations or other laws that increase our cost of compliance or reduce or delay available business opportunities (including changes in laws related to offshore drilling operations, water use, methane emissions, hydraulic fracturing or plastics);

·           

adoption of regulations mandating efficiency standards, the use of alternative fuels or uncompetitive fuel components;

·           

adoption of government payment transparency regulations that could require us to disclose competitively sensitive commercial information, or that could cause us to violate the non-disclosure laws of other countries; and

·           

government actions to cancel contracts, re-denominate the official currency, renounce or default on obligations, renegotiate terms unilaterally, or expropriate assets.

Legal remedies available to compensate us for expropriation or other takings may be inadequate.

We also may be adversely affected by the outcome of litigation, especially in countries such as the United States in which very large and unpredictable punitive damage awards may occur, or by government enforcement proceedings alleging non-compliance with applicable laws or regulations.

Security concerns. Successful operation of particular facilities or projects may be disrupted by civil unrest, acts of sabotage or terrorism, cybersecurity attacks, and other local security concerns. Such concerns may require us to incur greater costs for security or to shut down operations for a period of time.

Climate change and greenhouse gas restrictions. Due to concern over the risks of climate change, a number of countries have adopted, or are considering the adoption of, regulatory frameworks to reduce greenhouse gas emissions. These include adoption of cap and trade regimes, carbon taxes, minimum renewable usage requirements, restrictive permitting, increased efficiency standards, and incentives or mandates for renewable energy. Such policies could make our products more expensive, less competitive, lengthen project implementation times, and reduce demand for hydrocarbons, as well as shift hydrocarbon demand toward relatively lower-carbon sources such as natural gas. Current and pending greenhouse gas regulations or policies may also increase our compliance costs, such as for monitoring or sequestering emissions.

Government sponsorship of alternative energy. Many governments are providing tax advantages and other subsidies to support alternative energy sources or are mandating the use of specific fuels or technologies. Governments and others are also promoting research into new technologies to reduce the cost and increase the scalability of alternative energy sources. We are conducting our own research both in-house and by working with more than 80 leading universities around the world, including the Massachusetts Institute of Technology, Princeton University, The University of Texas, and Stanford University. Our research projects focus on developing algae-based biofuels, carbon capture and storage, breakthrough energy efficiency processes, advanced energy-saving materials, and other technologies. For example, ExxonMobil is working with Fuel Cell Energy Inc. to explore using carbonate fuel cells to economically capture CO2 emissions from gas-fired power plants. Our future results may depend in part on the success of our research efforts and on our ability to adapt and apply the strengths of our current business model to providing the energy products of the future in a cost-competitive manner. See “Operational and Other Factors” below.

 

Operational and Other Factors

In addition to external economic and political factors, our future business results also depend on our ability to manage successfully those factors that are at least in part within our control. The extent to which we manage these factors will impact our performance relative to competition. For projects in which we are not the operator, we depend on the management effectiveness of one or more co-venturers whom we do not control.

Exploration and development program. Our ability to maintain and grow our oil and gas production depends on the success of our exploration and development efforts. Among other factors, we must continuously improve our ability to identify the most promising resource prospects and apply our project management expertise to bring discovered resources on line as scheduled and within budget.

3 


 

Project and portfolio management. The long-term success of ExxonMobil’s Upstream, Downstream, and Chemical businesses depends on complex, long‑term, capital intensive projects. These projects in turn require a high degree of project management expertise to maximize efficiency. Specific factors that can affect the performance of major projects include our ability to: negotiate successfully with joint venturers, partners, governments, suppliers, customers, or others; model and optimize reservoir performance; develop markets for project outputs, whether through long-term contracts or the development of effective spot markets; manage changes in operating conditions and costs, including costs of third party equipment or services such as drilling rigs and shipping; prevent, to the extent possible, and respond effectively to unforeseen technical difficulties that could delay project startup or cause unscheduled project downtime; and influence the performance of project operators where ExxonMobil does not perform that role. In addition to the effective management of individual projects, ExxonMobil’s success, including our ability to mitigate risk and provide attractive returns to shareholders, depends on our ability to successfully manage our overall portfolio, including diversification among types and locations of our projects.

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

Operational efficiency. An important component of ExxonMobil’s competitive performance, especially given the commodity‑based nature of many of our businesses, is our ability to operate efficiently, including our ability to manage expenses and improve production yields on an ongoing basis. This requires continuous management focus, including technology improvements, cost control, productivity enhancements, regular reappraisal of our asset portfolio, and the recruitment, development, and retention of high caliber employees.

