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Abundant U.S. shale gas supplies revitalizing chemical manufacturing National Lieutenant Governors Association July 19, 2013 Dwight Tozer Vice President, ExxonMobil Chemical Company 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. Chemical Industry Vital to U.S. Economy $770 billion 12 $39 billion 800,000 25 Annual sales – one of America’s largest industries Percent of U.S. exports Annual capital investment Industry employees Percent of U.S. GDP supported Source: American Chemistry Council, June 2013 2 Chemicals Demand Sees Significant Growth Quadrillion BTUs Energy Demand by Industrial Sector 250 Chemicals 200 150 Heavy Industry 100 50 Energy Industry Other 0 2000 ExxonMobil 2013 Outlook for Energy 2013 2020 3 2040 Natural Gas Abundant, Widespread 6.6 Global Natural Gas Resource Thousand trillion cubic feet 4.0 Unconventional Conventional 4.8 4.8 1.6 Europe 3.1 North America 2.8 Middle East World Total - 27.9 Africa Latin America Conventional Unconventional Source: IEA ExxonMobil 2013 Outlook for Energy 4 Russia / Caspian Asia Pacific Major Change in U.S. Feedstocks Gas/Crude BTU Ratio 1.2 Crude Oil / Gas Pricing $/bbl 125 1.0 100 • Major shift in energy market in mid-2000s US Gas:Crude $/T 75 0.8 0.6 • Crude driven by emerging market growth / global events 50 0.4 25 0.2 Brent Crude Oil 0 • Shale gas supply drives the shift in relative economics 0.0 1995 2000 2005 2010 Increased gas production provides advantaged ethylene feedstocks Source: ExxonMobil Estimates 5 Shale Gas Fuels Manufacturing Expansion 6 Economic, Jobs Growth from Shale Industry Projects ExxonMobil100 TX U.S. Project • $72 billion • 10,000 construction jobsinvestment • 1.2 million construction jobs • 3,800 other jobs 540,000 to other jobs • $870 million •annually regional economy • $14 billion added annual tax revenue • $90 million annual added tax revenues Texas Project Estimates: ExxonMobil Industry Project Estimates: American Chemistry Council 7 Opportunities to Realize Potential • Objective: Balanced approach to support economic & job growth • Policies to facilitate development: • Access: gas reserves on state and private land • State Regulations: Fit for purpose environmental framework • Permitting: Streamlined and consistent for investments • Trade: Support free markets for U.S. goods An energy revolution at the doorstep 8