The Chemical Engineer of the Future in the Oil and Petrochemical IndustryThe Chemical Engineer of the Future in the Oil and Petrochemical Industry

Michael J. Dolan

May 7, 2004

Michael J. Dolan

May 7, 2004

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 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

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 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

Taking on the world’s toughest energy challenges.™

The Outlook for Energy

• Energy is critical to economic growth, especially in developing markets

• Oil and gas will remain the primary sources of energy through 2020

• Energy companies face significant challenges to meet world demand

• Groundbreaking research required to develop portfolio of energy options

• Energy is critical to economic growth, especially in developing markets

• Oil and gas will remain the primary sources of energy through 2020

• Energy companies face significant challenges to meet world demand

• Groundbreaking research required to develop portfolio of energy options

Energy and GDP Growth Closely LinkedEnergy and GDP Growth Closely Linked

1

10

100

1000

1 10 100

W. EuropeW. Europe

Latin America

Latin America

E. EuropeE. Europe

N. AmericaN. America

Asia PacificAsia Pacific

Africa/M. EastAfrica/M. East

1970-2020

Increasing Income - $K GDP/Capita

Incr

easi

ng

En

erg

y -

BD

OE

Per

10

00 P

eop

le

Oil & Gas Remain Primary Energy SourcesOil & Gas Remain Primary Energy Sources

0

10

20

30

40

50

60

1980 1990 2000 2010 2020

0

50

100

150

200

250

300

350

1980 1990 2000 2010 2020

1.51.5

1.11.1

2.42.4

1.61.6

1.01.0

0.40.4

2.02.0

1.31.3

3.13.1

2.32.3

1.01.0

1.81.8

6.66.6

2.62.6

Total Energy Other Energy

HydroHydro

NuclearNuclear

Biomass,MSW

Biomass,MSW

Wind & SolarWind & Solar

OilOil

GasGas

CoalCoal

OtherOther

Growth Rate 2000-2020, %Growth Rate

2000-2020, %

MBDOE MBDOE

0.0

0.3

0.6

0.9

1.2

1980 1990 2000 2010 2020

1414

1010

Wind & Solar

SolarSolar

WindWind

MBDOE

Growth Rate 1980-2000, %Growth Rate

1980-2000, %

1.71.7 1.71.7

0 1 2 3 4 5 6

• Oil resource base sufficient to economically satisfy global demand growth

$/bbl

Trillion Barrels

ConventionalConventional

Oil Resource Base LargeOil Resource Base Large

UnconventionalUnconventional

New Tech/Price

New Tech/Price

UnconventionalUnconventional

New Tech/Price

New Tech/Price

2000Cumulative Production

2020

The Indispensable Chemical Engineers

• Fuels and petrochemicals will continue to be large employers of ChE’s

• Industries are mature with moderate growth but technical challenges are important and significant

• Enhanced technology will demand broader skills from entry level ChE’s and a need for continuous learning throughout career

• Fuels and petrochemicals will continue to be large employers of ChE’s

• Industries are mature with moderate growth but technical challenges are important and significant

• Enhanced technology will demand broader skills from entry level ChE’s and a need for continuous learning throughout career

Manufacturing Plant of Today

• Plants and equipment are more reliable and predictable

– Less trouble shooting and fire fighting

– More planning and optimization

• Computers control all aspects of the manufacturing environment and make routine or repetitive operating decisions that once required engineering assistance

– Examples include: online economic optimization, equipment advisories (expert systems), “Safe Park” shutdowns

• Technicians have been upskilled and perform many of the tasks that chemical engineers performed twenty years ago

– Improved training and support as well as expert systems and online optimization

• Plants and equipment are more reliable and predictable

– Less trouble shooting and fire fighting

– More planning and optimization

• Computers control all aspects of the manufacturing environment and make routine or repetitive operating decisions that once required engineering assistance

– Examples include: online economic optimization, equipment advisories (expert systems), “Safe Park” shutdowns

• Technicians have been upskilled and perform many of the tasks that chemical engineers performed twenty years ago

– Improved training and support as well as expert systems and online optimization