Research and development and technological change. To maintain our competitive position, especially in light of the technological nature of our businesses and the need for continuous efficiency improvement, ExxonMobil’s research and development organizations must be successful and able to adapt to a changing market and policy environment, including developing technologies to help reduce greenhouse gas emissions. To remain competitive we must also continuously adapt and capture the benefits of new and emerging technologies.

Safety, business controls, and environmental risk management. Our results depend on management’s ability to minimize the inherent risks of oil, gas, and petrochemical operations, to control effectively our business activities, and to minimize the potential for human error. We apply rigorous management systems and continuous focus on workplace safety and avoiding spills or other adverse environmental events. For example, we work to minimize spills through a combined program of effective operations integrity management, ongoing upgrades, key equipment replacements, and comprehensive inspection and surveillance. Similarly, we are implementing cost-effective new technologies and adopting new operating practices to reduce air emissions, not only in response to government requirements but also to address community priorities. We also maintain a disciplined framework of internal controls and apply a controls management system for monitoring compliance with this framework. Substantial liabilities and other adverse impacts could result if our management systems and controls do not function as intended.

Cybersecurity. ExxonMobil is regularly subject to attempted cybersecurity disruptions from a variety of threat actors including state-sponsored actors. ExxonMobil’s defensive preparedness includes multi-layered technological capabilities for prevention and detection of cybersecurity disruptions; non-technological measures such as threat information sharing with governmental and industry groups; internal training and awareness campaigns including routine testing of employee awareness and an emphasis on resiliency including business response and recovery. If the measures we are taking to protect against cybersecurity disruptions prove to be insufficient, ExxonMobil as well as our customers, employees, or third parties could be adversely affected. Cybersecurity disruptions could cause physical harm to people or the environment; damage or destroy assets; compromise business systems; result in proprietary information being altered, lost, or stolen; result in employee, customer, or third-party information being compromised; or otherwise disrupt our business operations. We could incur significant costs to remedy the effects of a major cybersecurity disruption in addition to costs in connection with resulting regulatory actions, litigation or reputational harm.

Preparedness. Our operations may be disrupted by severe weather events, natural disasters, human error, and similar events. For example, hurricanes may damage our offshore production facilities or coastal refining and petrochemical plants in vulnerable areas. Our facilities are designed, constructed, and operated to withstand a variety of extreme climatic and other conditions, with safety factors built in to cover a number of engineering uncertainties, including those associated with wave, wind, and current intensity, marine ice flow patterns, permafrost stability, storm surge magnitude, temperature extremes, extreme rainfall events, and earthquakes. Our consideration of changing weather conditions and inclusion of safety factors in design covers the engineering uncertainties that climate change and other events may potentially introduce. Our ability to mitigate the adverse impacts of these events depends in part upon the effectiveness of our robust facility engineering as well as our rigorous disaster preparedness and response and business continuity planning.

4 


 

Insurance limitations. The ability of the Corporation to insure against many of the risks it faces as described in this Item 1A is limited by the capacity of the applicable insurance markets, which may not be sufficient.

Competition. As noted in Item 1 above, the energy and petrochemical industries are highly competitive. We face competition not only from other private firms, but also from state-owned companies that are increasingly competing for opportunities outside of their home countries. In some cases, these state-owned companies may pursue opportunities in furtherance of strategic objectives of their government owners, with less focus on financial returns than companies owned by private shareholders, such as ExxonMobil. Technology and expertise provided by industry service companies may also enhance the competitiveness of firms that may not have the internal resources and capabilities of ExxonMobil or reduce the need for resource-owning countries to partner with private-sector oil and gas companies in order to monetize national resources.

Reputation. Our reputation is an important corporate asset. An operating incident, significant cybersecurity disruption, or other adverse event such as those described in this Item 1A may have a negative impact on our reputation, which in turn could make it more difficult for us to compete successfully for new opportunities, obtain necessary regulatory approvals, or could reduce consumer demand for our branded products. ExxonMobil’s reputation may also be harmed by events which negatively affect the image of our industry as a whole.

Projections, estimates, and descriptions of ExxonMobil’s plans and objectives included or incorporated in Items 1, 1A, 2, 7 and 7A of this report are forward-looking statements. Actual future results, including project completion dates, production rates, capital expenditures, costs, and business plans could differ materially due to, among other things, the factors discussed above and elsewhere in this report.

 

ITEM 1B.        UNRESOLVED STAFF COMMENTS

None.

5 


 

Item 2.        Properties

Information with regard to oil and gas producing activities follows:

 

1. Disclosure of Reserves

A. Summary of Oil and Gas Reserves at Year-End 2018

The table below summarizes the oil-equivalent proved reserves in each geographic area and by product type for consolidated subsidiaries and equity companies. Natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million 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, 2018, that would cause a significant change in the estimated proved reserves as of that date.

