An ExxonMobil publication Project excellence Plus Bass Strait Guyana discovery Fuel standards OFC1 Knowledge business Baytown update – 2 No. 2015 1 Project execution excellence 15 9 29 Photo by Robert Seale 5 Upfront Rex W. Tillerson In May of this year, an ExxonMobil resources, and how we derive standard. The new rules could Chairman and CEO Mark W. Albers team of explorers and drillers maximum value from them. create significant problems, and a Senior Vice President successfully brought in the Liza 1 Beginning on page 5, our story on page 13 provides details. Michael J. Dolan Senior Vice President well 120 miles off the coast of the cover story features an interview A profile of the work special- Andrew P. Swiger South American nation of Guyana. with Jim Flood and John Plugge, ized ExxonMobil procurement, Senior Vice President Liza is a true frontier wildcat well – vice presidents with ExxonMobil real estate, information technol- Jack P. Williams Senior Vice President a significant discovery, and the Development Company. In ogy and other teams conduct to Darren W. Woods first drilled on a block spanning the article, they describe support our operations in remote Senior Vice President 6.6 million acres. The story of how how ExxonMobil safely and areas starts on page 21. Plus, Kenneth P. Cohen Vice President-Public and Government Affairs technology, talent and experience consistently completes complex Delivering information (page 25), Jeffrey J. Woodbury brought about a great outcome oil and gas projects faster and at Bass Strait update (page 29) and Vice President-Investor Relations and Secretary begins on page 15. a lower cost than its competitors. Mobil 1 in Singapore (page 34). Bob Davis Editor Continuing this issue’s focus on Most drivers know that the We hope you enjoy this issue Pat Gabriel the challenges of exploration, on gasoline and diesel fuel that of The Lamp. GCG Marketing Art Director page 9 is an in-depth interview we put in our vehicles contains Len Shelton with Steve Greenlee, president of ethanol. But what many don’t Photography Coordinator ExxonMobil Exploration Company. know is that the Environmental Cynthia Solomon Production and Distribution Coordinator Greenlee discusses, among other Protection Agency has raised the Bob Davis topics, the company’s integrated ethanol portion of motor fuel Editor Please address all Lamp correspondence, approach to adding high-quality above the current 10 percent including requests to reproduce any portion of the magazine, to the editor at Exxon Mobil Corporation, 5959 Las Colinas Blvd., Irving, TX 75039-2298. In this issue 3 13 25 Just the right time Repeal the biofuel mandate Knowledge is their business Digital issue now available Reforms would help the More rules will make a difficult Information when and where A digital issue of The Lamp is chemical industry situation worse it’s needed now available online. Please visit exxonmobil.com/digitallamp 5 15 29 to have a look. A reputation for excellence Technology and vision Bass Strait at 50 Leading the industry in A major discovery offshore Guyana Australian venture marks a milestone project execution 21 33 9 Frontier support Panorama A great time for exploration for business success Business highlights Meet Steve Greenlee, president of Providing safe, secure operations from around the world ExxonMobil Exploration Company around the world 2 Bipartisan efforts at just the right time By Rex W. Tillerson Chairman and CEO of Exxon Mobil Corporation Evidence continues to show that have announced approximately new federal, state and local tax It’s taken years of bipartisan the U.S. economy is struggling. $150 billion in investments. revenues by 2023. work and negotiation, but these And economists from across the The chemical industry is build- But the future successes of the changes are just the comprehen- ideological spectrum have rightly ing new plants – and retrofit- shale revolution and America’s sive overhaul we need. observed that by historic stan- ting others to leverage U.S. manufacturing renaissance are Just as important, these bipar- dards, this is one of the weakest natural gas. The data on nominal not forgone conclusions. tisan efforts appear to have an U.S. recoveries on record. construction spending shows We need policies equal to this excellent chance of succeeding. But even in the midst of construction spending by the historic opportunity. The reform is drawing impressive anemic growth and falling labor- chemical industry increased near- The good news is that the support from the industry, building force participation rates, one sec- ly 140 percent from June 2014 to chemical sector may be getting trade unions and organizations tor continues to power forward: June 2015, with the growth rate some timely assistance from including the Environmental America’s chemical industry. exceeding 150 percent in the first a rare instance of Washington Defense Fund, National Wildlife The reason for the resurgence half of this year