Manufacturing Plant of Tomorrow

• Competitor in truly global market

• Ever increasing size, scale, automation will require engineering solutions in all aspects

– Materials, equipment, catalyst, process control and optimization

• Meeting the world’s needs will require technology to squeeze more from every barrel

– Cleaner fuels; more functional chemicals

• Control and optimization of physical properties (temperature, pressure, volume flow) will give way to molecular management

• Competitor in truly global market

• Ever increasing size, scale, automation will require engineering solutions in all aspects

– Materials, equipment, catalyst, process control and optimization

• Meeting the world’s needs will require technology to squeeze more from every barrel

– Cleaner fuels; more functional chemicals

• Control and optimization of physical properties (temperature, pressure, volume flow) will give way to molecular management

Impact on Chemical Engineers

• Entry level no longer just design and monitoring

– Monitoring, operational advice, optimization largely by technicians

– Engineers will design new tools, engineer new technology and become the “player/coach” on the operating floor

– More than ever, engineers will bridge the technical and business worlds to optimize financial performance in real time in a global market

• Chemical Engineers must “up skill” in the traditional core areas

– Traditional basics more critical than ever

– Design, modeling, reaction engineering, advanced control engineering

– Acquire skills traditionally provided in graduate programs

• Must add other skills from non-traditional areas

– Computing, computer control and optimization

– Modeling at the molecular level

– Economics and business

– Leadership

• Entry level no longer just design and monitoring

– Monitoring, operational advice, optimization largely by technicians

– Engineers will design new tools, engineer new technology and become the “player/coach” on the operating floor

– More than ever, engineers will bridge the technical and business worlds to optimize financial performance in real time in a global market

• Chemical Engineers must “up skill” in the traditional core areas

– Traditional basics more critical than ever

– Design, modeling, reaction engineering, advanced control engineering

– Acquire skills traditionally provided in graduate programs

• Must add other skills from non-traditional areas

– Computing, computer control and optimization

– Modeling at the molecular level

– Economics and business

– Leadership

A Word on Globalization

• Chemical Engineers in the future will be part of a global workforce providing technical support and solutions in real time on a global basis

– Industries and companies that can get this right will be the most successful

– Ideas and technology advances will be deployed globally in near real time

– Geographic mobility is a must

• Engineers will be located in plants and regionally, but will be linked by a single collaboration and knowledge management network

– Work will be done by virtual teams

– “Customers” for service will be global

• Chemical Engineers with foreign language skills and global experiences via internships or IQP/MQP will have an advantage in this global environment

• Chemical Engineers in the future will be part of a global workforce providing technical support and solutions in real time on a global basis

– Industries and companies that can get this right will be the most successful

– Ideas and technology advances will be deployed globally in near real time

– Geographic mobility is a must

• Engineers will be located in plants and regionally, but will be linked by a single collaboration and knowledge management network

– Work will be done by virtual teams

– “Customers” for service will be global

• Chemical Engineers with foreign language skills and global experiences via internships or IQP/MQP will have an advantage in this global environment

Recruiting Model is Changing

• The need to improve efficiency is significantly changing the campus recruiting model

• A smaller number of target schools that have provided greatest recruiting success are now visited

• Summer Internships are more and more used to select and identify undergraduates for employment offers

– Conversion of summer interns to regulars hires is a win-win for all

– Retention and assimilation are much improved

– Sophomores are now targeted for multi-year internships

• The need to improve efficiency is significantly changing the campus recruiting model

• A smaller number of target schools that have provided greatest recruiting success are now visited

• Summer Internships are more and more used to select and identify undergraduates for employment offers

– Conversion of summer interns to regulars hires is a win-win for all

– Retention and assimilation are much improved

– Sophomores are now targeted for multi-year internships

The Chemical Engineer of the Future in the Oil and Petrochemical IndustryThe Chemical Engineer of the Future in the Oil and Petrochemical Industry

Michael J. Dolan

May 7, 2004

Michael J. Dolan

May 7, 2004

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 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

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 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

Taking on the world’s toughest energy challenges.™