 

 

 

 

 

 

 

 

 

 

 

Oil-Equivalent

 

 

 

 

 

Crude

Natural Gas

 

Synthetic

Natural

Total

 

 

 

 

 

Oil

Liquids

Bitumen

Oil

Gas

All Products

 

 

 

 

 

(million bbls)

(million bbls)

(million bbls)

(million bbls)

(billion cubic ft)

(million bbls)

Proved Reserves

 

 

 

 

 

 

 

Developed

 

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

United States

1,257

439

-

-

12,538

3,786

 

 

 

Canada/Other Americas (1) 

144

9

3,880

466

605

4,599

 

 

 

Europe

101

22

-

-

1,116

309

 

 

 

Africa

496

82

-

-

581

675

 

 

 

Asia

2,184

101

-

-

3,618

2,888

 

 

 

Australia/Oceania

75

43

-

-

4,336

841

 

 

 

 

Total Consolidated

4,257

696

3,880

466

22,794

13,098

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

United States

202

6

-

-

152

233

 

 

 

Europe

15

-

-

-

988

180

 

 

 

Africa

-

-

-

-

-

-

 

 

 

Asia

637

282

-

-

11,951

2,911

 

 

 

 

Total Equity Company

854

288

-

-

13,091

3,324

 

 

 

 

Total Developed

5,111

984

3,880

466

35,885

16,422

 

 

 

 

 

 

 

 

 

 

 

 

Undeveloped

 

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

United States

1,947

669

-

-

8,865

4,093

 

 

 

Canada/Other Americas (1) 

385

18

305

-

1,139

898

 

 

 

Europe

65

13

-

-

196

111

 

 

 

Africa

108

3

-

-

7

112

 

 

 

Asia

1,173

-

-

-

223

1,210

 

 

 

Australia/Oceania

30

5

-

-

3,126

556

 

 

 

 

Total Consolidated

3,708

708

305

-

13,556

6,980

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

United States

52

4

-

-

73

68

 

 

 

Europe

-

-

-

-

69

12

 

 

 

Africa

6

-

-

-

863

150

 

 

 

Asia

383

50

-

-

1,370

661

 

 

 

 

Total Equity Company

441

54

-

-

2,375

891

 

 

 

 

Total Undeveloped

4,149

762

305

-

15,931

7,871

Total Proved Reserves

9,260

1,746

4,185

466

51,816

24,293

 

(1)   Other Americas includes proved developed reserves of 1 million barrels of crude oil and 99 billion cubic feet of natural gas, as well as proved undeveloped reserves of 226 million barrels of crude oil and 423 billion cubic feet of natural gas.

6 


 

In the preceding reserves information, consolidated subsidiary and equity company reserves are reported separately. However, the Corporation operates its business with the same view of equity company reserves as it has for reserves from consolidated subsidiaries.

The Corporation anticipates several projects will come online over the next few years providing additional production capacity. However, actual volumes will vary from year to year due to the timing of individual project start-ups; operational outages; reservoir performance; performance of enhanced oil recovery projects; regulatory changes; the impact of fiscal and commercial terms; asset sales; weather events; price effects on production sharing contracts; changes in the amount and timing of capital investments that may vary depending on the oil and gas price environment; and other factors described in Item 1A. Risk Factors.

The estimation of proved reserves, which is based on the requirement of reasonable certainty, is an ongoing process based on rigorous technical evaluations, commercial and market assessments and detailed analysis of well and reservoir information such as flow rates and reservoir pressures. Furthermore, the Corporation only records proved reserves for projects which have received significant funding commitments by management made toward the development of the reserves. Although the Corporation is reasonably certain that proved reserves will be produced, the timing and amount recovered can be affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals, government policies, consumer preferences, and significant changes in long-term oil and natural gas price levels. In addition, proved reserves could be affected by an extended period of low prices which could reduce the level of the Corporation’s capital spending and also impact our partners’ capacity to fund their share of joint projects.

B. Technologies Used in Establishing Proved Reserves Additions in 2018

Additions to ExxonMobil’s proved reserves in 2018 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well-established technologies that have been demonstrated in the field to yield repeatable and consistent results.

Data used in these integrated assessments included information obtained directly from the subsurface via wellbores, such as well logs, reservoir core samples, fluid samples, static and dynamic pressure information, production test data, and surveillance and performance information. The data utilized also included subsurface information obtained through indirect measurements including high-quality 3-D and 4-D seismic data, calibrated with available well control information. The tools used to interpret the data included proprietary seismic processing software, proprietary reservoir modeling and simulation software, and commercially available data analysis packages.