alone. bipartisanship. Federation, March of Dimes and is well known: Vast new supplies Democrats and Republicans U.S. Humane Society. of natural gas flowing from U.S. Investments and jobs in Congress have come together shale deposits have given Ameri- If all of the industry’s invest- in an effort to modernize the Modernization can chemical manufacturers a ments move forward, they will Toxic Substances Controls Act By modernizing the regulations global advantage. create nearly $300 billion in new (TSCA), the outdated regulations governing the chemical industry, The response from the indus- economic output and lead to affecting the chemical industry. we can strengthen and clarify the try is a flurry of activity that could more than 400,000 new jobs. The proposed reforms will help role of government in overseeing reap benefits for decades to The investments would also bring 1970s legislation into the and protecting public health. The come. Chemical manufacturers lead to $21 billion in permanent 21st century. proposed reforms would provide 3 a better system for the Environ- food packaging and storage, to in Washington, a patchwork of whelming bipartisan support. And mental Protection Agency to building materials. Chemicals are state and local laws now exists in the Senate, a coalition of both evaluate risks of both new and vital to making the world safer and – further complicating interstate Democrats and Republicans are existing chemicals using the healthier. They are also critical to commerce and the industry’s pushing similar legislation across best available science. This will using energy more efficiently, as investment decisions. the finish line in the hopes of give the public confidence in the well as helping us minimize man- Thanks to the efforts of leaders sending a final bill to the presi- safety of the chemical products kind’s impact on the environment. from both parties in Washington, dent’s desk. used every day. But over the decades, the we can look forward to clearing Those in Congress who are Regulatory modernization will regulatory landscape for the U.S. away that clutter and enacting working together to modern- also help strengthen and sustain chemical sector has been mired reforms that bring clarity, certainty ize TSCA regulations deserve America’s role as a leading inno- in complexity and uncertainties and consistency to America’s dy- credit. They are acting in the best vator for chemical products – an because of anachronistic Wash- namic and vital chemical industry. interests of our economy and our area that drives 25 percent of the ington rules. With these reforms, parents in ev- environment. They are also setting U.S. economy. ery state can be confident that their an example for modern Wash- To borrow a phrase from Broken system children are adequately protected ington – building bridges across Daniel Yergin, plastics and The TSCA has made it difficult to from any risks, while manufacturers parties to act with wisdom and chemical products are “the bricks greenlight innovations or effec- from New Jersey to California will common sense. and mortar of contemporary tively calculate the costs of various have the regulatory certainty they It is a moment for which we can civilization.” They are found in 96 policy options. Because the federal need to continue to innovate and all give thanks – and which should percent of manufactured goods legislation is so out of date, this create jobs. guide the efforts of our elected – from lifesaving medical devices system is not working. In the face TSCA modernization passed the leaders and policymakers in the and personal technologies, to of this dysfunction and ambiguity House this summer with over- future. 4 A reputation for excellence John Plugge, vice president of project management and execution; and Jim Flood, vice president of arctic and eastern Canada, discuss how ExxonMobil Development Company leads the industry in project execution. ExxonMobil has become oil-equivalent barrels represent- experts to provide solutions to recognized for completing oil ing conventional and uncon- any issues. We know of no other and gas development projects ventional oil and gas, heavy oil, international oil company with faster and at a lower cost than and liquefied natural gas (LNG) that capability. its competition. Why is that? around the globe. This diversity has allowed us to be selective in What factors must you consider Plugge: The underlying reason pursuing the right projects at the in early project planning? dates back to Exxon’s decision right time. In addition, we have before the merger with Mobil to developed a structured project Plugge: Among the more critical establish one upstream company management system that has steps is selecting a leadership that was all about project man- enabled not only performance team that understands the tech- agement. That move reflected consistency but a means for nical side of the work and has the corporation’s anticipation of continuous improvement.