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Refining & Supply, Fuels Marketing, Lubricants & Petroleum Specialties, and Research
DOWNSTREAM STRATEGIES
ExxonMobil's downstream strategies position the company to be the industry leader, able to outperform competition under a variety of market conditions. These key strategies are:
- Develop best-in-class cost and operating performance
- Capitalize on refining integration with chemicals and specialties businesses
- Become the company and brands of choice
- Increase sales of high-value fuels, lubricants, and specialty products
- Maximize total retail site earnings
- Optimize portfolio and invest selectively
- Rapidly develop and deploy leading-edge technology
| Statistical Recap |
1999 |
1998 |
1997 |
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| Earnings (millions of dollars) |
1,227 |
3,474 |
3,088 |
| Refinery throughput (thousands of barrels per day) |
5,977 |
6,093 |
6,234 |
| Petroleum product sales (thousands of barrels per day) |
8,887 |
8,873 |
8,773 |
| Average capital employed (millions of dollars) |
28,033 |
27,495 |
28,312 |
| Return on average capital employed (percent) |
4.4 |
12.6 |
10.9 |
| Capital expenditures (millions of dollars) |
2,401 |
3,008 |
3,255 |
INDUSTRY CONDITIONS
- Worldwide fuels refining profitability in 1999 was depressed as crude costs rose faster than product prices in an increasingly competitive environment.
- Asia-Pacific profitability remained weak despite signs of an economic recovery.
- Fuels marketing margins weakened in most major markets.
- Lube basestock profitability fell, particularly in Asia-Pacific, as new capacity and reduced demand turned the region from shortage to oversupply.
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Downstream Leadership — The combination of Exxon's and Mobil's strong and complementary downstream businesses has created the premier refiner and marketer of petroleum products in the industry. By creating four separate companies with global scope and world-class scale, ExxonMobil expects to enhance its leadership position and improve returns on capital through cost reduction, profitable volume growth, and break-through technology.
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1999 Highlights
Safety performance was outstanding, with the sixth consecutive year of record employee safety performance.
Downstream earnings of $1.2 billion in 1999 declined by $2.2 billion versus 1998, reflecting the deterioration of margins in all downstream segments as higher crude oil costs were not fully passed on to the marketplace.
Worldwide petroleum product sales of 8.9 million barrels a day were the highest in 25 years.
Refinery throughput of 6.0 million barrels per day was slightly lower than 1998. Most of the decline occurred in Europe and Singapore in response to poor industry conditions.
Unit operating expenses were down by 1 percent as efficiency and productivity gains more than offset inflation and higher energy costs.
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