In some circumstances, where appropriate analog reservoirs were available, reservoir parameters from these analogs were used to increase the quality of and confidence in the reserves estimates.

C. Qualifications of Reserves Technical Oversight Group and Internal Controls over Proved Reserves

ExxonMobil has a dedicated Global Reserves group that provides technical oversight and is separate from the operating organization. Primary responsibilities of this group include oversight of the reserves estimation process for compliance with Securities and Exchange Commission (SEC) rules and regulations, review of annual changes in reserves estimates, and the reporting of ExxonMobil’s proved reserves. This group also maintains the official company reserves estimates for ExxonMobil’s proved reserves of crude oil, natural gas liquids, bitumen, synthetic oil, and natural gas. In addition, the group provides training to personnel involved in the reserves estimation and reporting process within ExxonMobil and its affiliates. The Manager of the Global Reserves group has more than 25 years of experience in reservoir engineering and reserves assessment, has a degree in Engineering and currently serves on the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE). The group is staffed with individuals that have an average of more than 20 years of technical experience in the petroleum industry, including expertise in the classification and categorization of reserves under the SEC guidelines. This group includes individuals who hold advanced degrees in either Engineering or Geology.

The Global Reserves group maintains a central database containing the official company reserves estimates. Appropriate controls, including limitations on database access and update capabilities, are in place to ensure data integrity within this central database. An annual review of the system’s controls is performed by internal audit. Key components of the reserves estimation process include technical evaluations and analysis of well and field performance and a rigorous peer review. No changes may be made to the reserves estimates in the central database, including additions of any new initial reserves estimates or subsequent revisions, unless these changes have been thoroughly reviewed and evaluated by duly authorized personnel within the operating organization. In addition, changes to reserves estimates that exceed certain thresholds require further review and approval of the appropriate level of management within the operating organization before the changes may be made in the central database. Endorsement by the Global Reserves group for all proved reserves changes is a mandatory component of this review process. After all changes are made, reviews are held with senior management for final endorsement.

7 


 

 2. Proved Undeveloped Reserves  

At year-end 2018, approximately 7.9 billion oil-equivalent barrels (GOEB) of ExxonMobil’s proved reserves were classified as proved undeveloped. This represents 32 percent of the 24.3 GOEB reported in proved reserves. This compares to the 7.3 GOEB of proved undeveloped reserves reported at the end of 2017. During the year, ExxonMobil conducted development activities that resulted in the transfer of approximately 0.8 GOEB from proved undeveloped to proved developed reserves by year end. The largest transfers were related to drilling activity in the United States, the United Arab Emirates, Canada, and Russia. During 2018, extensions and discoveries, primarily in the United States resulted in an addition of approximately 1.7 GOEB of proved undeveloped reserves. Also, the Corporation reclassified approximately 0.3 GOEB of proved undeveloped reserves which no longer met the SEC definition of proved reserves, primarily in the Netherlands at the Groningen gas field and the United States.

Overall, investments of $13.2 billion were made by the Corporation during 2018 to progress the development of reported proved undeveloped reserves, including $13.1 billion for oil and gas producing activities and additional investments for other non-oil and gas producing activities such as the construction of support infrastructure and other related facilities. These investments represented 65 percent of the $20.2 billion in total reported Upstream capital and exploration expenditures.

One of ExxonMobil’s requirements for reporting proved reserves is that management has made significant funding commitments toward the development of the reserves. ExxonMobil has a disciplined investment strategy and many major fields require long lead‑time in order to be developed. Development projects typically take several years from the time of recording proved undeveloped reserves to the start of production and can exceed five years for large and complex projects. Proved undeveloped reserves in the United States, Canada, Australia, and Kazakhstan have remained undeveloped for five years or more primarily due to constraints on the capacity of infrastructure, as well as the time required to complete development for very large projects. The Corporation is reasonably certain that these proved reserves will be produced; however, the timing and amount recovered can be affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals, government policies, consumer preferences, the pace of co‑venturer/government funding, changes in the amount and timing of capital investments, and significant changes in long-term oil and natural gas price levels. Of the proved undeveloped reserves that have been reported for five or more years, over 80 percent are contained in the aforementioned countries. In Canada, proved undeveloped reserves are related to drilling activities in the offshore Hebron field and onshore Cold Lake operations. In Australia, proved undeveloped reserves are associated with future compression for the Gorgon Jansz LNG project. In Kazakhstan, the proved undeveloped reserves are related to the remainder of the initial development of the producing offshore Kashagan field which is included in the North Caspian Production Sharing Agreement and the Tengizchevroil joint venture which includes a production license in the Tengiz – Korolev field complex. The Tengizchevroil joint venture is producing, and proved undeveloped reserves will continue to move to proved developed as approved development phases progress.

  

8 


 

3. Oil and Gas Production, Production Prices and Production Costs

A. Oil and Gas Production

The table below summarizes production by final product sold and by geographic area for the last three years.



 

 

 

 

 

 

2018

 

2017

 

2016

 

 

 

 

 

(thousands of barrels daily)

Crude oil and natural gas liquids production

 

Crude Oil

NGL

 

Crude Oil

NGL

 

Crude Oil

NGL

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

United States

 

395

101

 

361

96

 

347

87

 

 

Canada/Other Americas (1) 

 

62

6

 

44

6

 

53

6

 

 

Europe

 

101

27

 

147

31

 

171

31

 

 

Africa

 

377

10

 

412

11

 

459

15

 

 

Asia

 

398

25

 

373

26

 

383

27

 

 

Australia/Oceania

 

31

16

 

35

19

 

37

19

 

 

 

Total Consolidated Subsidiaries

 

1,364

185

 

1,372

189

 

1,450

185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

 

 

United States

 

54

1

 

55

2

 

58

2

 

 

Europe

 

4

-

 

4

-

 

2

-

 

 

Asia

 

226

62

 

235

64

 

232

65

 

 

 

Total Equity Companies

 

284

63

 

294

66

 

292

67

 

 

 

 

 

 

 

 

 

 

 

 

 

Total crude oil and natural gas liquids production

 

1,648

248

 

1,666

255

 

1,742

252

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitumen production

 

 

 

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

Canada/Other Americas

 

310

 

 

305

 

 

304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synthetic oil production

 

 

 

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

Canada/Other Americas

 

60

 

 

57

 

 

67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liquids production

 

2,266

 

 

2,283

 

 

2,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(millions of cubic feet daily)

 

Natural gas production available for sale

 

 

 

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

United States

 

2,550

 

 

2,910

 

 

3,052

 

 

 

Canada/Other Americas (1) 

 

227

 

 

218

 

 

239

 

 

 

Europe

 

925

 

 

1,046

 

 

1,093

 

 

 

Africa

 

13

 

 

5

 

 

7

 

 

 

Asia

 

838

 

 

906

 

 

927

 

 

 

Australia/Oceania

 

1,325

 

 

1,310

 

 

887

 

 

 

 

Total Consolidated Subsidiaries

 

5,878

 

 

6,395

 

 

6,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

 

 

United States

 

24

 

 

26

 

 

26

 

 

 

Europe

 

728

 

 

902

 

 

1,080

 

 

 

Asia

 

2,775

 

 

2,888

 

 

2,816

 

 

 

 

Total Equity Companies

 

3,527

 

 

3,816

 

 

3,922

 

Total natural gas production available for sale

 

9,405

 

 

10,211

 

 

10,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(thousands of oil-equivalent barrels daily)

 

Oil-equivalent production

 

3,833

 

 

3,985

 

 

4,053

 

 

(1)   Other Americas includes crude oil production for 2018 of two thousand barrels daily and natural gas production available for sale for 2018, 2017 and 2016 of 28 million, 24 million, and 22 million cubic feet daily, respectively.

9 


 

B. Production Prices and Production Costs

The table below summarizes average production prices and average production costs by geographic area and by product type for the last three years.

 

 

 

 

 

 

Canada/

 

 

 

 

 

 

 

 

 

 

 

 

United

Other

 

 

 

 

 

Australia/

 

 

 

 

 

 

States

Americas

Europe

 

Africa

 

Asia

Oceania

Total

During 2018

 

(dollars per unit)

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

59.84

 

64.53

 

69.80

 

70.84

 

69.86

 

66.89

 

66.91

 

 

 

NGL, per barrel

 

30.78

 

37.27

 

38.53

 

47.10

 

26.30

 

36.34

 

32.88

 

 

 

Natural gas, per thousand cubic feet

 

2.14

 

1.68

 

6.97

 

1.96

 

2.33

 

6.39

 

3.87

 

 

 

Bitumen, per barrel

 

-

 

28.66

 

-

 

-

 

-

 

-

 

28.66

 

 

 

Synthetic oil, per barrel

 

-

 

54.85

 

-

 

-

 

-

 

-

 

54.85

 

 

Average production costs, per oil-equivalent barrel - total

11.64

 

24.32

 

13.07

 

17.28

 

7.31

 

6.94

 

13.34

 

 

Average production costs, per barrel - bitumen

-

 

22.93

 

-

 

-

 

-

 

-

 

22.93

 

 

Average production costs, per barrel - synthetic oil

-

 

45.33

 

-

 

-

 

-

 

-

 

45.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

66.30

 

-

 

63.92

 

-

 

67.31

 

-

 

67.07

 

 

 

NGL, per barrel

 

27.16

 

-

 

-

 

-

 

45.10

 

-

 

44.64

 

 

 

Natural gas, per thousand cubic feet

 

2.19

 

-

 

5.03

 

-

 

6.31

 

-

 

6.01

 

 

Average production costs, per oil-equivalent barrel - total

24.71

 

-

 

16.30

 

-

 

1.49

 

-

 

4.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

60.61

 

64.53

 

69.57

 

70.84

 

68.92

 

66.89

 

66.93

 

 

 

NGL, per barrel

 

30.72

 

37.27

 

38.53

 

47.10

 

39.69

 

36.34

 

35.85

 

 

 

Natural gas, per thousand cubic feet

 

2.14

 

1.68

 

6.11

 

1.96

 

5.38

 

6.39

 

4.67

 

 

 

Bitumen, per barrel

 

-

 

28.66

 

-

 

-

 

-

 

-

 

28.66

 

 

 

Synthetic oil, per barrel

 

-

 

54.85

 

-

 

-

 

-

 

-

 

54.85

 

 

Average production costs, per oil-equivalent barrel - total

12.43

 

24.32

 

14.06

 

17.31

 

3.98

 

6.94

 

11.29

 

 

Average production costs, per barrel - bitumen

-

 

22.93

 

-

 

-

 

-

 

-

 

22.93

 

 

Average production costs, per barrel - synthetic oil

-

 

45.33

 

-

 

-

 

-

 

-

 

45.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During 2017

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

46.71

 

52.42

 

52.02

 

54.70

 

53.26

 

53.61

 

51.88

 

 

 

NGL, per barrel

 

24.20

 

27.07

 

30.96

 

37.38

 

22.69

 

33.15

 

26.88

 

 

 

Natural gas, per thousand cubic feet

 

2.03

 

2.03

 

5.48

 

1.51

 

2.05

 

4.22

 

3.04

 

 

 

Bitumen, per barrel

 

-

 

29.70

 

-

 

-

 

-

 

-

 

29.70

 

 

 

Synthetic oil, per barrel

 

-

 

52.72

 

-

 

-

 

-

 

-

 

52.72

 

 

Average production costs, per oil-equivalent barrel - total

10.85

 

23.44

 

12.25

 

13.33

 

8.07

 

6.30

 

12.33

 

 

Average production costs, per barrel - bitumen

-

 

21.39

 

-

 

-

 

-

 

-

 

21.39

 

 

Average production costs, per barrel - synthetic oil

-

 

44.21

 

-

 

-

 

-

 

-

 

44.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

49.13

 

-

 

47.69

 

-

 

50.27

 

-

 

50.02

 

 

 

NGL, per barrel

 

21.78

 

-

 

-

 

-

 

38.23

 

-

 

37.81

 

 

 

Natural gas, per thousand cubic feet

 

2.42

 

-

 

4.81

 

-

 

4.15

 

-

 

4.30

 

 

Average production costs, per oil-equivalent barrel - total

23.38

 

-

 

7.45

 

-

 

1.18

 

-

 

3.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

47.03

 

52.42

 

51.91

 

54.70

 

52.12

 

53.61

 

51.56

 

 

 

NGL, per barrel

 

24.16

 

27.07

 

30.96

 

37.38

 

33.79

 

33.15

 

29.70

 

 

 

Natural gas, per thousand cubic feet

 

2.03

 

2.03

 

5.17

 

1.51

 

3.65

 

4.22

 

3.51

 

 

 

Bitumen, per barrel

 

-

 

29.70

 

-

 

-

 

-

 

-

 

29.70

 

 

 

Synthetic oil, per barrel

 

-

 

52.72

 

-

 

-

 

-

 

-

 

52.72

 

 

Average production costs, per oil-equivalent barrel - total

11.61

 

23.44

 

10.79

 

13.33

 

4.02

 

6.30

 

10.12

 

 

Average production costs, per barrel - bitumen

-

 

21.39

 

-

 

-

 

-

 

-

 

21.39

 

 

Average production costs, per barrel - synthetic oil

-

 

44.21

 

-

 

-

 

-

 

-

 

44.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 


 

 

 

 

 

 

 

 

Canada/

 

 

 

 

 

 

 

 

 

 

 

 

 

United

Other

 

 

 

 

 

Australia/

 

 

 

 

 

 

States

Americas

Europe

 

Africa

 

Asia

 

Oceania

 

Total

During 2016

 

(dollars per unit)

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

36.47

 

39.50

 

40.57

 

42.59

 

41.89

 

43.33

 

40.59

 

 

 

NGL, per barrel

 

16.16

 

18.91

 

22.17

 

26.78

 

17.12

 

23.95

 

18.99

 

 

 

Natural gas, per thousand cubic feet

 

1.43

 

1.71

 

4.26

 

1.14

 

1.56

 

3.46

 

2.25

 

 

 

Bitumen, per barrel

 

-

 

19.30

 

-

 

-

 

-

 

-

 

19.30

 

 

 

Synthetic oil, per barrel

 

-

 

43.03

 

-

 

-

 

-

 

-

 

43.03

 

 

Average production costs, per oil-equivalent barrel - total

10.41

 

21.16

 

12.78

 

12.75

 

6.44

 

7.12

 

11.79

 

 

Average production costs, per barrel - bitumen

 

-

 

18.25

 

-

 

-

 

-

 

-

 

18.25

 

 

Average production costs, per barrel - synthetic oil

 

-

 

33.64

 

-

 

-

 

-

 

-

 

33.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

38.44

 

-

 

36.13

 

-

 

39.69

 

-

 

39.41

 

 

 

NGL, per barrel

 

14.85

 

-

 

-

 

-

 

25.21

 

-

 

24.87

 

 

 

Natural gas, per thousand cubic feet

 

2.03

 

-

 

4.19

 

-

 

3.59

 

-

 

3.75

 

 

Average production costs, per oil-equivalent barrel - total

22.26

 

-

 

7.92

 

-

 

1.80

 

-

 

4.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average production prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil, per barrel

 

36.75

 

39.50

 

40.51

 

42.59

 

41.06

 

43.33

 

40.39

 

 

 

NGL, per barrel

 

16.13

 

18.91

 

22.17

 

26.78

 

22.85

 

23.95

 

20.56

 

 

 

Natural gas, per thousand cubic feet

 

1.44

 

1.71

 

4.22

 

1.14

 

3.09

 

3.46

 

2.83

 

 

 

Bitumen, per barrel

 

-

 

19.30

 

-

 

-

 

-

 

-

 

19.30

 

 

 

Synthetic oil, per barrel

 

-

 

43.03

 

-

 

-

 

-

 

-

 

43.03

 

 

Average production costs, per oil-equivalent barrel - total

11.18

 

21.16

 

11.21

 

12.75

 

3.77

 

7.12

 

9.89

 

 

Average production costs, per barrel - bitumen

 

-

 

18.25

 

-

 

-

 

-

 

-

 

18.25

 

 

Average production costs, per barrel - synthetic oil

 

-

 

33.64

 

-

 

-

 

-

 

-

 

33.64

 

Average production prices have been calculated by using sales quantities from the Corporation’s own production as the divisor. Average production costs have been computed by using net production quantities for the divisor. The volumes of crude oil and natural gas liquids (NGL) production used for this computation are shown in the oil and gas production table in section 3.A. The volumes of natural gas used in the calculation are the production volumes of natural gas available for sale and are also shown in section 3.A. The natural gas available for sale volumes are different from those shown in the reserves table in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report due to volumes consumed or flared. Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.

11 


 

4. Drilling and Other Exploratory and Development Activities

A. Number of Net Productive and Dry Wells Drilled



 

 

 

 

 

 

2018

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

Net Productive Exploratory Wells Drilled

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

United States

 

1

 

-

 

-

 

 

Canada/Other Americas

 

4

 

5

 

2

 

 

Europe

 

-

 

-

 

1

 

 

Africa

 

1

 

1

 

1

 

 

Asia

 

-

 

-

 

-

 

 

Australia/Oceania

 

1

 

-

 

-

 

 

 

Total Consolidated Subsidiaries

 

7

 

6

 

4

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

United States

 

-

 

-

 

-

 

 

Europe

 

-

 

-

 

1

 

 

Africa

 

-

 

-

 

-

 

 

Asia

 

-

 

-

 

-

 

 

 

Total Equity Companies

 

-

 

-

 

1

Total productive exploratory wells drilled

 

7

 

6

 

5

 

 

 

 

 

 

 

 

 

 

Net Dry Exploratory Wells Drilled

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

United States

 

3

 

-

 

-

 

 

Canada/Other Americas

 

-

 

-

 

1

 

 

Europe

 

1

 

-

 

-

 

 

Africa

 

-

 

2

 

1

 

 

Asia

 

-

 

-

 

-

 

 

Australia/Oceania

 

2

 

-

 

-

 

 

 

Total Consolidated Subsidiaries

 

6

 

2

 

2

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

United States

 

-

 

-

 

-

 

 

Europe

 

-

 

-

 

-

 

 

Africa

 

-

 

-

 

-

 

 

Asia

 

-

 

1

 

-

 

 

 

Total Equity Companies

 

-

 

1

 

-

Total dry exploratory wells drilled

 

6

 

3

 

2

12 


 

 

 

 

 

 

2018

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

Net Productive Development Wells Drilled

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

United States

 

389

 

300

 

335

 

 

Canada/Other Americas

 

32

 

12

 

13

 

 

Europe

 

3

 

6

 

9

 

 

Africa

 

1

 

6

 

7

 

 

Asia

 

14

 

15

 

13

 

 

Australia/Oceania

 

-

 

1

 

-

 

 

 

Total Consolidated Subsidiaries

 

439

 

340

 

377

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

United States

 

168

 

154

 

121

 

 

Europe

 

3

 

1

 

2

 

 

Africa

 

-

 

-

 

-

 

 

Asia

 

6

 

3

 

3

 

 

 

Total Equity Companies

 

177

 

158

 

126

Total productive development wells drilled

 

616

 

498

 

503

 

 

 

 

 

 

 

 

 

 

Net Dry Development Wells Drilled

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

United States

 

4

 

4

 

2

 

 

Canada/Other Americas

 

1

 

-

 

-

 

 

Europe

 

-

 

1

 

2

 

 

Africa

 

1

 

-

 

-

 

 

Asia

 

-

 

-

 

-

 

 

Australia/Oceania

 

-

 

-

 

-

 

 

 

Total Consolidated Subsidiaries

 

6

 

5

 

4

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

United States

 

-

 

-

 

-

 

 

Europe

 

-

 

-

 

-

 

 

Africa

 

-

 

-

 

-

 

 

Asia

 

-

 

-

 

-

 

 

 

Total Equity Companies

 

-

 

-

 

-

Total dry development wells drilled

 

6

 

5

 

4

 

 

 

 

 

 

 

 

 

 

 

Total number of net wells drilled

 

635

 

512

 

514

13 


 

B. Exploratory and Development Activities Regarding Oil and Gas Resources Extracted by Mining Technologies

Syncrude Operations. Syncrude is a joint venture established to recover shallow deposits of oil sands using open-pit mining methods to extract the crude bitumen, and then upgrade it to produce a high-quality, light (32 degrees API), sweet, synthetic crude oil. Imperial Oil Limited is the owner of a 25 percent interest in the joint venture. Exxon Mobil Corporation has a 69.6 percent interest in Imperial Oil Limited. In 2018, the company’s share of net production of synthetic crude oil was about 60 thousand barrels per day and share of net acreage was about 63 thousand acres in the Athabasca oil sands deposit.

Kearl Operations. Kearl is a joint venture established to recover shallow deposits of oil sands using open-pit mining methods to extract the crude bitumen. Imperial Oil Limited holds a 70.96 percent interest in the joint venture and ExxonMobil Canada Properties holds the other 29.04 percent. Exxon Mobil Corporation has a 69.6 percent interest in Imperial Oil Limited and a 100 percent interest in ExxonMobil Canada Properties. Kearl is comprised of six oil sands leases covering about 49 thousand acres in the Athabasca oil sands deposit.

Kearl is located approximately 40 miles north of Fort McMurray, Alberta, Canada. Bitumen is extracted from oil sands and processed through bitumen extraction and froth treatment trains. The product, a blend of bitumen and diluent, is shipped to our refineries and to other third parties. Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation by pipeline and rail. During 2018, average net production at Kearl was about 191 thousand barrels per day.

At year-end 2018, an additional 3.4 billion barrels of bitumen at Kearl qualified as proved reserves under the SEC definition requiring calculations based on the average of the first-day-of-the-month price during the last 12-month period.

 

5. Present Activities

A. Wells Drilling

 

 

 

 

 

Year-End 2018

 

Year-End 2017

 

 

 

 

Gross

 

Net

 

Gross

 

Net

Wells Drilling

 

 

 

 

 

 

 

 

Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

United States

997

 

491

 

820

 

334

 

 

Canada/Other Americas

41

 

32

 

30

 

22

 

 

Europe

13

 

3

 

12

 

2

 

 

Africa

5

 

1

 

10

 

2

 

 

Asia

50

 

14

 

58

 

15

 

 

Australia/Oceania

4

 

2

 

3

 

1

 

 

 

Total Consolidated Subsidiaries

1,110

 

543

 

933

 

376

 

 

 

 

 

 

 

 

 

 

 

 

Equity Companies

 

 

 

 

 

 

 

 

 

United States

7

 

1

 

10

 

1

 

 

Europe

1

 

1

 

8

 

3

 

 

Asia

17

 

4

 

14

 

4

 

 

 

Total Equity Companies

25

 

6

 

32

 

8

Total gross and net wells drilling

1,135

 

549

 

965

 

384

14